FIIs Pump in Over Rs 16,700 Crore Last Week;SGX Nifty Indicates a Positive Opening-Marketsmith India

Distribution days: Three

Global stock markets: Dow30, +0.2%; S&P500, -0.1%; Nasdaq, -0.2%; Nikkei, +0.7%; Kospi, +0.1%; Hang Seng, +0.1%

Last week, Nifty continued its momentum and hit a new high for three consecutive days. However, on Thursday, the market was under selling pressure and added a distribution day. On Friday, Nifty made a new high but remained volatile throughout the session and closed 0.3% higher. Nifty Midcap and Smallcap relatively underperformed the benchmark indices. Nifty is trading 3.5% and 9.0% above its 21- and 50-DMA, respectively.

On the sectoral front, Nifty PSU Bank and Metal closed 6–8% higher for the week. Nifty Bank, Energy, IT, and Financial Services closed 1.5–2.0% higher. On the flip side, Nifty Auto and Metal were down 1.2% and 0.5%, respectively.

We maintain a positive view of the overall market as indices trend into new highs with low distribution day count. Further, leadership remains widespread across multiple sectors. We continue to recommend a selective approach to increase risk. Focus on high-quality ideas emerging from sound bases with an RS line at or near a new high. After a strong rally, pullback/consolidation (if any) is a constructive sign if Nifty holds its short-term moving averages. On the flip side, tracking distribution days is crucial. Accumulation of distribution days can be a sign of market top and halt the uptrend.

Key News

Last week, FIIs were net buyers on all the five trading sessions. They cumulatively bought stocks worth Rs 16,719 crore.

Pfizer (Nse) has received an emergency authorization from the USFDA for its Pfizer BioNTech Covid-19 vaccine.

Central Bank Of India has approved the proposal to raise capital funds up to Rs 500 crore.

Kec International has received new orders worth Rs 1,438 crore across segments.

Union Bank Of India issuing bonds up to Rs 1,500 crore on a private placement basis.

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 92%; Rally Attempt, 0%; Uptrend Under Pressure, 8%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 67%; Rally Attempt, 0%; Uptrend Under Pressure, 33%; Downtrend, 0%.

Visit Marketsmith India to Read More About Indian Share Market News, Daily Market Tips, Model Portfolio etc.

Interest Rate vs. Factor Rate – The Difference

Today, there are a wide variety of funding options available to small and medium-sized businesses. From traditional bank loans and lines of credit to invoice financing and working capital loans, it’s easy to find and compare various loan options to meet your financial needs and budget.

One reliable way to choose the best small business financing is to compare the overall cost of the loan. To determine how much you’ll have to repay in total for your borrowed amount you need to look into the interest rate vs. factor rate.

Many small business owners are familiar with the term annual percentage rate (APR) or simply interest rates but certain types of business loans represent the cost of funding in the form of a factor rate. So if you’re planning to apply for a small business loan, it’s significant to know the difference between the two. In this blog post, we’ll explain what makes both different from each other and why every small business owner should care.

What Are Factor Rates?

The factor rate is expressed in a decimal form and not in the percentages the way interest rates are calculated. These rates usually range from 1.09 to 1.47. Similar to interest rates, this signifies how much you’re going to pay to obtain funding.

Factors rates are most commonly used in short-term business financing like a Merchant Cash Advance, where repayment terms are very short, typically daily or weekly. Factors rates are rarely used in the small business funding space, but they are not difficult to calculate.

What Are Interest Rates

The interest rate is one of the most common ways to signify the total amount (interest + principal) you would pay throughout the loan tenure. You’ve probably heard about this term since it’s how the most personal and business loans are priced.

This is expressed as an annual percentage rate (APR) and is used for credit cards, home mortgages, and traditional business loans such as an SBA loan, term loan, line of credit, or equipment financing.

How Factor Rates Are Calculated?

Calculating your factor rate is not as difficult as it seems, you get the total amount by simply multiplying your borrowed amount by the factor rate.

For Example:

Principal Amount – $10,000

Factor Rate – 1.25

Term – 18 months

Total Repayment – $12,500

Daily Payment – $265

Weekly Payment – $173

How Interest Rates Are Calculated?

The method of calculating the interest rate is somehow a little complicated. However, the most sought-after small business financing options involve charging fixed or variable interest on a set of percentages of the remaining principal at defined, regular intervals.

Here is the general formula to calculate interest on your loan amount:

Principal Loan Amount x Interest Rate x Time (aka Number of Years in Term) = Interest

For Example

Loan Amount – $500,000

Interest Rate (APR) – 7%

Loan Term – 10 Years

Total Repayment – $850,000

Monthly Payment – $7083

What Factors do Lenders Consider When Determining Your Factor and Interest Rate?

Factor Rate

Time in the business
Consistency of revenue
Seasonality of the business
Average monthly revenue

Interest Rate

Type of small business loan
Your business and personal credit score
Business type and industry
Payment history

Read Also: The Difference between Term Loans and Lines of Credit

Which One is Better For You Small Business?

The greatest factors in determining which rate is best for your small business are the type of business financing you need, creditworthiness, or how soon you need capital. Short-term business loans such as invoicing financing and Merchant Cash Advance with factor rates are great for entrepreneurs who don’t have ideal credit score and collateral to put up but need immediate cash to run and grow their businesses.

Factor rate financing may be beneficial for your business if you:

Need quick cash to manage day-to-day operations and other short-term business expenses
Want to make a steady and static payment
Recently launched a new venture but has a steady flow of revenue
Have low or no credit score
Don’t have collateral to secure funds
On the contrary, the interest rate can be a great option for small business owners who have a relatively better credit score or a little more time before they need working capital.

Interest loan financing may be a great fit for your business if you:

Prefer long repayment terms and lower EMIs
Have been in the business for more than 2 years
Want to choose and compare from a variety of loans
Have an ideal personal and business credit score
Have the ability to make payments on time
Show healthy business revenue

Bottom Line

No matter how you borrow money for your small business, it will always come with a cost. Loans with factor rates usually take shorter to get approved. The application process is typically more easy and fast and will require less documentation than financing like traditional bank loans.

Before choosing a loan type, it’s a smart idea to work with a financing professional you trust to help you choose the best loan options as per your current financial needs and budget. Besides, you can apply through an online lending marketplace to find and compare a variety of loan offers from multiple lenders to see if you should go for interest rate or factor rate.

How to buy and sell Polkadot Coin: Know How To Buy DOT in India

Polkadot – A platform that is making a wide range of blockchains interoperable with each other as it is an open-source multichain protocol that facilitates the cross-chain transfer of any data or asset types, not just tokens. The crypto is gaining the attention of bulls, more and more traders are thinking to get involved in the Polkadot rally. And beginners are quite confused about buying and selling the DOT, so here is some information regarding buying and selling of DOT which can help beginners:-

How to buy Polkadot?

Polkadot has been registered on a number of crypto exchanges, unlike other main cryptocurrencies, it cannot be purchased directly with fiat money. However, you can still easily buy these by first buying Bitcoin from any large exchanges and then transfer to the exchange that offers to trade Polkadot.

Unlike other main cryptocurrencies, you cannot buy Polkadot directly with fiat money. But you can choose the Polkadot exchange technique,i.e., you can first buy Bitcoin or any other cryptocurrency from any exchange, then transfer it to the exchange that offers to trade Polkadot, and then exchange your purchased cryptocurrency to Polkadot.

There are many exchanges that offer DOT trading markets including Binance, Huobi Global, HBTC, etc. Binance is the cheapest Polkadot exchange with a maximum fee of 0.10% fee. It offers a BNB discount and cashback too.

It is just you have to make ensure that you’re choosing a safe and reliable Polkadot exchange. How to choose one?

There is a long list of exchanges that offer Polkadot trading, so it can be hard to choose among those, especially when you’re a beginner. To determine the most appropriate exchange for you, you have to consider some points:

Reputation and popularity of the exchange
High liquidity
High confidence score
Low fees
No-wash trading
Based on these factors you may choose an exchange for trading your coin.
Visit Cointocurrency to know how you can buy Polkadot in India.

Using A Conference Call Consultant

In this day and age where conference call companies are a dime a dozen, it can be a difficult and time-consuming process to try and choose between all of the available conference call options. If time is a luxury you don’t have, maybe your company should consider employing the services of a conference call consultant. Conference consulting is actually a newer service created out of the need many companies have expressed at not having the time to research conferencing service providers. Chances are a company is choosing to use conferencing services because they are looking to save time and money. Using a consultant means that you don’t have to make this decision without the help of an experienced individual.

A conference call consultant is responsible for find you the best company to meet your needs. In order to do this, the consulting agent will obtain some basic information about your company’s needs. Information such as, what is the estimated number of people that will be attending a conference? How many times will conferences be held in a specified period of time? Will your company be using audio only services? What about video and web conferencing? What is the preferred method of calling? This and several other questions will be used to determine what types of services will best suit your companies needs. At that point the conference call consultant will check to see if there is any additional hardware or software your company will need in order to use the preferred method of conferencing.

Next a consultant will do the research needed to determine which conferencing provider will best suit your needs. Checking directories, contacting companies directly for quote comparison and verifying the information in a flat rate plan. The consulting agent can is also more likely to spot calling plans that claim to be able to do more then they are actually able to. This is important so that no time or money is wasted on services you can’t use. When you sit down and analyze all of the time it takes to make a good choice in a conference call provider, a conference call consultant just seems like a smart choice.

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