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Yatheendradas C.k.

Yatheendradas C.k.

City: Bangalore

Joining Date: 11 Jul , 2009
Last Login: 08:51 AM - 18 Dec , 2017
IP Address of Last Login - 122.172.56.xxx
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New Thread: Dalal Street set to open higher today as BJP leading

From : Yatheendradas C.k. at 08:51 AM - Dec 18, 2017 ( )

Dalal Street set to open higher today as Gujarat goes on counting, Modi’s BJP leading

Indian stock markets are set to open higher on Monday as Narendra Modi led Bharatiya Janata Party is leading as the counting of votes has started for the assembly elections in the state of Gujarat and Himachal Pradesh.

By: FE Online | Updated: December 18, 2017 8:39 AM   

Indian stock markets are set to open higher on Monday as Narendra Modi led Bharatiya Janata Party is leading as the counting of votes has started for the assembly elections in the state of Gujarat and Himachal Pradesh. Gujarat is considered a prestige battle for Prime Minister Narendra Modi in his home state and a litmus test for new Congresspresident Rahul Gandhi. The early indicator of India’s key equity index NSE Nifty, SGX Nifty Futures was also trading 0.39% higher at  10,402.5 on the Singapore Stock Exchange. BJPis seeking a sixth straight term in office, the Congress is aiming to stage a comeback in power after being in the opposition for over two decades.

The much results of keenly fought assembly elections in Himachal Pradesh and Gujarat will be out today. The counting of votes has already been started in the two states amid tight security. In both states, PM Narendra Modi led the campaign for the BJP, while Rahul Gandhi was the pivot of the Congress’ electioneering. During the campaign in Gujarat, Modi and BJP chief Amit Shah trained guns on the Congress on issues like Ram Temple, alleged Pakistani interference in the Gujarat polls and (suspended Congress leader) Mani Shankar Aiyar’s remarks.

The counting of votes will be held at 37 centres across the state’s 33 districts, amidst tight security. For the 182 seats up for grabs, a total of 1,828 candidates contested the elections which were held in two phases on December 9 and 14. The voting was held following an acrimonious campaign where both the main political parties indulged in no-holds-barred attacks on each other. The main contestants from the BJP are Gujarat Chief Minister Vijay Rupani (Rajkot West), Deputy Chief Minister Nitin Patel (Mehsana) and state BJP unit president Jitu Vaghani (Bhavnagar West). The main contenders from the Congress are Shaktisinh Gohil (Mandvi), Arjun Modhvadia (Porbandar), Siddharth Patel (Dabhoi), and Paresh Dhanai (Amreli).

Indian rupee gained 30 paise on Friday

The Indian rupee gained as much as 30 paise against the US dollar on Friday after most of the exit polls showed BJP winning with a clear margin in the state elections of Gujarat and Himachal Pradesh. The Narendra Modi led Bharatiya Janata Party was seen heading for victories in both states. As far as the state of Gujarat is concerned, almost all exit polls predicted more than 100 seats out of 182 for the BJP where the party has been positioned in power nearly for last two decades. Earlier on Friday, the Indian rupee opened 15 paise higher against the US dollar. The domestic currency rupee jumped as high as 33 paise in the afternoon trades to hit a high of 64.01 apiece US dollar. On Thursday, the Reserve Bank of India has fixed the reference rate of the rupee at 64.2798 against the US dollar and 75.9980 for the euro.

Indian stock markets ended higher on Friday

Indian stock markets closed higher on Friday after blazing in the morning trades as investors rejoiced the exit poll results which has predicted an easy win for BJP in Gujarat and Himachal Pradesh. S&P BSE Sensex concluded 216.27 points or 0.65% higher at 33,462.97 whereas NSE Nifty added 81.15 points or 0.79% to settle at 10,333.25. The key equity indices Sensex and Nifty traded higher through the day. Shares of HDFC Bank, HDFC gained phenomenally ahead of board meetings in which both are mulling to look for options for fundraising in their respective board meetings scheduled on 19 and 20 December. In the intraday trade, Sensex jumped as many as 375.26 points to hit the day’s high at 33,621.96 while Nifty 50 index neared 10,400, rising by 119.55 points to hit the day’s high at 10,373.1.

US stock market on Friday

Wall Street’s three major indexes tallied record closing highs on Friday with broad gains across sectors as a long-awaited tax bill that would cut corporate tax rates looked like it would win enough support from lawmakers to pass, Reuters said in a report. The Dow Jones Industrial Average rose 142.49 points or 0.58% to 24,651.15, the S&P 500 gained 23.62 points or 0.89% to 2,675.63 and the Nasdaq Composite added 80.06 points or 1.17% to 6,936.58.

New Thread: Asian stocks rise as investors bet on US tax reform

From : Yatheendradas C.k. at 08:20 AM - Dec 18, 2017 ( )

Dec 18, 2017 07:33 AM IST | Source: CNBC

Asian stocks rise as investors bet on US tax reform

Japan's Nikkei 225 added 1.15 percent early in the session as trading houses and banks rose.

CNBC   Moneycontrol.com  

Most major Asian indexes on Monday were given a boost by investor optimism that a plan to reduce corporate taxes would be passed stateside.

Japan's Nikkei 225 added 1.15 percent early in the session as trading houses and banks rose. Tech and automaker blue-chips also saw gains. Toyota rose 2.37 percent, Sony gained 2.22 percent and SoftBank climbed 1.14 percent.

Korea's Kospi came under slight pressure, trading 0.08 percent under the flat line. Steelmakers traded lower, with Posco and Hyundai Steel down 3.6 percent and 4.68 percent, respectively, even though Samsung Electronics inched higher by 0.36 percent.

Shares of automakers underperformed the broader Kospi index, with Hyundai Motor off 0.32 percent. Yonhap news reported last Friday that Hyundai workers at the automaker's Ulsan factories would be on strike on Monday and Tuesday after the company failed to meet their demands for a raise in wages.  

In Sydney, the S&P/ASX 200 gained 0.64 percent as resource stocks gave a boost to the overall index. Rio Tinto climbed 0.98 percent and Fortescue Metals rose 1.75 percent. Banking shares were also higher on Monday, with ANZ rising 1.91 percent after the bank announced it would buy back up to USD 1.5 billion shares on-market.

In the US, Republicans unveiled their final tax plan on Friday as two holdout GOP senators indicated they would support the tax bill after compromises were made. Among the provisions that made the cut was a reduction in the corporate tax rate from the existing 35 percent to 21 percent, with effect from 2018.

Republicans intend to pass the measures by the middle of this week.

US stocks closed at record levels, with the Dow Jones industrial average gaining 0.58 percent, or 143.08 points, to close at 24,651.74.

The dollar held onto gains made in the last session. The dollar index, which tracks the greenback against a basket of six currencies, rose as high as 93.997 on Friday. At 8:26 a.m. HK/SIN, the dollar index stood at 94.010.

Against the Japanese currency, the dollar inched higher to trade at 112.74.

Bitcoin takes its place on a bigger stage

Meanwhile, CME launched its bitcoin futures contract at 6 p.m. ET Sunday, or 7 a.m. HK/SIN, under the ticker "BTC." The front-month contract traded at USD 19,480 at 8:30 a.m. HK/SIN. Spot prices were down around 1.6 percent on the day at USD 18,781.39, according to the CoinDesk index.

That came on the heels of bitcoin futures beginning trade on the Cboe Futures Exchange earlier this month. Those moves come as investor interest in the cryptocurrency grows following the rapid rise in bitcoin prices this year.

Corporate news

Shares of Obayashi Corp. were off 0.07 percent following Nikkei headlines that Japanese prosecutors are likely to raid the company's offices as part of a bid-rigging investigation. Other Japanese construction companies Nikkei said was involved in the probe were also lower on the day: Taisei Corporation was down 1.63 percent, Shimizu Corporation shed 0.49 percent and Kajima Corporation fell 2.51 percent.

Meanwhile, stock exchange operator Hong Kong Exchanges and Clearing announced plans on Friday to loosen existing listing rules in a bid to improve competitiveness. In its proposal are plans to allow the listings of biotechnology issuers in the pre-profit stage and to accept issuers with dual share classes, subject to safeguards.

What's on tap

Here's the economic calendar for Monday (all times in HK/SIN):

9:30 a.m.: China house price index12:00 p.m.: Malaysia October unemployment rate

New Thread: How to invest in stock markets

From : Yatheendradas C.k. at 06:10 AM - Dec 18, 2017 ( )

How to invest in stock markets: Should you invest in equity mutual funds or ETFs? 5 special steps to profit for you

The Centre has set itself a divestment target of Rs 72,500 crore for this financial year. As part of the process, we’ve seen two exchange traded funds (ETFs) being launched.

By: Adhil Shetty | Published: December 18, 2017 1:54 AM  The Financial Express  

The Centre has set itself a divestment target of Rs 72,500 crore for this financial year. As part of the process, we’ve seen two exchange traded funds (ETFs) being launched. The second tranche of the CPSE ETF was announced earlier this year, while more recently we have had the Bharat 22 ETF hit the market. The two contain stocks of some leading PSUs. What are the various ways in which these ETFs are different from equity mutual funds?

Portfolio

For both ETFs, the underlying assets are stocks in some of India’s biggest companies. The CPSE ETF contains 10 maharatnas and navratnas focusing mainly on the energy sector. The Bharat-22 comprises stocks of 22 blue-chip public sector units, state-owned banks and some holdings in SUUTI. These companies are the giants of corporate India and are core to the Indian economy. In comparison, an equity mutual fund could follow this theme or any other. They may invest in large-cap companies, or in micro-cap ones, or any firm between those two extremes or even a mix of all these.

Fund management

An ETF is a collection of funds based on a market index. It is composed in the same manner and proportion of stocks in which the index is formed. The ETF tracks the index’s performance and is not actively managed. An equity mutual fund is actively managed as the fund manager decides which stocks to buy, hold, and sell. There is a lot of churn in the portfolio in order to offer the best possible returns.

Returns

In the CPSE and Bharat 22 ETFs, the underlying stocks are of corporate giants that will offer moderate returns. Therefore, the risks are lower. As of December 14, the CPSE ETF has a three-year CAGR of 6.94%, and one-year returns of 16.54%. Bharat 22’s returns are currently in the red after its recent launch. As such, long-term returns from equity investments in large-cap companies have outperformed small savings schemes, fixed deposits, and even gold. However, you can’t expect ETFs to provide explosive growth. In comparison, equity mutual funds don’t always have such restrictions. For example, many mid- and small-cap funds have returned between 30-50% in the last 12 months. The higher risks you take, the better returns you could earn.

Expense ratio

One of the best features of ETF investing is the negligible expense ratio. The Bharat22 ETF has an expense ratio of 0.0095% per year for three years, after which it can potentially change. The CPSE ETF on the other hand is around six basis points. In comparison, the expense ratio for a typical equity fund is 0.5-3%. Also, when you invest in a direct plan, expense ratio can come down by 90-100 basis points.

How to buy & sell

To buy CPSE and Bharat 22 ETFs—or any ETF—you need a demat trading account. The ETFs can be purchased off the stock market  directly as per the prevalent price, and also sold similarly. There are no entry and exit loads. To buy mutual funds, you don’t need a demat  account. You can buy them directly from the AMC by registering online, or via fund  aggregators also by registering online. Mutual funds can be sold instantly, barring ELSS  funds that have a three-year lock-in. Check
for exit loads before deciding when to sell  your funds.

PSU ETFs help you privately own a chunk of some of India’s most iconic companies—ones that are critical to the Indian economy. They may be able to deliver stably while providing you moderate returns. However, as an equity investor, you should look to diversify beyond large-cap funds in order to generate higher returns. This can be done through the larger basket of the equity mutual funds available today.

The writer is CEO, BankBazaar.com

New Thread: FINANCIAL NEWS IN A NUT SHELL

From : Yatheendradas C.k. at 06:06 AM - Dec 18, 2017 ( )

In order to increase credit availability to small
businesses, the finance ministry has asked public
sector banks to open MSME intensive branches.
MSMEs which are a huge employment generator
in the country, contribute 40% of the India's
manufacturing. To cater to the segment, banks
have been advised to open specialised branches
with skilled manpower to handle the
requirement of employment intensive MSME
sector, sources said.
‐Economic Times


Not all banks will be eligible for capital support of
the government this fiscal, but those who have
performed relavely btteer and need capital most
will be considered for fund infusion, sources said.
It is not necessary that all banks will be issued
recapitalisaon bonds in the first tranche, but the
money will be given depending on fulfilment of
various parameters, including reforms
undertaken, a senior official said. Capital infusion
would be contingent upon performance, reforms
undertaken and future road map, official said.
The quantum of the capital infusion during the
current fiscal would be known after Parliament
will give nod for this, adding that the government
is yet to decide on SLR status for recapitalisaon
bonds. The SLR status will ensure tradeability of
bonds.
‐Moneycontrol.com


HDFC Bank has issued 3 lakh instant credit cards
within a year of its launch. Launched in January
this year, InstaCard is delivered to customers
within an hour of applying for a credit card in
quick and easy steps on net‐banking, HDFC Bank
said in a statement. With InstaCard, customers
can do online transacotins on e‐commerce
websites immediately on receipt of the InstaCard,
it said, adding, the physical card is then delivered
to the customers within a few days, it said.
‐Business Line


The government should bring down its stake in
PSBs to 33% in the next 3 years as it plans to
recapitalise banks to strengthen NPA‐hit lenders,
the Confederation of Indian Industry has said.
‐Business Line


A committee constuted by the IRDAI has
suggested host of changes in the life insurance
sector, including in the investment norms to
improve the returns generated by the funds. The committee
in its report among other things has
recommended that the investment norms
“should undergo significant change” with a view
to improve the returns generated by the funds
while taking account of the risks inherent in the
various asset classes. The panel has suggested to
“lower the mandatory proportion of government
securities (G‐Secs) in the Life Fund and the
Pension and General Annuity Funds and allow for
higher exposure in alternative higher yielding
assets (like equity or property) or high rated
corporate bonds” to help insurers generate a high
gross return on investments so that insurance
savings products can compare favourably in the
financial savings space.
‐Business Line

 

New Thread: Thoughts for the Day December 18th, 2017

From : Yatheendradas C.k. at 05:57 AM - Dec 18, 2017 ( )

18th December, 2017

 

New Thread: Week Ahead: Gujarat poll results, new listing

From : Yatheendradas C.k. at 08:47 PM - Dec 17, 2017 ( )

Dec 17, 2017 11:07 AM IST | Source: Moneycontrol.com

Week Ahead: Gujarat poll results, new listing among 10 factors that Street will watch out for

The next trigger for the market could be the outcome of state assembly elections in Gujarat and Himachal Pradesh. Along with it, there will be action from the IPO and listings front and corporate action as well.

Uttaresh Venkateshwaran    

The market continued its rally for second consecutive session Friday but ended off day's high as investors await final outcome of Gujarat and Himachal Pradesh assembly elections due on Monday.

The 30-share BSE Sensex rallied 375 points intraday after exit polls indicated that the BJP will win Gujarat as well as Himachal Pradesh assembly elections, but the index came off day's high in late trade on caution ahead of actual state elections results.

The Sensex closed 216.27 points higher at 33,462.97 while the 50-share NSE Nifty failed to hold 10,350 level, ending 81.20 points higher at 10,333.30. Both benchmark indices closed the week with gains of over 0.6 percent.

The broader markets outperformed benchmark indices, with the Nifty Midcap rising a percent on positive breadth. About two shares advanced for every share falling on the NSE.    

Almost all the sectoral indices participated in the rally. Nifty Metal was biggest gainer, rising 2.66 percent. Bank and Auto gained 1 percent each while PSU Bank fell 0.2 percent.

Going forward, the next trigger for the market could be the outcome of state assembly elections in Gujarat and Himachal Pradesh. Along with it, there will be action from the IPO and listings front and corporate action as well.

Election outcome

The Street will watch out for the final outcome from the results to assembly elections in Gujarat and Himachal Pradesh. As such, investors have priced in a victory for ruling BJP in Gujarat and a takeover from Congress in HP. But any better outcome could prove to be a positive trigger. Having said that, there could also be some profit booking in the markets if the results are in line with the exit polls. Ofcourse, any lesser numbers could also trigger a downfall from the current levels too.

IPO 

New firm to enter the IPO market, Astron Paper and Board Mill, will continue with its IPO issue next week. The Gujarat-based kraft paper manufacturer opened its initial public offering (IPO) for subscription on Friday. It set a price band of Rs 45-50 per equity share for the same.

The IPO to raise Rs 70 crore received bids for 1,31,69,520 shares against the total issue size of 1,40,00,000 shares, data available with the NSE showed on Friday. The issue will be closing on December 20, 2017.

Listing

After closing the initial public offering with good subscription, Future Supply Chain Solutions is all set to list on exchanges on December 18. The issue price is fixed at Rs 664 per share.

The public issue of the logistics arm of Future Group was subscribed 7.56 times during December 6-8, 2017.

The Rs 650-crore public issue had received bids for 5.18 crore shares against the total IPO size of more than 68.49 lakh scrips.

PSU banks in focus

It is likely that PSU banks could be in focus as the developments around recapitalisation plan are likely to take place. According to CNBC-TV18, the government is likely to seek a nod from the Parliament for the recap next week. In fact, it may also provide additional recap of Rs 10,000 crore through a second supplementary. Finance ministry sources also told the channel that it is yet to decide on SLR status for the recap bonds.

A Parliament nod is needed for the quantum of bonds to be issued in this fiscal. Additionally, they have also said that all PSU banks may not necessarily be issued with the bonds in the first tranche.

Global cues

The Street could watch out for cues on the global front with respect to North Korea, Brexit and the corporate tax issue in the US.

The Lazarus cybercrime group is mounting an ongoing scheme to steal the online credentials of bitcoin industry insiders, a report published by researchers at U.S. cyber security firm Secureworks's Counter Threat Unit (CTU) said on Friday.

Meanwhile, EU leaders have formally agreed Friday to start the second phase of Brexit negotiations, mainly centered around trade talks and a transition period.

In the US, investors are slowly shrugging off concerns on a timeline for implementation of corporate tax cut programme and its passage in the House.

Sensex rejig

Stocks such as Yes Bank, IndusInd Bank, Cipla and Lupin will be in focus after the Sensex undergoes a change from Monday.

Private sector lenders -- IndusInd Bank and Yes Bank -- will make an entry in the BSE's benchmark index from December 18, Asia Index said. Drug makers -- Cipla and Lupin -- will be dropped from the index. The changes are announced by Asia Index, a joint venture between S&P Dow Jones Indices LLC and BSE. The move is a part of Asia Index's semi-annual reconstitution results. "Effective at the open of Monday, December 18, 2017, ...changes will be made," the index provider noted.

Corporate Action

Stocks such as JM Financial, Indian Bank, Tata Steel, HDFC and HDFC Bank could be in focus this week as the Board meets to raise funds. Meanwhile, stocks such as Vakrangee, Castrol Industries, Balkrishna Industries and M&M are set to consider bonus issues in the upcoming week.

Stocks in focus

Stocks such as SBI, Syndicate Bank and Fortis, among others, could be in focus. SBI and Carlyle group entiry have completed acquisition of stake in SBI Card. SBI and Carlyle now own 74% & 26% respectively in each of the two entities. Meanwhile, the RBI has imposed Rs 5 crore fine on Syndicate Bank for non-compliance of KYC norms.

Meanwhile, Fortis Healthcare could be under some pressure as NPPA reviews report in Fortis Hospital dengue death case. It is believed that the hospital was making margins of 200 percent on certain products.

Technical Factors

The Nifty made a ‘Spinning Top’ kind of pattern on the daily charts on Friday. Spinning Top is often regarded as a neutral pattern which suggests indecisiveness on the part of both bulls as well as bears. It can be formed in an uptrend as well as in a downtrend.

On the options front, maximum Put open interest was seen at 10,000 followed by 10,200 strikes while maximum Call OI was seen at 10,500 followed by 10,400 strikes.

Fresh Put writing was recorded at 10,300 and 10,200 strikes while Call writing remains intact at 10,450 and 10,500 strikes. Put writing at higher strike suggests shifting of the support while intact Call writing at 10,450 and 10,500 could restrict its upside momentum, say experts.

"The study of Nifty as per smaller and larger timeframe though signaling positive bias apparently, but the overall chart pattern, trend strength oscillators and the presence of key overhead resistance is signaling a probability of Nifty resuming next round of sharp downward corrections from the highs (10350-400 levels) by next week," HDFC Securities said in a report.

FII flows

The Street will watch out for FII flows, which are likely to be pulled out of emerging markets. Steadying US markets post easing of tax concerns could have an impact here.

Foreign institutional investors have been net sellers of around Rs 5,000 crore (Rs 5,076.65) for the month of December so far. Meanwhile, domestic institutional investors bought shares of around Rs 4,591.57 crore. ​

New Thread: Index Outlook: Investors should stay cautious

From : Yatheendradas C.k. at 09:44 AM - Dec 17, 2017 ( )

Index Outlook: Investors should stay cautious

YOGANAND D   BUSINESS LINE  

Bellwether indices once again head northward, but face key hurdle ahead

The rally in crude oil price to $58 in the initial part of the prior week kept global markets volatile, ahead of the Fed meeting.

But the meeting eased selling-pressure on the domestic indices in the latter part of the previous week. The Fed raised rates by a quarter basis point and indicated three rate hikes in 2018. The highlight of the meeting was the increase in GDP growth estimate for the US from 2.1 per cent in September to 2.5 per cent. The ECB kept rates unchanged, but increased growth forecasts, bringing cheer to global investors. Exit poll surveys predicting a comfortable win for BJP in both Himachal Pradesh and Gujarat also boosted the market. However, the actual outcome of the results on Monday will determine market direction.

While a win has been factored in to some extent, a loss for the BJP can lead to a market sell-off, at least in the early part of the week.

Nifty 50 (10,333.2)

Last week, the Nifty managed to close on a positive note for the second consecutive week, gaining 67 points or 0.66 per cent in the midst of volatility.

Short-term trend: The downtrend that commenced from the early November high of 10,490 is weakening. Significant support in the band between 10,000 and 10,050 cushioned the index in first week of December. The index subsequently bounced up, witnessing a strong rally. Amid choppiness, it has breached its 21 and 50-day moving averages on Friday, by advancing 0.8 per cent in that session. It hovers well above the 21 and 50-day moving averages. However, the index now faces a key resistance ahead at 10,400.

A strong rally beyond this level will alter the downtrend and take the index higher to 10,500, which is a significant medium-term resistance. Further break through of 10,500 can take the index northwards to 10,600 and then to 10,800 in the short to medium term with some minor corrective dips. That said, if the index fails to move beyond 10,400, the corrective downtrend can continue for a while and the index can test the support at 10,250 initially. Further decline below this level can drag it down to 10,150 or even to the key base band of 10,000 and 10,050 in the short term.

An emphatic downward breach of this base band can pull Nifty down to 9,700. Investors with a short-term horizon can remain long as long as the index trades above 10,150 levels and consider taking partial profits at 10,500 levels if the index faces difficulty in surpassing it.

Medium-term trend: The medium-term trend continues to be up for the index. Investors with a medium-term perspective can remain invested with a deeper stop-loss at 9,700. A decisive upward break above 10,500 can take the index northwards to 10,800 and 10,921 in the medium term. On the other hand, only a strong decline below 9,700 is needed to alter the medium-term uptrend. Next key support below is at 9,500.

Nifty Bank (25,440.3)

The Bank Nifty amidst choppiness, climbed 119 points or 0.5 per cent last week. The index now tests a significant resistance ahead at 25,500. A breach of this hurdle will encounter next resistance at 25,700, which is also a vital resistance level to keep note. Inability to surpass these resistances can keep the corrective decline that started from the recent peak of 25,953 intact and a fall to test the key support at 25,000 can’t be ruled out. Key immediate supports for the index are pegged at 25,200 and 25,000. A conclusive downward breach of 25,000 will be a threat to the short-term uptrend. In that scenario, the index can decline to 24,800 and 24,500 levels. On the other hand, if the Bank Nifty decisively moves beyond 25,700, it can rally to 26,000 in the short term. Traders with a short-term view should tread with caution and consider taking long positions above 25,700 with a fixed stop-loss. Key resistances above 26,000 are at 26,200 and 26,300.

Sensex (33,462.9)

The Sensex advanced 212 points or 0.64 per cent in the previous week, mainly driven by Friday’s rally of 0.65. The index managed to surpass a key barrier at 33,200 and its 21-day moving average last week. It now faces a key resistance at 33,700, from which it had reversed lower in early as well as late November. Hence, traders with a short-term perspective should tread with caution as long as the index hovers below 33,700. An emphatic break above this barrier can reinforce the bullish momentum and take it higher to 33,900 and 34,000 in the coming weeks.

The next medium-term target on a strong rally beyond 34,000 will be 34,500 and 35,000 with minor pauses. However, failure to move beyond 33,700 can keep the Sensex consolidating sideways in the wide range between 32,600 and 33,700. Key immediate supports to note are pegged at 33,200 and 33,000. A conclusive plunge below 33,000 can pull the index down to 32,600 and then to 32,500. Further fall below these levels can drag it down to 32,150 and 32,000.

Global cues

The Dow Jones Industrial Average climbed 322 points or 1.3 per cent to close at a record high of 24,651.7. The indicators and oscillators are featuring in the overbought territory for the index, implying near-term correction in the offing. Key supports are at 24,300 and 24,000. Immediate resistances are at 24,700 and 25,000.

The Nikkei 225 declined 257 points or 1.13 per cent to close at 22,553 last week. Significant resistance at 23,000 has been limiting the upside since early November. Only a strong rally beyond this level can strengthen the bullish momentum and take the index higher to 23,300 and 23,500 levels in the short term. But a decisive fall below the immediate support level of 22400 can pull the index down to 22,000

New Thread: 2 money making options for long term

From : Yatheendradas C.k. at 09:18 AM - Dec 17, 2017 ( )

2 money making options for long term, less riskier than stocks

Planning better options for multiplying money is one of the most sought after thing which everyone thinks of, be it an enterprise or an individual. We bring to you 2 money making options which are less riskier than stock market investment.

By: FE Online | Published: December 17, 2017 9:00 AM  

Planning better options for multiplying money is one of the most sought after thing which everyone thinks of, be it an enterprise or an individual. It is often advised by experts that the prime concern should not only focused towards growing the money but one should also incorporate ways to safeguard it simultaneously. Investing in stock markets — specifically into stocks — has been on top of the mind if an individual plans to shift money making practice other than the traditional banking deposits. But abnormal returns do come at increased risk only. As stock markets contain a number of risks along with its multifold benefits therefore one may consider other wealth multiplying practices which are relatively less riskier than stocks. We bring to you 2 money making options which are less risky and don’t need much active participation unless stock market investment.

 

Mutual Funds

Over the last couple of years Mutual Fund investments have been picking up steam. With the continuous efforts of the Indian capital market regulator SEBI (Securities and Exchange Board of India) and AMFI (Association of Mutual Funds in India), awareness among retail investors have risen up to an unmatched level. Earlier in August this year, Equity Mutual Funds registered a record inflow of Rs 20,362 crore on the back of strong participation from retail investors. A mutual fund is nothing but a well diversified portfolio of different assets which results in turn minimises the risk of a mutual fund unit.

Nowadays there are plenty of mutual fund houses which are offering various schemes according to different risk appetites and selection of assets. Moreover, mutual fund investment doesn’t require a regular check or an active market watch by individual investor unlike stock market investments. Mutual funds being managed by professionals are considered less riskier than stocks and offer decent returns if invested for long term.

Bonds

Do you heard investing in bonds? Many people often take stock market as investment in stocks only but debt securities are a phenomenal part of it through which corporates raise more money than in primary markets — traditional practices of IPO (initial public offerings). Bonds are much like as fixed deposits in banks, major difference is that FD’s are backed by the banks whereas bonds are generally issued by companies or governments. Almost all bonds are considered as risk free, depending on the credit rating of companies or issuing organisations. Interestingly, there are some bonds which have an annual interest rate as high as 12% and few of them are tax free too.

New Thread: Will Nifty50 hit a record high on Monday

From : Yatheendradas C.k. at 06:20 AM - Dec 17, 2017 ( )

Dec 16, 2017 02:08 PM IST | Source: Moneycontrol.com

Will Nifty50 hit a record high on Monday when Gujarat Elections 2017 results get announced?

Most of the exit polls suggest a victory for the BJP in the state elections in Gujarat. A victory for the BJP will be received well by the market while a surprise defeat would be a large negative surprise for the market.

Kshitij Anand   

Indian market witnessed a volatile week but managed to end 0.6 percent higher ahead of the outcome of Gujarat and Himachal Pradesh Assembly Elections 2017 on Monday, December 16.

Most of the exit polls suggest a victory for the BJP in the state elections in Gujarat. A victory for the BJP will be received well by the market while a surprise defeat would be a large negative surprise for the market.

Going by the exit polls, the market witnessed short covering rally on Friday which pulled the index above 10,350 levels but failed to hold gains and ended up making a Doji or a Spinning Top kind of pattern on the daily charts.

All eyes are on Monday when the actual election results will be announced. Most experts do see a fresh high on Monday at least but a bounce back could be followed by profit booking. 

The index witnessed some bit of selling pressure at higher levels on Friday and most of the good news is already in the price. Hence, in the event of BJP making a clean sweep in Assembly elections results of Himachal Pradesh and Gujarat, markets will rise on short coverings but could witness some profit booking at higher levels, suggest experts.

This market is in a consolidation mode for a couple of months on the back of valuation concerns which haven’t dramatically improved post-Gujarat election.

“Presuming that exit poll result gets accurately translated into reality on Monday then we may see euphoric up move which is bound to fizzle out as the market has already responded in last two trading sessions,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“Hence, what we need to look out for is the sustainability of the rally beyond 10,350 levels for a couple of days after Monday’s close. If the rally sustains for a couple of days then we can look for targets close to 10600 – 650 which is again a critical resistance on the long-term charts,” he said.

Mohammad further added that on the other hand if we slip below 10,140 then we can conclude that intermediate is in place at 10,490 or at Monday’s high if it goes beyond 10,490.

Kshitij market copy 1

If we take out any external factors as well the market has failed to hold above 10,350 levels. At best use rallies on Monday to book some profits. Don’t bet on a one-way market movement next week as some of the good news is already in the price.

“BJP wins posts the gap up on Friday and looks to be full factored in the price. The exit polls have indicated a sweeping victory for the incumbents, leaving no doubt in mind,” Nikhil Kamath, co-founder & head of trading, Zerodha told Moneycontrol.

“Withdrawn from external factors, markets are looking weak, and it's looking harder each time to hold onto the 10350-10400 levels, we would advocate not staying long at the current juncture,” he said.

The exit polls suggest 114 seats for the BJP and 67 seats for the INC based using averages across various exit polls. A win of the incumbent party will be taken positively by the market but slowly the focus will shift from elections to the macro picture which has weakened significantly.

“In our view, the market’s focus will increasingly shift to macro and earnings. India’s macro has weakened significantly in the past few months. The equity market seems to be much more sanguine about India’s macro than the bond market,” Kotak Institutional Equities said in a note.

“We note that India will have to likely contend with a weaker macro in CY2018/FY2019 versus CY2017/FY2018 given likely higher inflation/interest rates and possibly higher CAD/weaker currency,” he said.

Derivative Picture:

On the options front, maximum Put open interest was seen at 10000 followed by 10200 strikes while maximum Call OI was seen at 10500 followed by 10400 strikes.

Significant Put writing was seen at 10300 and 10200 strikes while Call writing remains intact at 10450 and 10500 strikes ahead of the election outcome.

“Put writing at higher strike suggests shifting of the support while intact Call writing at 10450 and 10500 could restrict its upside momentum. Option band signifies a broader trading band between 10000 to 10500 levels, while the immediate band is narrowing from 10200 to 10500 for next coming sessions,” Chandan Taparia, Derivatives, and Technical Analyst at Motilal Oswal Securities told Moneycontrol.

India VIX moved up sharply during the week and hit the 10-months high at 17.39. Higher volatility was fuelling the up and down swing in the market throughout the week. “Going forward, Volatility has to cool down below 13 zones to get the smooth ride to start the next leg of the rally towards new high territory,” said Taparia.

Given the scenario, if the market fails to hold beyond 10330 zones and slips below 10178 then momentum and positive set up could fizzle out to retest the recent swing loss of 10094 and 10033.

“But, intact Put writing at lower strike could hold the market on the decline to keep the range bound if it gets the negative sentiments from Election outcome as per Derivatives database. If data is concerned then the downside is limited then the upside till it holds the psychological 10000 zones,” clarifies Taparia.

New Thread: Thoughts for the Day December 17th, 2017

From : Yatheendradas C.k. at 06:12 AM - Dec 17, 2017 ( )

17th December, 2017

 
 
Image result for thoughts of the day

New Thread: UIDAI suspends Airtel, Airtel Payments Bank’s eKYC lice

From : Yatheendradas C.k. at 08:38 PM - Dec 16, 2017 ( )

UIDAI suspends Airtel, Airtel Payments Bank’s eKYC licence

PTI   BUSINESS LINE    

UIDAI took strong objection to payments bank accounts are being linked to receive LPG subsidy

 

In its strongest action yet, the UIDAI has temporarily barred Bharti Airtel and Airtel Payments Bank from conducting Aadhaar-based SIM verification of mobile customers using eKYC process as well as e-KYC of payments bank clients.

 

The action follows allegations of Bharti Airtel using the Aadhaar-eKYC based SIM verification process to open payments bank accounts of its subscribers without their ‘informed consent’. UIDAI also took strong objection to allegations that such payments bank accounts are being linked to receive LPG subsidy.

 

UIDAI, in an interim order, “suspended e-KYC licence key of Bharti Airtel Ltd and Airtel Payment Bank Ltd with immediate effect,” sources with direct knowledge of the development said.

 

This essentially means Airtel would not be able to, in the interim, carry out ‘electronic-verification’ or link mobile SIMs of its customers with their 12-digit biometric national ID Aadhaar through the efficient and paperless eKYC (or electronic Know Your Customer) process of UIDAI.

 

Also, Airtel Payments Bank will not be able to open a new account with Aadhaar e-KYC. However, accounts can be opened through alternate methods, if available.

 

When contacted, an Airtel spokesperson said: “We can confirm that we have received interim order from the UIDAI regarding temporary suspension of Aadhaar linked e-KYC services till their satisfaction on certain processes relating to Airtel payment banks onboarding of customers.”

 

“We are engaging with the authority and are hopeful of an early resolution. We are also undertaking to complete the said actions on priority and have commenced thorough checks of our process flows.

 

“Being compliant to all guidelines is paramount to us. In the interim, any inconvenience to our customers is regretted,” the spokesperson said.

 

More than 23 lakh customers have reportedly received as many as Rs. 47 crore in their Airtel bank accounts, which they did not know had been opened.

 

Sources said it was brought to the notice of the Unique Identification Authority of India (UIDAI) that at the time of mobile verification using Aadhaar e-KYC, the Airtel retailers were also opening Airtel Payments Bank accounts, without informed consent of the user.

 

Government LPG subsidy was also getting transferred to these accounts, without their consent.

 

UIDAI observed that as per agreement with the authority, Airtel and Airtel Bank are duty bound and under obligation to ensure security and privacy of residents’ identity information.

 

Security and privacy of Aadhaar data is a highly sensitive matter and the Supreme Court is looking into its various aspects.

 

Suspending the ‘e-KYC licence key’, UIDAI ordered PricewaterhouseCoopers to conduct an audit of Bharti Airtel and Airtel Payments Bank to ascertain if their systems and processes are in compliance with the Aadhaar Act.

 

UIDAI may consider revocation of suspension or decide further necessary action upon receipt of the report.

 

The alleged actions of Airtel and Airtel Payments Bank were found to be in violation of different sections of the Aadhaar Act, 2016, which mandates obtaining explicit consent of the individual. Violations are liable to be punished with Rs. 1 lakh per day fine and termination of authentication user agreements.

 

Both Bharti Airtel and Airtel Payments Bank were appointed as Authentication User Agencies (AUA) by UIDAI and had entered into an agreement with UIDAI in February 2015 and September 2016 respectively for the purposes of availing authentication services provided by the authority.

 

Sources said in response to the first notice of September 18, Airtel and Airtel Bank stated that they have amended their process and the opening of a bank account is completely de-linked from the process of re-verification of mobile connection.

 

These replies were found to be unsatisfactory by UIDAI, which issued another notice on November 24. The company responded by saying no bank account was opened without the consent of the customers and additional safeguards have been introduced.

 

The replies too were found to be unsatisfactory as UIDAI continued to receive numerous complaints of unauthorised opening of Airtel Payments Bank accounts.

 

Sources said the interim order listed out some of the complaints and went on to state that Airtel and Airtel Bank had made “false statements” to “deceive and mislead” UIDAI.

 

When UIDAI reviewed the Airtel mobile app, it found that when the app is opened, along with the welcome message a pre- ticked consent box is momentarily flashed on the screen which states “Upgrade or create my Airtel Payment Bank wallet using existing Airtel mobile KYC.”

 

This was found to reflect blatant disregard of Aadhaar Act and Regulations.

New Thread: Use Options before taking a bet on Gujarat election

From : Yatheendradas C.k. at 03:15 PM - Dec 16, 2017 ( )

Dec 16, 2017 09:24 AM IST | Source: Moneycontrol.com

Portfolio Strategy: Use Options before taking a bet on Gujarat election outcome

Events usually attract attention for the bulk of investors and traders with intentions to a) Hedge a likely risk b) Generate returns from a directional forecast on outcome c) Make money from a forecast on volatility.

Moneycontrol News  

Events usually attract attention for the bulk of investors and traders with intentions to a) Hedge a likely risk b) Generate returns from a directional forecast on outcome c) Make money from a forecast on volatility.

Let’s learn quickly about all three.

Hedge a likely risk:

If you are an investor, protecting your portfolio from a damage is of utmost priority. What if there exists a strategy to save the losses and keep the upside potential open?   

That’s where Option helps.

Assuming a portfolio of 10,00,000 on which you would like to create a hedge. Now, trading Options for each stock you hold could be quite expensive - so you need to calculate the sensitivity of your portfolio to a benchmark Index like Nifty.

Let’s say the Beta of your portfolio is 1.5, this means that if Nifty moves by 5 percent your portfolio can move by 7.5 percent (5 percent * 1.5). So, here is how to create the required quantity for a hedge using Put Options.

((Portfolio Value * Beta) / (Strike * Lot Size)) * Hedge Ratio (Normally between 1-2)

((1000000 * 1.5) / (10300 * 75)) * 1.5 = 3 Lots

If the Nifty falls post-event by 5 percent then you still make 0.75 percent return and in the case of a 5 percent rise, your portfolio gains 5.4 percent.

If nothing happens you lose 0.5 percent from the time value decay of the Put. The additional risk of Volatility movement also remains but should not be significant in this case.

(* Calculations are done assuming prevailing prices of Nifty, 10300 Put, Constant Volatility, December 19 as exit date and Black Scholes Pricing Model.)

Trading for a Directional Expectation:

If you already have an expectation of the movement post the outcome, the simplest way to trade would be Futures but buying options can help limit the downside with an unlimited upside potential with a cost of Theta decay or any volatility drops.

Trade Volatility (Uncertainty):

Yes, you are reading it right, uncertainty can be traded and can yield returns too. A forecast that Nifty may move either 3 percent up or 3 percent down post-event is also a valid one to create an options strategy.

Let’s take the barometer of Volatility as India VIX, if you believe that market is underpricing the event risk and the outcome could be a higher volatility this can be traded using strategies like Long Straddle (buying same strike call & put) or by a Long Strangle (buying OTM call & put).

If you expect a lesser volatility than the market then you can take a reverse trade namely Short Straddle or Short Strangle.

A payoff example for Short Straddle:

India VIX down from 15 to 12 with 10350 Call & Put Short on December 19 can yield a return of anywhere between 10 percent-12 percent(on Span margin, 6 percent-7 percent with an additional exposure margin of 3 percent) with a 3 percent move on Nifty.

(* Calculation done using prevailing prices of 10350 CE & PE with 3 percent decline in IV and December 19 as the date of evaluation. Black Scholes Pricing Model is assumed)

Disclaimer: The author is CEO & Head of Research at Quantsapp Private Limited. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

New Thread: Don’t ignore Alternative Investment Funds

From : Yatheendradas C.k. at 01:14 PM - Dec 16, 2017 ( )

Dec 16, 2017 09:18 AM IST | Source: Moneycontrol.com

Don’t ignore Alternative Investment Funds while building your long term portfolio; here’s why

Many ongoing and upcoming government projects like Bharat Mala Project, Housing for all, Increasing Financial Transparency, One Nation one Tax (GST), rural electrification, recapitalization of Indian public sector banks would spur Indian economic growth to new heights.

Moneycontrol News      By Tushar Bopche

Indian economy is already looking up after crucial and series of difficult reforms have been implemented over the last three years while some are still in the process of getting implemented.

In this scenario, Indian investors are betting big on equities, especially when gold and properties are not on the preferred list of assets.

In a tectonic shift most investors – Ultra HNI, HNI, and retail – are focusing largely on long-term investments rather than being swayed by short-term scenarios both external and internal.   

Alternative Investment Funds (AIFs) and Mutual Funds (MFs) are tracking these trends and are successfully raising funds based on the stellar medium-term outlook for Indian equity markets.

Considering 65 percent of Indian population is under 35 years, consumption is going to be the major driver of the economy in the next two decades.

Which means almost all consumption based companies and sectors would be seeing phenomenal growth. Jan Dhan Yojna, Aadhaar, and Mobile trinity had helped the government save $10 billion in leakages and down the line in 3-4 years will help more people to invest in the digital mode.

Many ongoing and upcoming government projects like Bharat Mala Project, Housing for all, Increasing Financial Transparency, One Nation one Tax (GST), rural electrification, recapitalization of Indian public sector banks would spur Indian economic growth to new heights.

Many specific theme-based AIFs have recently raised significant long-term fund successfully. As per public information, IIFL AMC has collected more than $1 billion for its pre-IPO fund (which is a unique theme and has resulted in others like Edelweiss and some others are planning).

Also, you have seen in the last month itself AXIS, DSP, HDFC, and UTI, with unique themes they have collected more than Rs 4,000 crore put together. This is, in addition, the regular SIP collection of Rs 5600 crore each month.

Most investors have matured in the last few years and are steadily investing even as uncertainties like North Korea tussle with the US, the war in Syria, issues in Palestine, Gujarat and Himachal state elections are happening in the background.

Equity mutual funds have registered an inflow of over Rs 19,508 crore, balanced fund Rs 7,614 crores, ELSS Rs 800 crores and equity ETFs Rs 12,447 crore in the month of November.

Kudos to the regulators for pushing awareness across all the segment and the distributors who are helping there investor to build a long-term portfolio by advising them to invest through SIP route. The industry is witnessing the strong flow of Rs 5,600 crore per month.

Based on regular interactions with clients across India we believe the demand would continue in the medium to long-term unless there is a black swan event.

Money is going to keep pouring into IPOs, Mutual Funds both through direct and SIP route besides direct stocks. This is one of the good times for the investors to build a portfolio.

However, as financial services professional, I would like to advise investors that don’t get carried away with random advice. On a lighter note don’t become Sharma Ji and invest because Verma Ji has done because every individual has separate goals and risk appetite. Please consult your financial advisor.

Disclaimer: The author is Vice President, Products, IIFL. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

New Thread: Assessment of Defective Income Tax Return

From : Yatheendradas C.k. at 12:40 PM - Dec 16, 2017 ( )

Assessment of Defective Income Tax Return Selected For Scrutiny Under CASS- Procedure

DIRECTORATE OF INCOME TAX (SYSTEM)
ARA Center, Ground Floor, E-2,  Jhandewalan Extension,
 New Delhi – 110055

F.No. System/ITBA/CASS/Defective returns/17 -18/  Dated : 12.12.2017

To,

The Assessing Officers concerned
Sir/Madam,

Subject: Defective returns selected under CASS- Passing of assessment order-reg.-

During CASS Cycle 2016, some of the returns of income which earlier were treated as defective as per provision of section 139(9) of Income Tax Act, 1961 (‘Act’) either for the reason that the taxes as per the return were not paid or for any other reason specified therein were also selected for scrutiny.

 

2. The proviso to section 139(9) of the Act states that-

“Provided that where the assesse rectifies the defect after the expiry of the said period of fifteen days or the further period aI/owed, but before the assessment is made, the Assessing Officer may condone the delay and treat the return as a valid return.”

As per proviso to section 139(9), an assessee can rectify the defects till the time assessment order is passed provided the delay in complying with notice under section 139(9) of the Act is condoned by the AO. Therefore, to regularize proceedings in scrutiny cases where assessee has already removed the defects as specified u/s 139(9L in such cases under scrutiny, before passing the assessment order u/s 143(3L AD shall condone the delay in removing the defects by the assessee u/s 139(9) and consider such returns as valid.

3. In pending cases as on date, where the defect specified u/s 139(9) of the Act has not been rectified by the assessee, the AO would be required to immediately initiate proceedings under section 144 of the Act by issuing a show-cause as per the first proviso to that section after taking a view that assessee has failed to make a return under section(s) 139(1)/139(4)/139(5) of the Act. However, if assessee, till the date of passing assessment order by the AD, rectifies the defect u/s 139(9) in the return, such cases would also be dealt with in the manner specified in para 2 above and AD would also proceed to pass order u/s 143(3) of the Act in those cases. However, in returns, where defect is not removed by the assessee till the time of passing assessment order, proceeding in those cases would be concluded by passing order u/s 144 of the Act.

4. In view of the above decision, AO is required to take following steps where assessee has not yet responded to defective return notice u/s 139(9) of the Act-

(i) The AD will intimate the assessee about the defective status of return and ask him to rectify the defects through the E-filing portal or communicate it to the AD. Simultaneously proceedings under section 144 of the Act would also be initiated in these cases.

(ii) If the defects as specified are removed, the AD will treat the return as valid and proceed accordingly.

(iii) If the defects are not removed and return remains invalid, the AD will proceed to pass order u/s 144 of the IT Act as if no return was filed by the assessee. However all the steps pre-requisite for passing order u/s 144 of the Act are required to be followed scrupulously by him.

5. This is issued with the prior approval of Member(IT&C), CBDT.

Yours Faithfully,

(B. M. Singh)

JDIT (S)-3, New Delhi.

List of Cases Having Invalid E-Returns Part 1

List of Cases Having Invalid E-Returns Part 2

 

 

New Thread: Save Smart: Venture out, with some sound planning

From : Yatheendradas C.k. at 08:33 AM - Dec 16, 2017 ( )

Save Smart: Venture out, with some sound planning

NALINAKANTHI V    BUSINESS LINE  

Here’s how this young entrepreneur can make his dreams come true

Many youngsters today dream of becoming entrepreneurs and building their own business. But while their passion and drive are appreciable, the journey of an entrepreneur is rarely smooth. There are challenges to be overcome on both the professional and personal front.

One needs to think through and plan the finances before taking the plunge. Else, entrepreneurship can land you in a debt trap.

Bengaluru-based Rohit Bhat, who graduated from IIT Delhi last year, decided to take up the campus job offer and has been working for an engineering multinational for a year now. The 23-year-old alumnus of one of the country’s top-notch institutes has some start-up ideas and has been working on them alongside work. He has been putting off his decision to take the plunge, given his family situation.

“I come from a middle-class background, I have financial commitments towards my family and have to support my dependant parents,” says Rohit.

He wants to mop up ₹40 lakh by 2022, which he can dip into in case his start-up takes longer to ramp up. Of the ₹40 lakh that he will save, he plans to set aside ₹10 lakh as investment capital for his start-up.

His monthly net income is ₹85,000. He currently resides in his ancestral home which is owned by his father. The family has also let out a portion of the house on rent which fetches them ₹10,000 every month. The monthly expenses for the family of three works out to ₹40,000, leaving him with a monthly saving of ₹55,000. His monthly savings over the past year are currently parked in a bank as fixed deposit.

His father, Krishna Bhat, who is 70, has ₹10 lakh invested in a fixed deposit scheme of a public-sector bank. His father and mother, Veena, 65, do not have a health insurance cover. Given their age, getting an insurance cover may be very expensive. “I have hence decided to earmark my father’s FD investment of ₹10 lakh for any medical emergency,” says Rohit.

His employer currently provides him term cover and the sum insured is ₹1 crore. Given that Rohit wants to build a corpus of ₹40 lakh by 2022, he can invest in an equity oriented balanced fund.

Assuming the investible surplus increases by 10 per cent every year, and an annualised return of 10 per cent on his investment, Rohit will have to invest ₹43,000 every month in equity oriented balanced schemes to accumulate ₹40 lakh by the end of 2022.

Given that the equity market can be volatile over a five-year time frame, an equity oriented balanced fund that can juggle equity and debt and thereby contain downside better during downcycles is a better option.

Balanced schemes with a good performance track record such as HDFC Balanced Fund, ICICI Pru Balanced, and L&T India Prudence (about 18 per cent annualised return over the last five years) are options to consider.

The balance surplus of ₹12,000 can be invested in a diversified large-cap oriented scheme. Since this is surplus money, Rohit can take slightly higher risk.

Several diversified large-cap oriented schemes such as Aditya Birla Sun Life Frontline Equity and ICICI Prudential Focussed Bluechip (annualised gains of over 16 per cent over the last five years) have delivered healthy double-digit gains.

Assuming an annualised gain of 12 per cent on these investments and annual increase of 10 per cent in the investible surplus, Rohit will be able to build a corpus of about ₹12 lakh over a five-year time frame which can come in handy for the business.

The writer is co-founder, RaNa Investment Advisors

New Thread: Now, MFs anchor IPOs on SME platform

From : Yatheendradas C.k. at 08:21 AM - Dec 16, 2017 ( )

Now, MFs anchor IPOs on SME platform

SURESH P IYENGAR   BUSINESS LINE  

Till recently, fund houses bought stocks from the SME bourses

Mutual funds are not only targeting young investors but also investing in budding companies with bright future on SME exchanges.

The recent sharp run-up in valuation of small- and mid-cap companies has forced mutual funds to consider initial public offers on the SME platform.

For the first-time ever, HSBC Midcap Equity Fund and YES Bank have invested ₹12 crore as anchor investors in the IPO floated by One Point One Solution, a Thane-based business process management company. Given the marque anchor investor participation, the issue was subscribed 84 times and received over ₹2,600 crore against the offer size of ₹44 crore, according to NSE Emerge data. .

Mahavir Lunawat, Managing Director, Pantomath Capital Advisors, said it is a milestone in the history of SME exchange to attract anchor investments from a mutual fund and private sector bank which will boost investor confidence.

Avenue to deploy excess fund

It will also provide an avenue for mutual funds to deploy the increased fund flow in their small- and mid-cap schemes in SMEs, he added.

Of late, some of the mutual funds have restricted fund flow into their mid-cap schemes due to the sharp increase in valuations not supporting the business prospects in the near future.

Incorporated in 2008, One Point One Solutions’ services range from data management and business analytics, to integrated telephony management, payment gateway management and IVR solutions to offering skill development and training programmes.

Akshay Chhabra, CMD, One Point One Solutions, said the company targets to hit a topline of ₹300 crore by 2020 from the current ₹100 crore, through acquisitions and expansion of business.

“Once the company gets listed on an exchange, the stocks become a currency and can be used for acquisition and grow the business faster,” said Chhabra.

Till recently, Lunawat said mutual funds have always bought stocks from the secondary market of the SME exchanges and have gained confidence over time. Since these IPOs are rightly priced, it leaves a lot on the table for investors who come in at an early stage, he added.

300 listings

Nikhil Khandelwal, Managing Director, Systematix Shares & Stocks, said the SME platform has seen listing of about 300 companies which works out to almost one listing a day.

Though liquidity in the secondary market was a problem, it is being eased with the issue sizes getting bigger and market makers playing a crucial role, said Khandelwal.

New Thread: BJP win may see Nifty going up by about 2%

From : Yatheendradas C.k. at 08:14 AM - Dec 16, 2017 ( )

BJP win may see Nifty going up by about 2% in the immediate term

PRIYA KANSARA   BUSINESS LINE   

Macro concerns, corporate performance, Budget blues likely to arrest further rise

Indian equity markets got a thumbs up from investors as exit poll results suggested a clear win for the Bharatiya Janata Party in Gujarat and Himachal Pradesh. S&P BSE Sensex and Nifty 50 gained over 1 per cent intraday before ending with gains in the range of 0.7-0.8 per cent. While the broader market outperformed benchmark indices, all sectoral (except Nifty PSU Bank) and thematic indices ended in the green. Metals, automobiles, real estate and private banks led Friday’s rally.

“Assurance of political stability seems to have cheered market participants,” said Karthikraj Lakshmanan, Senior Fund Manager, BNP Paribas Mutual Fund.

If BJP actually wins, Mustafa Nadeem, CEO at EPIC Research sees Nifty hitting new highs (going over 10,500 levels).

However, the rally will soon be capped as the mood will turn cautious ahead of critical events such as Union Budget, advance tax numbers and earnings season. Markets have already been jittery for quite some time due to a combination of domestic factors (rise in inflation, bond yields and current account deficit, followed by dip in IIP and outcome of elections) and global concerns (rise in crude oil prices and outcome of the FOMC meet). Moreover, it is expecting a better performance in the December quarter due to lower base caused by demonetisation.

In case BJP does not win (which seems to have low probability, though), Kotak Institutional Equities sees this as a large negative for the markets, but expects only a moderate correction as the market’s focus will shift to India’s weakening macro position. Elara Securities expects a populist Budget if BJP does not win the recently concluded elections, which could further deteriorate the macro scenario (negative for markets).

Sensex rejig on Monday

Meanwhile, the Sensex’s composition is set for a reshuffle starting Monday wherein IndusInd Bank and YES Bank will replace Cipla and Lupin. With higher weights assigned to the two banking stocks, the overall weight of financial services sector will shoot up to 40 per cent, up 330 basis points, and will be more than the combined weights of sectors such as technology, consumer and automobiles, pointed out Motilal Oswal. As a result of the reshuffle, earnings of Sensex are likely to see a marginal upgrade of 0.2 per cent and 0.4 per cent in FY18 and FY19 respectively, due to better profit growth of the above mentioned banks, the domestic brokerage added.

New Thread: World shares gain; US yield curve flattest in decade

From : Yatheendradas C.k. at 06:02 AM - Dec 16, 2017 ( )

World shares gain; US yield curve flattest in decade

World shares gained and Wall Street opened higher on U.S. tax legislation optimism, while the U.S. yield curve hit its flattest in a decade after the Federal Reserve hiked interest rates earlier this week.

By: Reuters | New York | Updated: December 16, 2017 5:44 AM   The Financial EXpress   

World shares gained and Wall Street opened higher on U.S. tax legislation optimism, while the U.S. yield curve hit its flattest in a decade after the Federal Reserve hiked interest rates earlier this week. MSCI’s gauge of stocks across the globe gained 0.35 percent after a week of central bank meetings that saw the U.S. Federal Reserve raise interest rates yet left its rate outlook for the coming years unchanged. The European Central Bank and the Bank of England held off on hikes. The Dow Jones Industrial Average rose 162.25 points, or 0.66 percent, to 24,670.91, the S&P 500 gained 26.08 points, or 0.98 percent, to 2,678.09 and the Nasdaq Composite added 82.80 points, or 1.21 percent, to 6,939.32.

Wall Street equities sharply rose as U.S. Republican lawmakers are to reveal details of the final Republican tax bill later on Friday. Votes on the legislation from both the House of Representatives and the Senate are expected next week. “People still think the tax bill will get done. I don’t think Republicans are going to let this by the wayside as they’ve come this far,” said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management Company in Wisconsin.

The bill has been one of the catalysts for this year’s surge in the stock markets. Europe’s STOXX 600 closed down 0.19 percent, as a 12.98 percent slump in fashion giant H&M and a 6.29 percent drop for Italian luxury goods firm Ferragamo spooked retailers. In addition, worries over political risk spurred profit-taking. According to EPROM’s weekly data, worries over the national election next year in Italy hit European equity funds with outflows at their highest level in over a year.

Emerging market stocks lost 0.19 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.45 percent. Japan’s Nikkei stock index finished down 0.6 percent at its lowest in more than a week, with mobile firms extending a selloff on concerns of increased competition after e-commerce group Rakuten said it aims to become the country’s fourth wireless carrier.

The margin between U.S. shorter-dated and longer-dated Treasury yields contracted to its slimmest in a decade on Friday after the Fed earlier this week upgraded U.S. growth forecasts but left its inflation view unchanged. “That sparked the extra kicker for curve flatteners the last couple of days,” said Thomas Roth, head of U.S. Treasury trading at MUFG Securities Americas in New York. “People are very comfortable with holding long-dated paper.”

The yield spread between five-year and 30-year Treasuries was last at 53.2 basis points. The U.S. dollar strengthened as Republican negotiators put the finishing touches on the tax overhaul bill and expectations rose that the bill would pass by year-end. The greenback rose and fell throughout the week after news surrounding the central bank policy meetings and tax reform. News that the European Union had formally agreed to move Brexit talks onto trade and a transition pact triggered a 0.83 percent drop in the pound, as traders cashed in recent gains.

The euro was down 0.2 percent to $1.1754. In commodity markets, U.S. crude rose 0.46 percent to $57.30 per barrel and Brent was last at $63.22, down 0.14 percent on the day. Spot gold added 0.2 percent to $1,255.30 an ounce. U.S. gold futures gained 0.09 percent to $1,258.20 an ounce.

New Thread: US stocks jump ahead of Republican tax bill release

From : Yatheendradas C.k. at 05:59 AM - Dec 16, 2017 ( )

US stocks jump ahead of Republican tax bill release

US stocks ended higher on Friday with all three major indices closing at record highs, as investors awaited details of a Republican tax bill that is expected to be released later in the day.

By: IANS | New York | Published: December 16, 2017 4:52 AM  The Financial Express

US stocks ended higher on Friday with all three major indices closing at record highs, as investors awaited details of a Republican tax bill that is expected to be released later in the day. The Dow Jones Industrial Average rose 143.08 points, or 0.58 per cent, to 24,651.74. The S&P 500 added 23.80 points, or 0.90 per cent, to 2,675.81, Xinhua news agency reported.

 

The Nasdaq Composite Index gained 80.06 points, or 1.17 per cent, to 6,936.58. A last-minute increase to the child tax credit is the latest addition to the Republicans’ bill set to be unveiled later Friday, in a move that may secure votes for the plan after key senators wavered, according to the Market Watch.

House and Senate Republicans are planning to pass a package next week, with major elements including lower corporate and top individual tax rates.Corporate earnings also came out positive. Shares of Costco surged 3.32 per cent to $192.73 apiece on Friday as the US retailer posted better-than-expected quarterly results.

On the economic front, US industrial production moved up 0.2 per cent in November after posting an upwardly revised increase of 1.2 per cent in October, the Federal Reserve announced on Friday. The latest figure missed market forecast of a 0.3 per cent gain.

New Thread: FINANCIAL NEWS IN A NUT SHELL

From : Yatheendradas C.k. at 05:56 AM - Dec 16, 2017 ( )

The government will bear the MDR charges on
transactions up to Rs 2,000 made through debit
cards, BHIM UPI or Aadhaar‐enabled payment
systems to promote digital transacons, IT
Minister Ravi Shankar Prasad said today. The
merchant discount rate (MDR) will be borne by
the Govt for 2 years with effect from Jan 1, 2018
by reimbursing the same to the banks. The move
will have an impact of Rs 2,512 crore on the exchequer.
‐Economic Times


The Finance Ministry has formed a new panel to
frame response on the bitcoin issue, media
reports said. This came after the breakneck rise in
the price of the cryptocurrency this year and the
Income Tax Department surveying operaons at
the major e‐currency exchanges across the
country. RBI Deputy Governor B P
Kanungo and Sebi Chairman Ajay Tyagi were on
the panel. I‐T secretary was also made part of the
committee among other members.
‐Economic Times


RBI Governor Urjit Patel said that India’s market
is stable despite geopolical uncertainties and
the current account deficits are also within the
sustainable limit. He further said that country’s
recent economic growth may have disappointed
some but government has purchased the path of
fiscal consolidation.
‐Financial Express


UIDAI today said banks have been asked to install
fingerprint and iris scanners in 10%of their
branches to expedite Aadhaar enrollment mainly
for those seeking to open new bank accounts.
The Supreme Court today extended till March 31,
2018, the deadline for mandatory linking of the
biometric identifier with various services and
welfare schemes.
‐Financial Express


Corporation Bank has reduced the MCLR by 0.1%
point for overnight loan maturies. It has cut the
overnight MCLR by 0.1% to 7.80%, effect from
Dec 15, the bank said in a regulatory filing today.
‐Business Line


Yes Bank will be included in the S&P BSE Sensex
comprising of 30 companies with effect from Dec
18, 2017, the Bank said in a regulatory filing.
‐Moneycontrol.com


Finance Minister Arun Jaitley said the
government will "significantly overtake" the
disinvestment target for the current FY. The
government has set an ambious target of raising
Rs 72,500 crore through disinvestment in the
current fiscal.
‐Moneycontrol.com


The SEBI and the RBI are in consultaotins to give a
boost to interest rate futures (IRF) which is
currently struggling under low volumes, SEBI
chairman Ajay Tyagi said.
‐Livemint


Regulatory arbitrage that exists between banks
providing loan and holding corporate bonds
needs to be eliminated gradually, SEBI Chairman
Ajay Tyagi told. Tyagi said banks should disclose
defaults in corporate loans, similar to the system
in place for corporate bonds, saying it was an
issue that regulators would need to address.
‐Business Line


Demonesation caused some temporary  disrupons
in India’s economic acvity due to
cash shortages, but the effects are dissipatng,
the IMF has said.
‐Business Line


RBI Deputy Governor Viral Acharya said that
foreign exchange reserves do not work in the
absence of macroprudential measures or some
form of the capital controls, and that the depletion
of reserves by short‐term external debt
can make the situation worse.
‐Business standard


India's trade deficit narrowed to $ 13.83 billion
from $14.02 billion in the previous month,
government data showed today. Merchandise
exports for Nov rose 30.55% from a year ago to
$26.20 billion.
‐Economic Times


Railway minister Piyush Goyal said that the
earlier government had "pressurised banks" to
almost triple the total lending from Rs 18.16 lakh
crore in 2008 to Rs 52.15 lakh crore by March
2014. indiscriminate lending" during that period
as the biggest scam that the country has seen.
‐Business Standard


USD/INR 64.04(‐0.31)
SENSEX 33462.97(+216.27)
NIFTY50 10333.25(+81.15)

Messages Posted by Yatheendradas C.k.
TitlePostsTopicDate
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