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, 3 February 2018
Five tax saving funds that have given stellar returns in the past 5 years-The Total Investment & Insurance Solutions
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Friday, 2 February 2018
Bloodbath on stock market; Sensex sheds over 800 points-Weekly report-The Total Investment & Insurance Solutions
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2
February 2018
I had
mentioned in last Friday’s closing report that Nifty, Sensex might go sideways.
The major indices of the Indian stock markets saw volatility in the week’s
trading and closed on Friday with significant losses over last Friday’s close.
The trends of the major indices in the course of the week’s trading are given
in the table below:
Weekly Indices (The Total
Investment & Insurance Solutions)
The
major indices of the Indian stock markets rallied on Monday and closed with
gains over Friday’s close. On the NSE, there were 427 advances, 1,086 declines
and 27 unchanged. Optimism ahead of the tabling of the Economic Survey
2017-18 in Parliament, along with buying in auto, metals and banking stocks,
lifted the key Indian equity indices to trade at fresh high levels on Monday.
According to market observers, positive global cues, coupled with the
expectation of sops from the Union Budget 2018-19, lifted investors'
risk-taking appetite.
The
Economic Survey 2017-18 tabled in Parliament on Monday said that resolving the
non-performing assets (NPAs), or bad loans, of state-run banks and implementing
GST are among the major factors that will aid India log GDP growth of 6.75% in
the current fiscal, the Economic Survey for 2017-18 tabled in the Lok Sabha by
Finance Minister Arun Jaitley on Monday, has said.
The
Future Group on Friday said it has acquired Jasper Infotech-owned Snapdeal's
logistics arm Vulcan Express at Rs35 crore. "Jasper Infotech, which also
owns Snapdeal... has entered into an agreement with Future Supply Chain
Solutions... to sell 100% stake in Vulcan Express Pvt Ltd in an all-cash deal
valued at Rs35 crore," a Future Group statement said.
The
major indices of the Indian stock markets suffered a correction on Tuesday and
closed with losses over Monday’s close. On the NSE, there were 334 advances,
1,202 declines and 29 unchanged. Weak global cues coupled with selling pressure
in consumer durables, banking and IT (information technology) stocks pulled the
key Indian equity indices lower on Tuesday.
State-run
India Oil Corp (IOC) on Tuesday declared a near doubling in its net profit at
Rs7,883.22 crore for the third quarter ended in December over the same period
last year, mainly on the back of higher sales. The company had reported a net
profit of Rs3,994.91 crore in the same quarter of the last fiscal. The
rise was even sharper sequentially with the oil marketing company (OMC) posting
a profit after tax of Rs3,696 crore in the previous quarter. IOC's
revenue for the quarter in consideration increased to Rs1,30,865 crore as
compared to Rs1,15,630 crore in the corresponding quarter of 2017, the company
said in a stock exchange filing following a meeting of its board of directors.
The OMC posted a higher gross refining margin (GRM), on converting each barrel
of crude to petroleum products, for the April-December period of the fiscal at
$8.28 per barrel as against the GRM of $7.36 for the same nine months of 2017.
The refiner said it has accounted for a lower budgetary support of Rs2,249.92
crore for the first nine months of the current fiscal (April-December),
compared to Rs3,879.73 crore received in the corresponding period of 2017.
Indian Oil said that during the first quarter it settled its liability for
entry tax in Haryana.
Housing
finance major HDFC said that its standalone net profit during the third quarter
of 2017-18 increased to Rs5,670 crore. According to the company, its standalone
net profit during the quarter under review included the proceeds from the IPO
of HDFC Life. The company had reported a net profit of Rs1,701 crore for the
corresponding period of the previous fiscal. "In the quarter ended
December 31, 2017, the Corporation received Rs5,250 crore (net of estimated
expenses, which are yet to be fully crystallised) from the initial public offer
(IPO) of HDFC Standard Life Insurance Company Limited (HDFC Life)," HDFC
said in a statement. "The Corporation also created an additional
special provision (as a charge to the statement of profit and loss) of Rs1,575
crore, being 30% of the pre-tax gains on this transaction, thereby building an
additional buffer against any unexpected risk in the future."
The
major indices of the Indian stock markets were range-bound on Wednesday and
closed with minor losses over Tuesday’s close. On the NSE, there were 641
advances, 1,088 declines and 292 unchanged. Key Indian equity indices traded in
the red on Wednesday, with the Sensex slipping below the psychologically
important 36,000-mark and the Nifty50 below the 11,000-level.
FMCG
(fast moving consumer goods) major Dabur India on Wednesday reported a rise of
13.02% in its consolidated net profit for the third quarter (Q3) ended December
31, 2017. The company's consolidated net profit for Q3 stood at Rs333.03 crore
as compared to the net profit of Rs294.67 crore reported during the
corresponding period of the last fiscal. For the quarter under review, the
total income of the FMCG major was reported at Rs2,032.78 crore -- up 5% --
from Rs1,935.97 crore posted during Q3 2016-17.
The
major indices of the Indian stock markets witnessed a highly volatile trading
on Thursday, the day of the Union Budget, and closed with losses over
Wednesday’s close. On the NSE, there were 694 advances, 849 declines and 28
unchanged. There were selling pressures in consumer durables, banking and
healthcare stocks. At one point, both the indices plunged after Finance
Minister Arun Jaitley announced in his Budget speech that the long-term capital
gains (LTCG) tax rate was 10% for gains exceeding Rs1 lakh. Rationalisation of
LTCG as expected has arrived, though negative on market sentiments but robust
equity returns would absorb this 10%, if corporate earnings growth would happen
as expected, market analysts observed.
The
barometer Sensex of the BSE plunged more than 800 points on Friday as the
re-introduction of long-term capital gains (LTCG) tax for investing in equities
finally sunk in. The Nifty50 too, slipped over 250 points. According to market
observers, selling pressure in consumer durables, banking, capital goods, auto
and metals stocks added to the downward trajectory of the indices.
On
Friday, Just Dial and PC Jewellers slumped 12.34% and 25.15% respectively, its
steepest fall since one month, pointed out market analysts. Information
Technology stocks, however, traded higher. Tech Mahindra was the top gainer on
the NSE at 0.99% to close at Rs617.10.The
Total Investment & Insurance Solutions
Why is the Budget silent on bulging NPAs of banks, asks AIBEA-The Total Investment & Insurance Solutions
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2
February 2018
Huge
bad loans in banks is a big problem, but there is nothing much about
recovering non-performing assets (NPAs) in the Budget, except for
measures to tackle NPAs of micro, small and medium enterprises (MSMEs),
presented by Finance Minister Arun Jaitley, says a bank union.
In
a statement, CH Venkatachalam, General Secretary, All India Bank Employees
Association (AIBEA), says, "The recovery of piling bad loans of the public
sector banks has not been addressed in the Budget. AIBEA has been demanding stringent
measures to recover the huge bad loans, particularly from the corporate
defaulters. But no concrete measures have been announced. Already, there are
indications that under the Insolvency proceedings, Banks are going to suffer
deep haircut and huge sacrifice. But still, no other effective measures have
been announced."
According
to data furnished by Reserve Bank of India (RBI) and the government, by
September 2017 end, NPAs, or bad loans, of state-run banks amounted to a
staggering Rs7.34 lakh crore. NPAs of private sector banks, however, stood at a
much lower level of around Rs1.03 lakh crore by the end of the July-September
quarter.
Leading
corporate entities and companies accounted for around 77% of the total gross
NPAs of banks from domestic operations, a statement issued by the Finance
Ministry had said.
AIBEA
says it has been demanding for periodical publication of names of loan
defaulters by amending the RBI Act, but it has been deliberately avoided.
"This shows that Government wants to protect the corporate companies
because of election funds," it said.
The
bank employee union has also been demanding to define wilful loan default as a
criminal offence. However, this also has been ignored indicating the nexus and
vested interests, AIBEA says.
In
June 2017, the RBI identified 12 NPA cases. Later it came out with a second
list comprising of about 28 accounts worth over Rs1.5 lakh crore, to be taken
to the National Company Law Tribunals (NCLTs) for resolutions under the
Insolvency and Bankruptcy Code (IBC).
According
to the union, there is also no indication that the Financial Resolution and
Deposit Insurance (FRDI) Bill will not be pursued thus attempts are afoot to
utilise the people's money to whitewash corporate delinquency. "Today
total deposits with the banks is around Rs110 lakh crore. We need to protect
this precious money of the common people of the country. Total deposits in the
banks should be fully protected and guaranteed," Mr Venkatachalam
said.
Earlier,
in a report, CARE Ratings had pointed out that India's NPAs are growing rapidly
and the country was at fifth spot in terms of high NPAs across the world.
“India features very high up the order and is lower than only Portugal, Italy,
Ireland and Greece. Quite clearly, the Insolvency and Bankruptcy Code (IBC) and
National Company Law Tribunal (NCLT) have its task cut out to lower these
numbers and make the system more robust,” the research note had said.
The
seriousness of the NPA problem can be gauged by the absolute level of impaired
assets in the system. “Ever since the Reserve Bank of India (RBI) had spoken of
asset quality recognition (AQR) in 2015, there was an increase in the pace of
recognizing these assets. It is not clear whether all have been recognised as
yet, though judging from the trends witnessed so far, it does appear that the
cleaning up operation on this score would be completed by March 2018. From
there on, it would be more a case of incremental NPAs being generated on
account of other factors rather than one of recognition by banks,” the report
had stated.The Total Investment & Insurance
Solutions
Sebi might mandate large corporates to raise funds through bond market-The Total Investment & Insurance Solutions
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2
February 2018
SEBI
(The Total Investment & Insurance Solutions)
Securities
market regulator Sebi might mandate large corporates to meet about one-fourth
of their financing needs through the bond market.
"Reserve
Bank of India has issued guidelines to nudge corporates access bond
market," Finance Minister Arun Jaitley said in his Budget 2018-19 speech
on Thursday.
"SEBI
will also consider mandating, beginning with large corporates, to meet about
one-fourth of their financing needs from the bond market."
According
to Jaitley, corporate bonds rated ‘A' grade would be permitted as eligible for
investment.
"Corporate
bonds rated ‘BBB' or equivalent are investment grade. In India, most regulators
permit bonds with the ‘AA' rating only as eligible for investment,"
Jaitley said.
"It
is now time to move from ‘AA' to ‘A' grade ratings. The government and
concerned regulators will take necessary action."The Total Investment & Insurance Solutions
Amendments moved to give more teeth to anti-money laundering act-The Total Investment & Insurance Solutions
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2 February 2018
Bank
(The Total Investment & Insurance Solutions)
The
government on Thursday sought to amend the Prevention of Money Laundering Act
(PMLA), 2002 aiming to widen its scope by providing for action against
property, equivalent to proceeds of crime, held outside the country.
So
far, the government could only proceed against property held within the
country.
The
amendments made through the Finance Act, 2018 would also take care of certain
procedural difficulties faced by the Enforcement Directorate (ED) in
prosecution of PMLA cases.
The
definition of "proceeds of crime" in PMLA was amended in 2015 to
include "property equivalent held within the country" in case
proceeds of crime is taken out or held "outside the country", an
official statement said.
It
added that the present amendment would allow the government to proceed against
property acquired abroad.
The
government had also proposed to include corporate frauds as scheduled offence
under PMLA so that Registrar of Companies in suitable cases would be able to
report such cases for action by the ED under the PMLA provisions.
"This
provision shall strengthen the PMLA with respect to corporate frauds."
The
government also sought to make the applicability of bail conditions uniform to
all the offences under PMLA, instead of only those offences under the schedule
which are liable to imprisonment of more than three years.
"This
will be a significant step forward in delinking the proceedings against
scheduled offences and money laundering offences under PMLA," it said.
"Section
5(1) of the Act provides that every order of provisional attachment passed by an
officer of the ED shall cease to have effect after 180 days from the date of
the provisional attachment order, unless confirmed by the adjudicating
authority under PMLA within that period.
"The
section is proposed to be amended to include the period of stay in this time
limit of 180 days and also further period of not more than 30 days to take care
of delays if any in communication of judicial orders," it added.The Total Investment & Insurance Solutions
Solid US Jobs Figures Leave Downbeat Markets Unmoved-The Total Investment & Insurance Solutions
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2 February 2018
Hong kong financial markets (The Total Investment & Insurance
Solutions)
Solid U.S. jobs data on Friday did little to improve the mood in global
stock markets as investors continued to worry about rising U.S. bond yields.
KEEPING SCORE: In Europe, Germany's DAX was
down 1.4 percent at 12,825 while the FTSE 100 index of leading British shares
fell 0.3 percent to 7,465. France's CAC 40 was 1.2 percent lower at 5,389. U.S.
stocks were poised for a lower opening with Dow futures and the broader S&P
500 futures down 0.6 percent.
JOBS DATA: U.S. employers added a robust
200,000 jobs in January, slightly above market expectations for a 185,000
increase. Meanwhile wages rose at the fastest pace in more than eight years,
suggesting employers are competing more fiercely for workers. The figures point
to an economy on strong footing even in its ninth year of expansion, fueled by
global economic growth and healthy consumer spending at home.
FED IMPLICATIONS: The pickup in hourly wages,
along with a recent uptick in inflation, may make it more likely the Federal
Reserve will raise short-term interest rates more quickly in the coming months.
The yield on U.S. 10-year Treasury notes, the benchmark for interest rates, has
risen swiftly, stoking investor concerns that higher rates could weigh on
company earnings and equity prices. This week yields hovered at their highest
level since April 2014, fueled by the prospect of stronger economic growth in
the U.S. and abroad.
ANALYST TAKE: "A 3 percent 10-year
Treasury yield is a footstep away," said Neil MacKinnon, chief macro
economist at VTB Capita. "The return of wage inflation will be central
now."
DEUTSCHE DOWN: Shares in Germany's biggest
bank, Deutsche Bank, fell sharply after full-year results showed it still
struggling to turn solid profits after years of wrenching restructuring and
legal trouble. Its share price was 5.3 percent lower at 13.99 euros.
SONY BOSS: The Japanese electronics and
entertainment company tapped its chief financial officer to take over as
president and CEO, taking over from Kazuo Hirai, who is stepping down after
orchestrating a turnaround.
ASIAN SCORECARD: Japan's benchmark Nikkei 225
sank 0.9 percent to close at 23,274.53 and South Korea's Kospi fell 1.7 percent
to 2,525.39. Hong Kong's Hang Seng index dipped 0.1 percent to 32,601.78 but
the Shanghai Composite index recouped early losses in the final hour to close
0.4 percent higher at 3,462.08.
ENERGY: Oil futures extended gains, with
benchmark U.S. crude climbing 15 cents to $65.95 a barrel in electronic trading
on the New York Mercantile Exchange. Brent crude, used to price international
oils, fell 25 cents to $69.40 per barrel in London.
CURRENCIES: The euro fell 0.4 percent to
$1.2459 while the dollar rose 0.8 percent to 110.23 yen.The Total Investment & Insurance Solutions
Thursday, 1 February 2018
Nifty, Sensex May Struggle to Head Higher – Thursday closing report -The Total Investment & Insurance Solutions
Contact Your Financial Adviser Money Making MC
1
February 2018
I had
mentioned in Wednesday’s closing report that Nifty, Sensex were looking dicey.
The major indices of the Indian stock markets saw volatile trading on Thursday,
but closed with minor losses over Wednesday’s close. On the NSE, there were 694
advances, 849 declines and 28 unchanged. The trends of the major indices in the
course of Thursday’s trading are given in the table below: The Total Investment & Insurance
Solutions
Major Indices (The Total
Investment & Insurance Solutions)
Amid
much volatility on Thursday as the Union Budget 2018-19 was presented, the key
Indian equity indices closed trade in the red with selling pressure in consumer
durables, banking and healthcare stocks. The BSE market breadth was bearish
with 1,454 declines and 1,324 advances.
At one
point, both the indices plunged after Finance Minister Arun Jaitley announced
in his Budget speech that long-term capital gains (LTCG) tax rate at 10% for
gains exceeding Rs1 lakh. Rationalisation of LTCG as expected has arrived,
though negative on sentiments but robust equity returns will absorb this 10% if
corporate earnings growth happen as expected, market analysts observed.
Two-wheeler
maker Eicher Motors Ltd and car maker Toyota Kirloskar Motor on Thursday said
they have logged higher sales volume in January as compared to January 2017. In
a statement, Eicher Motors said it sold 77,878 units in January, up from 59,676
in January last year. According to Eicher Motors, it has sold 671,328 units
till last month, this fiscal logging 23% growth over same period last fiscal.
Toyota Kirloskar said it sold 13,329 units last month, up from 11,252 units in
January 2017. “It is a delight to usher in the New Year with a double digit
growth. We are happy to have sustained the positive growth momentum post-GST.
The customer demand has consistently been strong and we have catered to the
growing customer demand," N Raja, Deputy Managing Director of Toyota
Kirloskar, was quoted as saying in the statement. The shares of Eicher Motors
closed at Rs28,047.35, up 4.78% on the NSE and the S & P BSE Auto Index
closed at 26,119.52, up 0.67% on the BSE. The Total Investment & Insurance
Solutions
Commercial
vehicles major Ashok Leyland Ltd on Thursday said it closed last month with 13%
growth in sales volume. In a statement issued here, the company said it sold
18,101 units last month, up from 14,872 units sold in January 2017. The company
has sold a total of 1,34,240 units till last month this fiscal, up from
1,12,317 units sold during the previous year corresponding period. The
company’s shares closed at Rs123.35, down 1.27% on the NSE.
Finance
Minister Arun Jaitley on Thursday did not provide any relief in the income tax
rates for 2018-19, but increased the cess levied on it by 1% to raise Rs11,000
crore. "The government had made many positive changes in the personal
income-tax rate applicable to individuals in the last three years,"
Jaitley said in his Budget speech. "Therefore, I do not propose to make
any further change in the structure of the income tax rates for
individuals." With salaried individuals left at the same tax rates, the
assets under management of mutual funds are likely to maintain a long term
bullish trend.
The
Finance Minister said the government would formulate a comprehensive Gold
Policy to develop the precious metal as an asset class. The government had been
planning to formulate a Gold Policy for long to set standard norms in the
industry. "The government will also establish a system of consumer
friendly and trade efficient system of regulated gold exchanges in the
country," Jaitley said while announcing the Union Budget 2018-19. Talking
about the government's Gold Monetisation Scheme, he said it would be revamped
to enable people to open a hassle-free Gold Deposit Account.
The top
gainers and top losers of the major indices are given in the table below: The Total Investment & Insurance
Solutions
Top Gainer (The Total
Investment & Insurance Solutions)
The
closing values of the major Asian indices are given in the table below: The Total Investment & Insurance
Solutions
Asian Indices (The Total Investment & Insurance Solutions) |
Fiscal deficit target for 2017-18 revised upwards to 3.5% or Rs 5.9 lakh cr-The Total Investment & Insurance Solutions
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1
February 2018
fiscal developments (The Total Investment & Insurance Solutions)
In
a significant admission of fiscal slippage with implications for pushing
inflation, the government on Thursday revised upwards its fiscal deficit target
for 2017-18 to 3.5 per cent of the GDP, or the equivalent of Rs 5.9 lakh crore.
The
announcement of a higher target, in place of the 3.2 per cent for the current
fiscal announced earlier, was made by Finance Minister Arun Jaitley while
presenting the Budget 2018-19 in the Lok Sabha. This is the last full budget of
the NDA government before the general elections expected to be held in the
first half of 2019.The Total Investment
& Insurance Solutions
"The
revised estimate of fiscal deficit for 2017-18 is at Rs 5.9 lakh crore, or at
3.5 per cent (of GDP)," Jaitley said, explaining that a main cause of the
fiscal slippage was that indirect tax revenues after the introduction of the
Goods and Services Tax were only available for 11 months of the current
fiscal.
"There
has been a shortfall also in non tax revenue, part of which has been made up by
higher direct tax collections and higher disinvestment income this year,"
he said. The Total Investment & Insurance
Solutions
The
Finance Minister placed the revised extimate of government expenditure for the
fiscal at Rs 21.57 lakh crore against the earlier budget estimate of Rs 21.47
lakh crore. The Total Investment & Insurance
Solutions
The
Finance Ministry's Economic Survey 2017-18 authored by Chief Economic Advisor
(CEA) Arvind Subramanian released on Monday had said that ambitious targets of
fiscal consolidation for the coming pre-election year be avoided, hinting
thereby that the target of 3.2 per cent of the GDP could be exceeded.
"Reflecting
largely fiscal developments at the Centre, a pause in general government fiscal
consolidation relative to 2016-17 cannot be ruled out," said the
Survey. The Total Investment & Insurance
Solutions
99% MSMEs to gain by tax incentives provided in Budget FY18-19-The Total Investment & Insurance Solutions
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1
February 2018
FM Arun
Jaitley(The Total Investment & Insurance Solutions)
|
FM Arun
Jaitley has proposed a reduced rate of 25% to companies that have reported
turnover up to Rs250cr in financial year 2016-17. This will benefit the entire
class of Micro, Small and Medium Enterprises which accounts for almost 99% of
companies filing their tax returns.
Accepting Rs7,000cr as the estimated revenue forgone due to this measure during the financial year 2018-19, the Finance Minister, while presenting the General Budget 2018-19 in Parliament said, “This is towards fulfilment of my promise to reduce corporate tax rate in a phased manner.”
He further added, “The lower corporate income tax rate for 99% of the companies will leave them with higher investible surplus which in turn will create more jobs.” The Total Investment & Insurance Solutions
The Finance Minister recalled that in the Union Budget 2017, he had announced the reduction of corporate tax rate to 25% for companies whose turnover was less than Rs50cr in financial year 2015-16. This had benefitted 96% of the total companies filing tax returns. The Total Investment & Insurance Solutions
The Finance Minister also said that after this measure, out of about 7 lakh companies filing returns, about 7,000 companies which file returns of income and whose turnover is above Rs250cr will remain in 30% slabThe Total Investment & Insurance Solutions
Accepting Rs7,000cr as the estimated revenue forgone due to this measure during the financial year 2018-19, the Finance Minister, while presenting the General Budget 2018-19 in Parliament said, “This is towards fulfilment of my promise to reduce corporate tax rate in a phased manner.”
He further added, “The lower corporate income tax rate for 99% of the companies will leave them with higher investible surplus which in turn will create more jobs.” The Total Investment & Insurance Solutions
The Finance Minister recalled that in the Union Budget 2017, he had announced the reduction of corporate tax rate to 25% for companies whose turnover was less than Rs50cr in financial year 2015-16. This had benefitted 96% of the total companies filing tax returns. The Total Investment & Insurance Solutions
The Finance Minister also said that after this measure, out of about 7 lakh companies filing returns, about 7,000 companies which file returns of income and whose turnover is above Rs250cr will remain in 30% slabThe Total Investment & Insurance Solutions
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