US stock market and recession

Check this

bkkasi2002@gmail.com (Kasi Viswanathan) — Fri, 08 Nov 2019 14:04:00 +0000

Boost to real estate sector - GST Council slashes tax rate on under-construction residential properties

bkkasi2002@gmail.com (Kasi Viswanathan) — Mon, 25 Feb 2019 04:03:00 +0000

GST Council headed by Finance Mnister Arun Jaitley approved the proposal of 5 percent tax on normal residential properties and 1 percent for affordable housing category

Ahead of the Lok Sabha elections, the Goods and Services Tax (GST) Council on February 24 slashed tax rate on under-construction residential properties, making the effective tax rate 5 percent for the normal category and 1 percent for the affordable housing category. In both cases, builders will not be able to claim the input tax credit (ITC).

The new rate will be applicable from April 1, 2019.

The decision is expected to boost demand and increase sales of under-construction properties as well as simplify tax structure and compliance for builders. The move is also in line with the government’s vision of ‘Housing for all by 2022’.

Currently, GST is levied at an effective rate of 12 percent (standard rate of 18 percent less a deduction of 6 percent as land value) on normal housing and effective rate of 8 percent (concessional rate of 12 percent less a deduction of 4 percent as land value) on affordable housing on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale.

The Council also brought in a twin definition of affordable housing, on the basis of carpet area and cost, finance minister and head of the Council Arun Jaitley said."We estimate that the reduction in GST can potentially reduce the buyers' payout by 6-7 percent on the overall purchase, depending on the category. The increase in sales will bring down the unsold inventory that has been afflicting the real estate sector.”

A residential apartment, with a carpet area of up to 90 sqm in non-metropolitan cities and 60 sqm in case of metros with value up to Rs 45 lakhs will fall under the affordable housing category, Jaitley said.

Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR) will be considered metropolitan cities.

“With these reductions, the GST rate on normal under-construction apartments would be a little lower than that prior to the introduction of GST and affordable housing would be significantly lower than before,” MS Mani, Partner at Deloitte said.

Besides, GST exemption on Transferable Development Rights (TDR), long-term lease (premium), FSI will be exempted only for such residential property on which GST is payable, a move that is expected to solve the cash flow problem for the sector.

“Details of the scheme shall be worked out by an officers committee and shall be approved by the GST Council in a meeting to be called specifically for this purpose,” a government release said.

While the new date (April 1, 2019) will give some time to the industry to assess the impact and work out the new prices, an expert believes that developers will need to increase the base price to recover the loss of input credit but would need to be cautious given the surge in anti-profiteering investigations for restaurants, in similar circumstances.

“Also, it was mentioned that the new rates are likely to come with a condition that majority of purchases would need to be from GST registered vendors. Therefore, monitoring the compliant vendor eco-system would continue to be critical for the industry,” Pratik Jain, Partner, PwC India said.

Besides, the decision on real estate, the Council has asked the GoM on lottery to meet once again to work out a possible consensus. A panel headed by Maharashtra Finance Minister Sudhir Mungantiwar on the uniformity of taxation on lottery under GST and had recommended 18 or 28 percent tax rate.

Under GST, state-organised lottery falls under the 12 percent tax slab while state-authorised lottery attracts 28 percent tax.

Courtesy - Moneycontrol.com

Lessons from 5 ‘hot stocks’ that melted in 2018

bkkasi2002@gmail.com (Kasi Viswanathan) — Sat, 05 Jan 2019 05:08:00 +0000

https://www.moneycontrol.com/news/business/markets/lessons-from-5-hot-stocks-that-melted-in-2018-3355001.html

Lessons from 5 ‘hot stocks’ that melted in 2018

Many retail investors lost their entire savings after investing in 'hot stocks'. While such stocks can be very rewarding, investors should remember the benefits of diversification.

Few things get the market as enthusiastic as the emergence of a “hot stock”. There is a sense of excitement at discovering a new company. Suddenly there are various articles and stories floating around as to why this stock will be the next big thing.

Some investors are attracted by its growth thus far, some by its potential, some because the momentum is strong with it — and still others who want in because everyone around them is talking about this stock.

Many rational notions initially take a backseat when the market discovers such a new romance. Everyone wants in, and most are happy to pay whatever is being asked.

RELATED NEWS

Margin of safety works, IPOs (often) don’t: Key investing lessons from 2018

20 Nifty stocks fell 15-60% in 2018; Should you invest in beaten-down names?

Only 5 stocks gave multibagger returns in 2018, will 2019 turn the tables?

But, while the market may be susceptible to bouts of euphoric love for certain stocks, it’s definitely not blind every time - only a few such romances blossom into a long-lasting relationship for investors.

Many receive a reality check and trade at sobered down valuations, some fade away over time — but the worst nightmare is when these hot stocks melt.

Once the market swings from love to “fear”, investors want to get out of it at an even faster pace than they wanted to get in. This is usually driven by idiosyncratic events that result in a loss of confidence in the management/company - corporate governance issues are often the main reason for such a dramatic loss of trust, though negative surprises like poor earnings or dividend reductions can also sometimes engender similarly devastating results.

The stories and reasons might be different, but this trend happens more or less every year, and 2018 was no exception. Let’s look at 5 ‘hot stocks’ that melted in 2018, and what can we learn from them.

Vakrangee

After seeing its share price almost triple in 2017, market darling Vakrangee saw a steep decline in its fortunes in early 2018 after rumours that SEBI was investigating the company for alleged stock price manipulation.

The company sought to restore confidence by announcing a large buyback and dividend program - but it only deepened its crisis when they later canceled this amid poorer than expected results. Today, it still remains out of favour with investors and has lost more than 90 percent since the start of 2018.

PC Jeweller

Vakrangee’s fall from grace triggered the collapse of another market favourite, amidst speculation that the promoters of PC Jewellers might have held back information on a business relationship with Vakrangee.

Later in the year, reports surfaced that promoter Padam Chand Gupta had gifted some his stake to family members via undisclosed off-market transactions.

Similar to Vakrangee, the company announced a buyback in an effort to boost market sentiment but resulted in further agony for investors when they cancelled it after just a few months.

Manpasand Beverages

Another classic case of a hot stock melting is Manpasand Beverages, which has lost 80 percent of its market value in 2018. The key trigger that led to the downward spiral was the abrupt resignation of its auditors Deloitte Haskins & Sells in May.

This triggered speculation around possible accounting fraud - and while nothing has been proven yet, investors have continued to shun this one-time favourite

Dewan Housing Finance (DHFL)

The aftermath of the IL&FS bankruptcy fiasco consumed a one-time market favourite in DHFL. In just one day in September 2018, the company lost 60 percent of its market value amidst rumours that its books had large exposure to IL&FS debt and that DHFL was facing a looming liquidity crunch - this was exacerbated by news that DSP mutual fund had offloaded a chunk of the DHFL issued commercial paper it held.

While the management has repeatedly claimed the company is in good financial health, the market remains jittery and the stock remains down 60 percent YTD

Gitanjali Gems

Gitanjali’s fall from grace has 2 main chapters. The first was in 2013 when SEBI announced it was investigating its promoter Mehul Choksi for market manipulation and related irregularities - the firm’s market value eroded by more than 80 percent that year.

The company (and market) adjusted to this new reality, and for 4-5 years the stock bounced around in volatile range - until earlier this year when the Nirav Modi scandal broke out and engulfed Gitanjali Gems as well.

Since then, the market has completely written off this firm and today there remain no buyers for this stock even when it’s trading at Rs 1.

Investors often come across statements like “If you had invested Rs. 100 in Infosys 10 years ago, it would’ve grown to Rs. X”. This is a very common way to highlight missed opportunities, the power of compounding and attempt to inculcate long-term investing behaviour (and other habits).

The problem with such an example is that it only provides an incomplete picture - and one that can only be painted with the advantage of hindsight.

Having this knowledge with the same level of confidence 10 years ago is something that even most professional investors will agree isn’t possible.

And secondly, for every Infosys, Reliance, or TCS there are firms like Gitanjali Gems and Manpasand Beverages — companies that were at a similar growth stage as these giants were 10 years back, except they then got engulfed in corporate governance scandals that hit them hard.

Many retail investors lost their entire savings after investing in such hot stocks. While such stocks can be very rewarding, investors should remember the benefits of diversification and how doing so can shield their overall portfolio - this is something that institutional investors do without fail.

For example, Morgan Stanley owned more than 5 percent of Gitanjali Gems at one point. Yet after the stock crashed, Morgan Stanley didn’t get burned because their overall portfolio was diversified across many other investments.

Retail investors should apply similar measures when investing in equities. They should either look to build a diversified portfolio of various single stocks, or invest in readymade equity portfolios that contain the companies they like - be it via mutual funds, ETFs, or smallcases.

(The author is co-founder and Head of Investments, smallcase technologies.)

Trade Setup for Thursday: Top 15 things to know before Opening Bell - Moneycontrol.com

bkkasi2002@gmail.com (Kasi Viswanathan) — Thu, 07 Jun 2018 00:48:00 +0000

Trade Setup for Thursday: Top 15 things to know before Opening Bell - Moneycontrol.com:

'via Blog this'

Trade Setup for Monday: Top 15 things to know before Opening Bell - Moneycontrol.com

bkkasi2002@gmail.com (Kasi Viswanathan) — Sun, 20 May 2018 16:20:00 +0000

Trade Setup for Monday: Top 15 things to know before Opening Bell - Moneycontrol.com:

'via Blog this'

Top 10 High Paying Google AdSense Alternatives 2018 ~ My Blogger Lab

bkkasi2002@gmail.com (Kasi Viswanathan) — Sun, 20 May 2018 15:20:00 +0000

Top 10 High Paying Google AdSense Alternatives 2018 ~ My Blogger Lab:

'via Blog this'

Market Week Ahead: Earnings among 10 key factors that will keep traders busy in expiry week - Moneycontrol.com

bkkasi2002@gmail.com (Kasi Viswanathan) — Sun, 22 Apr 2018 18:09:00 +0000

Market Week Ahead: Earnings among 10 key factors that will keep traders busy in expiry week - Moneycontrol.com:

'via Blog this'

Infosys Q4 results: 11 key takeaways you must know - The Economic Times

bkkasi2002@gmail.com (Kasi Viswanathan) — Sat, 14 Apr 2018 00:20:00 +0000

Infosys Q4 results: 11 key takeaways you must know - The Economic Times:

'via Blog this'

Maxis: Maxis injects Rs 95 crores into Aircel to help pay salaries, Telecom News, ET Telecom

bkkasi2002@gmail.com (Kasi Viswanathan) — Tue, 03 Apr 2018 19:15:00 +0000

Maxis: Maxis injects Rs 95 crores into Aircel to help pay salaries, Telecom News, ET Telecom:

'via Blog this'

Maruti Suzuki gains 2% on strong March sales number - Moneycontrol.com

bkkasi2002@gmail.com (Kasi Viswanathan) — Mon, 02 Apr 2018 04:32:00 +0000

Maruti Suzuki gains 2% on strong March sales number - Moneycontrol.com:

'via Blog this'

Market Live: Nifty begins April series on a positive note, Sensex up 100 pts; ICICI Bank cracks - Moneycontrol.com

bkkasi2002@gmail.com (Kasi Viswanathan) — Mon, 02 Apr 2018 04:24:00 +0000

Market Live: Nifty begins April series on a positive note, Sensex up 100 pts; ICICI Bank cracks - Moneycontrol.com:

'via Blog this'

ARPU: Reliance Jio's move to extend loyalty plan for free may hit ARPU, Telecom News, ET Telecom

bkkasi2002@gmail.com (Kasi Viswanathan) — Mon, 02 Apr 2018 04:18:00 +0000

ARPU: Reliance Jio's move to extend loyalty plan for free may hit ARPU, Telecom News, ET Telecom:

'via Blog this'

Big gains in small packets! Top 50 smallcaps gave multibagger returns in FY18. Do you own any? - Moneycontrol.com

bkkasi2002@gmail.com (Kasi Viswanathan) — Tue, 27 Mar 2018 18:30:00 +0000

Big gains in small packets! Top 50 smallcaps gave multibagger returns in FY18. Do you own any? - Moneycontrol.com:

'via Blog this'

Technical View: Nifty forms ‘Doji’ type candle ahead of March expiry - Moneycontrol.com

bkkasi2002@gmail.com (Kasi Viswanathan) — Tue, 27 Mar 2018 17:21:00 +0000

Technical View: Nifty forms ‘Doji’ type candle ahead of March expiry - Moneycontrol.com:

'via Blog this'

Indian Stock/Share Market Live - BSE Sensex, Nifty, NSE, Hot Share Market Recommendations, Finance & Investing, Gold ETF, Commodity Prices, Business Derivatives & Penny Stocks India

bkkasi2002@gmail.com (Kasi Viswanathan) — Tue, 27 Mar 2018 17:14:00 +0000

Indian Stock/Share Market Live - BSE Sensex, Nifty, NSE, Hot Share Market Recommendations, Finance & Investing, Gold ETF, Commodity Prices, Business Derivatives & Penny Stocks India:

'via Blog this'

2018 may be tough year but these 20 stocks can give up to 69% return - Moneycontrol.com

bkkasi2002@gmail.com (Kasi Viswanathan) — Tue, 27 Mar 2018 16:52:00 +0000

2018 may be tough year but these 20 stocks can give up to 69% return - Moneycontrol.com:

'via Blog this'

Good quality small caps that you can't ignore post correction - Moneycontrol.com

bkkasi2002@gmail.com (Kasi Viswanathan) — Fri, 23 Mar 2018 18:07:00 +0000

Good quality small caps that you can't ignore post correction - Moneycontrol.com:

'via Blog this'

Rising interest rates and volatile stock markets: How do they impact your financial plan - Moneycontrol.com

bkkasi2002@gmail.com (Kasi Viswanathan) — Tue, 13 Feb 2018 12:14:00 +0000

Rising interest rates and volatile stock markets: How do they impact your financial plan - Moneycontrol.com:

'via Blog this'

Will share vision for India's global engagements at Davos: PM Modi - Moneycontrol.com

bkkasi2002@gmail.com (Kasi Viswanathan) — Mon, 22 Jan 2018 03:15:00 +0000

Will share vision for India's global engagements at Davos: PM Modi - Moneycontrol.com:

'via Blog this'

News highlights of the day: AirAsia India says no plans to look at Air India stake - Moneycontrol.com

bkkasi2002@gmail.com (Kasi Viswanathan) — Mon, 22 Jan 2018 03:04:00 +0000

News highlights of the day: AirAsia India says no plans to look at Air India stake - Moneycontrol.com:

'via Blog this'

Nifty likely to open on negative note: Dynamic Levels - Moneycontrol.com

bkkasi2002@gmail.com (Kasi Viswanathan) — Wed, 17 Jan 2018 03:46:00 +0000

Nifty likely to open on negative note: Dynamic Levels - Moneycontrol.com:

'via Blog this'

Mid

bkkasi2002@gmail.com (Kasi Viswanathan) — Wed, 17 Jan 2018 03:38:00 +0000

Mid:

'via Blog this'

Luxury car seller Porsche to introduce petrol-based hybrid version of Panamera in India - Moneycontrol.com

bkkasi2002@gmail.com (Kasi Viswanathan) — Wed, 27 Dec 2017 07:44:00 +0000

Luxury car seller Porsche to introduce petrol-based hybrid version of Panamera in India - Moneycontrol.com:

'via Blog this'

Top 4 stocks which can give up to 25 percent return by January 2018-end

bkkasi2002@gmail.com (Kasi Viswanathan) — Wed, 27 Dec 2017 07:31:00 +0000

Top 4 stocks which can give up to 25 percent return by January 2018-end:

'via Blog this'

What changed for the market while you were sleeping? 10 things you should know - Moneycontrol.com

bkkasi2002@gmail.com (Kasi Viswanathan) — Tue, 26 Dec 2017 03:50:00 +0000

What changed for the market while you were sleeping? 10 things you should know - Moneycontrol.com:

'via Blog this'