Facebook buys 9.9% in Jio Platforms for Rs. 43, 574 Crores ( $ 5.7 Bn )

Facebook Inc. has bought a massive 5.7 Billion Dollar investment in Reliance Industries Jio Platforms for staggering Rs 43, 574 Crores.

Through the deal Facebook is looking at leveraging the reach of the Indian Oil giant telecom assets and Whats App,s 40 Crores local users to connect small business and consumers in Asia's third largest economy.

The agreement will help RIL to pay off part of the company loan and debt and it is rendering to become debt free in coming months hopefully by the end of this year.

It enables Facebook owned WhatsApp and Jio Mart to create an e-commerce giant that can potentially rival Amazon and Walmart in India.

Following the deal Reliance Industries shares at the Indian bourses jumped 10 Percent to close at the high levels of 1370 levels which is highest in two months.

As previously also suggested by our Team one should buy Reliance at the levels of 1100 to 1150 but now it has touched the levels of 1370 , still one should by buyer in RIL for the target of 1800 by the year end.

ICICI Bank stares at loss of 50 Million Dollars

ICICI Bank discloses exposure to Singapore crude oil trading firm a Singapore based Hin Leon Trading which has resulted in ICICI Banks share plunging to low of 330 at Indian bourses on Tuesday 21st April 2020 which is around 8% of the previous days closing.

Singapore firm which of which 75 Million Dollars was secured through inventories of oil  - the oil prices futures plunged to negative levels in US commodity trading.

The bank may have to increase its provisioning immediately to counter M2M losses of the trading firm. Hence we may see subdued result of the Bank in the first quarter result of the present financial year.

We still recommend buy in the stock for the target of 375 - 391-415 in coming 2 to 3 month of time. kindly note that there will not be any kind of dividend declaration by any of the India bank listed on the stock exchanges be it be private bank or public sector banks.

Crude Oil Price falls to 10 $ - Should your buy MCX Crufe Futures ?

International Crude oil prices have plummeted with price in Unites States falling to - 40 $ read it again minus 40 $ per barrel, which means if you buy you will get at zero price and also get 40 USD on your purchase.

Similarly the prices in India's MCX - Multi Commodity Exchange have also fallen to the levels of 1,324/- INR per barrel of oil ( Kindly note that each barrel of oil is almost equivalent to 159 Liters )

.With present gloomy situation of global economy and Corona virus pandemic all across there is severe fall in the price of oil prices with problem of storage coming to shore due to lack of demand because of lockdown all across planet.

So being a smart investor and trader you are regularly reading our blog - what should be your decision to make money Buy or not ?

We suggest that one should buy the May Futures of MCX Crude presently trading at 1,324 INR per barrel buy now one lot at cmp and one more if rate falls down to 1300/- and sell around 1600 levels which is likely to come in a week or two time and prices may settle at around 1700 INR per barrel.

So our final verdict buy crude futures now at MCX and make handsome profit in a week or so as prices will not fall below the present levels as supply and production will be curtailed and some developing nations may start to buy at this dirt cheap price.

Bank of Russia hints at Big rate cut to boost economy

Bank of Russia governor Elvira Nabiullina hinted at a bigger than normal interest rate cut when the central bank meets next week.

Bank of Russia usually favours moves of 25 Basis points ( 100 Basis point = 1 % ) at one point of time, but at ties opts for 50 basis point change in the rates.

Due to Covid -19 fears there has been approximately USD 2 Billion dollars exit of funds from Russian economy ( Note that USD 2 Bill = 15, 000/- Crores Indian Rupees ).

Still analysts see and feel that its a good time to invest in the Russian economy and its stock market as there is lots of scope for its growth as compared to the developed economies of Americans or Western Europeans countries.

HDFC Bank Q4 Profit up 17% INR 6,927 Crores

India's Largest Bank by Market Capitalisation the bellwether HDFC Bank has reported better than expected result for the quarter ended March 2020.

Net Profit is up by 17% to the levels of Rs. 6,927/- Crores whereas for the complete year 2019 -2020 the total profit is at mind boggling 26,257/- Crores which itself is higher than 24% for the previous financial year 2019 which was 21,078 Crores.

The Bank informed that there will not be any divided decleration as per RBI directive due to Covid 19 pandemic situation.

The total deposit of the bank stands at 11.47 Lakh Crores where as the loans outstanding at 9.93 Lakh Crores.

The NPA declined to the levels of 1.26% from the previous year figure of 1.36%.

The result should be seen as an eye opener for the Public Sector Banks of our country which are running in losses and draining out the tax payers money. It should be noted that the Market Capitalisation of HDFC Banks stands much higher than that of all the Public sector banks market cap taken together.

The shares of HDFC Bank closed on Friday 17th April 2020 at Rs 910 up by 3% from the previous day close.

What should investors do now with HDFC Bank shares ?

Our team recommends a buy in the stock of HDFC Ban with the target of 1200 by June end and our year end targets stands at 1500/- The non decleration of dividend will result in price increase of the stock as after the removal of ban by Reserve Bank of India they should be giving very high divided in the year 2021 may be around Rs 50 per share according to our estimates.