Posted at 7:13 PM , on August 31, 2015
Why promoter’s pledged shares must be watched closely
As India celebrates a plethora of good news like low inflation, falling deficits and corporate profitability; there is a silent problem that is lurking in the shadows. Promoters pledging shares with financers to raise money for their business is nothing new. The problem arises in two basket cases. Firstly, when promoters have pledged almost their entire holdings with the financers! Secondly, when the pledged shares belong to a company that is susceptible to bouts of volatility! Unfortunately, both these cases are visible in abundance in India currently.
Posted at 7:10 PM , on August 31, 2015
Why Indian markets cannot be an isolated beneficiary
The 24th of August may have had traces of “Black Monday”, but it was far more benign compared to 1987. However, the impact was much bigger in terms of its seamless spread and the carnage across emerging markets. Over the last few days there have been consistent arguments on how India can outperform in these difficult global conditions. That argument may be flawed! Here is why…
Posted at 3:08 PM , on August 26, 2015
The immediate beneficiary of any market correction (probably we can call this a carnage), is the now-famous dividend yield argument. To begin with, it is an extremely logical and seductive argument. Let us explain! Divided yield is obtained by dividing the rupee dividend paid on the stock by the current market price. Obviously, when the prices are falling, the dividend yield tends to become more attractive for that stock. For example, Tata Steel paid a dividend of Rs.8 per share this year. When the stock was quoting at Rs.500/-, the dividend yield was 1.60% (8/500). On the contrary, when the stock had corrected to Rs.200 on August 25th, the dividend yield would have automatically improved to 4% (8/200). Before jumping into the dividend yield argument to identify stocks, one need to understand the following key points to fine tune your decision. Continue reading
Posted at 10:13 AM , on August 25, 2015
The 2% devaluation of the Yuan was the beginning of something that could become a contagion shortly. In fact, it has already started! Immediately after the Chinese devalued the Yuan, the Vietnamese Dong and the Kazakh Tenge sharply lost value. Many other currencies like the Korean Won, Brazilian Real and Turkish Lira have also been losing value. But why this free fall?
Posted at 10:09 AM , on August 25, 2015
There is enough literature on how to file your income tax returns online. Hence, we will not focus overtly on that point. Currently, assesses with income exceeding Rs.5 lakh per annum need to necessarily file their tax returns online. If your income is below Rs.5 lakh per annum, you can choose to file your returns either online or physically. However, in the light of the advantages of filing returns online, it is advised that even those with incomes less than the threshold should necessarily file their RR. Continue reading