Know How US Recession Affect Indian Markets at The Finapolis. Top Reasons Why Investors Should Go With The Flow - The Finapolis. Why Are Property Stocks Rising Back? The Finapolis. In the past 3-6 months, real estate stocks have sprung back to life. So fast and strong has been ‘revival’ in markets that the property shares have beaten old favourites like consumer durables, IPO stocks, and even banking shares in this period. This marks a true change in heart as far as stock markets are concerned. Even a year ago, participants were unsure of the real estate sector, but the last few months have seen a consistent transformation. Is this on account of improving prospects of organised real estate companies?
Or, are sections of investors buying real estate stocks as an experiment in bottom-fishing amid record high levels for the market indices? It can be said without an iota of doubt that both commercial and residential property space are seeing signs of green shoots. While the arguments still revolve around prices, demand pull is slightly better. Commercial charm Real estate stocks are up nearly 13 per cent in the last 3 months alone. Residential rev-up Watch out Tax sops. Understand Reasons Why Stock Is Falling - The Finapolis. The sharp drop in Yes Bank shares has given many bottom-fishers a so-called dream opportunity, but don’t start punching buy orders yet. When Yes Bank shares plummeted 29 per cent on April 30 after a shock loss in Q4, Whatsapp trading chat groups, social media and many market analysts became bullish on the stock.
Yes Bank is just an example. Over the last few months, the Indian stock market has seen quite a few names, big and small, witnessing extreme forms of volatility. In October 2018, shares of e-commerce firm Infibeam Avenues fell as much as 73 per cent in one day after concerns related to a message doing the rounds alleged corporate governance. Housing loan firm DHFL’s hit the lowest level since May 2014 as the stock tanked 30 per cent in four days in late January 2019.
In late April, shares of grounded air carrier Jet Airways lost 52 per cent in 3 days as lenders turned down a request for emergency funding. Understand reasons why stock is falling Some troubled stocks recover but... Key Things To Learn From Politicians About Personal Finance - The Finapolis. Things To Keep In Mind post Election - The Finapolis.
Stock markets have already reacted to exit polls that were announced on Sunday, May 19 evening. Tomorrow, i.e. May 23 will see the all-important results of the general election and the first signs of 17th Lok Sabha formation will be visible. For investors, this period i.e. post-election result, can mark the beginning of a difficult time for trading and investing. Election results are not decided by stock markets, or by political parties. In India, tens of crores of votes spanning across 543 constituencies will be counted and that will throw up the winners (and the losers). Nobody knows what will happen. With the proliferation of social media, everybody with access to an audience is virtually an expert and can influence minds.
History does not repeat itself 2019 is not 2014, 2009 or 2004. In the past 3 general elections, we have seen that election years have been good for the markets. Known Unknown There is a third scenario. Lengthy bargaining on coalition government formation. Six Quick Focus Areas For Modi 2.0 Explains The Finapolis. Namo continues.
With a renewed reinvigoration, the BJP government is in for a second term, riding on Narendra Modi’s brand equity. The Sensex is already flirting with 40,000 levels. Markets believe that the second innings will lead to renewed strength in pushing strong reforms and boost to domestic consumption. Reform dreams are abound, and not without a reason. For instance, the last innings witnessed two of the largest structural reforms — the demonetisation and the implementation of GST. Reeling under consumption slowdown amid liquidity crisis in the NBFC sector and lower terms of trade in the agriculture sector, there are real economic worries.
Unlike the first five years, the solution to the problems is complex and will require a radical shift in the Indian economic policy. There are 6 key areas where initiatives will likely be focussed on in the next 12 months. Agriculture Farm incomes and farm prices remain low despite the Minimum Support Prices (MSP) increases. Employment Banking. Know how NPA & UPA Government have Brought Change in India - The Finapolis. As elections draw closer, comparisons of the economic records of political parties become natural. After independence, India adopted a planned economy with significant state control; as a result, despite strong growth potential, India lagged behind most of its Asian peers and thus disappointed many. It took a crisis, namely the Balance of Payments of the early 90s for India to change course. The government led by P V Narasimha Rao with Manmohan Singh as the Finance Minister started the process of economic liberalization. In 1997 in the “dream budget”, Finance Minister P.
Chidambaram introduced capital account convertibility. However, despite these efforts, growth didn’t improve significantly. By the time NDA left office, growth had increased to 7.9% on account of the cumulative impact of reforms since 1991. During the first five years of the Manmohan Singh government, India grew at 8.34% per year. The author is CEO, Karvy Stock Broking.
Know 5 Common Money Misconceptions About Money - The Finapolis. Everyone around us may have something to say about money management, but that doesn’t mean you should pay heed to every (often unsolicited) advice coming your way. A number of them are based on personal experiences, assumptions or just hearsay, and may not stand the test of universality or plain facts. As such, it makes a lot of financial sense to dissect certain common money misconceptions to help you make informed choices: 1. “There’s still a lot of time to start saving for my retirement” When it comes to building your retirement savings, the earlier you start the better. Reasons include: The longer you stay invested, the greater are your chances to grow your fund beating risk. 2. No, it isn’t. But it’s crucial you choose a card whose benefits are best aligned with your unique lifestyle requirements and affordability, and you pay all your bills in full within the interest-free period without fail to avoid hefty interest charges and other penalties. 3. 4. 5.
Know Why Rupee Rise Surprises All - The Finapolis. After a severe battering in 2018, the Indian Rupee has risen like a phoenix from the ashes. The domestic currency is now near 7-month highs, jumping 1.8 per cent so far this year compared to nearly 8.5 per cent loss in 2018. Robust foreign inflows have helped the cause of the rupee, but the stability in the rupee is also calming frayed nerves in the equity market. In short, the quick roundabout in rupee’s fortunes from Asia’s worst-performing currency to now best-performing in emerging markets this year has taken everyone by surprise. The big question is will this party last?
It can be argued that the rupee is mirroring the change in fortunes of markets. As the New Year unfolded, most of those headwinds started to ebb. Firstly, the US Federal Reserve’s (FED) move to raise interest rates has helped. Secondly, global bond yields have seen a sea-change. Thirdly, rupee hedging costs have gone down for foreign and domestic players. Fourthly, macros like CAD was widening in 2018. Know Why stock market and debt market are on opposite sides? - The Finapolis. The Interim Budget 2019, as expected, was rural and social sector friendly and quite populist in nature. In fact, it could be mistaken as a political statement. However, the budget as a financial instrument did pack some punch. Importantly, it met the expectations of an income support scheme for small farmers ahead of the key Lok Sabha elections. Through the election year budget, the government has tried to appease key political constituents including the middle class, by imposing no new tax while offering sops in terms of income tax.
Stock markets have received the budget positively thanks to the consumption stimulus, but there are murmurs in the debt/fixed income market on where the money will come from and what happens if it doesn’t. More money for people is good for stocks For the stock market, many fears have not been realised. Overall, there is a hefty almost 0.6 per cent GDP worth of new announcements between the income support plan and the tax breaks for the middle class. 19 Personal Finance Resolutions to keep this year - The Finapolis.
What can you do today that you were not capable in the last few months? New Year Resolutions. A goal is a dream with a deadline. As you step into 2019, your personal finance will be the top priority. It’s all about your money and how you manage it. 2018 has come and gone, but if you keep on making the same mistakes next year, tomorrow will never come. 1. Nobody wants you dead, but death will eventually happen. 2. This is not a vague resolution. 3. Remember the day you bought the health insurance? 4. 52 no-spend days Every year has roughly 52 weeks. 5. There is a tonne of views on what investors should do or not do in the run-up to Lok Sabha elections, which are slated to happen sometime between April and May 2019. 6.
Even sophisticated investors have the habit of doing lumpsum investments once in a while. 7. The New Year is about new possibilities. 8. Most employees get annual salary hikes. 9. Gold is often bought as jewellery. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Will critical sectors top or flop in 2019? - The Finapolis.
2019 is already upon us. While brokers and market experts usually share Sensex/Nifty year-end targets, such numbers do not really add any value to an equity investor besides giving an idea about expectations direction wise. The market is composed of different sectors and each sector houses many companies. So, here is sector wise outlook of some of the most critical sectors like banking, FMCG, pharma, IT, infrastructure, capital goods etc. Sectoral outlooks provide you with deeper insight and that can help you take informed decisions about what to do with your equity investments in 2019.
Cementing ties The consensus view about the cement sector, which is linked to India’s growth and construction related fortunes, is that the sector is staring into an up-cycle. No longer is the cement industry building more capacity than demand. Capital goods revving up The interest rate sensitive capital goods sector does well if rates are low. Bank on us Motown in slowdown Tech that Consumer carnival. Are Indian markets ignoring risks of US Fed rate hikes? - The Finapolis. Indian equities have profited from a short-term shift in market views after oil prices corrected, and the rupee appreciated.
Many participants are thinking that the US Federal Reserve’s policy moves in response to weak so-called US growth will revive easy liquidity conditions, which will sustain strong portfolio flows into India. This global scenario may not play out on expected lines and may make Indian stocks vulnerable given that they are trading at a fair value zone, ahead of volatile times as far as domestic politics is concerned. Let's have a closer look at the issue and examine how the Indian stock market may be impacted. A short recap before we jump to the topic. Indian markets have been lackluster ever since the government decided to impose long-term capital gain (LTCG) tax. That apart, in the last few months, markets have danced to the tunes of oil prices and rupee movement against the US dollar.
Foreign investor flows are pivotal for the Indian markets. Know the Benefits of Mutual Fund Investment in India - The Finapolis. Mutual funds, with their numerous benefits, are fast becoming the first and best choice for investments for beginners and professionals alike. If you’re just starting out on investments and need a reminder about why to opt for mutual funds, take a look here: Tax saving benefit of mutual funds More often than not, the first thought that crosses an investor’s mind is if the chosen investment tool will fetch a tax benefit. One must do appropriate amount of research to make sure that the investment type opted for offers the benefit. It must be done in the planning stages to avoid suffering losses in the tax planning period.
ELSS is a diversified equities fund that comes with a lock-in period of 3 years. ELSS is the best option for wealth creation over a long term. Simplicity For one to invest in mutual funds, one need not have extensive knowledge of finance and economics of stock markets. Affordability and frugality Most mutual funds have low minimum investment requirements. Versatility. Know Why Think NPS This Tax Season? - The Finapolis. With the tax season setting in, a wholesome tax-efficient investment is what the tax payers are looking for.
And a long-term retirement fund that is getting all the attention this time is National Pension scheme (NPS). One of the primary causes for getting this attention is the extraordinary NPS tax benefit that has just been made entirely tax free by the government and the contribution has been increased to 14% from the 10% earlier. NPS has been popular from the time it was launched in 2004 for the government employees and then opened up to all Indian citizens in 2009. It’s low cost, and allows you to choose your mix of assets among equity, corporate debt, government securities and alternative investment fund. NPS tax benefits are beyond the prescribed limit of Rs. 1.5 Lakh under Section 80 (C). A deduction of Rs. 50,000 under Section (CCD) in a financial year. Let’s look at this investment option in detail. What’s on offer How to open an NPS account Offline process Online process.
Read How much tax do salary allowances draw? - The Finapolis. That time of the year is here again when we all sit down to calculate our taxes. Yes, it is the tax season and though you should have computed your taxes much earlier, it’s never to later. To compute income tax exemptions for salaried employees, you must know each component of your salary. Apart from the basic pay, the salary comprises a number of allowances that are provided to meet various expenses of everyday life. These allowances can be divided into three categories – taxable, non-taxable and partially taxable. Let us discuss the taxability of allowances in details. House Rent Allowance (HRA) The least of the following is considered income tax exemption for salaried employees u/s 10(13A): a) 40 per cent of salary (50 per cent for Mumbai, Kolkata, Delhi & Chennai). b) Excess of rent paid over 10 per cent of salary. c) Actual amount received by the assessee.
Salary for the purpose on HRA includes basic salary as well as DA. Tenant to apply on rent paid to landlord Medical treatment. Know What do Honest Taxpayers Expect from Budget 2019? The Finapolis. Dear government, you have informed that direct tax mop-up has grown by 14.1 per cent to Rs 8.74 lakh crore during April-December 2018. The rate of growth is even more impressive since collections of the corresponding period of fiscal 2017-18 also included extraordinary collections under the Income Declaration Scheme, which do not form part of the current year’s collections.
On the GST front, monthly tax collections have been regularly coming between Rs 90,000 crore and Rs 1 lakh crore. These numbers are a clear testament to the fact that the honest taxpayer of the country is doing their job diligently. And, it is this honest taxpayer that has budget expectations and needs relief in the Budget that is less than 10 days away.
Usually, interim budgets are staid affairs since they are looked at as being simple vote-on-account being just ahead of an election. Budget Expectations 2019 Boost maximum tax exemption under Section 80C Bigger housing loan tax sop Online transaction incentive. News on Crude Oil Price Drop - The Finapolis. RBI Battle VS Government - The Finapolis. Read Weekly Financial E-Paper with The Finapolis. Online Financial Calculators - The Finapolis. Read Personal Finance Articles In India - The Finapolis. Exclusive News on Investment Planning - The Finapolis. Latest Personal Finance News - The Finapolis. Stay Updated with Real Estate News in India - The Finapolis. Latest News on Gold - The Finapolis. Latest News on Fixed Deposits - The Finapolis. Read Insurance News & Articles In India - The Finapolis.
Read Latest Loan News - The Finapolis. Get Latest Mutual Funds Latest News - The Finapolis. Get Latest Mutual Funds Latest News - The Finapolis. Stay Updated with Share Market News - The Finapolis. Get Income Tax Latest News -The Finapolis. Read Personal Finance Articles & News at The Finapolis.