🌹India Daybook – Stocks in News
CyberTech Systems: India Rating & Research has upgraded the rating of CyberTech Systems (Positive)
Capri Global: The company entered into a co-lending agreement with the Union Bank of India to offer MSMEs loans (Positive)
Lyka Labs: Ipca Laboratories acquired 48 lakh equity shares in the company at Rs 130.4 per share (Positive)
Tube Investments: The long-term rating has been removed from watch with developing implications and 'Stable' outlook has been assigned. (Positive)
Pidilite: Subsidiary Madhumala Ventures has agreed to make an investment of Rs 1.56 crore in Constrobot Robotics (Positive)
Reliance: Company to restructure and repurpose gasification assets. (Positive)
Confidence Petro: Promoters bought 1.50 lakh shares on 22 November. (Positive)
UPL: Promoter Uniphos Enterprises acquired 1.37 lakh equity shares in the company via open market transactions (Positive)
Lyka Labs: IPCA Laboratories Bought Additional 17,74,142 Shares Rs 126.1/ Share (Positive)
NCC: The construction major told CNBC-TV18 that it is looking at margins of about 11 percent for FY22. (Positive)
Indian Overseas and Central Bank: CNBC-TV18 learns that the government has proposed privatising Indian Overseas Bank and Central Bank. (Positive)
63 Moons Technologies: Subsidiary Tickerplant is proposing to raise funds by way of private placement offer of its equity shares (Positive)
Coal India: Chairman says Coal Price Increase has Become Inevitable (Positive)
Ramco Cements: The company has commissioned a waste heat recovery system at newly commissioned third line at Jayanthipuram plant. (Positive)
Prismx Global: The company on November 27, will consider fund raising by way of rights issue of equity shares. (Positive)
Tata Steel: Executes Blockchain-Enabled Sale to Bangladesh Buyer (Positive)
Siemens: The company has recommended a dividend of Rs 8 per equity share for the financial year ended September 2021 (Neutral)
Grasim: Life Insurance Corporation of India sold 2.02% stake in the company via open market transactions (Neutral)
Arvind: Promoters sold 26.88 lakh shares between 18-24 November. (Negative)
Construction Stocks: Supreme Court has re-imposed #construction ban in NCR till Nov 29. (Negative)
CyberTech Systems: India Rating & Research has upgraded the rating of CyberTech Systems (Positive)
Capri Global: The company entered into a co-lending agreement with the Union Bank of India to offer MSMEs loans (Positive)
Lyka Labs: Ipca Laboratories acquired 48 lakh equity shares in the company at Rs 130.4 per share (Positive)
Tube Investments: The long-term rating has been removed from watch with developing implications and 'Stable' outlook has been assigned. (Positive)
Pidilite: Subsidiary Madhumala Ventures has agreed to make an investment of Rs 1.56 crore in Constrobot Robotics (Positive)
Reliance: Company to restructure and repurpose gasification assets. (Positive)
Confidence Petro: Promoters bought 1.50 lakh shares on 22 November. (Positive)
UPL: Promoter Uniphos Enterprises acquired 1.37 lakh equity shares in the company via open market transactions (Positive)
Lyka Labs: IPCA Laboratories Bought Additional 17,74,142 Shares Rs 126.1/ Share (Positive)
NCC: The construction major told CNBC-TV18 that it is looking at margins of about 11 percent for FY22. (Positive)
Indian Overseas and Central Bank: CNBC-TV18 learns that the government has proposed privatising Indian Overseas Bank and Central Bank. (Positive)
63 Moons Technologies: Subsidiary Tickerplant is proposing to raise funds by way of private placement offer of its equity shares (Positive)
Coal India: Chairman says Coal Price Increase has Become Inevitable (Positive)
Ramco Cements: The company has commissioned a waste heat recovery system at newly commissioned third line at Jayanthipuram plant. (Positive)
Prismx Global: The company on November 27, will consider fund raising by way of rights issue of equity shares. (Positive)
Tata Steel: Executes Blockchain-Enabled Sale to Bangladesh Buyer (Positive)
Siemens: The company has recommended a dividend of Rs 8 per equity share for the financial year ended September 2021 (Neutral)
Grasim: Life Insurance Corporation of India sold 2.02% stake in the company via open market transactions (Neutral)
Arvind: Promoters sold 26.88 lakh shares between 18-24 November. (Negative)
Construction Stocks: Supreme Court has re-imposed #construction ban in NCR till Nov 29. (Negative)
INDIA FIN MIN SAYS THERE WILL BE NO BAN ON CRYPTOS BUT WILL BE REGULATED.
WE ARE WORKING ON NEW BILL AND WILL BE PROPOSED SOON: RAJYA SABHA
WE ARE WORKING ON NEW BILL AND WILL BE PROPOSED SOON: RAJYA SABHA
TATA MOTORS: CO SAYS TO *INCREASE PRICES OF ITS COMMERCIAL VEHICLES FROM JAN 1, 2022* || INCREASE IN PRICE IN RANGE OF 2.5% WILL BE IMPLEMENTED FROM JAN 1, 2022
TataMotors
TataMotors
TATA MOTORS: CO SAYS STEEP RISE IN OVERALL *INPUT COSTS MAKES IT IMPERATIVE TO PASS ON SOME RESIDUAL PROPORTION VIA PRICE HIKE* || INCREASE IN PRICES OF COMMODITIES, IN ADDITION TO HIGHER COSTS OF OTHER RAW MATERIALS HAS INCITED PRICE HIKE
In Fundamental Analysis, there are broadly 4 things to see: ROE, ROCE, Free Cash. Valuation.
In Technical Analysis,it's broadly Supports ,Resistances and Momentum.
But without the key ingredient of Risk Analysis, the first two are useless.
In Technical Analysis,it's broadly Supports ,Resistances and Momentum.
But without the key ingredient of Risk Analysis, the first two are useless.
FAQ on Current Markets
1. Why are FIIs selling Indian stocks so vigorously?
Well, a number of factors. It's actually a domino effect.
And it all begins with the same story…
The day FED decided to go hard on inflation.
2. In layman terms, FED regulates the flow of dollars in the world. For last many years, after the 2008 crisis, they have been printing dollars recklessly to help US Govt fund several economy stabilizing projects by buying US bonds.
3. US 10Y, 30Y bonds are basically a kind of internal debt that the govt raises to run its projects as it has been running into huge deficit for quite sometime.
4. That, along with near zero interest rates incentivizes banks to lend more to whoever is credit worthy. These credit worthy people use the opportunity to raise dollar denominated debt and convert them into local currencies and invest in emerging markets (among other things).
5. Most EM currencies continue to depreciate against USD as most of them, including India, are net importer of goods and services. That is, they spend more USD than what they earn. So when a foreign investor invests in an EM, it has to factor in this depreciation as well.
6. So, if we put this in a simple formula, it will be something like this:
Net return% = Gross returns from Investment - Interest cost in Home country - 2*Transaction costs - EM currency depreciation
7. Every thing makes sense if the Gross returns from Investment is high enough to take care of all other expenses.
What happens when FED reduces asset purchases and raising interest rates? It basically pulls USD home from all over the world.
8. Institutions look for safer bets as the valuation comfort is not there. A lot of investment avenues go to dump if hurdle rates (Cost of capital) are increased by 1%.
Fed could be raising rates by 2% in next two years.
9. US Govt could be walking a tight rope aka self imposed mild austerity in absence of new dollars.
Another issue that could be accelerating the outflow is Union budget. Well not budget, but the fact that there are 7 elections planned in this year starting with the one in UP.
10. At the backdrop of farmer protest fiasco leading to cancellation of farm laws, budget could be the last chance for the government to show that "PM Cares". (Did you notice what I did there?
11. There could be big and bold 'populistic' measures that government may announce in the budget. Simply more MSP, more subsidy.
12. They would have preferred the PM to do that personally on TV/stage, but lack of time between budget and imposition of Achaar Sanghita would leave this job in hands of the FM. Obviously she would very clearly acknowledge the vision of the PM while announcing any such scheme.
13. But all populism needs money. And taxes are where they get their money from. So expect some tightening on taxes front. The sops given to industries could be altered. Here, I am not even talking about the personal income tax part.
14. Another source is Borrowing. Expect the borrowing figures to also go up. However, possibly by not much.
Overall impact, the budget could be inflationary leading to pressure on INR.
15. a. As explained earlier, When FIIs convert their currency into INR and then back to their currency to take it home, they pay transaction cost. And the depreciation adds to that cost. That's ok if market is under valued and a good upside is available in near term.
15. b. If the perceived upside is limited and INR is expected to get double beating, then it's obvious that there will be a race to the exit door. And that creates a vicious cycle.
16. It's the domestic flow which has protected our markets so far. Including the same novice investor who is being ridiculed everytime for enjoying the honeymoon period since the covid crash. India's equity love saga has saved the markets so far.
1. Why are FIIs selling Indian stocks so vigorously?
Well, a number of factors. It's actually a domino effect.
And it all begins with the same story…
The day FED decided to go hard on inflation.
2. In layman terms, FED regulates the flow of dollars in the world. For last many years, after the 2008 crisis, they have been printing dollars recklessly to help US Govt fund several economy stabilizing projects by buying US bonds.
3. US 10Y, 30Y bonds are basically a kind of internal debt that the govt raises to run its projects as it has been running into huge deficit for quite sometime.
4. That, along with near zero interest rates incentivizes banks to lend more to whoever is credit worthy. These credit worthy people use the opportunity to raise dollar denominated debt and convert them into local currencies and invest in emerging markets (among other things).
5. Most EM currencies continue to depreciate against USD as most of them, including India, are net importer of goods and services. That is, they spend more USD than what they earn. So when a foreign investor invests in an EM, it has to factor in this depreciation as well.
6. So, if we put this in a simple formula, it will be something like this:
Net return% = Gross returns from Investment - Interest cost in Home country - 2*Transaction costs - EM currency depreciation
7. Every thing makes sense if the Gross returns from Investment is high enough to take care of all other expenses.
What happens when FED reduces asset purchases and raising interest rates? It basically pulls USD home from all over the world.
8. Institutions look for safer bets as the valuation comfort is not there. A lot of investment avenues go to dump if hurdle rates (Cost of capital) are increased by 1%.
Fed could be raising rates by 2% in next two years.
9. US Govt could be walking a tight rope aka self imposed mild austerity in absence of new dollars.
Another issue that could be accelerating the outflow is Union budget. Well not budget, but the fact that there are 7 elections planned in this year starting with the one in UP.
10. At the backdrop of farmer protest fiasco leading to cancellation of farm laws, budget could be the last chance for the government to show that "PM Cares". (Did you notice what I did there?
11. There could be big and bold 'populistic' measures that government may announce in the budget. Simply more MSP, more subsidy.
12. They would have preferred the PM to do that personally on TV/stage, but lack of time between budget and imposition of Achaar Sanghita would leave this job in hands of the FM. Obviously she would very clearly acknowledge the vision of the PM while announcing any such scheme.
13. But all populism needs money. And taxes are where they get their money from. So expect some tightening on taxes front. The sops given to industries could be altered. Here, I am not even talking about the personal income tax part.
14. Another source is Borrowing. Expect the borrowing figures to also go up. However, possibly by not much.
Overall impact, the budget could be inflationary leading to pressure on INR.
15. a. As explained earlier, When FIIs convert their currency into INR and then back to their currency to take it home, they pay transaction cost. And the depreciation adds to that cost. That's ok if market is under valued and a good upside is available in near term.
15. b. If the perceived upside is limited and INR is expected to get double beating, then it's obvious that there will be a race to the exit door. And that creates a vicious cycle.
16. It's the domestic flow which has protected our markets so far. Including the same novice investor who is being ridiculed everytime for enjoying the honeymoon period since the covid crash. India's equity love saga has saved the markets so far.
17. But as inflation rises and FED hikes it's rates, RBI would be forced to hike as well. That would mean banks also raise their deposit rates. Some of these domestic flow gets diverted to debt and gold rather than to equities. There, we cud see deep correction in our markets.
18. Then this novice investors/traders, who have been honeymooning for last 2 years, would know how the market really works.
19. Now what can surprise everyone?
Well, if the budget stays business friendly and balance-sheet friendly, then the pressure on INR would be limited and GDP growth projections could be lifted forcing the FIIs to rethink their strategy.
20. More surprises:
FED not walking its talk on monetary tightening and
Our govt not splurging on subsidies what they project in the budget.
But these things will take time and before that markets could be undergoing slow downward grind for next 2-3 months or so.
--- END ---
18. Then this novice investors/traders, who have been honeymooning for last 2 years, would know how the market really works.
19. Now what can surprise everyone?
Well, if the budget stays business friendly and balance-sheet friendly, then the pressure on INR would be limited and GDP growth projections could be lifted forcing the FIIs to rethink their strategy.
20. More surprises:
FED not walking its talk on monetary tightening and
Our govt not splurging on subsidies what they project in the budget.
But these things will take time and before that markets could be undergoing slow downward grind for next 2-3 months or so.
--- END ---
Hindu Undivided Family (HUF) is not defined under the Income Tax Act but is covered under the Hindu Law. By definition, it consists of all individuals who are lineally descended from a common ancestor and also comprises of unmarried daughters. HUF is not formed by a contract but by the status of a family i.e., it is created automatically in any Hindu Family. Having a common ancestor is a pre-requisite to form a HUF.
REQUIREMENTS TO FORM A HINDU UNDIVIDED FAMILY (HUF)
Minimum two members are required to form a HUF, constituting a joint family. Owning an estate or a property is not mandatory to form a HUF. The Hindu Law though does not govern Buddhists, Jains, and Sikhs; it can be treated as a HUF for taxation purpose.
BENEFITS OF FORMING A HUF
One of the major benefits of Hindu Undivided Family is that it is considered as a separate legal entity. This entitles HUF to obtain a separate PAN card and bank accounts in the name of the HUF. Once a HUF is formed, typically the oldest member of the family becomes the “Karta” and is provided with an additional exemption. In addition, the tax slabs are lower when compared to that of regular corporates. Until January 2016, women were not eligible to be the Karta of a HUF. However, the Delhi High Court, in a landmark case, gave the decision in favor of a woman being the Karta of HUF. The decision is yet to be implemented in the Income Tax Act.
HOW IS HUF TAXED?
• HUF is eligible for deductions under section 80 and other relevant exemptions
• Allowed to take insurance policies for its members
• Can also pay salary to its members should they contribute to HUF functioning
• Investment is allowed from HUF income and returns from such investments are taxable.
INCOME OF HUF
Any income that is derived from the below may be regarded as income of HUF:
• Profit from business including profession
• Income from house property
• Capital gains
• Other sources
Given that the HUF is a separate legal entity; it is not entitled to any salary income. Also, any income that is derived from investments made by the HUF is assessed and taxed separately.
WHO SHOULD OPT FOR HUF?
HUF arrangement suits those taxpayers who have income from ancestral property and expects to inherit these assets (both real and financial). A taxpayer will be able to divert the inheritance to the HUF account and thus preventing personal tax liability from increasing. In addition, HUF is also beneficial to taxpayers with higher savings rate.
LEGAL FORMALITIES INVOLVED WHILE FORMING A HUF:
• Form corpus – A capital asset can be used to form the HUF. It can be any ancestral property, assets received as a gift from relatives or through a will.
• Register a deed – A deed is required on stamp paper declaring the formation of the HUF. It should include information of the Karta and the co-parceners. In addition, sources of funds in the corpus are also mentioned. Once the declaration deed is made, the Karta can apply for a permanent account number (PAN) for the HUF as a separate legal entity.
• Opening bank account – Once the PAN is allocated, open a bank account in the name of the HUF.
We hope that you have got a detailed insight on Hindu Undivided Family and its working. Should you wish to know more about HUF or any taxation related matter with HUF, feel free to and we shall be glad to assist.
Stay connected, stay invested
REQUIREMENTS TO FORM A HINDU UNDIVIDED FAMILY (HUF)
Minimum two members are required to form a HUF, constituting a joint family. Owning an estate or a property is not mandatory to form a HUF. The Hindu Law though does not govern Buddhists, Jains, and Sikhs; it can be treated as a HUF for taxation purpose.
BENEFITS OF FORMING A HUF
One of the major benefits of Hindu Undivided Family is that it is considered as a separate legal entity. This entitles HUF to obtain a separate PAN card and bank accounts in the name of the HUF. Once a HUF is formed, typically the oldest member of the family becomes the “Karta” and is provided with an additional exemption. In addition, the tax slabs are lower when compared to that of regular corporates. Until January 2016, women were not eligible to be the Karta of a HUF. However, the Delhi High Court, in a landmark case, gave the decision in favor of a woman being the Karta of HUF. The decision is yet to be implemented in the Income Tax Act.
HOW IS HUF TAXED?
• HUF is eligible for deductions under section 80 and other relevant exemptions
• Allowed to take insurance policies for its members
• Can also pay salary to its members should they contribute to HUF functioning
• Investment is allowed from HUF income and returns from such investments are taxable.
INCOME OF HUF
Any income that is derived from the below may be regarded as income of HUF:
• Profit from business including profession
• Income from house property
• Capital gains
• Other sources
Given that the HUF is a separate legal entity; it is not entitled to any salary income. Also, any income that is derived from investments made by the HUF is assessed and taxed separately.
WHO SHOULD OPT FOR HUF?
HUF arrangement suits those taxpayers who have income from ancestral property and expects to inherit these assets (both real and financial). A taxpayer will be able to divert the inheritance to the HUF account and thus preventing personal tax liability from increasing. In addition, HUF is also beneficial to taxpayers with higher savings rate.
LEGAL FORMALITIES INVOLVED WHILE FORMING A HUF:
• Form corpus – A capital asset can be used to form the HUF. It can be any ancestral property, assets received as a gift from relatives or through a will.
• Register a deed – A deed is required on stamp paper declaring the formation of the HUF. It should include information of the Karta and the co-parceners. In addition, sources of funds in the corpus are also mentioned. Once the declaration deed is made, the Karta can apply for a permanent account number (PAN) for the HUF as a separate legal entity.
• Opening bank account – Once the PAN is allocated, open a bank account in the name of the HUF.
We hope that you have got a detailed insight on Hindu Undivided Family and its working. Should you wish to know more about HUF or any taxation related matter with HUF, feel free to and we shall be glad to assist.
Stay connected, stay invested
TAX PLANNING FOR CAPITAL GAINS TAX :-
As we are nearing end of Financial
year, note these points to save Capital gains tax :-
(Long term capital gains/loss = For holding period more than 1 year
Short term capital gains/loss = For holding period less than 1 year)
- 1 lakh profit in a Financial year is exempt as Long term capital gains. So book profits in shares & mutual funds together upto 1 lakh, and reinvest
- If profits are more than 1 lakh, check if you can book loss in any of the holdings to set off. You can buy back the next day.
- Short term capital gains are taxed at 15%, book losses and buy back next day to set off any profits.
- Both Long and short term losses can be carried forward for 8 years. So booking losses can help save future taxes. ( Make sure you file IT returns on time)
- LTC losses can be set off against LTCG only. STC losses can be set off against ST and LT capital gains
- Futures & Options profit /loss will be taxed along with normal tax slab.
Stay Connected, Stay Invested
As we are nearing end of Financial
year, note these points to save Capital gains tax :-
(Long term capital gains/loss = For holding period more than 1 year
Short term capital gains/loss = For holding period less than 1 year)
- 1 lakh profit in a Financial year is exempt as Long term capital gains. So book profits in shares & mutual funds together upto 1 lakh, and reinvest
- If profits are more than 1 lakh, check if you can book loss in any of the holdings to set off. You can buy back the next day.
- Short term capital gains are taxed at 15%, book losses and buy back next day to set off any profits.
- Both Long and short term losses can be carried forward for 8 years. So booking losses can help save future taxes. ( Make sure you file IT returns on time)
- LTC losses can be set off against LTCG only. STC losses can be set off against ST and LT capital gains
- Futures & Options profit /loss will be taxed along with normal tax slab.
Stay Connected, Stay Invested
Guys Anyone from our Group is an Business Entrepreneur, Can be Benefited by this Programme. Please do get registered by filling the google form.
Programme Organised by
Unnati Investments
Yash Nagarkar
9325299728.
Programme Organised by
Unnati Investments
Yash Nagarkar
9325299728.