Change in rules governing RBI reserves, Yes Bank shares likely to test new lows; all this and more on Moneycontrol Pro

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Moneycontrol Pro offers curated markets data, independent equity analysis, insights into investment styles and exclusive trading recommendations. In sum, all the information you need for wealth creation.

How the rules governing RBI reserves have changed over the years

The Jalan committee report to decide the transfer of RBI’s surplus to the government has some fascinating stats. It says that between 1997 and 2003, the surplus transferred to the government was 53.1 percent of net income. But between 2014 and 2018, as much as 90 percent of the surplus was handed over to the government. Put another way, in the last twenty years 33.6 percent of the surplus went into risk provisioning, in the last ten years 26.1 percent of the surplus was used for making risk provisions, while in the last five years only 10 percent of the surplus went into risk provisioning. Is risk decreasing in international markets? Click here to understand the implications of these numbers.

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This contract manufacturer is a play on Make in India theme

Consumer durables manufacturer Dixon Technologies reported a stellar financial performance in Q1 FY20, thanks to new client additions and efficient operations. The outperformance comes at a time when the economy is slowing and majority of Indian companies have reported subdued numbers. Unsurprisingly, the stock moved up sharply after the June quarter numbers were reported and is now trading at 32 times FY20 estimated earnings. While the company has immense growth potential, the risk of client concentration (Xiaomi revenue share is nearly 30 percent) outweighs rewards at current valuations. Does it make sense to buy this stock? Click here to read more.

Picks from our technical analysts

Yes Bank: The share prices of his bank is likely to test new lows after its bonds have been downgraded to junk. Click here to read how to trade its futures.

Tata Steel: The shares of this steel company show a bearish trend. Click here to learn how to trade Tata steel options profitably.

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