The document discusses moratorium rates on retail loans in India. It notes that fears of large-scale defaults on banks' retail lending books may be overblown according to Macquarie analysts. Based on feedback from HDFC and other Indian banks, the total loan book under moratorium has declined from 25-30% in late May. For HDFC, the proportion of retail loans under moratorium fell to 7% as of June 15 from 21% in May. The decline is attributed to greater clarity on additional liability for borrowers and some banks switching from opt-out to opt-in moratorium policies.

1. YEAR -1 | Vol 1 | Issue 43 | Ludhiana | Price Rs.2/- Wednesday 24 June, 2020
book stayed largely flat at around 40%,
Macquariesaid.
However, banks remained cautious
about reading too much into the lower
moratorium rates, the analysts said.
Customersarestillabletooptforthedeferrals
until the end of August. And despite the drop
seen with retail lending, the moratorium ratio
onHDFC’scorporate
It’s too early to calculate the new figure,
but at HDFC the proportion of the retail loan
book subject to deferral fell to 7% as of June
15from21%inMay,thenotesaid.
“Hence, we believe worries about large-
scale retail defaults are exaggerated,” the
Macquarieanalystswrote.
The Reserve Bank of India has allowed
borrowers to delay monthly payments on
their loans until the end of August, to
provide some relief from a prolonged
lockdown that has shuttered businesses
and left millions jobless. Read about
pressure on banks’ capital from the loan
moratoriums A key reason for the decline
in loans subject to moratorium was the
greater clarity on the additional liability
borrowers will face, Macquarie said. Also,
some banks have switched from an “opt-
out” to an “opt-in” policy with the loans, it
added.
Another factor is the lower rate of job
lossesamongwhite-collarstaffthanhadbeen
feared, which showed through in the salary
payments into their bank accounts. “Two
major banks who have a large number of
salary accounts indicated that the salary
uploads into the accounts dipped slightly in
April but were stable in May, and they have
notseenanymajordecline,”Macquariesaid.
Under the new arrangement,
borrowers have to request the payment
deferral, rather than being automatically
includedunlesstheyoptout.
The volume of Indian loans subject to
moratorium is dropping, suggesting that fears
about large-scale defaults on banks’ retail
lending books may be overblown, according
to analysts at Macquarie Group Ltd. Based on
soundings with home lending specialist
Housing Development Finance Corp. and
Indian banks, “the unanimous feedback has
been that there has been a decline in the total
loan book under moratorium from the
25–30% numbers reported as of end-May,”
analysts led by Suresh Ganapathy wrote in a
note.
Brief Headlines:
PG Electroplast Q4 | Loss at Rs 2.91 cr versus profit at Rs 6.34 cr, revenue at Rs 182.24 cr versus Rs
169.92crYoY.
Bharat Road Network | The company and Cube Highways decided not to pursue the transaction (for
buyingholdinginGhaziabadAligarhExpresswayPrivateLimitedfromCubeHighways)anyfurther.
Aster DM Healthcare Q4 | Profit at Rs 131 cr versus Rs 209.3 cr, revenue at Rs 2,301.4 cr versus Rs
2,201crYoY.
JMCProjects|CompanysecurednewordersofRs938crore.
Gujarat Mineral Development Corporation Q4 | Profit at Rs 40.6 cr versus Rs 123.4 cr, revenue at Rs
412crversusRs530.5crYoY.
EIHAssociatedHotelsQ4|ProfitatRs10.74crversusRs18.19cr,revenueatRs70.62cr
versusRs85crYoY.
IFCI|BrickworkreaffirmedratingoflongtermdebtinstrumentNCDofIFCIatBBB+/Negative.
CGPowerandIndustrialSolutions|AdityaBirlaSunLifeMFsold2.01%stakeincompanyonJune19.
Mahindra CIE Automotive | Participaciones Internacionales Autometal Dos Sociedad Limitada
bought 52,32,000 shares in the company at Rs 120.01 per share. However, Sundaram Mutual Fund
sold43,00,000sharesatRs120pershare.
Shriram Transport Finance | CARE reaffirmed its ratings in respect of non-convertible debentures,
subordinateddebenturesandcommercialpapersandreviseditsoutlooktoNegativefromStable.
Quess Corp | Promoter Ajit Abraham Isaac bought 15,000 shares in company on June 22, increasing
staketo12.20percent.
Wipro | Company received infrastructure modernization and digital transformation contract by
German-basedfirmE.ON.
Wipro | Company received infrastructure modernization and digital transformation contract by
German-basedfirmE.ON.19/26
Balrampur Chini Mills | Company approved share buyback of upto Rs 180 crore and fixed July 3 as
record date for determining the eligible shareholders to participate in the buyback offer. Profit at Rs
241.44crversusRs288.3cr,revenueatRs1,740crversusRs1,327.33crYoY.
BergerPaintsQ4|ProfitatRs103.72crversus Rs110.78cr,revenueatRs1,354.84crversus Rs1,472
crYoY.
incompanyatRs37.65pershare.
IIFLSecurities|SatpalKhattarsold30,00,000sharesinthecompanyatRs39pershare.
TourismFinanceTourismFinanceCorporation|BeaconTrusteeshipLimitedsold5,57,271shares
Narayana Hrudayalaya | SBI MF, through its SBI Healthcare Opportunities Fund, acquired 66,000
sharesinthecompanyonJune19,takingtotalfundhousestaketo4.9930percent.
Bank of Baroda Q4 | Profit at Rs 507 cr versus loss at Rs 8,875 cr, net interest income at Rs 6,798 cr
versusRs6,473crYoY.
Honda Siel Power Products Q4 | Profit at Rs 4.85 cr versus Rs 10.75 cr, revenue at Rs 195.67 cr versus
Rs230.48crYoY.
Asian Paints Q4 | Profit at Rs 461.89 cr versus Rs 471.65 cr, revenue at Rs 4,635.6 cr versus Rs
4,991.50crYoY.
CARE Ratings | Bajaj Holdings & Investment and Bajaj Alianz Life Insurance Company acquired 0.63
percentstakeincompanyduringMay1toJune17,takingtotalstaketo5.47percent.
Adani Power | Company sought shareholders nod for its Rs 3,264 crore delisting proposal through
postal ballot. Adani Power issued a notice for voluntary delisting of equity shares of the company
from BSE Limited and National Stock Exchange of India Limited, a regulatory filing stated. The
company has worked out the floor price of Rs 33.82 per share to buy 96.53 crore equity shares with
thepublicforaboutRs3,264crore.
Reliance Infrastructure | Chairman Anil Ambani on June 23 said the company will be completely
debt-freethisfinancialyear.Rinfra,whichissittingonadebtofoverRs6,000crore,hasbeenworking
towards monetising its assets to reduce debt. Addressing the company's 91st annual shareholders
meetingthroughanonlineplatform,Ambanisaid,"RInfrawillbeadebt-freecompanythisyear."
IFCI|Brickworkreaffirmedratingoflong-termdebtinstrumentNCDofIFCIatBBB+/Negative.
Finolex Industries Q4 | Profit at Rs 58.66 cr versus Rs 97.39 cr, revenue at Rs 766.11 cr versus Rs
964.24crYoY.
StridesPharmaScience|LifecellInternationalPrivateLimitedsold9,60,000sharesincompany
atRs450.08pershare.3/26
companyatRs450.08pershare.
StridesPharmaScience|LifecellInternationalPrivateLimitedsold9,60,000sharesinthe
Fears About India Retail Loan Defaults
Overblown, Macquarie Says
Source: Bloomberg Quint
In the last two articles we
discussedcoveredcall,sellinga
put for entering market and a
covered put. In this article we
will discuss a little more
complex topic that is a
syntheticfuture.
We have discussed that buyer of a call
option has the right to buy a stock at or
above a price known as strike price, and we
havealsodiscussedthatsellingaputoption
means that the seller of the put option has
the obligation to sell the stock at or below a
particular price thus if a trader buys a call
optionshe willgain ifthe market movesup
and seller of put option is under obligation
todeliversharesbelowacertainprice.
Now let us understand a real life example,
let us assume Mr. X buys a call option of
strikeprice
Futureprice=strikeprice+calloption-put
option
While creating synthetic future the
following points should be considered
Tradecallandoutsofsamestrikeprice
Options and futures should be of same
expiry
Mr. x buys above call option and sells
aboveputoption.Letuscheckthepayouts.
1.Whatisasyntheticfuture?
A synthetic future is a position created by
using options. But before understanding
synthetic future let us recall a future. We
understand this using an example. Let us
Assume that Mr. X buys a future of reliance
at Rs. 1609 and the lot size is 500, and the
price of Reliance future moves to Rs. 1625
in that case the Mr. X will gain Rs. 16 per
share and the total mark to market profit
would be Rs. 8000( 16*500 ), in case the
price of Reliance comes down to 1600 Mr. x
will lose Rs. 9 per share and total loss would
be Rs. 4500 (9*500). This means that the
payoff graph would be a linear graph , with
each Re. 1 positive movement the trader
will earn Rs. 500 and with every 1
rupee fall the trader will lose Rs.
500.
N o w
w e
should
discuss what is a synthetic future, we have
discussed that options is a very vast,
dynamic and also a versatile produce and
we can create also state all type of pay off
graphs using options. Thus combination of
optionscallsandputsinsuchawaythatpay
off graph of future is created is called a
synthetic future. In light of this let us
discuss how we can create a long synthetic
future.
1600 of Reliance and sells a put option of
strikeprice1600ofreliance.
3.Whydoweneedasyntheticfuture?
CMP of reliance put option 1600 strike
priceon17June2020is38.5
Mathematicallyitcanbewrittenas
2. How to create a synthetic
future?
CMP of Reliance future is 1609 on 17 June
2020
CMP of reliance call option 1600 strike
priceon17June2020is47.5
Thequestionarises
Syntheticfuture
1609=1600+47.5-38.5
We will discuss this arbitrage product in
nextarticle.
Most importantly it can be used as an
arbitrage product like buying a synthetic
futureandsellingafuture.
There may be a condition where one
particular future may get illiquid or the
client wants to create a reverse position of
what he is maintains in futures market
without booming profit or loss in future
market or a situation where an investor
wants a payoff equal to future but do not
want to pay or receive mark to market loss
in ledger on daily basis and he can maintain
margininformofstocks.
It is a classical case of future is exactly
equaltosyntheticfuture
Whydoweneedsyntheticfutures?
Scenario 2. Reliance closes at 1600 on
expiry
Scenario 1. Reliance closes at 1625 on
expiry
DERIVATIVES DECODED
by Nitin Shahi
EPFO adds 1.39 crore subscribers in last two financial years
E m p l o y e e s ' P r o v i d e n t F u n d
Organization - EPFO has added one crore 39
lakh subscribers in last two financial years.
Ministry of Labour and Employment in a
statement said that net addition to subscriber
base has gone up from 61.12 lakh in 2018-19
to 78.58 lakh in 2019-20, registering a 28 per
cent growth. The Ministry said, recently
published provisional payroll data by EPFO
highlights the ever growing trend of
increasing subscriber base for EPFO, since the
collation of payroll data from September
2017. The Ministry said, the subscriber
growth is on account of lower exits and higher
rejoiningbyexitedmembers.
The tax free returns of 8.5 per cent for
2019-20, which is one of the highest among
other social security instruments and fixed
deposits, has helped EPFO reduce its exits for
2019-20 by around 10 per cent as compared
with previous year.The Ministry said, age wise
analysis during 2019-20 indicates that for the
age group 26 to 28, 29 to 35 and beyond 35,
the net enrolment has increased by more
than50percent comparedtopreviousyear.
Rapid improvement in quality of
service delivery in online mode has also
attracted the workforce of the country
towards services of EPFO. It also said that
enrolment of female workers has gone
upbyaround 22percent during2019-20
compared to previous years indicating
greater female participation in formal

2. Wednesday 24 June, 2020
Owner & Publisher FINDOC CAPITAL MART PRIVATE LIMITED, Printed by Rakesh Kumar Prop. of Bhagotra Printers , 111 Sukhdev Market, Back Side Kailash Cinema,
Nr. Petrol Pump, Civil Lines, Ludhiana and Published at 5th Floor, Kartar Bhawan, Nr. PAU Gate No.1, Ferozepur Road, Ludhiana. By Nitin Shahi, Editor of Findoc Prime.
STOCK REPORT
Derivative Analysis
Finance Ministry said, the
interventions by Government for Micro,
Small and Medium Enterprises, MSMEs,
havebeengainingrapidtraction.
The Scheme was launched by the
Government to provide relief to the
MSME sector by incentivizing member
lending institutions to provide additional
credit of upto Rs. three lakh crore at low
interest to enable MSME to meet their
operational requirements during Covid-
19crisis.
Out of which more than 35,000 crore
havealreadybeendisbursed.
The top lenders under the Scheme
are SBI, HDFC Bank, Bank of Baroda,
PunjabNationalBankandCanaraBank.
The Ministry said, this has helped 19
lakhMSMEsandotherbusinessesrestart
theirbusinessespostthelockdown
Representa
tional PicPublic
and Private
Sectors banks
h a v e
s a n c t i o n e d
loans worth
over 79 thousand crore rupees so far
under Emergency Credit Line Guarantee
Scheme.
While the holding touched a record
high of 177.5 billion dollars in February,
the same was drastically reduced in
March. The exposure stood at 164.3
billiondollarsinJanuary.AttheendofApril,
Japan remained the country with the
maximum exposure at 1.27 trillion dollars,
followed by China at 1.1 trillion dollars and
theUKat368.5billiondollars.
AIRIndia has become the 12th largest
holder of US government securities at the
end of April, with holding worth 157.4
billion dollars. The data from the US
Treasury Department showed that after
significantly reducing the exposure in
March to 156.5 billion dollars, India
marginally hiked the holding by 0.9
billiondollarsto157.4billiondollarsthe
nextmonth.
India becomes 12th largest holder of
US govt securities at April end
Public & Pvt Sectors banks sanction loans worth
over Rs. 79,000 cr so far under ECLGS

3. Wednesday 24 June, 2020
The wisdom tooth
For a person to be a successful
person he needs to be humble and
approachable, he needs to listen a
lot, invites inputs from every one,
admits mistakes. These actions
increases engagement, allows the
organisation to understand the
limitations and inculcates habit of
eagerness to learn. The successful
leaders imbibes these habits slowly
and form great team and set very
high examples of humility and they
are liked by every team mate and
their approachability and eagerness
to solve any issue makes them a great
leader.
Seekingfeedback
Few real life examples set by
successful persons now are regarded
asgreatleaders.
Practisinggratitude.
Former President of India Abdul
Kalam azad, is an a virtue of humility
and has raised the standards of an
idol leader and to the future
Presidents. He entered the
Rashtrapathi Bhavan with just 2
suitcasesandlefttheBhavanwiththe
same number of belongings. When
his family had visited New Delhi and
stayed in the Rashtrapthi bhavan, Mr.
Kalam, settled a bill of 2.5 lakhs, for
their stay and food, out of his
earnings. Some people might get a
chuckle out of this one, considering
Jobs was known to have a certain
degree of arrogance, but he also had
the capacity to admit when he was
wrong and change his opinion
entirely.
Guy Kawasaki, former chief
evangelist at Apple who worked
closely with the tech visionary, told
CNBC Make It that one of the most
important lessons he learned from
Jobs “is that changing your mind,
changing what you’re doing and
reversing yourself at an extreme is a
sign of intelligence.” When Jobs first
introduced the iPhone in 2007, for
example, it was a closed system — no
one outside of Apple could create an
app for it. A year later, Jobs made a
complete “180-degree reversal,”
Kawasaki said. He opened the system
to the public after realizing how
much more the device could offer
customers with apps written by
anyonewithagoodidea.
Successful leaders cultivate these
simple habits to adopt humility Start
activelistening
Adoptingmindfulness
Scheme Name AuM (Cr) 2Y 3Y 5Y 10Y
ICICI Prudential Bluechip Fund - GrowthLarge Cap Fund 21,765.71 -2% 3% 6% 10%
SBI Blue Chip Fund - GrowthLarge Cap Fund 19,632.17 -3% 1% 5% 10%
Aditya Birla Sun Life Frontline Equity Fund - GrowthLarge Cap Fund 16,026.88 -4% 0% 4% 9%
Mirae Asset Large Cap Fund - GrowthLarge Cap Fund 15,174.51 0% 4% 8% 12%
HDFC Top 100 Fund - GrowthLarge Cap Fund 14,467.85 -3% 0% 4% 8%
Axis Bluechip Fund - GrowthLarge Cap Fund 13,003.39 4% 9% 8% 10%
Large Cap Funds
ITC
Buy 188-192 SL 184 Tgt 205
Marico
Buy 337-339 SL 330 Tgt 360
IGL
Sell 445-450 SL 465 Tgt 420
Kotak Bank
SELL 1345-1350 SL 1380 Tgt 1300
Results Preview
( Value In millions)

4. Wednesday 24 June, 2020
Index View
Nifty Bank
Resistance Levels - 22500-22700
Support Levels - 20300-20500
Nifty
Resistance Levels - 10500-10650
Support Levels - 9000-9100
Gold
Buy Above 48000 SL 47600 Tgt 49500
Nifty IT
Resistance Levels - 15600-15800
Support Levels - 14000-14200
Crude Oil
Sell On Rise Near 3100 Levels SL 3150 Tgt 2900-2800