Beyond Markets by blinkX
Edition #3
Do you still play games?
Welcome back! We’re glad to present the third edition of Beyond Markets! We’re going to be talking about games and glory! From Cashback catch to the catch that won 1.4 billion hearts. We are covering it all.
Topics:
Events this week:
Online gaming companies in the GST hot-seat: Cashback controversy
Online gaming platforms are in hot water for allegedly using cashbacks to dodge GST. The Directorate General of GST Intelligence (DGGI) is on the case, summoning big names like Delta Corp (Adda52) to explain their cashback practices since October 2023.
The wallet shuffle: Players juggle three types of wallets: deposit, payment, and promotional. The DGGI found cashbacks funneled into promotional wallets, possibly avoiding the 28% GST on full betting amounts. Legal experts argue that once taxes are paid on the total amount, cashbacks shouldn't face additional GST.
Tax troubles and courtroom dramas: With ?1.14 lakh crore in pending tax demands and cases piling up in courts, the gaming industry is desperate for clarity and relief. Will they get it, or will the taxman score a win? Stay tuned!
Mazagon Dock Shipbuilders joins the elite Navratna club! But what does it mean?
Mazagon Dock Shipbuilders has become the latest company to achieve the prestigious Navratna status. This recognition by the Department of Public Enterprises comes with substantial benefits and autonomy, allowing the company to invest up to ?1,000 crore without central government approval. They can also invest up to 30% of their net worth annually within this limit. The Navratna status allows Mazagon Dock to form JVs, alliances, and establish subsidiaries abroad, providing greater flexibility in their operations.
Achieving this status is no small feat—it requires meeting strict financial criteria over three consecutive years, including a net profit exceeding ?5,000 crore annually, an average annual turnover of ?25,000 crore, or an average annual net worth exceeding ?15,000 crore.
To be eligible for Navratna status, a CPSE must also:
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Performance Indicators:
This marks a new era for Mazagon Dock Shipbuilders and it only strengthens the reputation and reliability of our country’s Public Sector Enterprises
We have saved you the effort and compiled the complete list of all the CPSE's belonging to their respective 'Ratna' statuses as mentioned in the official CPSE list released on 30th April 2024. Save this for future reference!
Investing and cricket – The perfect match
India's T20 World Cup victory after 17 years is the perfect backdrop to explore the uncanny parallels between the stock market and cricket.
Building your team (or portfolio): Just like a cricket team needs a strong line-up to win, an investment portfolio needs diversity to thrive. Rohit Sharma, Virat Kohli, Hardik Pandya, Suryakumar Yadav, batted well. Kuldeep Yadav and Bumrah were top notch bowlers. Akshay and Suryakumar’s catch is one for the history books but both him and Akshay Patel were excellent at fielding — each played their part. That is how ideal balanced portfolio with should be.
The irony of performance: Mumbai Indians (MI) languished at the bottom in the IPL, but four of its players helped clinch the World Cup. This proves the adage, "Form is temporary, class is permanent." In markets, too, quality stocks might dip, but they always bounce back. Remember Virat Kohli’s comeback? His 76 runs off 59 balls mirrored the market’s resilient stocks.
Knowing when to hang up the boots: Our T20 champions—Rohit, Virat, and Jadeja—retired from T20, focusing on Test and One-Day matches. Similarly, knowing when to sell high-performing stocks is key. Even the best assets have a peak value, and selling at the right time is crucial.
Bumrah’s strategy - Consistency is key: Jasprit Bumrah’s game plan was clear - take a wicket or prevent a boundary. In his 8 games, he took more wickets than he conceded boundaries. This mirrors a strategic investment approach—consistent performers might be rare, but they’re where true value lies.
Adapting to the pitch (Market): Just like cricket pitches vary, so do market conditions. India’s strategy of playing three spinners in the World Cup is just like adjusting your portfolio. Normally whenever our team travels abroad we would play with 4 pace and 1 spinner OR 3 Pace and 2 spinners. You have to adjust your portfolio based on the market conditions Sometimes it's all about momentum stocks; other times, it’s value stocks. Adaptability is the name of the game.
Singles and boundaries - The balance: Rohit Sharma’s 39 boundaries weren’t the only contributors to India’s win—singles and doubles played a crucial role too. In the stock market, it's not just about grabbing the multi-baggers. Regular, smaller gains and dividends can build up to significant returns over time. If you make sure that you are on the pitch long enough it is likely that you will hit more boundaries eventually.
Suryakumar Yadav’s catch - The power of optimism: That historic catch by Suryakumar Yadav? A masterclass in optimism and presence of mind. In investing, maintaining optimism during market crashes can lead to substantial long-term gains. Believe in your picks, just like Surya believed in himself.
Practice makes perfect - Research in investing: Our fielding coach T.K. Dilip highlighted Suryakumar’s daily practice of 50 catches post match. Practice makes perfect, in fact a very similar catch was caught by Harleen Deol against England not so long ago. This mirrors the importance of research in investing. Just as athletes perfect their skills, investors should immerse themselves in research. Tips might get you through a few games, but thorough research builds lasting confidence and sustainable success.
Never give up - The last ball miracle: Remember when South Africa’s winning probability was 97%? Yet, India pulled off a win. In investing, patience pays off. While trading might require quick exits, investing often rewards those who stay till the last ball. You never know when a stock will rebound.
Celebrating success: The BCCI's cash prize of ??125cr for the team is a reminder of the rewards that await patience and strategy. The markets, like cricket, offer bountiful returns to those who play smart and stay the course.
So, as you revel in India’s cricket triumph, channel that excitement into your investing strategy. Who knows, with the right moves, your portfolio might just hit a six!
Infotrend: Gaming
That's all for this edition of Beyond Markets by blinkX! Let us know in the comments what you think and what would you like us to cover in the next edition? Have a great week!