Posted at 10:42 AM , on January 18, 2017
Year 2017 promises to be a challenging year for equities. Firstly, India’s GDP growth may struggle to reach the 7% mark for the full year. That will bring a lot of old-economy company valuations into question. Secondly, US-oriented businesses will be trying to absorb the signals coming from Donald Trump on outsourcing, pharma audits and border tax. Thirdly, oil prices could finally show strength during the year and that will determine the fortunes of many Indian companies in the year. Lastly, two critical trends will drive Indian markets in the year 2017. Demonetization has set in motion the process of digitization and we will see greater convergence of payments banks, telecom companies and NBFCs. This process of digitization will be a key theme to play on in the coming year. Additionally, the passage of GST will be a major push for the coming year. Although the implementation will happen in July 2017, the impact will be felt in the coming year for sure… Continue reading
Posted at 6:25 PM , on March 8, 2016
Is India Inc likely to announce a flood of dividends?
The announcement in the Union Budget to tax dividends at 10% in the hands of shareholders has given rise to a new situation in markets. Although, this applies only to shareholders receiving dividends over Rs.10 lakhs per annum, most large shareholders, investors and promoters are likely to be affected. The question is will this lead to a deluge of dividends in the month of March? More so, since the new dividend tax kicks off from April 01st, it gives companies that window to declare tax-free dividends in the month of March itself. Continue reading
Posted at 7:50 PM , on March 9, 2015
The Union budget has for the first time made an announcement and set a target for disinvesting loss making units of the government of India. Cynics may argue that nobody will be interested in the same. But that need not necessarily be the case. In the current Union Budget, Jaitley has estimated to raise Rs.41,000/- crore through SUUTI and minority stake divestment. At the same time, he has targeted to raise Rs.28,500/- crore through the strategic sale route. Apart from Balco and Hindustan Zinc, this amount will have to be largely raised through the strategic sale of loss making PSUs. But how will it be done. Continue reading