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Is it good to invest in stocks where the Promoters are pledging their holding ?

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Is it good to invest in stocks where the Promoters are pledging their holding ? Generally, the Founders or Promoters of the public listed company have to mortgage their holding to the banks or some other companies due to the Purpose of their Business or Personal reasons. During the Q4FY19 - the January - March period, the Pledging percentage of Promoters holding have risen significantly listed in the BSE 500 (Bombay Stock Exchange). The Reliance Capital and Reliance Infra were increased their pledging up to 100 percent of their Holding. Already, the RCOM(Reliance Communication) has pledged its entire stake to debt crisis and now it is in bankruptcy process. The listed media company Dish TV had also pledged up to 95 percent of Promoters Holding. The Promoters of Eveready Industries and Zee Entertainment have almost pledged more than 50 percent of their holding. The Pharmaceutical Giant Sun Pharma had too pledged nearly 11 percent of the promoters share holding. Apollo Hospitals had a 78

Mutual Funds Taxation - Simply Explained

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Mutual Funds Taxation - Simply Explained Generally, there is no TDS (Tax Deducted at Source) applicable for the Mutual Funds and Shares in India. One should declare these type of income as 'Other source of income' while filing the Income Tax returns. For the Mutual Fund schemes, the Taxation is divided into two categories - Debt Funds and Equity / Hybrid Funds. Hybrid Funds (Earlier Balanced Fund) is a combination of both debt and equity based funds. In case of Investing in Debt oriented funds, the holding period of a funds will tells the taxation rate. As you can see in the below table, If an investor redeem his money from the debt fund with in three years from the time of investment, then he or she will be taxed as per the Income Tax Slab. If the holding period is more than 3 years and the redemption is happening, then the Tax rate would be 20 percent with Indexation Benefit. For instance, Rs. 1 Lakh will be invested in a Debt Fund Scheme of a particular AMC (Asset Management

Is the Indian Stock Market going towards Crash or Correction ?

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Is the Indian Stock Market going towards Crash or Correction ? Is the Stock Market in India were its Life time high, Would you planned for this ? While the Global economic factors have affected not only the Indian Stock market in the past one year, but for the other Global Indices. The Indian Stock Market touched a new at the start of the year 2019 - Nifty50 and Sensex. With the ongoing US-China Trade war and the Domestic elections results are the key factor for the Indian Stock Indices. Shares of many listed companies are trading in its 52 week low. Mid and Small Cap stocks are already fallen and expected to come up. Although there is an opportunity to buy these shares at a low price, the Top Benchmark indices were trading near the life time high - Nifty and Sensex. Global Market experts have already said that the Stock Market in India is Over valued and suggesting to be Cautious. What it tells to the Investors - The Three Key Factors. P/E (Price to Earnings) P/B (Price to Book

FII and DII Trading activity – April 2019

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FII and DII Trading activity – April 2019 We are in the near days of Election Results in India. Nifty was trading between 11550 - 11750 over the past one month. In May 2019, Public Listed Companies' Q4FY19 Earnings, Polling Results, Crude and Dollar Change could move the Indian Stock Market. In the month of April 2019, the Foreign Investors (FII) were the net buyers and the Domestic Investors (DII) were the net sellers in a majority. The Gross Purchase of FII was Rs. 1,02,562 Crore and the Gross sales was Rs. 89,812 Crore - Net Purchase stood at 12,749 Crore Rupees. In Contrast, the Domestic Institutional Investors were purchased the shares worth of Rs. 66,294 Crore and the Gross sales was Rs. 70,514 Crore. So, the DII were the net sellers with an amount of 4,219 Crore Rupees. The Foreign Investors were the net sellers only on 4 out of 19 Trading days in the April 2019. On the other side, the Domestic Investors had sold for the 12 days. On 25th April 2019, the FII bought shares wit

Where are the investors going ? - Worst Scenario of Retail Investors

Where are the investors going ? - Worst Scenario of Retail Investors The face of every investor in the Stock Market reveals different opinions or options. We, everyone knows the Stock market is generally subject to the Volatility. From the Father of Value Investing Mr. Benjamin Graham to the Biggest Investor and Wealthy man Mr. Warren Buffet, they are done the Fundamental Analysis for the Stock picking. In the Indian Stock Market, there are few more listed companies went and going bankrupt. Brand names like Essar, IL & FS, RCOM had went in Debt crisis. Now, in the airline industry, the Jet Airways which is struggling to run its core business. The Founder was expelled, the airline company were controlled by the banks on Debt, The salary and the future of its employees happening all around. Jet Airways had announced its last four quarterly results with a negative income (Net loss). As of March 2019, the fourth quarter is yet to be declared.  The Share holding pattern were also downgr

Wipro Buyback - Benefits of Buyback of Shares

Wipro Buyback - Benefits of Buyback of Shares Last Friday (16-04-2019), the Public listed IT firm WIPRO announced its Quarterly results (Q4FY19) and moreover the newsletter about Buyback of Shares. This is the second time in the last 20 months that the company announced for the Buyback of Shares. On Friday, the shares of WIPRO went down about 2 percent, after the news of WIPRO employees' accounts may have been hacked. The Board of directors of the company approved a proposal to buyback shares up to 5.35 percent of the Total Paid up equity share capital, which is about 32.30 Crore shares. There is an aggregate amount not exceeding of Rs. 10,500 Crore for the buyback and the record date will be announced later. It is noteworthy that WIPRO had said it will buy the shares at a price of Rs. 325/ per share through Tender Offer. Where the retail investors were holding the WIPRO shares reasonably, and it would be said that about 90 percent of the shares will be buyback. Currently the Share

Q4FY19 Results of Tech Giants - TCS and Infosys

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Q4FY19 Results of Tech Giants - TCS and Infosys Nowadays is the earnings period while the fourth quarter (Q4FY19) results are coming. Recently the two Tech Giants were released their last Quarterly results for the Financial year 2018-19. Results of the listed companies are the most important for any investor. Not only the quarterly results were releasing now, it is also a whole financial year report for the 2018-19. The number one, Tech Giant TCS (Tata Consultancy Services) were announced its Q4 results last Friday after the market hours. The Company's revenue were seen at Rs. 38,010 Crore and the Net profit was Rs. 8126 Crore. Where the another Tech Giant Infy (Infosys) released its fourth quarterly results on the same day, the Revenue stood at Rs. 21,539 Crore and the net profit at Rs. 4074 Crore. The Company's expenditure and Operating profit were stood at Rs. 16,390 Crore and Rs. 5,149 Crore respectively. The Year on Year (YoY) Sales growth for the Infosys told as 19 percen