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One Stop Investment & Insurance & Tax Consultancy-Life Insurance....General Insurance including Health Insurance..Motor Insurance..Marin..Fire & Burglary Insurance,,overseas mediclaim Insurance..Personal Accident etc.Insurance..Mutual Fund Investment with UTI,SBI,Reliance,ICICIPru,Birla Sunlife,HDFC,Kotak Mahindra etc.. Fixed Deposits with HDFC Deposits and Revenue Matters including Income Tax,Service Tax etc Works...The Total Investment & Insurance Solutions
Saturday 12 November 2016
Tax Saving Mutual Fund Generates better rerun than PPF -The Total Investment & Insurance Solutions
Friday 11 November 2016
SBI's deposits zoom by Rs 53,000 cr in two days, Q2 net falls -The Total Investment & Insurance Solutions
Contact Your Financial
Adviser Money Making MC
11
November 2016
As much as Rs53,000 crore were deposited
with the State Bank of India (SBI) during the last two days after the
government's demonetisation move, bank Chairperson Arundhati Bhattacharya said
on Friday.
She said the bank received Rs31,000
crore on Thursday and Rs22,000 on Friday.
According to her, the SBI also exchanged
currencies valued around Rs1,500 crore.
On Tuesday, the Centre announced Rs 500
and Rs 1,000 notes ceased to be legal tenders from November 8 midnight. The Total Investment & Insurance
Solutions
"The cash is drying up. But we are
taking care of it. There is no need to panic. We still have 50 days in hand.
Nothing is going out of fashion. Till that time, please publicise the use of
debit cards," she told reporters here while announcing the bank's second
quarter results.
The SBI said it closed the second
quarter of the current fiscal with a lower net profit of Rs 2,538.32 crore.
The bank said it has posted a net profit
of Rs 2,538.32 crore for the quarter ended September 30, down from Rs 3,879.07
crore for the quarter ended September 30, 2015.
The bank's total income for the period
under review increased to Rs 50,742.99 crore compared with Rs 46,854.81 crore
for the quarter ended September 30, 2015. The Total Investment & Insurance Solutions
The bank's unamortised loss on account
of selling its assets to Asset Reconstruction Companies as on September 30,
2016, stands at Rs 516 crore. The Total
Investment & Insurance Solutions
The bank's Board of Directors also
approved issuance of maximum 13,63,65,146 equity shares of face value of one
rupee each, to the shareholders of State Bank of Bikaner and Jaipur (SBBJ),
State Bank of Mysore (SBM), State Bank of Travancore (SBT) and the government
of India (GoI) for its shareholding in Bharatiya Mahila Bank Limited (BMBL) as
on the record date at the agreed swap ratio as under:
a) For minority shareholders of SBBJ --
28 equity shares of SBI of the face value of Re 1 each to be issued in lieu of
10 equity shares of SBBJ of the face value of Rs 10 each.
b) For minority shareholders of SBM --
22 equity shares of SBI of the face value of Re 1 each to be issued in lieu of
10 equity shares of SBM of the face value of Rs 10 each.
c) For minority shareholders of SBT --
22 equity shares of SBI of the face value of Re 1 each to be issued in lieu of
10 equity shares of SBT of the face value of Rs 10 each.
d) 4,42,31,510 Equity shares of SBI of
the face value of Re1 to be issued to the Government of India in lieu of their
shareholding in BMBL (i.e. 100 crore shares of the face value of Rs10 each).
As a result the issued capital of the
SBI will go up from Rs776,35,98,072 to Rs789,99,63,218 (maximum), subject to
approval of the schemes of acquisition of SBBJ, SBM, SBT and BMBL by the
government of India.The Total Investment
& Insurance Solutions
US probe will not impact Indian drug firms: Fitch -The Total Investment & Insurance Solutions
Contact Your Financial Adviser Money Making MC
11
November 2016
The probe by the US Department of
Justice into the suspected price cartelization in the pharmaceutical industry
will not have a major impact on the Indian drug firms, Fitch Ratings said on
Friday.
In a statement Fitch Ratings said:
"The ongoing probe by the US Department of Justice (DoJ) into suspected
price collusion in the pharmaceutical industry is unlikely to have a
significant impact on Indian pharma firms." The Total Investment & Insurance Solutions
Citing news reports, Fitch said while
the probe is likely to include more generic drugs, the situation is still
evolving amid the current political environment in the US.
"In any case, we expect the impact
to be minimal for Indian pharma, given the already-high price-based competition
across most categories over the past few years and the reasonably diversified
generic portfolios of Indian pharma companies," Fitch said. The Total Investment & Insurance
Solutions
The antitrust investigations which began
about two years ago have attracted investor attention recently, with news of
the likely expansion of the investigation into more generic drugs and the first
charges being filed possibly by end-2016. The Total Investment & Insurance Solutions
The probe has focused on a few
high-priced complex generic drugs so far, which attracted prosecutors'
attention due to considerable price increases amid the ongoing policy focus on
limiting healthcare costs in the US. The
Total Investment & Insurance Solutions
Indian pharma exports to the US are
focused mainly on simple generics, competing with a substantial set of
competitors offering similar post-patent products. The Total Investment & Insurance Solutions
Indeed, the high level of direct
competition along with channel consolidation has caused downward pressure on
prices, leading to deflationary trends in many generic drugs.
"Overall, we expect the regulatory
environment in the US to remain supportive for generics-focused pharma,"
Fitch added. The Total Investment &
Insurance Solutions
This is in light of the underlying
policy focus on containing healthcare costs and steps to enhance drug
affordability such as faster Abbreviated New Drug Application (ANDA) approvals
under Generic Drug User Fee Amendments (GDUFA), which will increase the
availability of economically priced generic alternatives, said Fitch.The Total Investment & Insurance
Solutions
Serpentine queues outside ATMs, most run cash-dry -The Total Investment & Insurance Solutions
Contact Your Financial Adviser Money Making MC
11
November 2016
The
general public faced severe hardship in many parts of the country in getting
the demonetised currency notes exchanged. This is a round-up from three states:
Despite assurances by the Union Finance
Ministry and the Reserve Bank of India (RBI) of "sufficient currency
notes", most ATMs here and in some other parts of Uttar Pradesh went dry
on Friday.
People standing in serpentine queues
outside bank branches and ATM kiosks got rowdy at some places while at others
they openly aired their disappointment.
The Total Investment & Insurance Solutions
Although the ATMs opened on Friday after
a gap of two days, many remained cashless. Security guards at these ATMs faced
a tough time explaining the situation to angry customers.
Most of these customers said they had
urgent needs and emergencies requiring immediate money.
The RBI office in Gomtinagar here was
flooded with people who had more questions to ask but no cash to take away. The Total Investment & Insurance
Solutions
Police presence was increased at
important banks and ATMs following the huge public turnout.
Senior officials said they stepped up
security at most places as they feared the crowd might turn unruly in case the
people were unsuccesful in withdrawing money from banks.
Reports of minor spats between bank
customers and security officials at ATMs came in from some parts of western UP. The Total Investment & Insurance
Solutions
Small traders and common people were
facing severe hardship after demonetisation of Rs 500 and Rs 1,000 notes even
though ATMs opened on Friday after a two-day closure.
Long queues were witnessed at banks and
ATMs as people rushed to get new bank notes. However, they faced difficulties
in withdrawing money at hundreds of ATMs in Bhubaneswar and other cities as
many ATMs ran out of cash in a couple of hours. The Total Investment & Insurance Solutions
Lakhs of people were disappointed as
thousands of ATMs did not dispense cash. Adding to the woes, some ATMs were
still closed, said sources.
"I had gone to the bank on Thursday
and stood in the queue for hours. When my turn came, the bank manager said that
the new notes were finished by that time. Now, the ATMs have no cash. I don't
know what to do as I have no money," said Ranjan Samal, an engineering
student studying in a Bhubaneswar college. The Total Investment & Insurance Solutions
The few people who succeeded in
withdrawing money also faced problems in exchanging them in the markets for
smaller denomination notes like Rs 100, Rs 50, Rs 20 and Rs 10.
"Small businesses like medicine
stores and roadside food stalls are not accepting high denomination notes. The
local buses and auto-rickshaws are also not accepting them. Even though I
managed to withdraw money from an ATM, I cannot eat anything nor travel,"
said Biswajit Rout, a resident of Bhubaneswar. The Total Investment & Insurance Solutions
"Our business has been affected due
to the demonetisation. We hardly transact any business as we don't have small
denominations. People are coming with Rs 500 notes and we don't have change.
The problem will persist till the demand and supply gap in floating cash is
bridged," Odisha Byabasayi Mahasangha (traders' body) General Secretary
Sudhakar Panda said.
ATM outlets of many private banks
in Kolkata remained closed or had boards reading 'out of order' on Friday,
three days after demonetisation of Rs 500 and Rs 1,000 currency notes.
Bank branches, which had resumed
operations a day before, saw a more than three-time increase in footfall and an
almost five-fold rise in transactions as customers rushed to deposit, exchange
and withdraw money. The Total
Investment & Insurance Solutions
People, who were expecting to draw the
much-needed cash from the ATMs, which were slated to resume operations from
Thursday midnight, braced up for another day without money as several outlets
of even SBI were closed near the all-important location of Sealdah Railway
Station on Friday morning.
"The ATMs in the vicinity of my
residence are closed. I was hopeful that ATM outlets at a busy station like
Sealdah would be working. Now I am in a fix," lamented a passenger, who
has to undertake a two-hour journey daily to get to his place of work. The Total Investment & Insurance
Solutions
As per the rule imposed by the Reserve
Bank of India, each ATM card can be used to withdraw a maximum of Rs 2,000 in a
day. However, the surcharge on ATM cards beyond five transactions a month has
been waived for the time being. The
Total Investment & Insurance Solutions
Even some of the ATMs which were open,
ran dry after a few hours, angering people who had queued up before the
machines hours earlier. The Total
Investment & Insurance Solutions
The pace everywhere was sluggish.
Customers were not certain whether they would be able to make use of the ATMs
due to high demand. The Total
Investment & Insurance Solutions
"I am worried that ATMs might soon
go out of cash as many have brought multiple cards with them to withdraw
money," said a man, waiting in front of an outlet for more than a hour.
According to bankers, it would take more
than a week to completely flush out scrapped currencies from the ATM outlets
across the country and fill them with usable denominations.
"It would take almost 10 days to
bring normalcy in ATM operations", said SBI chief Arundhati Bhattacharya. The Total Investment & Insurance
Solutions
Though some people in the queues
commended the central government's move to curb black money in the country,
almost everyone agreed that their dash for cash would continue for at least a
few more days. The Total Investment
& Insurance Solutions
Rs3,35,000 cr currency may be destroyed in demonetisation: Think tank -The Total Investment & Insurance Solutions
Contact Your Financial Adviser Money Making MC
11
November 2016
The surprise demonetisation of high
value denomination currency may lead to likely destruction of banknotes worth
over Rs3,35,000 crore while new notes worth Rs1,34,000 crore may be added to
the banking system, a leading think tank said on Friday. The Total Investment & Insurance Solutions
"This step by the government is a
death blow to the cash component of black money in India," Imagindia
Institute President Robinder Sachdev said. The Total Investment & Insurance Solutions
"Over $50 billion (Rs3,35,000
crore) of illegitimate cash will be destroyed, and over $20 billion (Rs1,34,000
crore) of legitimate cash will enter banking channels to become legal,"
Sachdev said.
The move comes in the wake of the
voluntary Income Disclosure Scheme (IDS) that ended on September 30 and
reportedly netted $19 billion (Rs 1,27,490 crore), according to the Washington
Post.
It means that India's war on domestic
black money will bring in approximately $40 billion (Rs 2,68,400 crore) into
the formal banking system of the country by December 31, think tank Imagindia
Institute said.
According to Reserve Bank of India
(RBI), the total value of the outstanding currency in circulation in the Indian
economy as on October 28 stood at Rs 17.77 lakh crore, or about $265
billion.
RBI data also shows that as on March 31,
currency notes of Rs 500 and Rs 1,000 comprised 86 per cent of the total
currency value in circulation. The
Total Investment & Insurance Solutions
"Not all currency notes in
circulation are illegally acquired cash. Our model to assess the impact of this
step by the Indian government accounts for 70 per cent of cash in currency
notes of Rs 500 and Rs 1,000 as legitimate, and 30 per cent as illegitimate
cash stowed away in bags and hiding places," it said.
This strike on the black economy will,
at the same time, eliminate fake currency and cripple terror financing,
significantly strengthening India's financial and banking infrastructure, as
well as bring almost all of India into the formal banking system. The Total Investment & Insurance
Solutions
However, Imagindia also added that the
current cash in circulation or hide-outs is a minor proportion of the black
money that has been generated in India. The Total Investment & Insurance Solutions
"It can easily be agreed that 20
per cent of India's GDP is unreported, and in the black economy... In the past
ten years, from 2006 to 2015, India's accumulated GDP was $20,134
billion," according to World Bank data. The Total Investment & Insurance Solutions
"At 20 per cent of illegal money,
it means that $4,027 billion have been created as black money in India in past
ten years," Sachdev said. The
Total Investment & Insurance Solutions
Majority of black money generated in
past ten years was converted into legal bank deposits, land and property, gold,
diamonds, silver, art, and other such items.
In addition, portions of it were sent
abroad to safe havens and investments, or circled back as legal investments in
Indian companies, he added. The Total
Investment & Insurance Solutions
"Through this war on cash economy,
the government will be able to destroy only $50 billion out of the $4,027
billion that was generated. The
Total Investment & Insurance Solutions
"However, this is the maximum that
can be done at this stage... nevertheless, it is a body-blow to the future of
black money in India," he said.The
Total Investment & Insurance Solutions
Nifty, Sensex to remain under pressure – Weekly closing report -The Total Investment & Insurance Solutions
Contact Your Financial Adviser Money Making MC
11
November 2016
I had mentioned
in last week’s closing report that Nifty, Sensex were likely to remain under
pressure. The major indices of the Indian stock markets showed a lot of
volatility and closed with significant losses for the week. On Friday, in
particular, the losses were around 2.5% over Thursday’s close. The trends of
the major indices in the course of the week’s trading are given in the table
below:
The Total Investment & Insurance Solutions
 |
Weekly Indices (The Total
Investment & Insurance Solutions)
Global cues such as the US
presidential election, trends in dollar strength and crude oil prices are
expected to drive investors' sentiments during the week. Besides, the direction
of foreign fund flows, along with the ongoing quarterly results would be other
major themes to look out for during the week starting November 7, market
analysts said.
Short covering, value buying and
lower chances of a US rate-hike lifted the Indian equity markets on Monday.
The key indices closed the day's trade with gains of over half a per cent
each as buying was witnessed in banking, healthcare and metal stocks. On the
NSE, there were 1,097 advances, 392 declines and 46 unchanged. On the BSE,
there were 2,020 advances, 861 declines and 129 unchanged. The Total Investment
& Insurance Solutions
The government-owned-United Bank of
India on Monday said it would raise Rs300 crore through preferential allotment
of equity shares to Life Insurance Corporation (LIC). In a regulatory filing in
BSE the bank said its Board of Directors has approved preferential allotment of
equity to LIC or any fund(s) thereof up to Rs300 crore. Meanwhile, the bank
closed the second quarter of the current fiscal with a lower net profit of
Rs43.53 crore down from Rs61.86 crore posted during the comparable period in
2015. The bank had earned a total income of Rs2,893.31 crore for the quarter
ended September 30, 2016, down from Rs2,927.19 crore earned during the quarter
ended September 30, 2015. The bank’s shares closed at Rs21.50, up 3.61% on the
BSE.
The Total Investment & Insurance Solutions
Private sector ICICI Bank Ltd on
Monday said it closed the second quarter of the current fiscal with a net
profit of Rs3,102.27 crore as compared to Rs3,030.11 crore for the same quarter
last year. In a regulatory filing in BSE, the bank said it its total income has
increased from Rs16,106.22 crore for the quarter ended September 30, 2015 to
Rs22,759.08 crore for the quarter ended September 30, 2016. During the quarter,
the bank launched the Unified Payments Interface, or UPI and enabled
UPI based transactions on its’ mobile
banking applications -‘iMobile’ and ‘Pockets’.
The bank now has over 200,000 Virtual Payment Addresses on UPI. On
Tuesday, the bank’s shares closed at Rs283.20, up 1.60% on the BSE.
Ceat Limited, an RPG Group company,
on Monday reported a 1.55% rise in its consolidated net profit to Rs106.92
crore for the quarter ended September 30, 2016 as compared to Rs105.28 crore in
the corresponding period last year. On a consolidated basis, the tyre maker's
revenue stood at Rs1,419 crore in the three months ended September 30, up by
5.7% on a year-on-year basis. EBITDA stood at Rs194 crore from Rs192 crore on a
year on year basis, while margins were at 13.7% during the quarter. On the
products front, the company launched puncture safe tyres for bikes - a first in
India, and fuel smart series for passenger cars, a statement added. The
company’s shares closed at Rs1,305.95, up 7%, on the BSE.
Profit booking on Tuesday after
Monday's gains triggered selling pressure in healthcare, capital goods and IT
(information technology) stocks. However, close to the end of the trading
session, optimistic investors ensured a rally on thinner trading to close with
minor gains over Monday’s close. On the NSE, there were 617 advances, 849
declines and 59 unchanged. On the BSE, there were 1,354 advances, 1,528
declines and 126 unchanged.
On Wednesday at the open, the Sensex
crashed 1,688 points, or 6.12%, following Donald Trump’s lead in the US
elections and the government's decision the previous evening to demonetise
Rs500 and Rs1,000 currency notes. However, by the time Democratic Party’s
Hillary Clinton conceded defeat and Trump gave his victory speech, the index
had significantly risen from the lows, and was quoting at 27,207.92 points,
down 383.22 points, or 1.39%.
Initially, all the 30 shares that go
into the Sensex basket were quoting in the red. But upon the recovery, four
stocks were in the green, three of them from the pharma space -- Dr Reddy's,
Sun Pharma (closed at Rs661.10, up 4.07%, on the BSE on Wednesday) and Lupin
(closed at Rs1,529.05, up 1.31% on the BSE on Wednesday). The State Bank of
India was also in the positive territory (closed at Rs259.75, up 2.83%, on the
BSE on Wednesday).
On the NSE there were 1,354
declines, 279 advances and 245 unchanged on Wednesday. On the BSE there were
2,157 declines, 610 advances and 97 unchanged. NSE trading volumes were higher
than average, reflecting the volatility in the stock markets on Wednesday.
A day after global and domestic cues
heavily dented investors' sentiments, the Indian equity markets made
substantial gains during the mid-afternoon trade session on Thursday. The key
indices traded with gains of more than 0.97% each as positive global markets,
rupee appreciation and short covering enhanced investors' risk-taking appetite.
Sector-wise, buying was witnessed in all the 19 sub-indices of the BSE, led by
banking, metal and healthcare stocks. Another positive trigger for the domestic
markets was the Finance Minister's announcement that the Goods and Services Tax
would most probably get implemented by September next year. The overall
sentiment in the global markets remained positive. On the NSE, there were 1,184
advances, 268 declines and 31 unchanged. On the BSE there were 2,023 advances,
727 declines and 132 unchanged. The Total Investment & Insurance
Solutions
The market indices fell heavily on
Friday as there were fears of US rate hike, stronger dollar and fears of lower
growth following demonetisation. The key indices, on Friday, traded with losses
of more than 2.5% each over Thursday’s close, as selling pressure was witnessed
in automobile, consumer durables and banking stocks. The BSE market breadth was
skewed in favour of the bears -- with 2,101 declines and 410 advances. On the
NSE, there were 1,428 declines, 193 advances and 258 unchanged. The rupee has
weakened on the back of the dollar gaining strength. This has also increased
the possibility of a US Fed rate-hike in December. The Total Investment
& Insurance Solutions
Thursday 10 November 2016
The impact of Trump on the U.S. economy-The Total Investment & Insurance Solutions
Contact Your Financial Adviser Money Making MC
What are some of the areas that Trump is really going to be
focused on in the first part of his term?
One point that I would make is that even when Obama first
came into office and he had both houses of Congress, how hard it was to get
things done. And he came in with a pretty long agenda and accomplished
Obamacare and a stimulus programme, and certainly the stimulus programme wasn't
exactly what he wanted it to be.
So it's very hard, even though you have thoughts about what
you want to do, but you have to run it by so many other people, so whatever he
wants isn't necessarily what he gets.
But there are a number of issues where he's been pretty
clear that he wants something done and that could have an impact on the
economy.
Trade has been a signature issue. If the U.S. does have more
protectionist policies, what kind of impact could that have?
The biggest impacts there would probably be on our trading
partners, rather than us. Although what will happen is we'll slow down the
entire world economy if we do less trading; the specific advantages that you
get, the specializations you get from trade are all helpful things, and now
we're kind of suggesting that maybe we won't be doing that anymore and we'll
have a more "buy America" type of focus.
If he puts up trade barriers, it could make goods more
expensive in the U.S. If we bring in less stuff from the rest of the world it's
going to slow their growth rates, and certainly we'll be able to sell less
stuff and we may be subject to more tariffs.
Trade is about 12% of U.S. GDP, so it's not a small number
and with very low growth rates to start with, it isn't wonderful. And we're
already starting out in the hole, if you will, on trade, where there's very
little growth in trade, either in imports or exports over the last year.
So, clearly, some of the things he's talking about
addressing have already, of their own volition really slowed up. There's like
no growth in goods imports, which is just unheard of.
Immigration is another signature issue. We've talked before
about a potential of labor shortages in the U.S. If we do see a limit on
illegal immigration and a crack down on undocumented immigration, would you
expect some labor market problems?
Maybe it’s a little bit simplistic, but a country's
immigration policy is very closely correlated with how the country’s done
growth-wise.
Japan has no immigration for all practical purposes. They
have a negative GDP growth and a very bad lost decade or decades.
Europe’s got less restrictive policies than Japan, but still
not the most optimal policy. They haven't lit the world on fire with the growth
rates.
And the U.S. with the more liberal immigration policies has
done the best of those three major markets.
Australia and Canada are doing fairly well, but they're
helped along by commodities too, but those countries have been able to have a
fairly high immigration rate which has helped.
Infrastructure spending. There's some bipartisan support for
this. Where would that spending be? Could it have a real impact on growth?
The "where" will be very interesting, and exactly
how it's spent. But I think everybody has decided around the world that just
maybe a monetary policy and negative rates isn't gonna be enough to get things
going again.
How do you do that?
There's many ways, but certainly one of the ways is by
government infrastructure building, which puts a lot of people back to work,
and helps a class of people that have been having trouble finding work. So it's
clearly something that could be very positive.
The question is, where do we get the money to pay for that?
That's been the big issue in a lot of countries. It all sounds good, "Oh
yeah, let's spend more money on infrastructure," but everybody's running
very tight budgets and nobody wants to pay more in taxes. The Total Investment
& Insurance Solutions
Trump potentially could be focused on lowering taxes,
changing Obamacare, changing healthcare. When you look at the totality of what
he potentially would like to accomplish, does it really change your thinking on
what the long-term growth rate for the U.S. is?
I am not changing my forecast. As you know, I've grown
increasingly more cautious about the U.S. economy over the last six months as
we've seen a number of key industries, like autos, like airliners, like shale,
and even healthcare, beginning to top out, and with those being key growth drivers,
I've been concerned about GDP growth slowing. The Total Investment &
Insurance Solutions
Now some demographic issues probably mean that's not a
disaster, that we're not going to fall to pieces or have another huge, major
recession, but certainly pretty dramatic slowing in growth rates.
That certainly adding in some uncertainty in there--I'm not
a big one that's like, "Oh uncertainty ruined these ... " anything. I
think if somebody's got a great business in front of them, they're not gonna
say, "Well gee, I don't know what the president's gonna do, I guess I'm
not doing anything." I don't think Steve Jobs said that when he was
rolling out the iPhone. So I think that's overused sometimes, but in the short
run, the uncertainty created by this, until he actually gets into office and
see what he wants to do first, it may just be enough to slow us up even a
little bit more than I had been thinking.The Total Investment & Insurance
Solutions
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