Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Bottom-Up

<ul>
<li>The <a href="https://www.smartkarma.com/entities/bajaj-finance-ltd" target="_blank" data-smartkarma-citation="entities:8950:1" rel="noopener">Bajaj Finance Ltd (BAF IN)</a> vs. <a href="https://www.smartkarma.com/entities/kotak-mahindra-bank-ltd" target="_blank" data-smartkarma-citation="entities:126:1" rel="noopener">Kotak Mahindra Bank (KMB IN)</a> Price-Ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.</li>
<li>While one of the two companies displays higher revenue growth, the valuation might begin to become stretched. Fundamental key figures are provided to complement the statistical analysis.</li>
<li>Trade setup, statistical properties, factor exposure, risk management strategies, and key events are discussed.</li>
</ul>


The Bajaj Finance Ltd (BAF IN) vs. Kotak Mahindra Bank (KMB IN) Price-Ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
While one of the two companies displays higher revenue growth, the valuation might begin to become stretched. Fundamental key figures are provided to complement the statistical analysis.
Trade setup, statistical properties, factor exposure, risk management strategies, and key events are discussed.


Bajaj Finance (BAF IN) Vs. Kotak Mahindra Bank (KMB IN): A Relative Value Play

<ul>
<li>The <a href="https://www.smartkarma.com/entities/canara-bank" target="_blank" data-smartkarma-citation="entities:543:1" rel="noopener">Canara Bank (CBK IN)</a> vs. <a href="https://www.smartkarma.com/entities/punjab-national-bank" target="_blank" data-smartkarma-citation="entities:542:1" rel="noopener">Punjab National Bank (PNB IN)</a> price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.</li>
<li>The relative value opportunity has a target return of approximately 6% and can be implemented through stocks, derivatives, or as relative over-/underweights in a long only context.</li>
<li>Trade setup, statistical properties, factor exposure, risk management strategies, and key events are discussed.</li>
</ul>


The Canara Bank (CBK IN) vs. Punjab National Bank (PNB IN) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
The relative value opportunity has a target return of approximately 6% and can be implemented through stocks, derivatives, or as relative over-/underweights in a long only context.
Trade setup, statistical properties, factor exposure, risk management strategies, and key events are discussed.


Canara Bank (CBK IN) Vs. Punjab National Bank (PNB IN): A Relative Value Opportunity

Macroeconomics

<ul>
<li>
India: RBI rate decision on 9 April, 0.25% cut expected.</li>
<li>
CPI Release: Several economies release CPI data next week, while central banks update their forecasts and scenarios with the recently released US tariffs.</li>
<li>
Monthly Option Expiries: in India (BSE Stock options), Japan (Nikkei, Topix, Stocks), and South Korea (Kospi 200). The BSE moved the expiry one day forward due to a holiday.</li>
</ul>



India: RBI rate decision on 9 April, 0.25% cut expected.

CPI Release: Several economies release CPI data next week, while central banks update their forecasts and scenarios with the recently released US tariffs.

Monthly Option Expiries: in India (BSE Stock options), Japan (Nikkei, Topix, Stocks), and South Korea (Kospi 200). The BSE moved the expiry one day forward due to a holiday.


Market Movers: Key Dates at a Glance (7 - 13 April)

<ul>
<li>The Reserve Bank of India (RBI) is set to announce a monetary policy decision on Wednesday 9 April 2025. </li>
<li>
Market Expectations: The market anticipates a 25-basis-point rate cut, supported by a strong consensus. However, the RBI has surprised markets in 28% of its rate decisions over the past decade.</li>
<li>
Index Sensitivity to Rate Decisions: Historical data shows the <a href="https://www.smartkarma.com/entities/nse-nifty-bank-index" target="_blank" data-smartkarma-citation="entities:26811:1" rel="noopener">NSE Nifty Bank Index </a>reacts more significantly to RBI announcements than the <a href="https://www.smartkarma.com/entities/nifty-index" target="_blank" data-smartkarma-citation="entities:23617:1" rel="noopener">NIFTY 50 Index</a>.</li>
</ul>


The Reserve Bank of India (RBI) is set to announce a monetary policy decision on Wednesday 9 April 2025. 

Market Expectations: The market anticipates a 25-basis-point rate cut, supported by a strong consensus. However, the RBI has surprised markets in 28% of its rate decisions over the past decade.

Index Sensitivity to Rate Decisions: Historical data shows the NSE Nifty Bank Index reacts more significantly to RBI announcements than the NIFTY 50 Index.


RBI Rate Decision: Impact on Nifty 50 and NSE Banks, Insights and Strategies

<ul>
<li>
Australia: RBA rate decision on 1 April. Expect no change.
</li>
<li>
Japan: Nikkei 225 rebalancing effective 31 March at the close.</li>
<li>
US reciprocal tariffs will keep everyone on their toes on 2 April.</li>
</ul>



Australia: RBA rate decision on 1 April. Expect no change.


Japan: Nikkei 225 rebalancing effective 31 March at the close.

US reciprocal tariffs will keep everyone on their toes on 2 April.


Market Movers: Key Dates at a Glance (31 March- 6 April)

India

Nifty Bank Index is a free-float capitalization-weighted index comprised of the most liquid and large capitalized Indian Banking stocks. The index will have 12 stocks from the banking sector, which trade on the National Stock Exchange. The index was developed with a base value of 1000 as of January 1, 2000.

NSE Nifty Bank Index (NSEBANK INDEX EQUITY)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

NSE Nifty Bank Index (NSEBANK INDEX EQUITY)

Bajaj Finance (BAF IN) Vs. Kotak Mahindra Bank (KMB IN): A Relative Value Play

The Price-ratio between Bajaj Finance Ltd and Kotak Mahindra Bank signals a potential relative value opportunity. Trade setup, risk management,...

Gaudenz Schneider

Canara Bank (CBK IN) Vs. Punjab National Bank (PNB IN): A Relative Value Opportunity

Deviation in Canara Bank vs. Punjab National Bank price-ratio presents a potential relative value opportunity. Target return, historical...

Gaudenz Schneider

Market Movers: Key Dates at a Glance (7 - 13 April)

RBI expected to cut rates in India, CPI data and option expiries in focus for several economies next week. Exchange holiday in India.

Gaudenz Schneider

RBI Rate Decision: Impact on Nifty 50 and NSE Banks, Insights and Strategies

The RBI is expected to announce a rate cut, but historical data shows markets can be surprised by their decisions. Nifty Bank Index reacts more...

Gaudenz Schneider

Market Movers: Key Dates at a Glance (31 March- 6 April)

RBA expected to keep rates steady, Nikkei 225 rebalancing in Japan, India shifting its option expiration day, Exchange Holidays in India and...

Gaudenz Schneider

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Bajaj Finance (BAF IN) Vs. Kotak Mahindra Bank (KMB IN): A Relative Value Play

​The Price-ratio between Bajaj Finance Ltd and Kotak Mahindra Bank signals a potential relative value opportunity. Trade setup, risk management,...

Gaudenz Schneider

Canara Bank (CBK IN) Vs. Punjab National Bank (PNB IN): A Relative Value Opportunity

​Deviation in Canara Bank vs. Punjab National Bank price-ratio presents a potential relative value opportunity. Target return, historical...

Gaudenz Schneider

Market Movers: Key Dates at a Glance (7 - 13 April)

​RBI expected to cut rates in India, CPI data and option expiries in focus for several economies next week. Exchange holiday in India.

Gaudenz Schneider

RBI Rate Decision: Impact on Nifty 50 and NSE Banks, Insights and Strategies

​The RBI is expected to announce a rate cut, but historical data shows markets can be surprised by their decisions. Nifty Bank Index reacts more...

Gaudenz Schneider

Market Movers: Key Dates at a Glance (31 March- 6 April)

​RBA expected to keep rates steady, Nikkei 225 rebalancing in Japan, India shifting its option expiration day, Exchange Holidays in India and...

Gaudenz Schneider

The Price-ratio between Bajaj Finance Ltd and Kotak Mahindra Bank signals a potential relative value opportunity. Trade setup, risk management,...

Deviation in Canara Bank vs. Punjab National Bank price-ratio presents a potential relative value opportunity. Target return, historical...

RBI expected to cut rates in India, CPI data and option expiries in focus for several economies next week. Exchange holiday in India.

The RBI is expected to announce a rate cut, but historical data shows markets can be surprised by their decisions. Nifty Bank Index reacts more...

RBA expected to keep rates steady, Nikkei 225 rebalancing in Japan, India shifting its option expiration day, Exchange Holidays in India and...