ICICIdirect.com Investor...

ICICIdirect.com

Investor Session

Sectoral View

Agenda

Global PictureII

Market Scenario

V

I

Sensex EarningsIV

Domestic EconomyIII

Model PortfolioVI

Market scenario

• The Indian market staged a strong recovery since March, 2016 with Sensex rallying ~22% from theFebruary, 2016 lows of 23000.

– Recovery was led by strong domestic cues such as a pragmatic Budget, strong monsoon, increasingpossibility of passage of GST and healthy Q4FY16 earnings show. Furthermore, fears of a deferralin the Seventh Pay Commission have been put to rest

• Globally, sentiments have shored up as the commodity decline has abated.

– Along with this, central banks globally are more accommodative after the Brexit shocks

– Risk on sentiment is accompanied by the strong price performance trend of safe havens like bondsand precious metals

Source: Bloomberg, ICICIdirect.com Research * Abovementioned returns are for the period March, 2016 to July 29, 2016

94

96

98

100

102

104

106

108

110

112

01

-Mar

-16

31

-Mar

-16

30

-Ap

r-1

6

30

-May

-16

29

-Ju

n-1

6

No

rmal

ise

d r

etu

rn

MSCI World Currency Index MSCI World Equity Index

5851

3936

3232

2623

2221

196

4

0 20 40 60 80

Real EstateMetalSmall CapBankInfraAutoMid CapNiftySensexEnergyFMCGITPharma

(%)

Source: Bloomberg, ICICIdirect.com Research

Defining moments in 2016 till now :

Crude & Commodity decline

US Rate hike odds crushed

Brexit : UK opted out of EU Jan

Feb

May

JunJun

Resultant effect on asset classes : a see-saw ride for asset classes, with safe havens emerging as clear winners

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

Silv

er

Cru

de

Gol

d

Com

mod

itie

s

DM

Sov

erig

n

MSC

I EM

Jun

k B

on

d

Nif

ty

Hig

h Yi

eld

Fx

Vo

lati

lity

MSC

I Wor

ld

Euro

INR

Dol

lar I

ndex

Po

un

d

US

VIX

Various Asset class return in 2016 In first two months of 2016 all risk asset classes saw sharpdecline. However, post commodity decline halt there wasprice performance across asset classes

Precious metals (risk heaven) performed thestrongest (>30% + returns). Post the Brexit vote, withmost of the central banks expected to remain moreaccommodative, equity markets moved up sharply,with US S&P moving to record highs

2016 till now has been see-saw ride for global markets…

QE programs faltering: Central banks to need to recalibrate their unconventional monetary

policies

Inflation anemic: developed markets below their mandated level of 2%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Ital

y

Jap

an

Fran

ce

Ge

rman

y

UK

S. K

ore

a

US

Au

stra

lia

Can

ada

Ch

ina

Me

xico

Ind

on

esi

a

Ind

ia

Turk

ey

Ru

ssia

Bra

zil

CP

I

Developed markets

BoJ’s QE consuming liquidity at steep pace ECB’s QE hitting supply shortage : Germany has lower supply ofGerman bonds as yields crash across the curve…

82%68%

18%32%

2014 2016

Other

BoJ

$ 801 billion

$ 331 billion

Yield below -0.4% Yield above -0.4%

BoJ’s goal of devaluing yen has failed as yen hasstrengthened 16% YTD

90

95

100

105

110

115

120

125

130

Jan-

14

Mar

-14

May

-14

Jul-1

4

Sep-

14

Nov

-14

Jan-

15

Mar

-15

May

-15

Jul-1

5

Sep-

15

Nov

-15

Jan-

16

Mar

-16

May

-16

Japa

nese

Yen

Source: Bloomberg ICICIdirect.com Research

Excess liquidity challenges…Developed market sovereign debt, gold attract buying

Source: Bloomberg ICICIdirect.com Research

Countries commanding 90% weight in US$23 trillion Sovereign bond index

With increasing fears of liquidity, yields are falling lower

Developed market bonds falling into quicksand of negative yields

Central banks likely to continue to remain accommodativeand currency devaluation trend likely to continue gold islikely to continue it outperformance.

02468

101214

Pre

EC

B N

IRP

(J

an 2

01

5)

Po

st E

CB

NIR

P

(Mar

20

15

)

Pre

Bo

J N

IRP

(F

eb

20

16

)

Po

st B

oJ

NIR

P

(Mar

20

16

)

Pre

Bre

xit (

Jun

2

01

7)

Po

st B

rexi

t (C

urr

en

t)

Ne

gati

ve Y

ld b

on

d (

US

$tn

)

JAPAN

29.7%

UNITED

STATES29.3

UK 7.8%

FRANCE 7%

ITALY7%

GERMANY 5%

SPAIN4% Country Weight 1Y 2Y 3Y 4Y 5Y 6Y 7Y 8Y 9Y 10Y 20Y 30Y

Switzerland 0.4%

Japan 29.7%

Germany 5.1%

Netherlands1.6%

France 6.8%

Austria 1.1%

Finland 0.4%

Sweden 0.3%

Belgium 1.8%

Denmark 0.4%

Slovakia 0.2%

Ireland 0.6%

Slovenia 0.1%

Spain 3.8%

Italy 6.6%

US 29.3%

UK 7.8%

Canada 1.4%

Australia 1.2%

Portugal 0.5%

Singapore 0.3%

New zealand0.2%

Norway 0.2%

Greece 0.1%

Hong kong 0.1%

Luxembourg0.0%

Developed Market Bond yields across maturities ...

Risks, going ahead …


Risks

US rate hike & dollar strength

in November/December

US Presidential

Election Nov 8

Currency Devaluation by China/advanced economies

VAR shock in Bond

Market as Supply side

is constrained

Election dates Aug Sept Oct Nov

November 2, 1976 -0.51 2.26 -2.25 -0.78

November 4, 1980 0.58 2.52 1.6 10.24

November 6, 1984 10.63 -0.35 -0.01 -1.51

November 8, 1988 -3.86 3.97 2.6 -1.89

November 3, 1992 -2.4 0.91 0.21 3.03

November 5, 1996 1.88 5.42 2.61 7.34

November 7, 2000 6.07 -5.35 -0.49 -8.01

November 2, 2004 0.23 0.94 1.4 3.86

November 5, 2008 1.22 -9.08 -16.9 -7.49

November 6, 2012 1.98 2.42 -1.98 0.28

Barring 2000 & 2008, positive returns are seen in Aug-Nov in election yr

Rate hike odds still suggesting rate hike at end of 2016

0

10

20

30

40

50

Feb

-15

Ap

r-1

5

Ju

n-1

5

Au

g-1

5

Oct-

15

Dec-1

5

Feb

-16

Ap

r-1

6

Ju

n-1

6

Pro

bab

ilit

y o

f rate

hik

e

21-Sep 02-Nov 14-Dec

6

6.1

6.2

6.3

6.4

6.5

6.6

6.7

6.8

6.9

7

Jan

-10

Jul-

10

Jan

-11

Jul-

11

Jan

-12

Jul-

12

Jan

-13

Jul-

13

Jan

-14

Jul-

14

Jan

-15

Jul-

15

Jan

-16

Ch

ines

e Yu

an

Yuan at weakest level since August 2010.

Duration risk increasing for ECB’s QE is increasing

7.5

8

8.5

9

9.5

10

Apr

-15

May

-15

Jun-

15

Jul-

15

Aug

-15

Sep-

15

Oct

-15

Nov

-15

Dec

-15

Jan-

16

Feb-

16

Mar

-16

Apr

-16

May

-16

Jun-

16

Coun

tryw

ise

hold

ing

dura

tion

France Italy Spain

While the known risks are highlighted above. Theunknown risks are uncertainty over global growth andpossibility of backfire of Negative interest rate policy

Indian economy – Well positioned to weather global volatility

Post Brexit, the market has surprisingly stabilised sooner than expected. It is because thedomestic scenario is much better than what it was previously. This was demonstrated in theMarch quarter earnings. Monsoon also appears to be strong. Fears of deferral of the SeventhPay Commission have been put to rest through its implementation. The prospects of GST gettingpassed in Rajya Sabha seem high. Hence, domestic cues outweigh global fears

• The economy is at the cusp of GDP expansion on the back of likely government capex expansionand consumption growth driven by the Seventh Pay commission hike. The Budgetannouncement with respect to focus on revving capex (priority on railways, power T&D, roadsvia improved budgetary allocations) and addressing rural stress (high allocation to agriculturalschemes), are steps in the right direction for structural improvement in GDP

• India has stuck to its fiscal deficit target of 3.5%, thereby indicating its intent to provide a fillipto growth without hurting the government fiscal position and inflation. Better fiscal disciplineis expected to usher in lower interest rates, reduce the cost of the economy and spursustainable investments

• Improvement in capex is driven by the government as its share in investment has increasedfrom ~50% in FY10 to ~ 60% in FY16. Furthermore, stalled projects have come down. In termsof segments, road, railways and power T&D lead the recovery

Seventh Pay Commission - Decadal event to revive consumption

Financial Implication of 7th CPC (| crore)

FY17 (w/o CPC) FY17 (with CPC) Financial Impact % increase

Pay 244300 283400 39100 16.0

Allowance

HRA 12400 29600 17200 138.7

TPTA 9900 9900 0.0 0.0

Other Allowance 24300 36400 12100 49.8

Pension 142600 176300 33700 23.6

Total 433500 535600 102100 23.6

•2% impact on GDP:

The Central government’s implementation of the Seventh Central Pay commission (CPC) will resultin a 65 bps impact on GDP. The total impact across governments (state governement:100 bps; localbodies: 30 bps) at all levels is expected to be ~2% of GDP

• | 3.5 lakh crore in hands of 1.4 crore workers

Source: Seventh Central Pay Commission , Indian Labour Year Book 2011-12 , Census Report 2011, ICICIdirect.com Research, PAP-Pay, Allowances &

Pensions, RE-Revenue Expenditure

Impact of 6th CPC & 7th CPC on macro-fiscal statement

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY17

w/o CPC Inc CPC

Pay & allowance/GDP 2.1 2.5 2.0 1.9 1.9 1.9 1.9 1.9 1.8 2.3

Pension/GDP 0.8 1.2 1.0 0.9 1.0 0.9 0.9 0.9 0.9 1.1

PAP/GDP 2.9 3.7 3.0 2.9 2.9 2.8 2.8 2.8 2.8 3.4

Increase in PAP/GDP 0.8 0.7

PAP/GDP (excl Rail) 2.0 2.7 2.2 2.1 2.1 2.0 2.0 2.0 2.0 2.4

Increase in PAP/GDP 0.6 0.5

PAP/RE (excl Rail) 14.1 18.4 16.2 16.2 16.9 16.8 17.2 18.5 18.1 22.3

Increase in PAP/RE 4.3 4.3

Most state governments replicate therecommendations of central CPC with a lag.Given that the total wage bill of all the stategovernments is roughly 2x the centralgovernment, we expect a further impetus toconsumption

Change in consumption pattern & income distribution to boost discretionary growth

Food, 28%

Personal Transport,

15%Housing,

14%

Education, 9%

Health, 6%

Others, 21%

Jewellery ornaments

, 3%

Household consumabl

es, 3%

Other durable items,

1%

Food, 41%

Personal Transport,

9%

Housing, 8%

Education, 8%

Health, 6%

Others, 23%

Jewellery ornaments

, 1%

Household consumabl

es, 3%

Other durable

items, 1%

Source:, Seventh Central Pay Commission , NSS-68TH Round , ICICIdirect.com Research

Income distribution

• Pay Commission wage hike will lead to reclassification ofcentral government employees under various monthlyincome distribution categories. Maximum drop would bewitnessed in less than | 30,0000 monthly income categorywherein the drop would be ~67%

• Number of central government employees earning | 50,000-100,000 will increase 57% while employees earning>100,000 will increase 50%

With the increase in montly income(owing to Seventh Pay Commission),we expect part of the incrementalincome to be spent towards personaltransport, housing jewellery etc.

Personal transport, Housing & Jewellery will be biggest beneficiaries

30%

45%

11% 12%2%

10%

51%

25%

11%3%

0%10%20%30%40%50%60%

<30 30-50 50-70 70-10 >100

Inco

me

dis

trib

utio

n

Monthly income (| '000)

Income distribution-pre & post CPC

Current New

Change in consumption pattern for employees earning 30,000 p.m.

GST: Important Reform

GST - a leap towards eliminating complexities of indirect taxation: With the implementation of GST, the taxationburden would be divided between goods & services through a lower rate by increasing the tax base, which wouldcreate a level playing field for all manufacturing entities irrespective of their place of operation

• ‘Clean’ dual VAT : Unlike many countries, India is expected to implement a cleaner dual VAT. A common base andcommon rate across goods & services and very similar rates (across states) will facilitate administration andimprove compliance

• Lowest tax to GDP: India has one of the lowest tax to GDP ratios compared to other emerging economies. Withmore than 60% of the services contribution to GDP, indirect tax collection is likely to increase post GSTimplementation considering standard GST rate may be ~17.5% higher than service rate of 14.5%

Tax to GDP ratio of developed & emerging countries

Source: GST committee report Dec’15, IMF,ICICIdirect.com Research *RNR= Revenue Neutral Rate *COM (P) Committee Preferred *COM (A) – Alternative , *DTT –

Direct Tax Turnover

Nature of VAT Country Ex. Disadvantages

Independent

VATs at Centre

and states

Brazil, Russia,

Argentina

Differences in base and rates weaken

administration and compliance. Inter-state

transactions difficult to manage

VAT levied and

administered

at Centre

Australia,

Germany,

Austria,

Switzerland

etc.

State government relieved of responsibility of

raising taxes, which also takes away fiscal

discretion of states

Dual VATCanada and

India today

A combination of the above two limits both

their disadvantages

“Clean” dual

VATIndia’s GST

Common base and common rates facilitate

administration and compliance, including for

inter-state transactions while continuing to

provide some fiscal autonomy to states

0

5

10

15

20

25

30

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

(%)

Australia Brazil Canada Malaysia India Russia

India's indirect tax to GDP lowest among emerging

Sensex Earnings

• Sensex earnings have been muted over the last two years mainly owing to commodities

debasement. Going ahead, with commodities showing early signs of stabilising, we expect

Sensex EPS to grow 12.1% YoY to | 1542 in FY17E and then showcase a growth of 17.8% YoY in

FY18E to | 1816


*Others represents FMCG, Power, Pharma, Telecom, Ports

Sensex EPS

155 191 227 278 338 393 466 461 520634

96 107 123139

168199

222 227250

278

152217 189

235225

236211 189

164

203

5611

88 161182

153200 98 164

196

227

88

157124

10279 57

97

108

166

174

157127 164

165 228 234

261

298

724

923

1,0901,165 1,165

1,365 1,359 1,375

1,542

1,816

8076

7979

69 55 4454

68

66

38

-450

50

550

1,050

1,550

2,050

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E

(|)

Banking and NBFC IT Oil and Gas Capital Goods Auto Metals and Mining Others*

Sensex headed for a new high

• We ascribe a multiple of 16.5x on Sensex EPS

of FY18E and assign a one year forward target

of 30000 for Sensex and 9100 for Nifty

Source: Bloomberg, ICICIdirect.com Research * Sensex closing as on 29 July, 2016

Sensex Target - July 2017

28,052

30,000

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Jan-

10

May

-10

Sep-

10

Jan-

11

May

-11

Sep-

11

Jan-

12

May

-12

Sep-

12

Jan-

13

May

-13

Sep-

13

Jan-

14

May

-14

Sep-

14

Jan-

15

May

-15

Sep-

15

Jan-

16

May

-16

Sep-

16

Jan-

17

May

-17

Upside of ~7%

from current level

FY15 FY16 FY17E FY18E

Sensex EPS 1359 1375 1542 1816

Growth (%) -0.4% 1.2% 12.1% 17.8%

Target Multiple 16.5x

Sensex Target 30000

Corresponding Nifty Target 9100

Sensex & Nifty Target

Sectoral View

• We believe the auto sector will continue to remain in a sweet spot as multiplefactors namely good monsoon, governments focus on vehicle scrappage policyand Seventh Pay Commission will spur automotive demand over the next twoyears. Governments focus on complying with new emission norms (BS VI by2020) will benefit ancillary players

• We estimate industry volumes will grow at ~8%, with 2W, PV & MHCV segmentlikely to grow 8%, 10% & 15% YoY, respectively, in FY17E. On one year forwardbasis, valuations of our OEM universe are trading at ~19x

Auto

Positive

Logistics

Positive

• Rationalisation of freight rates by Indian Railways (IR) would create aconducive environment for container train operators. Increasing number ofcommodities in the freight basket and time tabled freight trains would furtherenable IR to claw back its lost share from roadways

• The Ministry of Shipping (MoS) has embarked on Sagarmala project, whichenvisages increasing the share of coastal shipping from current 7% to 10% by2020 of the total cargo handled. Increased cargo would benefit ports and itsancillaries

• With the passage of GST bill, surface logistics players would benefit by a shiftfrom unorganised (>50%) to organised. In addition to the same, economies ofscale with consolidation of warehouses would enable better operating metrics

• The cement industry being a pure domestic play remains insulated from globalheadwinds. Hence, local factors like benign interest environment, highergovernments focus on road & rural development augurs well for growth in thecement demand. We expect demand to reach to 305MT by FY18E (i.e. CAGR of7.5%) vs. (five year CAGR of 3.5%)

• On the supply side, lower pace of capacity additions (~32 MT vs. incrementaldemand of~50 MT) and consolidation in the industry to help utilisation levelsmove upward over the next three years. These along with higher realisationwould help drive margins further, going forward

Cement

Positive

Consumer

Durables

Positive

• Consumer companies are likely to record sales CAGR of 17% in FY16-18E led bystrong volume growth (~15% growth for paint companies) in the wake ofimplementation of Seventh Pay Commission, GST and better monsoon. Further,government’s efforts to improve power availability and distribute energyefficient products would boost the consumer durable segment

• Despite stabilisation of commodity prices (crude oil, copper) EBITDA marginexpected to remain at elevated level, supported by operating leverage andpremiumisation.

Sectoral View

• The government is looking to revive the infrastructure sector through varioussteps such as EPC mode of awarding/Premium rescheduling/changes in MCAAgreement in the road sector, UDAY scheme in the power sector and DFCordering in Railway sector. Similarly, the government has also been driving thecapex with 60% of awarding done by it in sectors such as road (17.9%), power(17.6%), power distribution (15.7%), and Railway (11.1%) in FY16

• Ordering and tendering activity has picked up pace in these segments

• We like EPC and product based companies wherein improvement in executionand balance sheet will drive profitability

Capital

Goods &

Infra

Positive

FMCG

Positive

• Considering the progress of normal monsoon coupled with higher Budgetaryallocation of ~| 87700 crore towards overall rural development is expected todrive rural volumes though revival in urban discretionary demand remainsslow. However, sales growth is likely to remain ~12% with stable realisationgrowth

• Operating margins for companies would remain at elevated levels as increasein RM cost could be set off by lowering of the A&P spend

• Implementation of GST would benefit companies present in highly unorganisedcategories like biscuits, hair oils, branded foods

Sectoral View

Telecom

Neutral

• We expect healthcare universe revenue, EBITDA and PAT to grow at a CAGR of12.1%, 11.7% and 13.7%, respectively, in FY16-18E. The growth will be steeredby US (~14% CAGR over FY16-18E) and Indian formulations (~15% CAGR overFY16-18E)

• We believe pricing pressure in the US, capping of domestic drug prices andFDCs related issues in domestic markets and economic turmoil in emergingmarkets likely to weigh in the first half.

• However, we expect a recovery in the second half on the back of incrementalproduct launches in the US and likely positive outcome from the USFDA re-inspections besides normalising of Indian formulations growth

Pharma

Positive

• While incumbents have already launched their high speed 4G services, bigbang launch from Reliance Jio is awaited, which could pose a threat to them.With Reliance Jio launch looming large, the incumbents have already cut theirdata pricing by offering 45-67% more data at the same prices. Going ahead, webelieve further price disruption could pose a risk for the data revenue growthas data volume growth would be offset by price cut.

• Voice revenue growth would remain stagnant owing to realisations andvolumes under check due to intense competition

• We have a neutral stance on the sector and believe Airtel, being a leader withfirst mover presence in 4G markets is better equipped to face competition.

Sectoral View

Power

Neutral

• With 175 GW (1 GW = 1000 MW) renewable capacity addition target by 2022,CY16 may witness close to 6 GW of solar capacity and 4 GW of wind capacityaddition. Overall, we expect ~18 GW to be added in CY16 (21.3 GW added inCY15). PLF across power plants is likely to improve in CY16 driven by better fuelavailability from increased coal production, coal swapping toward efficient andnearest plant, gas pooling strategy and low CY15 base.

• Key positive reforms undertaken by the GoI (mainly UDAY, enhancedrenewable focus, increased CIL output, gas pooling strategy and coal auction)are expected to boost the sector in the long run. Successful execution of UDAY(reducing AT&C losses to 15% by 2022) will not only reduce the discoms’ debtburden but would also improve its efficiency and curb future losses. We preferregulated utilities with decent addition targets coupled with reasonablevaluations

IT

Neutral

• CY16E IT budgets could be flat to negative while management commentary wascautious ahead of uncertain demand environment post Brexit. Clients aredeferring IT spends post Brexit outcome which could pose a challenge for ITspending, going forward

• Revenue growth could moderate around 10% in FY17E but so have valuationsat ~14-15x FY18E earnings. Returns will be in-line with earnings growth. Stickto large caps

Sectoral View

• Higher budgetary allocation towards development of roads and highways alongwith governments focus on ‘Housing for All’ augurs well for cement demand.We expect cement demand to reach 311 MT by FY18E (i.e. at CAGR of 6.0%) vs.(CAGR of 4.7% over last five years). On the supply side, lower pace of capacityadditions (~32 MT vs. incremental demand of ~50 MT) & consolidation in theindustry may move utilisation levels upward in next three years

• Further, lower fuel & power costs coupled with higher utilisations will helpimprove EBITDA/tonne from | 700/tonne to | 1000/tonne over FY15-18E

Cement

Positive

Consumer

Durables

Positive

• Consumer discretionary companies are likely to record sales CAGR of 12% inFY15-18E led by volumes as organised players are likely to benefit from theimplementation of the Seventh Pay Commission and GST

• Benefit of lower commodity prices would help in expanding EBITDA margin by200-500 bps in FY15-18E

Sectoral View



Cement

Positive

Consumer

Durables

Positive



Sectoral View

Sectoral View



Cement

Positive

Consumer

Durables

Positive



Sectoral View



Cement

Positive

Consumer

Durables

Positive



Sectoral View

• The government is looking to revamp the infrastructure sector through variousinitiatives in the recent Budget such as rejuvenating PPP through renegotiationof concession agreement, a new credit rating system for infrastructure projectsand exemption of DDT for passing dividend by SPV to INVIT paving the way forINVIT listing. However, higher leverage by private players and land acquisitionpost passage of LARR bill, 2013 remain key challenges

• Capex would be largely driven by the government in segments like power T&D,railways, road EPC and renewables

• We like product based companies with a better balance sheet. In the EPC space,our focus would be on companies wherein improvement in execution andbalance sheet will drive profitability growth.

Capital

Goods &

Infra

Positive

• The healthcare sector offers good earning visibility, consistent operating cashflows, healthy operating margins, relatively low leverage & strong return ratios

• Compliance issues and currency volatility in emerging markets are likely to bemitigated by acceleration in US approvals (148 ANDAs in CY15 vs. 105 in CY14)(expect to grow at a CAGR of 19.4% in FY16-18E) and sustainable growth indomestic formulations (expect to grow at a CAGR of 16.9% over FY16-18E)

• We expect healthcare universe revenue, EBITDA and PAT to grow at a CAGR of15.6%, 17.2% and 20.9%, respectively, over FY16-18E

Healthcare

Positive

Sectoral View

• With another round of telecom auctions due, the expensive pricing of thespectrum coupled with huge capex requirements for continuous networkoverhaul, the B/S of telcos will continue to be under pressure

• While incumbents have already launched their high speed 4G services, bigbang launch from Reliance Jio is awaited, which could pose a threat to them.However, as data speeds increase, we expect data volumes in our coverage togrow at 64.0% CAGR in FY15-17E to 1233 billion MB. This would translate to47% CAGR in FY15-17E in data revenues to | 26582.4 crore

• Voice revenue growth would, however, remain stagnant owing to realisationsand volumes under check due to intense competition

Telecom

Neutral

• Expectation of normal monsoons coupled with higher budgetary allocation of~| 87700 crore towards overall rural development would aid rural volumegrowth though a revival in urban discretionary demand remains slow.However, sales growth is likely to remain ~12% with limited realisation growthdue to a sharp decline in RM cost

• FMCG would be a major beneficiary of benign commodity prices in mediumterm with decline in price of crude oil (~40%), copra (~33%), palm oil (~18%)

• FMCG companies are expected to witness an expansion in operating margin(100-200 bps) and concomitant increase in A&P spend

FMCG

Neutral

Sectoral View

Power

Neutral

• With 175 GW renewable capacity addition target by 2022, CY16 may witnessclose to 6 GW of solar capacity and 4 GW of wind capacity addition. Overall, weexpect ~18 GW to be added in CY16 (21.3 GW added in CY15). PLF acrosspower plants is likely to improve in CY16 driven by better fuel availability fromincreased CIL production, coal swapping toward efficient and nearest plant, gaspooling strategy and low CY15 base.

• Key positive reforms taken by the GoI (mainly UDAY, enhanced renewablefocus, increased CIL output, gas pooling strategy and coal auction) are expectedto boost the sector in the long run. Successful execution of UDAY (reducingAT&C losses to 15% by 2022) will not only reduce the discoms’ debt burden butwould also improve its efficiency and curb future losses. We prefer regulatedutilities with decent addition targets coupled with reasonable valuations

IT

Neutral

• CY16E IT budgets could be flat to negative while the earnings commentary wasstable led by healthy deal signings and traction in digital technologies.Operationally, discretionary spending remains healthy in the US and led growthwhile Europe rebounded modestly. Insurance, telecom and oil & gas verticalscontinue to be structurally challenged

• Revenue growth may moderate to 10-12% in FY17E but so have valuations at~15x FY17E earnings. Returns will be in line with earnings growth

Sectoral View

• Banking sector is reeling under vicious cycle of surging NPA stress, higherprovisions and lower credit growth. Though the government continues to makeits effort for providing capital and better reforms for recovery process, we donot expect stress to reduce much in next couple of quarters with corporate stillstuck in leverage. Stressed asset book stood at ~12.6% (GNPA-7.6% & RA-5%)and SDR and 5/25 together add 2.5% (March 2016)

• Credit growth to remain subdued ~10% in FY17E, with moderating margins dueto new marginal cost base rate and NPA interest reversal

• Banks, especially PSU ones, to witness continued moderation in profit withreturn ratios at ~0.5% RoA and sub 10% RoE in FY17E. Private banks with retailexposure are expected to deliver steady performance.

• Profits of PSU upstream companies would continue to be subdued in thescenario of weak oil prices. OMCs would report good performance on accountof stable middle distillates cracks, crude sourcing at discounted rates andhigher marketing margins.

• We expect gas utilities volumes to pick up in H2FY17 due to additional R-LNGcapacity, lower raw material prices and favourable policies by the government.We expect their earnings to increase 25-32% in FY17E. We prefer CGDcompanies and OMC’s within the sector

Banking

Negative

Oil & Gas

Negative

Sectoral View

Metals

Negative

• The metal sector continues to be plagued by the sharp correction in globalcommodities prices as well as over supply issues. While, measures taken by thegovernment in form of levy of minimum import prices (MIP), has resulted insome respite, demand supply mismatch continue to persist.

• Overall within our coverage universe we expect revenue to register a growth of7.0% CAGR during FY16-18E. We expect aggregate EBITDA margin to increaseform 13.3% in FY16 to 16.3% in FY17E and further to 18.6% in FY18E.

Model portfolio – offering of “Quality 22” (Large Cap) & “Consistent 16 “(Midcap)

Source: Bloomberg, ICICIdirect.com Research * Return as on March 11, 2016

• Our model portfolios of large cap “Quality 22” and Midcap “Consistent 16” stocks haveconsistently outperformed their respective benchmarks since inception.

• The portfolio selection has been done on the triple theme of consumption, capex recovery andbeneficiary of raw material price decline

Performance since inception

83.9

102.693.0

31.0

49.134.1

0

25

50

75

100

125

Large Cap Midcap Diversified

%

Portfolio Benchmark

All portfolios have delivered over 2-2.8x of their respective benchmark indices return since the inception (June 21, 2011)

(70% large cap, 30% Midcap)

Large cap portfolio – “Quality 22”


Name of the company Weightage(%) Name of the company Weightage(%)

Auto 14 FMCG/Consumer 14

Tata Motor DVR 4 ITC 7

Bosch 3 United Spirits 2Maruti 4 Asian Paints 5

Eicher Motors 3 IT 21

BFSI 23 Infosys 10

HDFC Bank 8 TCS 8Axis Bank 3 Wipro 3

HDFC 8 Media 2

Bajaj Finance 4 Zee Entertainment 2

Capital Goods 5 Metal 2L & T 5 Tata Steel 2

Cement 3 Pharma 12

UltraTech Cement 3 Lupin 5

Oil & Gas 4 Dr Reddys 4Reliance Industries 4 Aurobindo Pharma 3

Midcap portfolio – “Consistent 16”


Name of the company Weightage(%) Name of the company Weightage(%)Aviation 6 FMCG 8Interglobe Aviation 6 Nestle 8Auto 6 Infrastructure 8Bharat Forge 6 NBCC 8BFSI 6 Oil & Gas 6Bajaj Finserve 6 Castrol 6Consumer 24 Logistics 6Symphony 6 Container Corporation of India 6Supreme Ind 6 Cement 6Kansai Nerolac 6 Ramco Cement 6Pidilite 6 Textile 6Pharma 12 Arvind 6Natco Pharma 6 Capital Goods 6Torrent Pharma 6 Bharat Electronics 6

The diversified portfolio is a combination of “Quality 22 “and “Consistent16” in a 70:30

ratio

Common queries

Investing Principles

ICICIdirect account key features

Understanding Tax calculations

I

II

III

Agenda

Investment products ( SIP in stocks, IPO’s, Offer for Sale, MF, Tax Free bonds) IV

Trading Platforms V

Derivatives VI

Brokerage options VII

Investment Approach

Investment strategy

Insights of successful investment strategies through real-life big data analytics

of 3.8 million customers

Common approach we have while buying stocks

Better approach to construct a portfolio for long term

I

II

III

Why should you invest in Equities IV

Investing sentiments

We are bullish on a stock and

start investing

If stocks falls, we invest more

Stock falls further, we get little

apprehensive, wait for stock to

re-bound

If stock remains negative for 2-3

years, we get disappointed

We wait for cost to come and

evaluate exit

Have patience : ICICIdirect customer behavioral analytics reflects Investors

who hold to their stocks make better returns

Learning :

a) Give time to your stocks, don’t get perturbed by volatility

b) Also relates to study of support and resistance

Quality investments with better holding period gives returns even after initial fall

Learning :

a) Holding to good companies more returns and minimizing junk reduces

losses and risks

Another Investment approach : Concentration of single stock or few stocks in

portfolio

JP Associates, Lanco,

Suzlon

10,000 shares of ITC

Cals refinery , Sanco

Investor portfolio analysis

Returns of our Investors vis-à-vis number of shares in portfolio

80% holding in

those stocks Nifty 100 stocks Nifty 100-500 stocks Nifty 500 stocks

1-3 shares14 (1.4) 2.1

4 – 6 shares (0.3) (9.7) (3.8)

7- 10 shares 0.6 (2.6) (4.4)

Above 10

shares ( Avg 12) 17.7 6 10.8

Learning :

a) Diversify well in 10-12 stocks . Even if you like small caps, don’t invest fully in

one share.

b) If you like concentrated portfolios, invest in blue-chips

Diversification gives better returns !

At what price do you average and is quantity of averaging important ?

Investor data : Averaging % at defined intervals give better returns

Learning : When you identify a stock have an averaging strategy. Let the stock

fall !

Averaging at which % price fall Holding period Mean Returns %

Fall of 1-2% -5%

Fall of 3-5% -7%

Better : Fall of 6 -10%

Better : Fall of 11-15%

Best : Fall of 16 – 17%

5%

6%

27%

Investor Analysis : Quantity averaging also matters

Learning : When stock falls more, averaging with higher quantities reduce cost

price and give better upside when stock rebounds

Averaging Quantity

Averaging at which %

price fall

Upto 100% 100-200% 200% plus

Fall of 1-2% -7 22 1

Fall of 3-5% -13 7 -19

Better : Fall of 6 -10% 5 8 31

Better : Fall of 11 -15% -3 10 26

Best : Fall of 16 – 17% 32 58 12

Front-line companies delivering better holding period returns

Learning : If you a new investor, buy front-line stocks, good management work

for you

Not that Mid, small cap companies wouldn’t have delivered, but investors

need to stomach the volatility

Returns of our Investors vis-à-vis number of shares in portfolio

Top 100 stocks Top 101-200 Top 201 to500 Other than Top 500

16 % 5% -8% 1%

Price of stock has no relationship with returns

Learning : Price of a stock is not proportional to it’s returns. Buying low price

stocks does not necessarily yield higher returns.

Stock Price

Slab (Rs)

Count of

Stock

Stocks with

positive returns

Stocks with

negative returns

Positive

%

Negative

%

<10 154 64 90 42% 58%

10-50 314 203 111 65% 35%

50-100 202 135 67 67% 33%

100-200 204 139 65 68% 32%

200-500 218 174 44 80% 20%

500-1000 133 103 30 77% 23%

>1000 157 135 22 86% 14%

Total 1382 953 429 69% 31%

Year High Close 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year

2000 6151 3972 -35%

2001 4462 3262 -27% -23%

2002 3758 3377 -10% -12% -15%

2003 5921 5839 -1% 28% 10% -1%

2004 6617 6603 0% 6% 25% 12% 1%

2005 9443 9398 0% 21% 20% 38% 22% 9%

2006 14035 13787 -2% 23% 36% 33% 53% 35% 18%

2007 20498 20287 -1% 22% 38% 52% 49% 73% 51% 29%

2008 21207 9647 -55% -26% -10% 1% 9% 10% 22% 15% 6%

2009 17531 17465 0% -9% -5% 6% 17% 27% 28% 46% 32% 18%

2010 21109 20509 -3% 8% -1% 0% 9% 20% 30% 31% 50% 36%

2011 20665 15455 -25% -13% -4% -7% -5% 2% 9% 17% 18% 31%

2012 19612 19427 -1% -3% -3% 3% -2% -1% 5% 13% 22% 23%

2013 21484 21171 -1% 4% 1% 0% 4% 0% 0% 6% 14% 22%

2014 28822 27499 -5% 14% 13% 8% 6% 9% 4% 4% 11% 19%

2015 30025 26118 -13% -5% 7% 8% 5% 4% 7% 3% 3% 9%

No of Years Positive 0/16 8/15 8/13 11/13 10/12 10/11 10/10 9/9 8/8 7/7

% of Yearly Returns -11% 2% 8% 12% 14% 17% 17% 18% 19% 23%

Even if you invested at the highest point every year in last 15 years

After sharp falls, Stock markets historically have given better returns

In last 16 years, 5 times market has fallen by more than 15% in a year . In those years

1. Average next 1 year return is 23.50%

2. Average next 1 year return is 19%

3. 1. Average next 1 year return is 23%

Key Learning’s

The way market goes down, it goes up also. As you keep believing in fall,

keep believing in rise also.

Don't get frustrated by bad time and sell early.

No international crisis has lasted forever.

Good company in bad times gives very good wealth creation opportunity

Bad news comes suddenly and good news comes in installments.

Fall happens for three reasons. Fundamental, technical and emotional

thrashing. Last one is the best time to buy. First one is a trap. Second one

for trading.

Don't catch the falling knife. Let it fall, even if you try to catch, it will fall

Don't let go good stocks for 5-10 Rs trading gains. It is ok to trade but we

must ensure that good stock do not go out of hand

Equity MKts is the best place in the world. Best talent like Elon Musk,

Steve jobs, bill gates, Narayan Murthy work with you , for you. You learn

about every industry. You can shut one and enter in another one.

Best portfolio construction practices

Ideal Long term Portfolio should be restricted between 12-22 stocks

Individual Stock should not be more than ~10%

Individual Sector should not be more than ~25%

Concentrated Portfolio accumulated due to ESOP’s / Legacy etc…should be

diversified

Normally we get fearful when others are

fearful, and greedy when everyone is

greedy

Be fearful when others

are greedy, be greedy when others

are fearful

Warren Buffet

ICICIdirect account key features

NRE – PINS

Stocks already listed on NSE,

BSE and

Offer for sale

NRO- PINS

Stocks already listed on NSE,

BSE

Offer for sale

NRE – Non - PINS

NRO – Non PINSAdditionally F&O. Mutual

Funds, Bonds, IPO’s, ETFs

Combination of bank and trading accounts and products you can invest

Only Mutual Funds, Bonds,

IPO’s, ETFs

For investments in

Secondary market with

foreign source of funds

For investments in

primary market with

Indian source of funds

For Investments in

Primary market with

domestic source of

funds

For investments in

Primary market with

foreign funds

Accounts Products Details

Select account is mandatory to select when you first start

You can select your Favorite account or system will make take last login as

your default next time you login

New Website : Customization of most visited links

Lets start with buying stock for delivery

Features to assist you in every step of your transaction : Stock Information

Fundamentals, result

updates, news, charts

related to the stock

1


2

3

Technical parameters like

Moving average, last 1 to

3 month change in price

You can check the past

yearly highs and lows of

your stock at a click


The shareholding

pattern shows the

investments made in

the company

4

5

All the financial ratios

like Dividend given in

the past years,

Operating profit of the

company etc to help

you in your buying

decisions

Next step of purchase : Calculators to help you quickly decide the number of

shares you can buy

The quantity

calculator helps you

in calculating the

quantity of shares you

can purchase with a

specified amount.

6

Smart order validity option of 45 days with VTC order

Order validity

and Type

Segments

Valid Till Cancelled

Type

Market

Limit

Benefits

Order valid for 45 days, no need to track

daily basis, re-order, buy / sell at your price

Your orders gets executed at the best

available market price at the time it is

matched with open orders at exchange.

Your order gets executed only if the stock

reaches your desired price available in the

market.

7

Benefit An order facility which will help you get a better price

8

Price Improvement Order

Cloud Orders: For order placement in a second !

• Stock selection to Order placement in a second as it stores your order, rather than

make multiple selection during real time order placement.

Tracking your order, sales proceeds and tax understanding

Tracking your orders

3

• The 'Reorder' feature on the Order book page makes placing the same order again

easier and quick. By clicking on the Reorder option, you directly land on the buy

or sell page with auto populated details of your previous order.

8

How can you see your sale proceeds

How do we adjust taxes for shares in PINS account

1. As per Income Tax rules, before any credit to NRI’s tax needs to be deducted at

source.

2. As per I.T. rules, for long term profit and loss, there is 0% tax and full proceeds

come to your account when you transact

3. For short term profit, tax at 17.77% is deducted at source from your sale

proceeds.

4. If there is a short term loss in the FY, we carry this loss.

5. If there short term profit, we 1st

adjust the loss and then if any balance deduct

TDS.

Scenario 1

Short term loss in FY -20,000

Short Term profit in FY 25,000

Net Profit 5,000

Net TDS888.5

Tax refund to be

claimed from I.T. While

filing tax

0

Scenario 2

Short term profit 25,000

TDS on Short term profit 4444.2

Short term Loss -20,000

TDS by ICICIdirect4444.2

Tax refund to be claimed from I.T. while

filling tax3554

New Feature of seeing short term losses in PINS Holding

Transferring your Bonus shares from PINS to Non-PINS real time and online

All shares purchased through PINS can be sold only through PINS.

Shares will be transferred in 24 hours

New features to check tax free shares before selling

While placing order with ICICIdirect.com, the ‘Capital gain’ icon shows no of shares held

by the you for more than 1 year or shares held for less than an year.

New services for tracking and decision making

Alerts on Dividend , Bonus and Corporate Action in your portfolio

Market sentiment on your stocks

Scanning 63 trusted websites in India and aggregating the market

sentiment for the stock

E-voting option on your stocks

We have collaborated with NSDL so that you can E-vote online

through ICICIdirect.com

Participate on Buy-back and Open offers

You can our call customer care at +91-22-39140422 to participate for

Buy Back and Open offers online. For our domestic investors buy

back options is available online. Shortly for NRI’s same will be

available.

Top buys and sells on ICICIdirect.com

At real time basis, you get to know the Top 10 stocks retail

investors are buying or selling.

Investments options

Investment options : SIPs in Stocks with Systematic Equity Plan

You can do systematic investments in stocks on a daily, weekly, monthly

basis.

Helps you invest systematically, not invest fully at one time and spread

out the investment cost.

With systematic Equity

Planning, you can

accumulate stocks in

regular intervals

Investment options : Govt disinvestment options through OFS route

http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwi7zsi-4q3LAhUKEpoKHSEjAigQjRwIBw&url=http%3A%2F%2Fwww.business-standard.com%2Farticle%2Fcompanies%2Fcoal-india-in-reckoning-for-further-stake-sale-in-fy16-115042000353_1.html&psig=AFQjCNG-yj79DSV64f5CVG-6pPSR9a5MBg&ust=1457412400876832

http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwi7zsi-4q3LAhUKEpoKHSEjAigQjRwIBw&url=http%3A%2F%2Fwww.business-standard.com%2Farticle%2Fcompanies%2Fcoal-india-in-reckoning-for-further-stake-sale-in-fy16-115042000353_1.html&psig=AFQjCNG-yj79DSV64f5CVG-6pPSR9a5MBg&ust=1457412400876832

http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwic2e-2463LAhXFIJoKHQ7sDXIQjRwIBw&url=http%3A%2F%2Fwww.financialexpress.com%2Farticle%2Feconomy%2Ftech%2Fsick-psus-lined-up-for-sale%2F49218%2F&psig=AFQjCNG-yj79DSV64f5CVG-6pPSR9a5MBg&ust=1457412400876832

http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwic2e-2463LAhXFIJoKHQ7sDXIQjRwIBw&url=http%3A%2F%2Fwww.financialexpress.com%2Farticle%2Feconomy%2Ftech%2Fsick-psus-lined-up-for-sale%2F49218%2F&psig=AFQjCNG-yj79DSV64f5CVG-6pPSR9a5MBg&ust=1457412400876832

How to apply for disinvestment issues on ICICIdirect

The biddings can done in two manners. i.e. selecting

i) Limit Price or by biding at a price

If Cut off option is not there then Retail investor has to bid at or above the floor

price. It is advised to bid below the current market price of the stock.

ii) Cut-off price ( provided an option is given)

Seller may opt for bid at cut-off price in the OFS. Under Retail category customers

can choose the option of Cut-off price. This price for retail category is derived from

clearing price in the General category.

Investment options : IPO’s

• In the past 12 months, 20 companies issued shares to raise fresh capital from public

• Positive returns in 19 companies out of 22 companies (Based on high price post allotment)

• Positive returns in 14 companies out of 20 companies (Based on closing price of June 29,

2016)

• The IPO’s gave an average return of 25.90% on the high price and 21.14% on the closing

price

Name of the CompanyAllotment

Price

High after

allotment*

Closing price

as on June

29, 2016**

Returns (%)

on high after

Allotment

Returns (%)

on Last

traded price

Ujjivan Financial Services Ltd 210 261.05 400.3 19.56% 33.55%

Thyrocare Technologies Ltd 446 665 565.85 32.93% 21.18%

Equitas Holdings Ltd 110 151.3 177.3 27.30% 37.96%

Quick Heal Technologies Ltd 321 330 263.65 2.73% -21.75%

TeamLease Services Ltd 850 1177.7 1013.8 27.83% 16.16%

Narayana Hrudayalaya Ltd 250 339 316.05 26.25% 20.90%

Alkem Laboratories Ltd 1050 1588.9 1378.3 33.92% 23.82%

Dr. Lal PathLabs Ltd 550 908.7 855.4 39.47% 35.70%

S H Kelkar and Company Ltd 180 225.05 213.05 20.02% 15.51%

InterGlobe Aviation Ltd 765 1068.8 1018.2 28.42% 24.87%

Investment options : How to invest in IPO’s

For IPOs, you need to apply through Non-PINS account

Investment options : Mutual Funds

ETF Purchase : Nifty, Gold ETFs

ETFs considered as debt transactions for NRI’s as per Income

Tax guidelines.

Types of Bonds Name

Capital Gain Bonds

Tax free bonds

Rate

REC, NHAI etc 6.0%

NA

Selected bonds

in Primary

market

Benefit

Tax Exemption

U/S 54 EC

Interest income is

Tax free U/S 10(15)

(IV) h

Investment options : Bonds

For secondary market listed bonds you can sell online as well

Which stocks to buy

Long Term investors: ICICIdirect Model Portfolio

1. For a long term investor, we have 2 model portfolios; Large cap and Mid cap for you look at

diversification and buying in a staggered manner.

2. Model Portfolio captures the new opportunities available in the market with respect to Large

cap and Mid cap stocks.

Long term investors ideas : Fundamental coverage of more than 200 stocks

A detail fundamental report on stock with price target, rationale to invest

in stocks for a long term

Small cap ideas with “Nano-Nivesh”

1. A detail fundamental report on stock with price target, rationale.

2. Nano stocks report highlights companies with good and scaleable business models,

dependable management and sound financials.

3. 9 out of 18 recommendations have given positive returns with an average return of 108%

Consolidated view : I-Click-2-Gain for trading and I-Click-2-Invest for investment

I-Click-2 Invest offers research recommendations for different time horizons and as per your

investment needs, while i-click-2-Gain gives live intraday recommendations with updates on calls.

Get all investment stock ideas on your e-mail

1. We provide all our short, medium & long term advice in one mail when a new

recommendation is released.

2. Also updates of the earlier stock ideas (whether to book profit, exit) will be

delivered on your registered email id.

Platforms

Mobile Applications on Android, Windows, IOS

1. The mobile application provides easy access. It is available in Android, IOS as well

as Windows

2. Track your favorite stocks with Watchlist

3. Live Portfolio, Buy Sell stocks on the Move

Trading tools : Trade Racer for live streaming quotes

1. Streaming quotes, multiple windows, with direct buy/ sell option , market

depth through right click, F1, F2 short keys

2. Advanced Technical chart

3. Single window to see equity, F&O trades

4. Scanners

Live chat with us!

You can get your queries related to account, about products and

services answered from Monday to Saturday 9:30 AM to 5:30 PM (IST)

Derivatives

Black Scholes, high risk, high

reward, leveraged, complex,

strategies, hedging

What comes to mind with derivatives

Difference Cash

Trade

View

Leverage

Holding period

Derivatives

You make money when

stock goes up

You can only be long in

market

100% funds required to buy

Un-limited

Similarly in futures or options,

if price moves in your favor

you make money

You can be short as well as

long. i.e. if you think market

will go down, you can sell 1st

You can buy or sell with 10%

funds also

1 month to 3 months. In

futures you can roll-over ( i.e.

sell and buy again

Profit / loss Notional till the time you book

Every day it is debited or

credited

Let’s understand the difference

Derivatives : Pay-off graphs and how do you trade

You think ICICI Bank from 240 will touch

300 in next 1 year

You think Nifty will fall again and touch

8500

Futures Options

You think Reliance will not touch

1200 Rs in next 1 month

You think Nifty will fall 50 points down

due weak global cues

Product

Value of the contract

Value for 1 lot Nifty

Initial Margin in %

Initial Margin amount

What is the margin required

Futures /

Options writing

Premium * Lot size

Rs 100* 75 lot size = Rs

7500

Depend upon strike,

spot, time

Rs 7,500

Profit / loss if Nifty moves 50 points50 points * 75 lot size*0.5

= Rs 1,875

Minimum Margin (6%) Nil

Options

Stock Price * Lot size

8500 * 75 lot size =

6.37 lacs

8% on Nifty , depends

upon stock to stock

Rs 51,000

50 points * 75 lot size =

Rs 3750

Rs 38,250

Derivatives : Futures Order Placement

Futures Plus stoploss : Margin as low as Rs 2000, depends on stop loss price

Stoploss of 8 points

Margin of Rs 1998

Cloud Orders : For order placement in a second !

F&O @ fingertips : A Real time analytics platform for derivative traders

Future Market

Option Market

FII Activity

Heat Map

Put Call Ratio

Brokerage Options

All inclusive brokerage structure

All inclusive

Brokerage

DP charges of 0.04% are inclusive

PINS charges of 0.50% are inclusive

Interest on un-used funds in trading accounts : 4% annually : Not available

with non-banking brokers

Certification charges : For daily calculations of capital gains , settlement are

inclusive : Savings includes interest benefit as well on TDS not deducted

Different brokerage plans

I-Saver Brokerage

option1

Life time Prepaid

Brokerage plan

With Nominal sum of Rs 25,000 etc. you can get

reduced brokerage which will be valid for life time*2

I-Gain Brokerage

planYou pay only brokerage when you make profit3

Bullet Brokerage

plan

The next big Launch: Zero brokerage on your 5

minutes trades4

Variable plan based on Equity turnover and

brokerage ranging from 1.25% to 0.50%.

Prepaid

Plans

Cash BrokerageSavings in

brokerage

Eligible Turnover

(In lacs)

25000 0.92% 26% 27

75000 0.68% 45% 110

150000 0.50%60% 300

350000 0.35% 72% 1000

Brokerage Options : Life time Prepaid Plan

1. With life-time Prepaid Plan, you can choose a Brokerage plan that

suits your trading needs the best way.

2. You pay an up-front brokerage which is valid for lifetime or till the

time your card is exhausted.

3. You get to save 26% - 72% on your brokerage with Lifetime

brokerage plan.

Brokerage Options : Zero brokerage for loss making day trades in derivatives

A first of it’s kind

brokerage plan, where no

brokerage is charged on

your loss making

transactions in Future Plus

with Stop loss product.

Brokerage Options : Bullet Brokerage Plan ‘The Next big Launch’

Bullet Brokerage plan is

first of it’s kind brokerage

plan where you pay zero

brokerage for your

online trades squared off

within 5 minutes in

FuturePLUS with Stop

Loss product.

Common queries

Where are Bonus shares visible

Transaction Demat Account credited

Fresh Purchase PINS

Bonus shares issued PINS

PINS account will allow to sell only PINS shares

Bonus shares to be transferred to NON PINS

The cost of bonus shares in NON PINS account would be considered as zero

and hence if sold before 1 year then TDS would be applicable on the entire

sales proceed

How to transfer Bonus shares

- There will be a buy entry in

PINS portfolio and sell entry

in NON PINS made by the

system.

- The dates in both entries

need to be changed later to

the date of bonus issue.

- System follows FIFO

method.

Details on taxation (deducted at source)

Where do I see my TDS certificates

How can I see the tax details in PINS

Why am I not able to buy certain stocks: RBI Cautious list

- NRI investment allowed in a stock is 10%

- Individual Investment limit is 5%

- Once the limit is reached the stock is not enabled for fresh purchase

What are the exchange guide lines for Equity Intraday, Derivatives and Currency

derivatives trading for NRIs : (As available in FAQ in NSE website)

Treatment of corporate action other than Bonus

Transaction Action

Split PINS portfolio adjusted

Merger PINS portfolio adjusted

Shares need not be transferred to NON PINS

Name change PINS portfolio adjusted

Why is Long term Holding and repatriation proofs required

- This would be required for sale thorugh NON PINS

- Required for records that are not available with ICICIdirect

Transaction Documents required

Sale through NRE NO PINS Repatriable /Long term proof

Sale through NRO NON PINS Long term Proof

Documents – Demat transaction statement, Contract note,

ESOP allotment letter on company letter head containing perquisite tax details

Short term sale NON PINS Purchase price

How do I activate F&O – New Launch

- CP code alloted by the exchange for trading in derivatives

- Derivatives allowed in NRO NON PINS account only

Can I choose brokerage plan of my choice ? I-Gain

Zero brokerage on transactions where you have incurred a loss under

Future Plus with Stop Loss

I-Gain

Can I choose brokerage plan of my choice ?

Zero brokerage on transactions where you have incurred a loss under

Future Plus with Stop Loss

Prepaid brokerage

Can I change the user id ?

How to reset password

What is the process for Address change

How do I transfer Mutual Funds from other brokers

Transfer in – To transfer existing MF portfolio from other accounts.

Place online

request

Send us the

application form

Unit holdings will

get updated once

request is

processed

Transaction statement requests

-Trading statements

- Demat statements

Place request

through Live

chat

Call us

+91-22-39140422

Write to us

[email protected]

Option

-E Statement

- Physical statement

Service Request forms

How to update personal details

FAQ : Conversion of NRI to RI

Closure of NRI

trading account

Cancellation of

PINS approval

Closure / Conversion

of bank accounts

Application for RI

trading account

Transfer of

Shares/MF from

NRI to RI account

Closure of NRI

demat account

Thank you

Date post:	04-Oct-2020
Category:	Documents
Upload:	others
View:	2 times
Download:	0 times