FM cuts corporate tax, Sensex up 1,900 pts , Nifty up 500 pts


  • Corporate tax rate to be 22% without exemptions, inclusive of surcharge and cess.
  • No Minimum Alternate Tax (MAT) applicable on such companies
  • Effective corporate tax rate after surcharge to be 25.17 percent
  • To attract investment in manufacturing, local companies incorporated after October 2019 will pay tax at 15 percent
  • Image result for stock market up
  • That effective tax for new companies shall be 17.01 percent, including cess and surcharge. Companies enjoying tax holidays would be able to avail concessional rates post the exemption period.
  • Will give MAT relief for those opting to continue paying surcharge and cess. MAT has been reduced to 15 percent from 18.5 percent for companies who continue to avail exemptions and incentives:
  • To stabilise flow of funds into the market the enhanced surcharge announced in Budget 2019 will not apply on capital gains arising on sale of any security, including derivatives by foreign portfolio investors (FPI)
  • For listed companies which made announcement for public buyback before July 2019 it is provided that tax on buyback on shares of such companies will no be charged
  • Total revenue foregone by undertaking these measures is Rs 1.45 lakh crore per year

Morning Business News Round up_January 22, 2016

Morning Business News :

  • Trai may propose increase in quantum of auction
  • ECB keeps rates unchanged at record low as expected
  • NSEL to pay Rs 1.66 cr fine in money laundering case
  • RBI allows banks to sell India Gold Coins

  • Vedanta pares down bond repurchase to $227 mn
  • RBI caps number of transactions on pensioners’ a/c
  • Adani may buy L&T’s Punjab power plant
  • Bankers finalize new owners for Electrosteel
  • Natco enters licensing agreement with Brystol-Myers Squib
  • Hindustan Zinc’s Q3 net slides 24%, Q4 output seen muted
  • Glenmark Pharma gets USFDA nod for two generic drugs
  • IOC doubles crude oil buy from Nigeria on term contract
  • Textile exports may cross $40 b this fiscal: Minister
  • NSE shareholders fear revamp plans may delay bourse’s listing
  • Reliance Capital in talks to divest stake in insurance biz
  • IndiGo posts 24% rise in profit at ₹657.3-crore
  • Citigroup’s slide in India M&A deals shows rise of local bankers
  • Sebi panel suggests reforms to grow alternative funds industry
  • Ratan Tata invests in baby products retailer FirstCry
  • CREO raises $3 million from Sequoia Capital, others
  • Sensex closes 100 points down on weak global cues, Nifty settles below 7,280
  • Idea Cellular Q3 profit dips marginally to Rs 764.21 cr
  • Tata’s JLR becomes UK’s largest car maker
  • Oil prices fall near 2003 lows on oversupply, demand worries
  • BSE market cap falls Rs 10 lakh cr in 2016 so far
  • Emerging markets lost $735b in 2015: IIF
  • Global stocks battered as oil pushes below $27
  • Small cells the future of telecom tower infrastructure

Today’s Wealth Mantra !

“This company looks cheap, that company looks cheap, but the overall economy could completely screw it up. The key is to wait. Sometimes the hardest thing to do is to do nothing.”

David Tepper


Four factors why Sensex plunged over 400 points !

Snapping the rare gains of previous session, the S&P BSE Sensex tumbled over 400 points on Wednesday to trade just a tad above its crucial psychological level of 24,000, while broader CNX Nifty breached its key 7,300-mark.Both the headline indices have corrected 20 per cent from their all-time highs of 30,024 and 9,119, respectively, which they hit in March last year.Stating that the economy is losing momentum, brokerage firm Ambit Capital had recently said the benchmark Sensex is yet to bottom out and can fall to 22,000 level in the “foreseeable future”. We have compiled four factors that may be dragging markets lower:

1) IMF cuts global growth forecast

International Monetary Fund on Tuesday cut its world economic growth forecasts for the third time in less than a year. The latest World Economic Outlook (WEO) update of the IMF said global growth for this year is seen at 3.4 per cent, up from a 3.1 per cent forecast for 2015, but 0.2 per cent lower than previously forecast.”Risks to the global outlook remain tilted to the downside and relate to ongoing adjustments in the global economy: a generalised slowdown in emerging market economies, China’s rebalancing, lower commodity prices, and the gradual exit from extraordinarily accommodative monetary conditions in the United States,” said IMF.”If these key challenges are not successfully managed, global growth could be derailed,” it cautioned.

2) China slowdown and stimulus policy

China’s economy grew 6.9 per cent in 2015, the slowest pace in 25 years, slipping below the seven per cent mark and sparking concerns both at home and abroad over the continued slowdown in the world’s second largest

economy.The growth rate, released by China’s the National Bureau of Statistics (NBS) on Tuesday, moderated to 6.8 per cent for the fourth quarter, the lowest quarterly rate since the global financial crisis in 2009, and 6.9 per cent for 2015. Now, the weak GDP data has strengthened market expectations the government will unveil more stimulus moves. China’s central bank late Tuesday did reveal it would inject more than 600 billion yuan ($91.22 billion) into the banking system to help ease a liquidity squeeze expected before the Lunar New Year in early February.However, investors believed such a move is usual before the holidays and stopped well short of an actual cut in bank reserve ratios.

3) Fall in oil prices

Crude futures slumped again in Asian trade on Wednesday, losing more than 2 per cent as US oil dropped towards $27 a barrel, its lowest since 2003, on worries about global oversupply.That came after the International Energy Agency, which advises industrialised countries on energy policy, warned that oil markets could “drown in oversupply” in 2016.Brent futures dropped 49 cents to $28.27 a barrel after settling up 21 cents, or 0.7 per cent, in the previous session. The crude fell more than 2 per cent to $28.13 earlier on Wednesday, not far from the 12-year low hit on Monday.

4) Rupee falls to 28-month low

The domestic currency has fallen to lowest level since September 2013 at 67.95 against the dollar on Wednesday,triggering FII outflows. Foreign investors have sold shares worth Rs 6400 crore so far this month, the data on the BSE showed. Weakness in rupee hurts overall gains on existing investments. (With inputs from Agencies)

Courtesy :






Morning Business News Round up_January 19, 2016

Morning Business News :

  • Oil Producing Nations To Sell $240 Bn Assets
  • French President Declares Economic Emergency
  • Saudi Arabia Alarmed At Iran Sanctions Ending
  • China Seen Posting Slowest Economic Growth In 25 Years As Policy Risks Grow
  • India A Land Of Opportunities Among Brics Countries
  • Rbi To Buy Back Rs 10,000 Crore Worth Of Government Bonds
  • Sagar Cements In Talks To Buy Jp’s Andhra Cements
  • Ajay Piramal To Float Rs 6k-Cr Distressed Assets Fund
  • Budget 2016: Ippai Bats For Tax Incentives For Power Sector
  • Pcra, World Bank Conduct Fuel Conservation Study In Chennai
  • Govt Looks To Cap Trading Margin On Drugs At 35%
  • Govt Unlikely To Mobilise Rs 15,000 Cr From Gold Bond Scheme
  • Raghuram Rajan Urges Oz Firms To Invest In Indian Market
  • New Curbs On Agri-Commodities Won’t Impact Hedging: Sebi
  • Maruti Suzuki S-Cross Prices Reduced By Over Rs 2 Lakh In India

  • Wockhardt To Toe Us Fda Line On Shendra Unit
  • Opec Expects Decline In Supply From Non-Member Nations
  • Ts Utilities Enter Into Power Supply Pacts With Ntpc, Sccl
  • Trust Gap Widens To Record High Globally; 4th Highest In India
  • Ril, Rpower, Hcl Tech Results On Tuesday
  • Nalco To Send Team To Iran To Discuss $2 Bn Plant
  • Wipro Meets Estimates As Profit Rises Nearly 2%, But Margins Hit
  • Indian Firms Most Optimistic About Economic Recovery: Report
  • Reliance Jio To Raise Rs15,000 Crore Via Rights Issue
  • Kotak Mahindra Bank Q3 Profit Rises 36.56% To Rs634.7 Crore
  • Sc Issues Notice To Three Delhi Discoms Over Cag Audit Row
  • Reliance Jio, R-Com Sign Another Spectrum-Sharing Deal For Faster 4g Rollout
  • Govt Comes Out With Indian As For Banks, Insurance Firms
  • Mindtree To Buy Magnet 360 For $50 Mn
  • Sensex Falls 266 Points On Global Cues, Nifty Settles At 7,351

Today’s Wealth Mantra !

“Know what you own, and know why you own it.”

– Peter Lynch


Morning Business News Round up_January 18, 2016

Morning Business News :

  • US To Pay Iran $1.7 Bn In Debt And Interest
  • India, EU Officials To Meet Tomorrow On FTA
  • Iran Nuclear Sanctions Lifted, India Can Now Import Oil Freely
  • Hydro Units May Come Under Renewable Energy Ambit
  • Centre Finds An Ally In New-Economy Companies
  • Industrial Recovery To Be Gradual, 2016 GDP Growth At 7.8%
  • Let Rupee Slide To Help Exports Remain Competitive
  • Railways To Manufacture Locos That Run On Diesel, Electricity
  • BSE Brings Institutional Investors Under Self-Trade Checks

  • Coal India Stake Sale May Be Deferred To Next Fiscal
  • Govt To Scan Ways To Ease Listing Norms For Start-Ups Further
  • Fpis Withdraw Rs. 3,483 Cr From Equity Market From Jan 1-15
  • Nbfcs Pitch For Parity With Banks On Tax Issues
  • FDI In Food Processing Sector May Go Up By 25%
  • IMF Resists A Return To Still-Struggling Greece
  • NGT Slaps Rs25 Crore Fine On Adani-Hazira Port, Cancels Environment Clearance
  • Aurobindo Pharma Gets USFDA Nod For Generic Tranexamic Acid Injection
  • United Spirits To Exit From Nepal Subsidiary
  • Air India Seeks Around Rs4,300 Crore From Govt For FY17
  • Sensex, Nifty May Jump 10-15% This Year; Large-Cap Stocks Safe Bet
  • ONGC Videsh Ltd Refinances $1.78 Bn Loan At Lower Coupon Rates
  • Govt To Bear Patent Cost, Relax Procurement Norms For Startups
  • Maruti Suzuki Hikes Car Prices By Up To Rs 12,000
  • Postal Dept To Open 1,000 Atms By March This Year
  • Cement Sector To Revive In About Three Years
  • Global Markets See Another Week Of Sharp Sell-Off
  • Revenue Growth May Remain Muted For Third Quarter
  • Coffee Exports Hit By Lower Production

Today’s Wealth Mantra !

“Bottoms in the investment world don’t end with four-year lows; they end with 10- or 15-year lows.”

– Jim Rogers


Morning Business News Round up_December 24, 2015

Morning Business News :

  • Govt Mulls Tax Sops On Esops, VC Investments
  • Energy Sector Will Generate $250 Bn Investment
  • Govt Delays  Law, GST Deadlock Remains
  • Govt Says Closing In On Westinghouse Deal Worth $150 Bn To Build 6 Nuclear Reactors
  • OVL’s $1.26 Bn Vankor Buy To Be Signed Tomorrow
  • Essar Oil Gets Okay For Institutional Sell-Off; Time To Delist From Bourses
  • Sebi Panel Advises On Removing ‘Conflict Of Interest’ While Rating
  • Rajan Raises Concerns Over High Corporate Sector Vulnerabilities
  • Rcom Suspends Launch Of Free Basics Till TRAI’s Approval
  • World Bank Feelers To Part-Finance India Post’s Payments Bank
  • Indian Railways Signs Rs 500 Cr Pact With Coal India For Supply Of 2,000 Wagons
  • CBDT Issues MAT Order Pertains To Foreign Companies
  • Piramal Enterprises Buys 5 OTC Brands For Rs 92 Crore
  • Court Asks MCA To Decide On FTIL-NSEL Merger By Feb 15
  • Lupin Gets USFDA Nod To Market Potassium Chloride Capsules
  • Nalco Inks R&D Pact With Chalieco Of China
  • Idea Launches 4G Services In Five Southern States

  • Small Investors In Dark Over Sahara’s Latest Shadow Banking Schemes
  • Welspun Enterprises Divests 37% Stake In Dewas Bhopal Road Project
  • Boards Raise Scrutiny As Infosys And Wipro Bet Big On Start-Ups
  • Sensex Rebounds 259.65 Points, Nifty Ends At 7,866
  • DLF Gets Rs 1992 Cr From GIC From Stake Sale In 2 Projects
  • Npas Jump 50 Bps To 5.1% Between March And September Quarters: RBI
  • Dr Lal, Alkem Make Strong Debut On Bourses
  • SAIL To Soon Launch Rs 400-Crore Voluntary Retirement Scheme
  • Wipro To Acquire Viteos Group For $130m In Outsourcing Push
  • L&T Bags Orders Worth Rs 1,178 Crore In December
  • Over Rs 16k Cr Undisclosed Income Detected In 20 Months
  • Sebi Attachment Orders Up 5-Fold At 1,610 In FY15

Today’s Wealth Mantra !

“With the possible exception of things like box scores, race results, and stock market tabulations, there is no such thing as Objective Journalism. The phrase itself is a pompous contradiction in terms.”

-Hunter S. Thompson


Morning Business News Round up_December 23, 2015

Morning Business News :

  • Govt To Bring Bill For Mandatory National Minimum Wage
  • Govt Fails To Attract Fdi In Defence, Only Rs 56l Since Last Sept
  • Softer Oil Prices Boost Expectations Of Better Earnings
  • China’s Wanda Group Likely To Invest Us$ 1 Billion In Haryana
  • RBI May Revise Gold Bonds’ Pricing Mechanism
  • GAIL Extends Bidding Deadline For $7-Bn Lng Ships
  • Rajan Went With External Committee In Policy Review
  • Rcom, Aircel In Talks To Merge Wireless Biz
  • Tata Steel May Sell Uk Unit To Greybull Capital
  • India’s Q2 Current Account Deficit Narrows To $8.2 Bn
  • Maha Govt Mulls 5% Increase In Ready Recknor Rates From January 1
  • CAG Flays Govt For Unrealistic Expenditure Estimates
  • Ultratech Mine Plan In Chhattisgarh Lands In Troubled Water
  • ONGC Can Convert Rs 5,000-Cr Loan Given To Ovl Into Equity
  • Call Drops: No Coercive Steps Against Telcos Till Jan 6, Says Trai
  • Glenmark Pharma Gets Us Regulator Nod For Bacterial Infection Drugs
  • Nsel-Ftil Merger: Corporate Affairs Seeks More Time To Pass Final Order
  • JP Morgan Tweaks Emerging Markets Portfolio For 2016
  • Cabinet Clears Rs 5,000 Cr Investment In Ongc Videsh
  • High Court Breather For Miners Over Social Impact Funds
  • Orchid Pharma Signs Pact For $800 Million Loan From Uk Firm
  • Ujjivan Slows Mfi Business As It Readies For Switch To Banking
  • Australia Clears Adani Abbot Point Coal Terminal Expansion
  • L&T Realty Looks For Partners In Bengaluru, Navi Mumbai Projects
  • Reliance Jio To Launch Services On 27 December

  • Sensex Ends 145 Points Lower, Nifty Settles Below 7,800
  • Bankruptcy Bill In Lok Sabha: Fm Arun Jaitley Says Country Can’t Wait For Reforms
  • Finmin Cuts Divestment Target By 57% For Fy16
  • Essar Oil Delisting Faces ‘Technical’ Issues; Referred To Sebi
  • RBI Governor Goes With Panel On Rate Status Quo
  • Gold Imports To Touch 1,000 Tonne This Year, Up 11%
  • Zynergy To Invest Rs 400 Cr In Tn Solar Products Plant
  • IRDAI Directs Insurers To Comply With Fatca Rules
  • RBI External Panel Suggested Status Quo In Dec Policy
  • Aurobindo Pharma Gets Usfda Nod For Its Conjunctivitis Drug

Today’s Wealth Mantra !

“One of the very nice things about investing in the stock market is that you learn about all different aspects of the economy. It’s your window into a very large world.”

-Ron Chernow


Morning Business News Round up_December 22, 2015

Morning Business News :

  • Indian Tech Firms Paid $22.5 Bn Taxes In US
  • Government Introduces Bill For Bankruptcy Law In Parliament
  • Iran Woos Indian Refiners To Drive Oil Sales In Cut-Throat Market
  • SBI To Raise Up To Rs 12,000 Crore By Tier-II Bonds
  • $12 Bn Deal Signed In China To Make 1.5L Electric Cars
  • DRI Investigating Over Invoicing Of Imported Coal
  • Excise Exemptions May Be Whittled In Budget
  • Oil Dips To 11-Year Low; CLSA, Goldman Sachs See $20 Levels
  • Glenmark Ends Patent Dispute For Anti-Depression Drug Savella
  • M&M, Tata Motors, Maruti Team Up To Develop Components For Hybrid, E-Vehicles
  • Toshiba Warns Of $4.5 Bn Fiscal Loss As Shares Slump 9.8%
  • Godrej Agrovet Buys Majority Stake In Creamline Dairy
  • HDIL Sells Land Parcel In Kurla To Dheeraj Realty Arm
  • Strides Shasun Gets DCGI Nod For Manufacturing Hepatitis Drug
  • RBL Bank Raises Rs488 Crore In A Pre-IPO Round Of Fund-Raising
  • Sun Pharma Stock Falls 4.5% After US Regulator’s Warning
  • Sebi Seeks Status Report On Basic Services Demat Accounts
  • R-Com Sells 150 Residential Flats In Navi Mumbai For Rs330 Crore
  • Retailers Expect Robust State-Wise Retail Policies In 2016
  • Sensex Closes 217 Points Up At 25,736, Nifty Settles Above 7,830;
  • Icra Doubts Faster Monetary Transmission Under RBI Norm
  • India To Offer Site In Andhra Pradesh To Russia For Nuke Plants
  • Spicejet Records Highest Seat Factor Among Domestic Airlines

  • Brent Crude Falls Almost 2 Per Cent To 2004 Low
  • New RBI Norm For Rate Calculation Credit Positive: Moody’s
  • FIPB Clears Eight Proposals Worth Rs 1,200 Crore
  • Foreign Firms Cash Out As Mfs Near Rs 15 Lakh Cr Mark
  • RBI For Fewer Categories Of Nbfc’s For Better Coordination
  • Cipla Launches Generic Hepatitis C Drug In India

Today’s Wealth Mantra !

“The reality is that business and investment spending are the true leading indicators of the economy and the stock market. If you want to know where the stock market is headed, forget about consumer spending and retail sales figures. Look to business spending, price inflation, interest rates, and productivity gains.”

-Mark Skousen

Connect with us


Weekly Markets Round Up

Finally the much talked about FED hike has come. As no surprises, FED rate has been raised and it was as per expectations. But has the after effects of the same sunk in? Index goes up 300 points then down 300 points? Volatility will rule in the days going forward, keep an eye on VIX. Sentiment seems a bit uncertain on the street and plus the December anomaly should be at the back of our minds. (it is a consensus event wherein FIIs sell out and take money home for reporting stronger sheets as US year ending is 31/12/2015).

Technically speaking 25000 SENSEX held up firmly and is a reasonable support as far as charts are concerned. This coincides with 7500-7600 range for NIFTY. Traders looking for opening shorts must see the risk-reward ration which is skewed against them. Does that mean it is time to go long? Well technically no, however adventurous longs can be opened as risk-reward is in longs favour. But be prepared to be chopped as we affirm volatility will rule going ahead.

Fundamentally speaking markets are priced at 20x trailing earnings with a dividend yield of 1.4x. This picture is of a reasonably priced markets. It is neither cheap nor expensive. One can do bottom up fishing looking for reasonably cheap stocks however within the index there are counters available at a good entry point given the current bull run we are having. Troubled counters like DRL have ben languishing at 52-W lows and provide a good entry point for very patient and long term investors.

Currency is interestingly poised for the coming week as there are multiple holidays. Technically oversold for the very near term and fundamentally still adjusting to the FED hike, currency has been all over the place with INR getting stronger session on session. Traders are advised to trade longs and shorts with extreme caution and having said that a decent option strategy such as call and put spreads should give comfort as expiry is round the corner.



Connect with us


Morning Business News Round up_December 16, 2015

Morning Business News :

  • Fed Begins Two-Day Meeting To Decide On Rate Hike
  • Direct Tax Mop Up Shortfall To Be Rs 40Kcr This Fiscal
  • More Rate Cut By RBI Unlikely This Fiscal: India Ratings
  • Quoting PAN For Cash Payments Over Rs 2L Mandatory
  • Sebi Chief Asks Bankers To Promote Startup Listing
  • Nestle Moves SC Against Order On Maggi Samples
  • Welspun Group To Hive Off Yarn-Spinning Biz For Next Gen
  • Exports Fall For 12th Straight Month, Down 24.43% In Nov
  • LIC HFL To Acquire 19% Stake In LIC Nomura Mutual Fund AMC
  • ICRA Downgrades Outlook On United Bank Of India’s Rating To “Stable”
  • OPEC Expects Oil Prices To Rebound From $35 Per Barrel In A Year
  • Monetary Limit For Filing Appeals In Tax Cases Raised
  • Jaitley Appeals To Congress Leadership For GST Support
  • Indian Cos May Again Have To Pay Special $2,000 Fee On H-1B
  • Petronet To Offer Value-Added Services At Kochi Terminal
  • 80% Chance For Global Economic Recession In 2-3 Years: Birla Sun Life
  • Kenya To Roll Out Tax Incentives To Lure Investments
  • US Rate Hike May Pose Risks To Some Emerging Markets: Moody’s
  • Petrol Price Cut 50 Paise/Litre, Diesel 46 Paise/Litre
  • Softbank Venture Wins First Solar Power Project In India
  • Australia Court Rejects Bid To Stop Adani Coal Mine
  • L&T’s Infra Arm Receives Rs1,000 Crore From Canadian Pension Fund
  • General Motors India To Recall Over 1 Lakh Units Of Beat Diesel

  • Sensex Surges 170 Points Ahead Of US Fed Meet, Nifty Settles At 7,701
  • Paris Deal Window Dressing As India To Double Coal Production
  • General Electric Sells Japan Lending Unit For $4.8 Billion
  • Outflows To Go Up As Arab Swfs May Pull Out More: Credit Suisse
  • Rs 19k Cr Cleared For Amrut, Rs 250k Cr For 85 Smart Cities
  • Fortum To Light Up MP Village With Solar Energy
  • United Bank Seeks To Raise Up To Rs 1500 Cr Via Pref Issue
  • Natco Gets DCGI Nod To Launch Hepatitis C Drug In India
  • Dell Could Buy Back At Least $3b In Vmware Tracking Stock
  • Equity Mfs Give Investors An Edge Over Inflation

Today’s Wealth Mantra !

“Stock market bubbles don’t grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.”

-George Soros

Connect with us