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Key point and highlights of 3.0 budget

On 23/7/2024 FM presented the union budget for the FY23-24.Here are the key points to takeover and highlights’ of the budget.

Finance Minister Nirmala Sitharaman highlights key priority areas of the
1. Productivity & Resilience In Agriculture.
2. Employment And Skilling.
3. Inclusiveness & Social justice.
4. Manufacturing & Services.
5. Urban Development.
6. Energy Security.
7. Infrastructure.
8. Innovation, R&D.
9. Next Generation Reforms.
Read more to understand the key points.
 

Taxation Updates(- impact the stock market)
• Limit of exemption at capital gains proposed at Rs 1.25 lakh a year
• STT on F&O hiked to 0.02% and 0.1%
• Corporate tax rate on foreign companies reduced to 25%
• Limit of LTCG hiked from 10% to 12.5%
• Short term gains on certain financial assets will be 20 percent, rest is applicable tax rate
• Long term capital gains will be 12.5 percent
• Listed financial assets held for more than a year will be classified as long term
• TDS rate on e-commerce operators to be reduced to 0.1 percent from 1 percent
• Tax rate of 20 per cent on certain assets. Rest to attract applicable rates
• Listed financial assets held for more than a year will be classified as long term
• Unlisted bonds and debentures, irrespective of holding period, to attract CGT as pwer applicable rates

Impact on Direct tax payers

  • Abolishment of Angel Tax announced for all classes of investors
    • Professionals in MNCs who get ESOPS and then invest in movable assets abroad of up to Rs 20 lakh decriminalized / non-penalized
    • Under new tax regime, standard deduction hiked to Rs 75,000 from Rs 50,000
    • Deduction on family pension for pensioners to be enhanced to 25K Rs
    • Salaried employee will save Rs 17,500 in income tax
    New tax regime Tax rate structure to be revised as follows:
    • 0-3L — 0%
    • 3-7 L — 5%
    • 7-10 L — 10 %
    • 10 – 12 L — 15 %
    • 12 – 15 L — 20%
    • over 15 L — 30%

IMPACT ON PARTICULAR SECTOR-

  • POSITIVE FOR SOLAR PANEL ASSEMBLERS Solar energy: Expand the list of exempted capital goods used in mfg. of solar cells, panels.
  • ADDITIONAL 30M HOUSES FOR AFFORDABLE HOUSING SCHEME.
     Additional 30m Houses For Affordable Housing Scheme.
  • Grants For Backward Regions Of AP TO Be Provided As Per AP Reorganization Act Concerted Efforts Made To Fulfill Commitments Under AP Reorganization Act
  • To Announce Credit Guarantee Scheme For MSME In Mfg. Sector and
    To Bring MSME Credit Guarantee Scheme For Collateral-Free Loan.
  • PSU Bank will built Their Own in house capability To Access MSME for Credit Instead of relying on external assessment.
  • Rs 2.66t To Be Provided For Rural Development.
  • Enhanced Mudra Loan Limit To 20 Lakhs From 10 lakh(for TARUN category).
  • Credit Support To Small And Medium Businesses During Stress Period.
     
     

Development of infrastructure.

  • SIDBI Branches In MSME Clusters To Be Expanded In Next 3 Yrs To Provide Direct Credit E-Commerce Hubs Will Help Facilitate Trade & Export Related Services Under One Roof.
  • Internship Allowance Of ₹5,000/Month & 1-time Assistance Of ₹6,000 To Be Given.
  • TO ALLOCATE 10TRLN RUPEES FOR URBAN HOUSING.
  • Free electricity program via solar panels was announced for 100,000 households.PM Surya Ghar Free Electricity Scheme for 1 Cr House.
  • Govt to partner with private sector for Bharat Small Reactors for harnessing nuclear energy.
  • This year , 11.11 Lakhs Cr For capex , That’s 3.4 % Of GDP
  • India Plans 800mw Ultra Super Critical Thermal Power Plant.
     

23/07/2024 /0 Comments/by
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Expectations of Budget 2024

We celebrate many festivals every year. As an investor and trader, we also celebrate many fin-festival every year. One among those is BUDGET.

            Every year budget will be announced on February, Due to elections this year finance minister Nirmala Sitaraman presented a interim budget. It was just a budget that to manage government expenses until the next government is formed. On 23/07/2024 our honorable FM Nirmala Sitaraman is presenting 74th union budget. It will be a record seventh consecutive Budget presentation for Ms. Sitharaman.Since 1947, there have been a total of 73 annual budgets, 14 interim budgets and four special budgets, or mini-budgets.

Expectations on this budget as investor/trader

The first expectation is on capital gain tax, if the slab rates are increased you all know how markets may react to it. The proposal given by the committee only considered to increase government revenue by imposing those tax on investors.

Second expectation is on salaried income tax slab, it will be helpful for all the salaried income group of people.

Third expectation is on railway and defense stocks, both industry stocks trading at all time high. We have to wait and see weather this budget will wider the scope of this industry to further move higher or not.

Agriculture reform or any good news on agriculture-based industry can lead to market rally further higher. Taxes on luxury goods and other similar industry (industries which are Veblen goods) can go higher. Government may consider some relaxation on imports and exports in this budget. But, final outcome has to wait and see.

Present market situation

Market is trading near all-time high and all the stocks are also near 52 weeks high. If the budget is negative to market, it will become a good reason for market correction. If its positive it will lead to further door open for market move higher.

                                                                                          -By

                                                                            VISHAL KUMAR K R

22/07/2024 /0 Comments/by
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DERIVATIVE SEGMENT – 10

IMPORTANT TERMS IN OPTIONS

  • STRIKE PRICE : It is the price per share for which the underlying security may be purchased or sold by the option holder. For example nifty call and put options strike price
  • IN THE MONEY OPTION : This option would give holder a positive cash flow , if it were exercised immediately . a call option is said to be ITM , when spot price is higher than strike price . and , put option is said to be ITM when spot price is lower than strike price.  In our examples , call option is in the money.
  • AT THE MONEY OPTION: At the money option would lead to zero cash flow if it were exercised immediately . therefore , for both call and put ATM options strike price is equal to spot price.
  • OUT OF THE MONEY : Out of the money option is one with strike price worse than the spot price for the holder of option . this option would give the holder a negative cash flow if it were exercised immediately .

  • INTRINSIC VALUE :Option premium, defined above , consists of two components- intrinsic value and time value . for an option , intrinsic value refers to the amount by which option is in the money , the amount an option buyer will realize , before adjusting for premium paid , if he exercises the option instantly . therefore , only in the money have intrinsic value whereas at the money and out of the money options have zero intrinsic value .
  • TIME VALUE : It is the difference between premium and intrinsic value , if any of an option . ATM and OTM options will have only value because the intrinsic value of such options is zero
  • OPEN INTEREST : As discussed in futures section , open interest is the total number of option contracts outstanding for an underlying asset .
  • EXERCISE OF OPTIONS : In case of American option , buyers can exercise their option any time before the maturity of contract . all these options are exercised with respect to the settlement value/ closing price of the stock on the exercise of option.

 

                                                                                    Source by –

                                                                               GOWRISH R BHAT

22/07/2024 /0 Comments/by
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PROBABILITES OF DALAL STREET ON 22nd JULY 2024

 Dear markets participants , on last trading day nifty was bearish, it fell 1.09% from 24800 to 24530. There was negative news  in Microsoft  and then selling pressure came in market . the US market and also European markets  are negative . global sentiment is negative and Wipro q1 result is not satisfied .  on 23rd union budget will be there so before the big events avoid the trade is one of the best strategy . just  watch tomorrow and day after tomorrow .once budget is over then we can take the factors from budget and according to that we can place  the positions.

                                                                                       -By

                                                                            A Ganesh R Bhat



Disclaimer

22/07/2024 /0 Comments/by
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FINANCE JOURNEY-5

There are various instruments in market for investing. Knowing all of them helps us to diversify our portfolio and minimizes the risk of loosing money. Everyday market cannot go higher and higher. Here is the instrument that give fixed return for a longer period of time.

 

Every asset class has its own pros and cons, in this blog we discuss about BONDS and its types, limitations Etc.  

Bonds are a type of debt instrument that governments, municipalities, or corporations issue to raise capital. When you purchase a bond, you are essentially lending money to the issuer in exchange for periodic interest payments (coupons) and the return of the bond’s face value (principal) when it matures.

 

How Bonds Work

  1. Issuance: The issuer sells the bond to investors at a certain price, typically its face value or par value.
  2. Coupon Payments: The issuer pays regular interest payments to the bondholder, typically semiannually.
  3. Maturity: When the bond reaches its maturity date, the issuer repays the face value to the bondholder.

Types of Bonds

  1. Government Bonds: Issued by national governments. Examples include U.S. Treasury bonds.
  2. Municipal Bonds: Issued by states, cities, or other local government entities.
  3. Corporate Bonds: Issued by companies.
  4. Zero-Coupon Bonds: Do not pay periodic interest. They are sold at a discount to their face value and mature at par.
  5. Convertible Bonds: Can be converted into a specified number of shares of the issuing company’s stock.
  6. Callable Bonds: Can be redeemed by the issuer before the maturity date at a specified call price.
  7. Inflation-Linked Bonds: Payments and principal adjust based on inflation rates (e.g., Treasury Inflation-Protected Securities (TIPS) in the U.S.).
  8. Foreign Bonds: Issued in a domestic market by a foreign entity, in the domestic market’s currency.

Advantages of Bonds

  1. Regular Income: Bonds provide regular, predictable interest payments.
  2. Capital Preservation: Principal is returned at maturity, making bonds relatively safer than stocks.
  3. Diversification: Adding bonds to a portfolio can reduce overall risk.
  4. Tax Benefits: Some bonds, like municipal bonds, offer tax-free interest payments.
  5. Predictable Returns: Known interest payments and maturity value offer predictable returns.

Disadvantages of Bonds

  1. Lower Returns: Generally offer lower returns compared to stocks.
  2. Interest Rate Risk: Bond prices fall when interest rates rise.
  3. Credit Risk: Risk that the issuer might default on payments.
  4. Inflation Risk: Fixed interest payments may lose purchasing power over time due to inflation.
  5. Liquidity Risk: Some bonds might be hard to sell without a significant price concession.

Summary

Bonds are a critical component of the financial markets, providing a relatively safe investment with regular income. They come in various forms, each with distinct characteristics, benefits, and risks. Understanding the different types of bonds and their potential advantages and disadvantages can help investors make informed decisions to achieve their financial goals.



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20/07/2024 /0 Comments/by
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Quarterly results announced on 20th July 2024

On 20th July many companies announced their 1st quarterly results. here are some results updates. 

UNION BANK

NET PROFIT UP 14 % TO 3678 CR (YOY(, UP 11 % (QOQ)

NII UP 6 % TO 9412 CR (YOY(, FLAT (QOQ)

OPERATING PROFIT UP 19 % TO 7785 CR (QOQ), UP 8 % (YOY)

PROVISON UP 119 % TO 2755 CR (QOQ)

GROSS NPA AT 4.54% V 4.76% (QOQ)
NET NPA AT 0.90% V 1.03% (QOQ)
ABSOLUTE GROSS NPA DOWN 4 % TO 41,422 CR (QOQ)
NET NPA DOWN 12 % TO 7902 CR (QOQ)
 

YesBank

Net Profit Up 47% At Rs 502.4 Cr Vs Rs 342.5 Cr (YoY)

NII Up 12.2% At Rs 2,244 Cr Vs Rs 1,999.6 Cr (YoY)

Gross NPA At Rs 3,845 Cr Vs Rs 3,982.6 Cr (QoQ)

Net NPA At Rs 1,246 Cr Vs Rs 1,330 Cr (QoQ)

Gross NPA Ratio At 1.7% Vs 1.7% (QoQ)

Net NPA Ratio At 0.5% Vs 0.6% (QoQ)

HDFC BANK

OPERATING PROFIT DOWN 18 % TO 23,884 CR (QOQ)

PROVISON DOWN 81 % TO 2602 CR (QOQ)

GROSS NPA AT 1.33 % V 1.24 % (QOQ)

NET NPA AT 0.39 % V 0.33 %

ACTUAL GROSS NPA UP 6 % TO 33025 CR (QOQ)

NET NPA UP 16 % TO 9507 CR (QOQ)



Disclaimer

20/07/2024 /0 Comments/by
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Trading Setup

Trading Setup

(Traders secret...)

In day-to-day life we plan many events. We plan many things from waking up in the morning to going back to sleep. Even many times we plan for Decade also.

According to the situation and other impacts on our lives, we change our plans and make new ones. But we never change our Goal. The plan may be for a short or long period; it depends on how big is our goal.

Like the same, in trading also there should be a plan. That’s what we call our trading Setup. We trade according to our setup. It varies from person to person. One may require a huge plan to trade (E.g.: – HNI, institutions).

Many a time we don’t take trade because of our plan rules. It tells us about how disciplined we are and it minimizes the loss by preventing us from taking the wrong trade.

A checklist can help us to follow our trading setup. Mark the point that are to be confirmed, before taking trade. In the beginning, it is difficult to follow the checklist- by practicing regularly it becomes an integral part of our set-up.

Sometimes we miss the trade because of waiting for a long period. that’s okay, if you are not confident about it, then don’t take the trade. It keeps our capital safe from buying/selling for the wrong price.

The setup of the Buyer and seller is different. Both think from their perspective, that their actions are different always. A good setup requires a lot of paper trading and backtests. Once your set-up is accurate and ready, next is execution.

Key Points for making Good Set-up for trading: -

  1. Make checklist points.
  2. Wait for confirmation.
  3. Back-test your strategy.
  4. Avoid unnecessary trades.
  5. Fix your trades per day (like 2/3/4 trade only).
  6. Follow your rules.
  7. Risk management.
  8. Diversify your fund.
  9. Always put SL(Stoploss).
  10. Review your Checklist and progress regularly(Check whether it requires any changes in it).

In this blog, we know about only the basic set-up idea. In the upcoming blog, we discuss it in detail.

                                                                                                   -By

                                                                                        Vishal Kumar K R

20/07/2024 /0 Comments/by

Stock Market Myths that do not die

By -Baptiste Wicht

In this blog, we are sharing the stock market myths, that Baptiste Wicht wrote

For more details, please visit the website given below

1. The Stock Market always goes up

You have probably heard this often: You should invest in the stock market; it always goes up. This is a big fallacy.

It is true that the stock market historically went up on average. This means that over a long period of time, the stock market always went up. But there were many periods of time when the market went down more than 10%.

If you want to invest in the stock market, you must be prepared for big drops. On average, the stock market experiences a 10% decline at least once a year and a 20% drop about every four years. And you should be ready for a steep drop of 30% once a decade.

A very important example is the one from the Japanese stock market. In 1990, a huge speculative bubble burst on the Japanese stock market. For the next 20 years, the stock market has been going down. Until now, almost 30 years, it still has not recovered to the high of 1990.

2. Investing in the stock market is for the rich

Many people are not investing in the stock market because they believe this is only for the rich.

This is completely wrong. This is probably one of the oldest myths. You do not need much money to make money in the stock market. If you invest 100 USD or 1000 USD in the same portfolio, you will have the same returns in percentage. Of course, in absolute values, the more money you have, the more returns. But that is not preventing you from investing with little money.

Some mutual funds indeed have some minimum, like 5000 USD. But you can always use a broker and buy a single share of an Exchange Traded Fund (ETF) for a few hundred dollars. There is really no need to get rich before you invest in the stock. On the contrary, if you wait until you get rich before you invest, you may well never invest.

The best time to invest is now! You can invest in the stock market with little money!

Baptiste Wicht

Baptiste Wicht

3. Investing is gambling

Some people do not invest because it is too risky, like gambling.

It is true that if you invest in a single stock, you will have a very risky investment. If you invest in a good company, you still have better odds than playing against the house (gambling). But investing in some shady company could indeed be compared to gambling. But investing in the broader market is not that risky. Over the long term, you can have outstanding returns.

Of course, there is no guarantee, and no investment is risk-free. As mentioned in Myth #1, you can expect the stock market to drop by 30% at least once per decade. But you must be strong enough not to sell and wait for the next recovery. It may take a long time,  of course. But this is all part of investing.

In the next series, we will learn more about myths.

For more details please visit- https://thepoorswiss.com/stock-market-myths/

 

19/07/2024 /0 Comments/by
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Quarterly results of Indian hotels & Wipro

Quarterly results of Indian hotels & Wipro

Indian Hotels

Net profit up 11.7% at ₹248.4 cr vs ₹222.4 cr (YoY)
Revenue is up 5.7% at ₹1,550.2 cr vs ₹1,466.4 cr (YoY)
EBITDA is up 9.6% at ₹449.6 cr vs ₹410.2 cr (YoY)
Margin at 29% vs 28% (YoY)
 

Indian Hotels Company Ltd Chart(1-day)
Performence of Indian Hotels Company Ltd

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WIPRO Q1 : NET PROFIT AT UP 6 %

NET PROFIT AT UP 6 % TO 3036 CR (QOQ( , UP 5 % (YOY)

REVENUE DOWN 1 % TO 21,963 CR (QOQ), DOWN 4 % (QOQ)

EBIT UP 2% AT 3625.2 CR (QOQ) V UP 5% (YOY)

MARGINS AT 16.5% V 16% (QOQ) V 15.17% (YOY)

Wipro ltd
last one year performence of wipro Ltd.

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Quarterly Results Consolidated Figures
Consolidated Figures

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WIPRO Q1 HIGHLIGHTS Gross revenue was at 219.6 billion ($2,635.8 million’), a decrease of 1.1% QoQ and 3.8% YoY.

IT services segment revenue was at $2,625.9 million, a decrease of 1.2% QoQ and decrease of 5.5% YoY. Non-GAAP2 constant currency IT Services segment revenue decreased 1.0% QoQ, and 4.9% YoY.

Total bookings was at $3,284 million. Large deal bookings was at $1,154 million, a decrease of 3.1% QoQ and 3.6% YoY. 

IT services operating margin for the quarter was at 16.5%, an increase of 0.1% QoQ and 0.4% YoY.

Net income for the quarter was at 30.0 billion ($360.4 million¹), an increase of 5.9% QoQ and 4.6% YoY.

Earnings per share for the quarter was at ₹5.75 ($0.07′), an increase of 5.9% QoQ and 9.9% YoY.

Operating cash flows of ₹40.0 billion ($479.0 million), an increase of 6.5% YoY and at 131.6% of Net Income for the quarter.

Voluntary attrition was at 14.1% on a trailing 12-month basis.

19/07/2024 /0 Comments/by
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FINANCE JOURNEY-4

Impact of finance on Idividuals and Global environment

Impact of Finance on Individual Desires

 

  1. Resource Allocation:

    • Income: Individuals with higher incomes have greater financial flexibility to pursue their desires, such as luxury goods, travel, or hobbies.
    • Budgeting: Those with limited income must prioritize essential needs over personal desires, impacting their ability to achieve discretionary goals.

  2. Credit Availability:

    • Loans and Credit Cards: Access to credit allows individuals to fulfill desires that exceed their immediate financial means, such as buying a home or a car.
    • Debt Management: Poor debt management can lead to financial strain, limiting future opportunities to satisfy personal desires.

  3. Savings and Investments:

    • Savings: Individuals who save can plan for long-term desires like education, retirement, or significant purchases.
    • Investments: Successful investments can increase wealth, providing more opportunities to fulfill personal desires.

  4. Economic Conditions:

    • Inflation: Rising prices can erode purchasing power, making it more challenging to fulfill desires.
    • Employment: Job security and employment opportunities directly influence an individual’s financial capacity to achieve their desires.

  5. Social Influences:

    • Consumer Culture: Marketing and societal norms can shape individual desires, often promoting consumption that aligns with financial capability.
    • Peer Pressure: Financial status can influence desires based on social comparisons and the desire to keep up with peers.

Impact of Finance on Global Scale

 

  1. Economic Growth:

    • Investment: Finance drives global economic growth through investments in infrastructure, technology, and businesses, enhancing overall prosperity.
    • Trade: Financial systems facilitate international trade, allowing countries to exchange goods and services, benefiting global economies.

  2. Global Markets:

    • Stock Markets: Global stock markets reflect the financial health of companies and economies, influencing global investor sentiment and economic stability.
    • Foreign Exchange: Exchange rates impact international trade and investment, affecting global financial dynamics.

  3. Financial Stability:

    • Regulation: Effective financial regulation ensures stability, preventing crises that can have worldwide repercussions.
    • Crisis Management: Global financial crises, such as the 2008 financial crisis, demonstrate how interconnected financial systems can lead to widespread economic disruption.

  4. Development and Inequality:

    • Access to Capital: Developing countries with limited access to finance struggle to grow, exacerbating global inequality.
    • Aid and Investment: Financial aid and foreign investment can spur development in poorer nations, promoting economic growth and reducing poverty.

  5. Technology and Innovation:

    • Fintech: Innovations in financial technology (fintech) are transforming global finance, increasing efficiency, and accessibility.
    • Digital Currencies: Cryptocurrencies and blockchain technology are reshaping financial transactions and cross-border payments.

  6. Environmental and Social Impact:

    • Sustainable Finance: Investments in sustainable finance promote environmentally and socially responsible projects, impacting global sustainability.
    • Corporate Responsibility: Financial pressures can drive corporations to adopt more sustainable and ethical practices, influencing global standards.

In summary, finance plays a crucial role in shaping individual desires and has a profound impact on global economic dynamics, influencing growth, stability, development, and sustainability.

                                                                 –  Source Gathered By

                                                                       Vishal Kumar K R



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18/07/2024 /2 Comments/by