Wise Investing

  The cement production is expected to increase by 10% to 12% and the utilization is expected around 65% in FY22 . As per ICRA, in FY22, cement production in India is expected to increase by 12% YoY, driven by rural housing demand and the government's strong focus on infrastructure development. INTRODUCTION India is the second largest producer of cement in the world. It accounts for more than 7% of the global installed capacity. India has a lot of potential for development in the infrastructure and construction sector and the cement sector is expected to largely benefit from it. Some of the recent initiatives, such as development of 98 smart cities, is expected to provide a major boost to the sector. Aided by suitable Government foreign policies, several foreign players such as Lafarge-Holcim, Heidelberg Cement, and Vicat have invested in the country in the recent past. A significant factor that aids the growth of this sector is the ready availability of raw materials for making ce...

Hello friends  Did you realize that a one-lakh rupee investment in Nifty last year would today be worth Rs 99,000? That's precise. The latest sell-off in global shares has shattered all of Nifty's year-to-date gains. Despite a minor improvement in May, retail inflation remains significantly above the Reserve Bank of India's (RBI) tolerance ceiling of 6%. A twin whammy of rising commodity prices, particularly for oil, and a record-low Rupee has only exacerbated the situation. Experts believe that the RBI would raise interest rates even higher to keep inflation under control, which would be a tremendous disadvantage. The United States is facing the same issue but on a much larger scale! The short-term US 2-year Treasury yield surpassed 3% for the first time since the Global Financial Crisis of 2007. Rising short-term rates reflect sour long-term market sentiment, implying that investors are losing faith in the US market's prospects. This is a traditional indication of a r...

  The Most Profitable Business on Earth Today! If you are thinking it’s lithium mining, then you are wrong. It’s the oil refining business that is minting a crazy amount of profits today! Let us understand! What are 3-2-1 crack spreads? The crude oil is refined into different products like gasoline, fuel oil, diesel, etc. by the refining companies. It’s these end products that we use in our daily lives. To evaluate the profitability of the refining business, analysts calculate 3-2-1 crack spreads. These are calculated as: 1) Buying 3 barrels of crude oil 2) Selling 2 barrels of gasoline 3) Selling 1 barrel of fuel oil The higher the spreads, the more profitable the refining business. What has happened to the 3-2-1 crack spreads? Lately, the 3-2-1 crack spreads have skyrocketed to all-time high levels of $55-60 even though the crude oil has been in a tight range of $100-$120. What are the reasons for the rising spread? Market participants say that multiple shutdowns o...

 Hello friends  Yet another interesting topic for you  PRICE OPEN INTEREST INTERPRETATION Increase in Price Increase in OI Indication of new money coming and indicates the further continuance of uptrend Increase in Price Decrease in OI The increase in price is due to short covering of positions Decrease in Price Increase in OI The decrease in price is due to newly built short positions and further weakness is predicted Decrease in Price Decrease in OI Traders unwinding their long positions by selling existing contracts Option Chain Nifty – Interpretation of Open Interest: How to interpret “Nifty Option Chain: Open Interest | Put Call Ratio Tracker”? In Summary: High PCR means the market is bullish because the option writers are inclined to write puts. Low PCR means bearish sentiment – because option writers are not willing to write puts but instead write calls. The put-call ratio (PCR) is a popular tool specifically designed to gauge the overall sentiment (mood) of the ma...

Hello friends I hope you all are doing well yet another interesting topic  How to save your portfolio against the falling rupee? The Indian rupee has depreciated nearly 4% this year. While the overall impact of a weaker rupee is negative on the equity market, some sectors stand to benefit from this fall  The Reserve Bank of India’s rate hike in May, in order to be in line with the global market sentiment, has pushed the domestic currency to record low levels. The rupee has skidded over 2 percent against the US dollar in May, seeing its worst monthly decline in 2022. In comparison, the S&P Sensex and Nifty 50 tanked over 3 percent each during the period. Weak economic data, rising interest rates, soaring inflation, and the exit of foreign investors are some of the key triggers behind the rupee’s meltdown.  That is because a depreciating rupee does not bode well for foreign investors as returns reduce from Indian investments, prompting their departure. According to data...