India Equity Analyst - Fundamental & Thematic, Beat the Street

Sudarshan Bhandari

India Equity Analyst - Fundamental & Thematic

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Equity Bottom-Up

<ul>
<li>SEBI has asked BSE to pay regulatory fees on options trading based on notional turnover instead of premium turnover</li>
<li>The impact of this would 10-20% on earnings in short term</li>
<li>The bigger question lies ahead what BSE will do to offset the impact and grow its market share in derivative trading</li>
</ul>


SEBI has asked BSE to pay regulatory fees on options trading based on notional turnover instead of premium turnover
The impact of this would 10-20% on earnings in short term
The bigger question lies ahead what BSE will do to offset the impact and grow its market share in derivative trading


External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

External broker reports(aggregated public sources)

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>BSE reported a strong quarter, with 31% QoQ revenue growth and healthy margins</li><li>The robust performance was on account of higher transaction revenue, supported by scale-up in derivatives volume and strong cash volumes</li><li>Post the regulatory setback, BSE had to take an immediate price hike of ~35% to offset the impact of higher regulatory costs</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

BSE reported a strong quarter, with 31% QoQ revenue growth and healthy marginsThe robust performance was on account of higher transaction revenue, supported by scale-up in derivatives volume and strong cash volumesPost the regulatory setback, BSE had to take an immediate price hike of ~35% to offset the impact of higher regulatory costsContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

BSE (4QFY24): Limited Scope for Further Rerating. Downgrade to REDUCE

<ul><li>As per the letter dated 26th April 2024, SEBI has asked BSE to pay the regulatory fee on the annual turnover considering “notional value” in the case of options contracts</li><li>BSE was paying the regulatory fee based on annual turnover considering the premium turnover of options for the last many years</li><li>The definition of ‘annual turnover’ is not very clear as per the ‘exchanges and clearing corporations regulations 2018’ but in the ‘SEBI stockbroker regulation 1992’, it clearly states that the ‘turnover’ is calculated based on the premium of options and notional for options contracts that are exercised</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

As per the letter dated 26th April 2024, SEBI has asked BSE to pay the regulatory fee on the annual turnover considering “notional value” in the case of options contractsBSE was paying the regulatory fee based on annual turnover considering the premium turnover of options for the last many yearsThe definition of ‘annual turnover’ is not very clear as per the ‘exchanges and clearing corporations regulations 2018’ but in the ‘SEBI stockbroker regulation 1992’, it clearly states that the ‘turnover’ is calculated based on the premium of options and notional for options contracts that are exercisedContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<ul><li>BSE has attained a 20/7% notional/premium market share, largely driven by the rising popularity of its derivatives contracts</li><li>Among these, the SENSEX contract has matured, commanding ~40% of the market share, while the BANKEX is in its build phase, currently holding a 12% market share</li><li>We believe the derivative growth for BSE will continue to be led by (1) the scaling of the BANKEX contract, (2) the go-live of large discount brokers, (3) a higher volume of algo and proprietary traders, (4) an increase in active UCCs, and (5) greater participation of FPIs</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

BSE has attained a 20/7% notional/premium market share, largely driven by the rising popularity of its derivatives contractsAmong these, the SENSEX contract has matured, commanding ~40% of the market share, while the BANKEX is in its build phase, currently holding a 12% market shareWe believe the derivative growth for BSE will continue to be led by (1) the scaling of the BANKEX contract, (2) the go-live of large discount brokers, (3) a higher volume of algo and proprietary traders, (4) an increase in active UCCs, and (5) greater participation of FPIsContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/adani-transmission-ltd" target="_blank" data-smartkarma-citation="entities:26712:1" rel="noopener">Adani Energy Solutions</a>, <a href="https://www.smartkarma.com/entities/kalyan-jewellers" target="_blank" data-smartkarma-citation="entities:29714:1" rel="noopener">Kalyan Jewellers</a>, <a href="https://www.smartkarma.com/entities/alkem-laboratories-ltd" target="_blank" data-smartkarma-citation="entities:26928:1" rel="noopener">Alkem Laboratories</a>, <a href="https://www.smartkarma.com/entities/oberoi-realty-ltd" target="_blank" data-smartkarma-citation="entities:7188:1" rel="noopener">Oberoi Realty</a>, <a href="https://www.smartkarma.com/entities/bombay-stock-exchange" target="_blank" data-smartkarma-citation="entities:23694:1" rel="noopener">Bombay Stock Exchange</a> and <a href="https://www.smartkarma.com/entities/voltas-ltd" target="_blank" data-smartkarma-citation="entities:19924:1" rel="noopener">Voltas</a> have moved higher recently and that could result in the stocks being added to global passive portfolios.</li>
<li>Four of the names are high probability while two of the names could be added depending on the day of the week chosen.</li>
<li>We take a look at the positioning on the stocks and recommend pair trades to reduce market risk while trying to capture alpha.</li>
</ul>



Adani Energy Solutions, Kalyan Jewellers, Alkem Laboratories, Oberoi Realty, Bombay Stock Exchange and Voltas have moved higher recently and that could result in the stocks being added to global passive portfolios.
Four of the names are high probability while two of the names could be added depending on the day of the week chosen.
We take a look at the positioning on the stocks and recommend pair trades to reduce market risk while trying to capture alpha.


India: Positioning on Stocks with Potential Passive Inflows in November

India

Bombay Stock Exchange Limited provides market for trading in equity, debt instruments, derivatives, and mutual funds. The Company offers services including risk management, clearing, settlement, market data services, and education. Bombay Stock Exchange serves customers in India. ... More

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Bombay Stock Exchange (BSE IN)

BSE - A Regulatory Accident?

BSE - Regulatory Fee Hike Impact Is a Short-Term Overhang In Long-Term Multifold Growth. Impact on future business strategies and treatment of this...

Sudarshan Bhandari

BSE (4QFY24): Limited Scope for Further Rerating. Downgrade to REDUCE

BSE reported a strong quarter, with 31% QoQ revenue growth and healthy marginsThe robust performance was on account of higher transaction revenue

HDFC Securities

BSE - Regulatory Setback. Maintain BUY

As per the letter dated 26th April 2024, SEBI has asked BSE to pay the regulatory fee on the annual turnover considering “notional value” in the...

HDFC Securities

BSE: Gaining Strength. Maintain BUY

BSE has attained a 20/7% notional/premium market share, largely driven by the rising popularity of its derivatives contracts

HDFC Securities

India: Positioning on Stocks with Potential Passive Inflows in November

There are 4 high probability inclusions in Nov while 2 are low probability. Flow will be US$220m-305m, impact is 0.9-22x ADV and 4.4-42.5x delivery...

Brian Freitas

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52-week Range

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