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With an increase in global demand for metal investors interest shifted towards steel producers. As the global inventory level is coming down.
Even The World Steel Association on April 15 forested that the steel demand will grow up by 5.8% to reach 1.874 billion mt in 2021, even after declining by 0.2% in 2020, as the impact of the COVID-19 pandemic on the sector turns out to be less than it's earlier predicted.
In India, the finished steel consumption grew up to a CAGR of 5.2% during the financial year 2016 to 2020 and reached 100 MT.
The production of crude steel and finished steel in India is increased by 108.5 MT and 101.03 MT in the last financial year, respectively. From April 2020 till January 2021, The cumulative production of finished steel is 76.04 MT in India.
The steel production capacity to be increased by 300MT by the year 2030-31 whereas the production of crude steel is expected to reach 255MT by 2030-31. Whereas the production of finished steel is to reach 230 MT.
The steel demand is going to rise post-Covid-19 as the all the pending projects will resume their working again. The sector like infrastructure and real estate contributes 62% of India’s steel consumption & demand. Growth of this sector 8.6% in 2018. Which slow down to 5.4% in 2019, & Pick up in 2020 & Expected to grow by 7% till 2024.
The contribution in demand for steel in the Railway sector is 3% which is growing at a fast pace. The automobile industry in India is the fourth largest & contributes 9% of steel demand.
Our country is the largest manufacturer of two-wheeler, tractors, and we are the fourth largest in passenger vehicles production, and stand seventh in commercial vehicles. The capital goods sector contributes 15% of steel demand.
It has various sub-segments like machinery and other equipment which are most prominent.
This segment is further divided into construction and earth-moving machinery, plant & heavy electrical machines. The consumer durables sector has a 5% contribution to India’s steel demand.
India is a consumption-driven economy and the sector has witnessed robust growth in the past few years. The Intermediate products sector contributes 6% of steel demand. This segment is closely associated with the auto sector, oil, and gas sector.
Business: The company is the largest integrated steel manufacturer, along with the power generation & infrastructure segment.
Returns during a pandemic: JSPL has given a 208% return from its 52 week low of Rs 62. Made a high of Rs 501
Business: JSW steel is in the business of manufacturing & sale of Iron & steel products
Returns during a pandemic: JSW Steel has given a 267% return from its 52 week low of Rs 132.50. Made a high of Rs 773.
Business: SAIL is a Government-owned company primarily in the business of manufacturing & selling Iron & steel products
Returns during a Pandemic: SAIL has given a 291% return from its 52 week low of Rs 20.15. Made a high of Rs 151.30.
Business: The company engaged in the business of steel manufacturing from mining & processing Iron Ore to production & distribution of Finished products.
Returns during a pandemic: TATA Steel has given a 251% return from its 52 week low of Rs 250.85. Made a high of Rs 1246.85.
Business: Primarily the company is engaged in the business of Aluminium production & products of Aluminium & copper and copper products. It is a company under the flagship of Aditya Birla Group
Returns during a Pandemic: Hindalco has given a 182% return from its 52 week low of Rs 84.90. Made a high of Rs 427.50.
Just think what if you bought Sensex in 1980 and held on to it now? The answer is: you would have multiplied your wealth nearly by 370 times. There are similar cases as well.
For instance, an investment of Rs 10,000 in Wipro in 1980 would be worth Rs 450 crore today. Also, the investment of Rs 1 Lakh in Eicher Motors in 2002 would be 20 crores today.
Still don't understand the concept? The examples that we have explained above are real case studies and many stocks have given huge returns in 2021.
There is a story about the company Infosys. In 1995, the company had launched its SME IPO and the one who invested a little amount of Rs 10,000 in Infosys IPO, is now enjoying a huge profit of $1 million.
In 2009, the share price of Eicher Motors was Rs 597.4, now the share price of the same stock is Rs 2,635.
Now the question arises, why do buy and hold stocks work in Indian equities? Buying an emerging stock and holding it for the long term will give you outstanding stock market trading returns in the future.
There is no set definition for the term buy and hold but yes the meaning of buy and hold is quite straightforward. Needless to say, investments in equities are riskier than other financial securities. Due to inadequate knowledge about the stock market, worst advisory services, many people have lost a huge amount by investing in equity.
In addition, some people invest in equities for a short time and as a result, they suffer from a loss. However, if people concentrate on buy and hold strategies for stocks, they will eventually achieve greater returns in the future.
Buy and hold is a long term passive strategy where investors keep a stable portfolio irrespective of short term fluctuations. As per the statistical data, buy and hold strategy is always a long term bet that will give you attractive returns in the future.
Equities are riskier instruments, but with a longer holding period, it can be turned out to be a fair investment strategy.
In other words, the market goes up more often than it goes down and compounding the returns during the good time of the stock market gives a higher yield than other financial instruments.
Below are the reasons why the buy and hold strategy has always worked for Indian equities:
The crux of the story which we have mentioned above is that the buy and hold strategy still works in India. Many people who invested a long time back in equity stocks, now enjoying a whopping return of $1 million. For better returns, you just need to identify good quality stocks and hold them for a longer-term.
Masala bonds are something that might seem unfamiliar to many people. However, it is not unfamiliar for the people who often deal with the bonds.
Masala bonds were first introduced in 2014 by International Finance Corporation (IFC). Masala bonds are bonds issued outside India by Indian organizations or entities. However, these bonds are issued in Indian currency rather than the local currency.
Indian companies issue masala bonds outside India to raise money from foreign investors. As it is pegged into Indian currency, investors have to bear the loss as the rupee rate falls.
Masala Bond, the name is given by International Finance Corporation (IFC). The term Masala is an Indian word, basically used for spices, to explore the culture and cuisine of India on the international platform.
Masala bonds are rupee-denominated bonds that are issued outside India. They are categorized as debt instruments that help to raise money in local currency from foreign investors. These bonds can be issued by both government and private entities. Any resident of the country can take the subscription of these bonds, however, there are certain conditions are applied.
Investors can only be subscribed to the masala bonds whose security market regulator is a member of the International Organization of Security Commission.
Also, regional financial institutions and multilateral financial institutions can subscribe to these bonds.
According to the RBI, the minimum maturity period for Masala bonds raised to the Rupee equivalent of USD 50 million in a financial year should be 5 years. However, the maturity period is five years for the bonds raised above the rupee equivalent of 50 million dollars in a financial year.
The conversion for such bonds will happen at the market rate on the date of settlement of transactions undertaken for the issue and servicing of the bonds including its redemption.
Masala bonds are directly issued in Indian rupees. i.e. the investors need to carry the exchange rate risks. If a person issues a Masala bond, it will not directly affect the issuer if the rupee rate falls. Instead, the risk goes directly to the investors.
Investors that are residing outside India who want to invest in Indian assets can issue Masala bonds. Several Indian organizations such as NTPC, HDFC, Indiabulls have raised their funds through Masala Bonds.
These bonds can be used:
In refinancing of non-convertible debentures and rupee loan.
Working capital to corporate
For the development of integrated townships and affordable housing projects.
RBI mandates the process raised from these bonds cannot be used -
In real estate activities where the development of integrated township and affordable housing projects takes place.
The benefits for the investors are as follows:
It assists in developing foreign investors’ confidence in the Indian economy.
It offers higher interest rates which in turns benefits the investors
It aids in strengthening the foreign investments in the county as it facilitates the investor’s confidence in Indian currency.
The capital gains from rupee denominations are mostly exempted by the tax.
If the rupee value increases at the time of maturity, it will provide a maximum return to the investors.
Since Masala bonds have no currency risk, it saves the borrower from currency fluctuation.
The borrower can mobilize a huge amount of funds.
It helps the Indian organization in issuing these bonds to diversify their portfolio.
Investors need not worry about rupee depreciation as the issuance of these bonds took place in Indian currency rather than foreign currency.
It helps borrowers to cut down their costs as they are issued outside India at an interest rate below 7%.
As these bonds are issued in the offshore market, it assists borrowers to cover a large number of investors.
Needless to say, Masala bonds are issued in Rupee terms and the interest and principal repayment happens in dollar terms. It can be noted that in this case, the issuer does not bear the currency risk, but the risk is fully associated with the investor.
Earlier, this used to be a major problem for Indian companies that were issuing dollar-denominated bonds in the past. For instance, in 2008, the INR crashed sharply vs US dollars. At that time, the depreciation of INR vs US dollar forced many companies to bankrupt.
To understand the importance of Masala Bond, one needs to understand the risk associated with dollar-denominated bonds through a suitable example:
Suppose company XYZ ltd, issued dollar-denominated bonds of $200 million to its lenders at a 5% interest rate. The exchange rate at that time was Rs55/$. Hence, the company brought in Rs 1100 crores to be deployed into the Indian business. When the bonds were redeemed after 5 years, the prevailing exchange rate was Rs69/$.
As a result, XYZ company Ltd had to pay Rs 1380 crore to repay the $200 million to its lenders.
Apart from the interest rate, the company will have to give an additional Rs 280 crore due to rupee depreciation. Many Indian companies cannot afford this type of currency costs.
Now the question arises, why would foreign investors take the currency risks? There are two reasons: Firstly, investors get attracted by the higher rates of interest that Masala bonds offer. Here, the world's higher yield catches the investor’s attention.
Secondly: Investors are betting whether the INR will remain steady or move upward against the dollar, which means the investors who invest in Masala bonds will get the dual benefit.
The benefit due to higher comparative yields on Masala bonds. Also, investors stand to get more dollars from the same amount of rupees because these bonds will be settled in dollars.
Masala bonds are the rupee-denominated bonds issued outside India by an Indian entity. The bonds are issued in rupee terms and the interest and principal repayment occurs in dollars. Hence these bonds can be a game-changer for Indian companies.
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As India is suffering from a bad phase of coronavirus pandemic, a sudden demand for oxygen has been rising. As a result, the companies that produce oxygen or have the word “oxygen” in their names, are witnessing a strong rally in the stock market.
Due to the increase of COVID 19 patients in Mid April, the demand for medical oxygen rises, which in turn forces the central government to supply oxygen across the country.
Several reports indicate that there is an acute shortage of medical oxygen in the country and many hospitals are struggling to find enough oxygen for the patients.
As a result, the centre took immediate action by banning the supply of medical oxygen for industrial purposes and turned the supply into an essential public health commodity.
Several green corridors have been established to aid the rapid supply of oxygen through oxygen Express trains.
The rising demand for oxygen among Indian patients increases the shares of the companies that produce oxygen or have the word oxygen in their names.
For instance, National Oxygen Limited, Bombay Oxygen Limited and Bhagwati Oxygen - all the firms which are unlisted on the stock exchange - have experienced a sharp rise of 47% in April despite rising uncertainty and weakness in economic health.
From all the above points, one thing is clear that investors are keen to invest in the companies who supply medical oxygen to book good profits till the deficiency of oxygen lasts.
Meanwhile, some investors have mistakenly invested in the companies who have to do nothing with the oxygen, just have oxygen in their names. For example, Bhagwati Oxygen and National Oxygen Ltd are the producers of medical oxygen but Bombay Oxygen has ended its gas operations in 2019. Now it is a Non-Banking Finance Corporation.
Bombay Oxygen Investments Ltd was earlier known as Bombay Oxygen Corp Ltd. During the second wave of Covid 19, the shares of the company have gone up by 110 per cent at the beginning of April.
Here are some oxygen stocks witnessing a Strong Rally amidst the second phase of Covid 19:
1. Bombay Oxygen Investments Ltd:
Bombay Oxygen Ltd is a Non-Banking Finance Corporation (NBFC), that has ended its gas production in 2019. Now the company’s name is Bombay Oxygen Investments Ltd.
The company has a low return on equity of -2.52% for the last 3 years.
The company’s compounded sales for the last 5 years is -32.
The company is nearly debt-free.
The market capitalization of Bombay Investments Ltd is Rs 350.19 Crore.
2. National Oxygen Limited
National Oxygen Limited is an Indian company, primarily produces industrial gas such as Oxygen and Nitrogen.
The company has a market capitalization of Rs 30 Crore.
The 5 years compounded profit growth of the company was 13%.
The company has delivered a poor sales growth of 9.32% in the last 5 years.
Ratios as of March 20 are as follows:
ROCE: 9.85%
Debtors Days: 40
3. Gagan Gas Ltd:
Gagan Gas Ltd is a distributor of fuel gas companies mainly known as LPG have also gone up by 53 % in the last month, despite not having any news of producing oxygen gas.
The CAGR of the company before the second wave of COVID 19 is -10%.
The market capitalization of Gagan Gas is Rs 4 Crore.
For the last 3 years, the company has a low return on equity of 8.57%.
Compounded sales and profit growth for the past 5 years was -4% and -15%.
4. Bhagwati Oxygen Ltd:
Bhagwati Oxygen is a manufacturing company with the main focus on manufacturing industrial gases such as Oxygen and Nitrogen.
The company has a market capitalisation of Rs 4 crore.
The company has a low return on equity of 5.65% for the last 3 years.
As of March 2020, the company has high debtors of 369.87 days.
5. Everest Kanto Cylinder Limited
Everest Kanto Cylinder is India’s largest player in high-pressure gas cylinders with a market share of around 50%. The company has around 150 strong client base from numerous vertices including automobile OEM, city gas distribution, cylinder cascades, medical sector, defense including Bajaj Auto, Hyundai, Toyota, Adani Gas and more.
As per the acute shortage of oxygen cylinders amid the second wave of Covid 19, the company has expected to see a huge demand in its medical equipment segment.
The company has a market cap of Rs 1500 Crore.
The return on equity of the company for the last 3 years is 5.76% which is considered low.
The company has delivered a poor sales growth of 10% over the past 5 years.
6. Linde India Ltd:
Linde India Ltd formerly known as BOC India Ltd is a gas manufacturing company. The stock price has gone high in the past month whereas the stock’s CAGR before the second wave of Covid 19 is registered as 55.3%.
The market cap of Linde India ltd is Rs 15,943 Crore.
The company has had a low return on equity of 5.65% for the last 3 years.
The company is also debt-free.
The CAGR ratio of the company for the past 5 years is 52.75%.
Country’s Oxygen Crisis
The country’s sudden demand for oxygen gave a sharp rise to the oxygen-related stocks that has been driven by the scarcity of the commodity over the past few weeks.
According to several reports, oxygen production has been increased across the country to deal with the COVID 19 infected people.
Due to an excessive shortage of oxygen, the prices of oxygen cylinders in many parts of a country have more than doubled.
The rising demand for oxygen cylinders during the second wave of pandemic uplifted the company’s stock’s prices to a greater extent. However, many research analysts said that the rally of oxygen stocks to be short-lived as the demand for oxygen stocks is influenced by short term liquidity. Hence, it is suggested to check the fundamentals of the company before making any decision in the stock market.
The DOT (Department of Technology) has approved the trial of 5 G technology on the 4th of May.
Post successful trial of 5G technology in India, the company's stocks that offer the 5 G technology have seen high growth. As the news comes out regarding the auction of the 5G network in Q1 of FY22-23, stocks of these companies are growing at a large pace.
Due to COVID 19 outbreak, many people have to work remotely which has highlighted the importance of 5G technology.
Before talking about the companies that are launching the 5G Network in India, let's understand about 5G technology and the companies in India into its segment.
5G is the fifth generation mobile network that comes after the generations such as 1G, 2G, 3G and 4G It is a new global wireless standard network that is designed to connect virtually everyone and everything together that includes machines, devices, objects with people.
If we compare it to 4G, then the 5G network is much faster and more responsive than other generation networks. Also, 5G comes with a greater capacity that will be a real breakthrough for IoT or Internet of Things, AI, machine learning and automate network management.
As per the latest reports from Global Supply Mobile Associations, the 5G network is active in 61 countries. Some of the countries which have enabled 5G technology for its users are Canada, China, Australia, South Korea, the USA and other European nations.
Currently, investments are going on in the 5G Tech in India. The total market size of 5G Tech and related services all over the world amounts to USD 54 billion. It is stated that the market size of 5G will surpass the current amount and will reach around 249.2 billion by the end of 2026, which is more than any countries’ GDP in a year.
1. Tejas Networks
Tejas Networks Limited is a manufacturing company that manufactures telecommunication equipment and has multiple licenses to export its products to several countries. The company designs develop and sell high performance and cost-competitive networking products to telecommunications service providers.
52 Week Performance
If you look at its past performance, the shares of Tejas Networks is standing at its 52 weeks high of Rs 221.5 from a 52 week low of Rs 28.50, thus giving 10 times return. On 11 May, trade experts recommended Tejas as a Buy with a target price of Rs 235 in its research reports.
2. Tech Mahindra
Tech Mahindra is an Indian multinational company known for offering IT and business process outsourcing services. The company’s shares are expected to rise post launching of 5G services in India.
52 Week Performance
If you look at the 52-week performance of the IT company; its 52 week high is Rs 1081.25 and 52 week low was Rs 501.5. Numerous stock brokers and research analysts recommended buying this stock.
The target price range of Tech Mahindra is from Rs 1100 to Rs 1140.
3. Himachal Futuristic Communications Ltd (HFCL)
HFCL is a leading manufacturer of optical fibre cables, optical transport, broadband equipment for the telecommunication industry. The company has a listed track record of more than 30 years. Also, the share price of Himachal Futuristic sets a hit record from a previous 20 years low. This indicates a growth in the company's share.
The scrip's 52 week low is marked as Rs8.70 while 52 weeks high is Rs 38.90.
Moreover, the company has outperformed Sensex Index by 202% and hence it gives 4 times returns from its 52 week low.
4. Bharti Airtel
Bharti Airtel is a blue-chip company and a renowned name in the communication industry that holds around 36% of the market share in the industry as a telecom service provider. Also, the company has already started its trial for the launch of the 5G technology which is the reason behind the stock’s growth.
The stock’s 52-week performance is given as Rs 394.52 week low and Rs 632.52 week high.
5. Reliance Industries
Reliance Jio which is a leading company in the telecom sector is all set to deploy its 5G and its related services such as the Internet of Things (IoT).
Jio is continuously raising its market share because of the company's outstanding performance. If you look at 52-week performance, then the company manages to reach Rs 1393.65 as a 52 week low and Rs 2368.8 as a 52 week high.
The stock is recommended by numerous trade analysts and stock brokers.
One of the most important things about the company is that it has the strongest balance sheet and soon it will be a leader in deciding 5G prices commercially.
6. Vodafone-Idea (VIL)
A company whose stock prices went down post-merger from Rs 30 to Rs, has given almost 6 times returns to its shareholders. Vodafone Idea Limited is the third largest telecommunication service provider for conducting trials of 5 G technology services.
The company’s 52 week low has been recorded at Rs 4.19 while its 52 weeks high is Rs13.8. The scrip of VIL has outperformed the Sensex index by almost 22%.
7. Indus Towers
The company is a merger of two renowned entities Vodafone PLC and Bharti Airtel, formerly known as Bharti Infratel.
Indus Towers has a majority holding of Bharti group, Vodafone group and global investors such as Canadian Pension funds, which makes the company the next Hindustan Unilever in its sector.
Indus tower’s stock performance has been improving day by day as its 52 week low Rs 161.3 and its 52 week high of Rs 282.
8. ITI
ITI is a telecom company that provides telecom equipment to BSNL, MTNL and other Defence departments. The company is known for manufacturing 5G enabled devices to smoothen the test trial of 5G deployment.
As there have been global tension and pandemic issues between India and China, the Indian government has started to promote ITI for its several telecom equipment’ procurements.
The 52 week low for the company is Rs 78.8 whereas its 52 week high Rs 151.6.
9. Smartlink Holdings
The company deals with the trading of telecom equipment goods through its subsidiaries Telesmart SCS Ltd, Digisol Systems Ltd and Synergra EMS Ltd. The company came to the notice because of its manufacturing services of cables and networking devices that will help deploy in 5G services. The company’s 52 week low is Rs 61.4 while it's 52 weeks high of Rs 107.45.
10. MTNL
MTNL is a government company, primarily known for providing telecom services in limited circles. A few months back, MTNL received permission to conduct 5G trials for deploying these services commercially. Its 52 weeks high is Rs 24.4 while its 52 week low was Rs6.68, which makes it a multi-bagger stock.
While previous telecom networks enabled the mobility boom, 5G technology is making devices more friendly and upgrading digitization every day.
Sector: Miscellaneous
Business Area of the Company:
It is one of India's leading securities depositories in India. It offers various services such as account opening, de-materialization, processing delivery receipt instructions, account statement, Re-materialization, pledging, nomination, the transmission of securities, bank account details & SMS services for depository participants.
The company was initially promoted by BSE Ltd. All leading stock exchanges like the BSE Ltd. National Stock Exchange and Metropolitan Stock Exchange of India are also associated with it.
Technical Setup:
Fundamental Setup:
Astral Ltd: CMP 1680 SL 1600 TGT 1820
Sector: Plastic products
Business Area of the company:
This company is the leading manufacturers of plastic pipes. It manufactures plumbing, Drainage, agriculture, Industrial, electrical conduit, and fire sprinkler pipes along with Hauraton surface drainage systems.
It has been a pioneer in introducing CPVC pipes and fittings. The Company offers a wide range of products across piping and adhesives to meet the needs of the real estate sector in India. It has 12 manufacturing units in India and overseas. Astral is delivering the best in its business.
Technical Setup:
Fundamental Setup:
Kabra Extrusion: CMP 181.75 SL 171 TGT 200
Sector: Capital Goods-Non Electrical Equipment
Business Area of the company:
The Company manufactures extrusion lines with matched components, sophisticated automation concepts & tailor-made solutions enabling processors to consistently produce high-quality end products to all its customers.
Technical Setup:
Fundamental Setup:
Company with Zero Promoter Pledge
Promoters increasing shareholding QoQ
Investment Pick: Radico Khaitan CMP 546 TGT 675+
Market Cap: 7296Cr
ROE 17.3%
Dividend Yield 0.37%
Stock P/E 30.2
Sector: Alcoholic Beverages Industry: Breweries & Distilleries
About the company:
Radico Khaitan is one of the oldest and the largest manufacturers of Liquor in India especially Indian Made Foreign Liquor. Also known as Rampur Distillery earlier, started its business in 1943, and it emerged as a major bulk spirits supplier, it is one of the most renowned liquor brands in India.
With more than 75 years of experience in spirits making, it has evolved from being just a distiller of spirits and turned into a leading IMFL company in India. With the unique vision of the promoters, started its brands in 1998 & launched 8 PM Whisky and built a strong manufacturing platform and developing a pan India distribution network to expand its premium brands. It is one of the few companies in India to have developed its entire brand portfolio organically, with in-house capabilities with R&D and customer preferences.
Major Brands – 8-PM Whisky, Magic Moments Vodka, Contessa XXX Rum, and Old Admiral Brandy are some of its well-known brands.
Business Area of the Company:
The company is engaged in the manufacturing and trading of alcoholic products such as Indian-made Foreign Liquor, Alcohol, Country Liquor, etc. The company has its presence in India as well as across global market presence is there too.
Fundamental Setup:
The Indian automobile industry has to go through an amazing change, Now the future of the automobile industry is Electronic Vehicles. The India Electric Vehicle Market was valued at USD 5 billion in 2020 and is expected to reach USD 47 billion by 2026 registering a CAGR of above 44% during the forecast period (2021 - 2026).
The EV has established a market in the USA and other countries with rapid growth in the Indian market. The major benefits of electric vehicles are that it's total pollution-free and with low maintenance. In the USA market, electric vehicles are in great demand and across the globe, the demand seems to increase.
The pandemic hit a lot of industries and one of the major set back is the automobile industry. The sales of vehicles across all the segments have gone down drastically in the country.
The Electric Vehicle market, which had just started to move up and was witnessed a stable rise in its sales, also become a victim of it. Overall, the automobile sector had just started to recover from the first wave of virus when the second, more serious, wave struck earlier this year adding to the misery of the vehicle manufacturers.
But once when things get normal, electric vehicles will witness a boom. With a population of more than 1.3 billion, the market potential of India is second only to China. The world's most populous country has the largest share in the EV market and it contributes to more than 30 pc of the total EV sales around the globe.
The EV market in India has huge potential. One of the reasons for that is an average Indian consumer likes his/her vehicle to be economical and easy on the pocket and the operating cost of an EV is a mere 80 paisa per kilometre, far less than what an ICE-based vehicle costs.
Moreover, battery prices declining since 2010, electric vehicles are expected to become almost as cheap as fuel-powered cars in the future.
India also has a lot to gain from the widespread adoption of e-mobility. Under the 'Make-In-India' program, the manufacturing of e-vehicles and their associated components is expected to increase the share of manufacturing in the country's GDP to 25 per cent by 2022.
The recent uplift in the sales of e-vehicles in the country points towards a rising preference for the same. There is no doubt about it, that the future belongs to EV's with fast-charging batteries and extended driving range.
The government of India also looking to grant some amount under PLI Scheme so that it will boost up the manufacturing of batteries in the country itself.
The major requirement in EV is Lithium-Ion Batteries which is a major requirement for the electric vehicle, several major companies that are manufacturing the same will also get benefited from it.
1. Exide Industries
Headquartered in Kolkata, Exide Industries Ltd manufactures lead-acid storage batteries and inverters. The company manufactures lead-acid storage batteries from 2.5 ampere-hours to 20,600 ampere-hours. The products manufactured by the company include automotive batteries, industrial batteries, and submarine batteries.
Company with a market cap of Rs.15861 & ROE 11.8% with ROCE16.8% & Dividend Yield 2.20%
Brands & Products
With 7 world-class batteries and 2 inverter manufacturing factories across India, it offers the widest battery range for the widest applications, possible. The products are sold across the world, under its brand names EXIDE, CHLORIDE, SF SONIC, CEIL, INDEX & DYNEX.
2. Amara Raja Batteries
The flagship company of the Amara Raja Group is the technology leader and is one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry. It is looking to build a Lithium-ion assembly plant soon. The firm is already working in collaboration with different state governments to promote the use of electric vehicles.
Company with a market cap of Rs.13436 & ROE 18.6% with ROCE23.5% & Dividend Yield 1.40%
Brand & Products
Amara Raja is the preferred supplier to major telecom service providers, Telecom equipment manufacturers, UPS sector (OEM & Replacement), Indian Railways, and Power, Oil & Gas among other industry segments.
3. Eveready Industries Ltd
Eveready Industries India is engaged in the business of marketing dry cell batteries, rechargeable batteries, flashlights, packet tea, general lighting products, small home appliances, and confectioneries which come under a single business segment known as Consumer Goods.
Company with a market cap of Rs.2135 & ROE 10.5% with ROCE 15.1% & Dividend Yield 0%
Brands & Products
Dry Cell & Rechargeable Batteries, Flashlights & Lanterns, Lamps & luminaries (Eveready Cell, Power cell)
4. HBL Power
HBL Power Systems Limited is engaged in the business of manufacturing batteries. The Company's segments include Batteries and Electronics.
Company with a market cap of Rs.1055 & ROE 2.99% with ROCE 6.06% & Dividend Yield 0.79%
Brands & Products
Batteries. We manufacture a wide range of specialized batteries in Nickel, Lead, Silver Zinc & Lithium
Electronics: Railway electronics, Defense Electronics & Thyristor control rectifiers.
Listing out some more out-performers in the same space with a market cap below 10,000 Cr.
Business:- Intellect Design Arena is a global leader in Financial Technology for Banking, Insurance, and other Financial Services.
A uniquely focused Product business, Intellect addresses the needs of financial institutions in varying stages of technology adoption.
Returns during a pandemic: Intellect Design has given an 887 % return from its 52 week low of Rs 62.40. Made a high of Rs 774.15
Business:- Cyient is a global engineering and technology solutions company. We engage with customers across their value chain helping to design, build, operate, and maintain the products and services that make them leaders and respected brands in their industries and markets.
Returns during a pandemic: Cyient has given a 241% return from its 52 week low of Rs 184.15. Made a high of Rs 777.90
Business:- Birlasoft combines the power of a domain, enterprise, and digital technologies to reimagine business processes for customers and their ecosystem. Its consultative and design thinking approach makes societies more productive by helping customers run businesses.
Returns during a pandemic: BirlaSoft has given a 252% return from its 52 week low of Rs 62.60. Made a high of Rs 284
Business:- Zensar is a leading digital solutions and technology services company that specializes in partnering with global organizations across industries in their Digital Transformation journey.
Returns during a pandemic: Zensar has given a 221% return from its 52 week low of Rs 77.50. Made a high of Rs 346.95
Business:- KPIT provides embedded software to automotive companies and its business is segregated into six domains, namely, Autonomous Driving, Connected Vehicles, Electric & Conventional Powertrain, Vehicle Diagnostics, AUTOSAR, and Mechatronics. KPIT's clients include BMW, Cummins, Paccar, and Lafarge.
Returns during a pandemic: KPIT has given a 256 % return from its 52 week low of Rs 39. Made a high of Rs 215.35
Business:- We support organizations across a range of regulated industries including public sector, finance, corporate, and retail by providing the platform and support needed to thrive in an era of digital transformation
Returns during a pandemic: Mastek has given a 561 % return from its 52 week low of Rs 227. Made a high of Rs 1714.85
Business:- Subex Limited is a leading global provider of Business Support Systems (BSS) that empowers communications service providers (CSPs) to achieve competitive advantage through Business Optimization - thereby enabling them to improve their operational efficiency to deliver enhanced service experiences to subscribers.
Returns during a pandemic: Subex has given a 1250 % return from its 52 week low of Rs 3.55. Made a high of Rs 62.10
Business:- Ramco Systems provides Enterprise Resource Planning, Human Capital Management, Logistics and Aviation Maintenance & Engineering (M&E), and Maintenance Repair & Overhaul (MRO) software. The company made a deal with Papillon Grand Canyon Helicopters to install Ramco Aviation Suite V5.
Returns during a pandemic: Ramco System has given a 571.94 % return from its 52 week low of Rs 64.10. Made a high of Rs 784.15
Business:- The first source provides business process management in the banking and financial services, customer services, telecom and media, and healthcare sectors.
Its clients include financial services, telecommunications, and healthcare companies. The first source has operations in India, the US, UK, and the Philippines.
Returns during a pandemic: FSL has given a 275.1 % return from its 52 week low of Rs 28.60. Made a high of Rs 129.70
Business:- HGS provides a full suite of business process management (BPM) services from traditional voice contact centre services and transformation Digi CX services that are unifying customer engagement to platform-based, back-office services and digital marketing solutions.
Returns during a pandemic: HGS has given a 203.7 % return from its 52 week low of Rs 514.95. Made a high of Rs 1890.
Business:- The company provides both matchmaking and marriage-related services through websites, mobile sites, and mobile apps and is also complemented by 130+ company-owned retail outlets. Its flagship matchmaking services are Bharat Matrimony, Elite Matrimony, and Community Matrimony.
Returns during a pandemic: Matrimony.com has given a 194.79 % return from its 52 week low of Rs 304.10. Made a high of Rs 1242.
Business:- eClerx Services Limited is engaged in providing Knowledge Process Outsourcing (KPO) services to global companies.
The company provides data management analytics solutions and process outsourcing services to a host of global clients through a network of multiple locations in India and abroad.
Returns during a pandemic: E-Clerx has given a 178 % return from its 52 week low of Rs 383.55. Made a high of Rs 1293.
Note: Returns can be varied as per the closing rates,
Source:- Money Control & Stock Edge
Amid the COVID-19 pandemic, technology has made a great change in the day to day life of a person, Across the globe, everyone suffers and faces the worst situation.
At the same time life of a common person changed a lot as everyone shifts towards an online portal. From entertainment to regular classes, From assignments to regular office tasks, all the things have shifted towards an online portal.
But this sudden change was not easier to adapt by everyone not every person is using to of it.
But this pandemic brings a revival in the technology sector, and now slowly every business is shifted towards online mode. As the things are been made much easier now and will make the user very effective in its working as it consumes less time with faster speed to perform any task from anywhere.
This pandemic shows us the importance of technology which turns out as a big game-changer at that phase of time and continues to deliver the best till now.
It not only the lives of every individual has changed but it also brings a revolution in work from home culture earlier its been observed that only professionals from IT background works from home, But now the things are changed everywhere even a primary school teacher is teaching on an online platform.
Now imagine our lives without all these facilities will it be possible for us to survive at the time of the covid-19 pandemic. The change we all gone through has given a booster dose to the Technology sector around the globe.
The National stock exchange raised around 90.59 % from a low of 13108 to 27524 in 1 year from the bottom made last year in March. This recovery shows how quickly we adopt the new technology in our day-to-day life.
In the same manner, the major IT companies and their stock have also surged from the very bottom to an unimaginable price rise in just one year.
Here are some top gainers of the tech sector who outperform in the last year.
It is a form of telecommunication between computers where they exchange data with a data link. Computer nodes or hosts can access, create, delete and alter data that is on this network. If a device can transmit information to another device, then they are considered to be networking.
Company Name:- D-Link (India)
Business:- A global leader in the design, manufacture & marketing of advanced networking, Broadband, digital voice, and data communication solutions across the globe.
Returns during a pandemic:- D-link ( India) has given a 35.85% return from its 52 week low of Rs 67.30. Made a high of Rs 136.
IT - Software:- The system software is a collection of programs designed to operate, control, and extend the processing capabilities of the computer itself. System software serves as the interface between the hardware and the end-users.
Company Name:- Tata Consultancy Services Ltd
Business:- TCS provide a wide range of information technology-related products and services including application development, business process outsourcing, capacity planning, consulting, enterprise software, hardware sizing, payment processing, software management, and technology education services.
Returns during a pandemic: TCS has given a 59.83% return from its 52 week low of Rs 1867. Made a high of Rs 3358.80.
Company Name:- Infosys Ltd
Business:- Infosys provides software development, maintenance, and independent validation services to companies in finance, insurance, manufacturing, and other domains. One of its known products is Finacle which is a universal banking solution with various modules for retail and corporate banking.
Returns during a pandemic: Infosys has given a 99.83% return from its 52 week low of Rs 647. Made a high of Rs 1480.
Company Name:- Wipro
Business:- Wipro Limited is a provider of IT services, including Systems Integration, Consulting, Information Systems outsourcing, IT-enabled services, and R&D services.
Returns during a pandemic: Wipro has given a 155.1% return from its 52 week low of Rs 159.60. Made a high of Rs 511.95.
Company Name:- HCL Tech
Business:- HCL Technologies Ltd is a leading global IT services company that helps global enterprises re-imagine and transform their businesses through Digital technology transformation. The company is primarily engaged in providing a range of software services business process outsourcing and infrastructure services.
Returns during a pandemic: HCL has given a 76.80% return from its 52 week low of Rs 502.10. Made a high of Rs 1073.55
Company Name:- Tech Mahindra
Business:- Tech Mahindra is an Indian multinational company that provides information technology (IT) and business process outsourcing (BPO) services.
Returns during a pandemic: Tech-M has given a 91.2% return from its 52 week low of Rs 490. Made a high of Rs 1081.35
Apart from this major IT giant other Midcap IT companies have also given tremendous return in the last year:-
Company Name:- Larsen & Turbo Infotech Ltd
Business:- Larsen & Toubro Infotech Limited (L&T Infotech) is a global technology consulting and digital solutions company helping more than 300 clients succeed in a converging world. It provides the winning edge to the clients by leveraging Business-to-IT Connect and deeply committed people.
Returns during a pandemic: LTI has given a 150.17 % return from its 52 week low of Rs 1510. Made a high of Rs 4499.90
Company Name:- Mind Tree Ltd
Business:- Mindtree delivers digital transformation and technology services from ideation to execution, enabling Global 2000 clients to outperform the competition. "Born digital," Mindtree takes an agile, collaborative approach to create customized solutions across the digital value chain.
Returns during a pandemic: MindTree has given a 136.7 % return from its 52 week low of Rs 811. Made a high of Rs 2275.10
Company Name:- Mphasis Ltd
Business:- Mphasis Limited is an IT services company based in Bangalore, India. The company provides infrastructure technology and applications outsourcing services, as well as architecture guidance, application development and integration, and application management services.
Returns during a pandemic: Mphasis has given a 150.50 % return from its 52 week low of Rs 693.55. Made a high of Rs 1835.95
Company Name:- Oracle Financial Services Software Ltd
Business:- It is a retail banking, corporate banking, and insurance technology solutions provider for the banking industry. It also provides risk and compliance management, and performance measurement applications, as well as accounting, business process management, human resources, and procurement tools.
Returns during a pandemic: OFSS has given a 50.95 % return from its 52 week low of Rs 2208.80. Made a high of Rs 3742.40.
Company Name:- Tata Elxsi
Business:- Tata Elxsi is amongst the world's leading providers of design and technology services for product engineering and solutions across industries including Broadcast, Communications, and Automotive. It provides technology consulting, new product design, development, and testing services.
Returns during a pandemic: Tata Elxsi has given a 403.44 % return from its 52 week low of Rs740.60. Made a high of Rs 4089.70
Company Name:- Coforge Ltd (NIIT Ltd Earlier)
Business:- Coforge is leveraging new-age technologies such as artificial intelligence and cloud technologies, allied with industry expertise to transform client businesses.
Returns during a pandemic: Coforge has given a 143 % return from its 52 week low of Rs 1151. Made a high of Rs 3222.
Company Name:- Persistent Systems
Business:- Persistent Systems Limited is a global company specializing in software products services and technology innovation. The company offers complete product life cycle services. The company has the depth of experience in the focused areas of telecommunications life sciences and infrastructure and systems.
Returns during a pandemic: Persistent System has given a 371.05 % return from its 52 week low of Rs 460. Made a high of Rs 2238.65.
Company Name:- Tanla Platforms (Tanla Solutions Earlier)
Business:- Tanla Platforms Limited, previously known as Tanla Solutions Ltd, is a cloud communications company based in Hyderabad, India. The company provides value-added services in the cloud communications space.
Returns during a pandemic: Tanla Platforms has given a 1238.52 % return from its 52 week low of Rs 61.75. Made a high of Rs 1030.
e-Commerce:- E-commerce is the buying and selling of goods or services via the internet, and the transfer of money and data to complete the sales. It's also known as electronic commerce or internet commerce.
Company Name:- IndiaMart Intermesh Ltd
Business:- IndiaMART InterMESH Ltd. is an Indian e-commerce company that provides B2C, B2B, and customer-to-customer sales services via its web portal.
Returns during a pandemic: Indiamart has given a 227.94 % return from its 52 week low of Rs 2036.35. Made a high of Rs 9951.95
Note: Returns can be varied as per the closing rates,
Source:- Money Control & Stock Edge
Consumer stocks remained in demand by many investors. As per the retail sales figure data, it was reported that the retail sales surged by 9% in March, which is the highest percentage in 10 months.
It is said that for the first time unemployment benefits were at the lowest levels. Experiencing all the things above, we consider the top consumer stocks being the most active today.
Before getting deeper into the consumer stocks, let’s take it at a glance.
Consumer stocks are basically a sector of stocks that includes companies that produce consumer staples.
Nowadays, every individual depends on consumer staples. This includes all the products that we use on a day to day life such as food, beverages, cleaning products, personal hygiene.
As these goods are used in day to day lives, these are purchased irrespective of the economic condition of the country. Because they are considered as the essential items.
There are different forms of consumer stocks. One form of the consumer is discretionary stocks.
These include hotels, apparels, restaurants etc. While normal consumer stocks provide essentials that are connected with the daily activities of an individual, the latter do not provide essential goods.
Instead, they offer services for consumer’s requirements rather than what they want.
Investors are now paying attention to these stocks. If we take a look at the stock market, then the first quarter of the 2021 earnings season seems to be picking up speed. Stocks like HUL, ITC and Nestle have shown growth.
Investors focus on these stocks particularly because of the reason that they deal in essentials. The Covid-19 pandemic has not gone completely and hence investors prefer these consumer stocks which will not show a deep fall even if the situation gets worsened.
Overall, we find that investors are seeking to invest in consumer stocks as they are high in demand these days.
When it comes to investing in stocks, one of the main concerns that arrive in everyone’s mind would be the stability stocks hold during economic crises.
When it comes to consumer stocks, they are considered the safest instruments for investors as these essentials never go out of need. The demand for these goods rises during a time of crises.
Also, due to heavy demand by consumers, these companies generate consistent profits even in the time of weak economic conditions.
Another benefit of investing in such stocks is: these consumer stocks pay dividends to the stockholders. They are defensive enough to outperform other stocks even during bear markets. This is mainly due to the essential nature of consumer stocks.
For example, in the recent time of pandemic, numerous consumer stocks thrive as consumers tend to stock up on essentials.
This in return, increases the valuation of companies producing consumer products and provides investors with attractive returns.
Last but not the least, another major advantage of having such stocks is their stable revenues irrespective of the economic condition and challenges.
Here are the best consumer stocks that you should never miss in 2021
1. HUL (Hindustan Unilever Limited)
HUL is the top giant and currently considered the leading company in the consumer goods market. With its great and outstanding financial performance over the last years, the company’s stocks still provide attractive returns to its shareholders.
Last month i.e in March, the company had recorded a 52 week high of Rs Rs 2614.30 and the lowest being Rs 1750. If we talk about the market size of HUL, then it is Rs 5,08,113.69 crore that proves the company can provide huge earnings to its shareholders in the future.
2. ITC (Indian Tobacco Company)
ITC is a renowned name in the FMCG sector in India. It’s a well-reputed tobacco company that diversified into different sectors including FMCG, paperboards, printing, personal care products, hotels, commodities, ghee, luxury chocolates, frozen food products and many more.
The company provides a huge dividend to its shareholders. The dividend yield of ITC is 4.33% and also holds liquid cash and liquid investment of Rs 35,600 Crores.
According to sources, ITC gains 62% of its revenue from the tobacco business with hotels providing the least of its revenue of 3.88%
3. Nestle India Limited
Nestle is an Indian subsidiary of the swiss based MNC. Bagged the third position after ITC, the company has a market capitalisation of Rs 1,59,155,52 Crores. Of total capitalisation, 40% of its revenue is generated from milk, followed by beverages which are 12%, 28% from dishes and the remaining 13% from chocolates and confectionaries.
Investors should not miss out on investing in Nestle as the company hits a high at Rs 18.369.95 and the lowest at Rs 12,200 over a span of 52 weeks.
From the above points, Nestle has turned out to be a smart investment choice.
4. Britannia
Britannia is considered one of the oldest and top leaders of biscuit companies in India. It is also referred to as the powerhouse of the consumer goods sector. The company has a total of 21.7 lakh outlets in the country. If we talk about the popular brands of Britannia which are the first choice of every individual is Tiger, Good day, Nutri Choice, Milk Bikis and Amrie.
Investors also need to focus on Britannia as the company’s sales have grown at a CAGR of 8.10% and the PAT has grown at a CAGR of 20%.
The company recorded a 52 week high of Rs 4010.00 and 52 week low being Rs 21,00.
The market capitalisation of the company is Rs 89,582.63 Crores.
5. Godrej Consumers Product Limited
The company is the market leader in hair color and other segments. The company has recorded a 52 week high of Rs722.0 and a low at Rs 425.10. Godrej has a market capitalisation of Rs 66,624.36 Crore.
Another advantage of investing in Godrej stock is that the company also offers a dividend of 1.15% which is quite good as compared to the other investors.
Needless to say, consumer stocks perform best irrespective of the economic cycle and hence it would be ideal if you invest in these stocks. The companies are the top leaders in the FMCG sector and that's the reason they never dissatisfy their customers.
Over the past few years, many global technologies and fund houses have started giving you an option to invest in them. One such asset company is Mirae Asset, which is all set to open an NFO among the people of India.
Mirae Asset Investment Managers India announced the launch of two NFO (New Fund Offer) - Mirae Asset NYSE FAANG + ETF and NYSE; an open-ended fund of fund scheme mainly investing in Mirae Asset NYSE FANG + ETF. According to the news, the NFO is open for subscription between 19 April to 3 May 2021.
The house is offering you a fund of funds (FOF) route to invest directly in ETF schemes.
Exchange-Traded Funds or ETF’s are one of the types of investment funds that are traded on the stock exchange.
ETF’s are quite similar to mutual funds except one that ETF’s can be bought and sold throughout the day on the stock exchanges just like stocks while mutual funds are bought and sold based on their price at the end of the day.
A FOF or funds of the fund is nothing but a mutual fund scheme that allows investors to invest in the units of other funds. For instance, the Mirae Asset NYSE FAANG + ETF is a fund of funds that will invest in the units of Mirae Asset NYSE FAANG + ETF.
Here the NYSE FANG Plus Index (NFPI) will come into play. This is because NFPI will provide exposure to today’s highly traded top 10 tech giants in the world which are listed overseas. These tech companies include Facebook, Apple, Amazon, Netflix, Google, Tesla, Twitter, Alibaba, Baidu and NVIDIA.
You might have heard the popular acronym FAANG which stands for Facebook, Apple, Amazon, Netflix and Google (Alphabet Inc). Now, the FAANG word has spread as the five other stocks have been added to it.
Needless to say, these tech giants are extremely popular all over the world as they offer bountiful services that are used by millions of people across the world.
Therefore, if these businesses are put together in one portfolio, they offer a large number of profits as they have the ability to grow in the different geographies of the world.
If we talk about the past data, we get a detailed insight into NFPI as the index has managed to deliver 33.41% annualized returns between September 2014 and March 2021. The percentage amount is quite large if we compare it to NASDAQ - 100 which has given a 20.77% return between the same years, and 13.23% for the S&P 500 said by the reports of ICE Data Indices.
The fund offers exposures to the top industry leaders in their respective segments, which is a plus point for every individual. This is because investing your money in these companies can minimize the chance of risks associated with the business. These businesses hold minimum risks as most of the businesses present in this index are known for their innovations.
Since these companies are not listed in Indian stock exchanges, a FOF can act as a good way to invest in these established technology sector leaders. Also, including these stocks may create a beautiful diversification to your portfolio.
The addition of the top 10 tech companies into the index makes it highly concentrated. This means investors who saw a dream to invest in this index may be exposed to concentration risk. Stock market is full of volatility and hence it would be beneficial for you to be aware of the downward volatility.
Secondly, these businesses face numerous regulatory changes in many countries which may affect the stock’s price. Also, these companies often face several acquisitions by the policymakers of different countries which could lead to huge risks and downward volatility.
The subscription date for both funds starts on April 19, 2021, while the closing dates are different. The closing date of FAANg +ETF is on April 30, 2021, whereas the closing date of FAANG +ETF fund of funds is on May 3, 2021.
The Mirae Asset FAANG+ETF will be handled by Mr Siddharth Srivastava while the Mirae Asset FAANG+ETF FOF will be handled by Ms Ekta Gala.
The minimum investment amount required by both the schemes will be Rs 5000 and multiples of Re 1.
The Mirae Asset FAANG+ETF FOF will offer investors multiple options such as regular plan and direct plan.
Each stock’s weightage in NYSE FAANG+ Index is equally weighted that consists of highly traded growth stocks.
The NYSE FAANG+Index will allow Indian stock trading investors to invest in these potential stocks like Facebook, Apple, Amazon, Google, Tesla, Twitter, Netflix etc.
It may be noted that 7 out of 10 companies in the NYSE FAANG+ Index have made it a list of top 50 innovative companies with exceptionally well innovative ideas.
The Number of Funds managed by Ms Ekta Gala is mentioned below:
Mirae Asset NIFTY 50 ETF
Mirae Asset NIFTY Next 50 ETF
Mirae Asset ECG Sector Leader ETF
Mirae Asset ECG Sector Leader FOF
Mr Siddharth Srivastava, fund manager of Mirae Asset NYSE FANG+ETF said: this index gives Indian investors a new way to put their money in these highly brilliant, growth innovative companies. Through these investments, Indian investors now can invest a small part of their money into these shares and participate in the growth stories of these companies.
It has been seen that many FIIs and global investors have put their eyes on Indian stock market and investors. Many top market gainers have been constantly researching on Indian stock exchange and analyzing the pattern of the stock market.
By doing this, most of them have started to invest in the Indian stock market. Also, they want many retail investors to contribute to the top-notch stocks.
Therefore, they came with the idea of ETFs and added FAANG stocks with ETFs so that many Indian investors can benefit from these stocks.
The primary objective of these companies behind the diversification of these stocks among different geographical areas is the expansion of shares among different retailers and investors so that they can evenly contribute towards the growth of these top giants.
India has been an attractive destination on investor’s RADAR including Non-Resident of India’s. One of the greatest reasons behind NRIs investment in India is its worldwide popularity.
Many NRIs nowadays seek India as the best place to invest. This is because Investments made by NRIs are treated as a foreign investment according to Indian foreign exchange regulations. Also, remittance and liberalized regulations, makes India one of the best places to invest in.
According to the regulations laid by RBI, the Non-Resident Indian (NRI) are allowed to invest in the equity shares of both listed/unlisted Indian companies. The government permits NRIs to invest in multiple financial securities including listed NCD (Non-convertible bonds), stock market trading, government securities, debentures and more.
Here is the list of popular investment options that are exercised by NRIs are discussed below:
There are three types of bank accounts that are opened by NRIs in India. These are:
NRO account is specified to the cases where NRIs are allowed to book their investment only in the Indian sourced income such as rent, dividend, a pension earned in India. Under NRO accounts, remittance outside India is permitted to $1 million per year. Repatriation of the amount that exceeds $1 million requires prior approval from the Reserve Bank of India (RBI).
NRE accounts are used by NRIs so that they can easily book their foreign earnings/savings in Indian rupees. The account is maintained in the form of current, savings, recurring or fixed deposit account and designated as Non-Resident Rupee Account.
FCNR account is designated in foreign currency i.e. funds in this account can be maintained in any permitted currency, which is freely convertible including US dollar, euro, Australian dollar, Japanese Yen. FCNR accounts provide ease of repatriation of funds and protection from foreign exchange rate fluctuations.
RBI allows NRI investors to invest in equity shares of Indian companies. Also, NRIs can do equity trading and invest in equity shares of both listed and not listed companies, depending on certain conditions, sectoral restrictions and other parameters.
If NRI do investment in an unlisted company on a repatriation basis then the investment comes under foreign direct investment which is subjected to strict pricing norms, reporting requirements and sectoral restrictions.
Note: NRIs can now also invest in equity shares through online stock trading method,
NRIs are allowed to purchase units of mutual funds irrespective of mutual fund type i.e equity-oriented or debt-oriented. The total return NRIs get from investing in mutual funds is available in the form of dividends, equity dividends.
If the duration of redemption of equity-oriented mutual funds held for a period exceeding more than 12 months is known as long term capital gains. Also, long term capital tax is subject to tax at 10 per cent. While redemption for mutual fund units those held up for 12 months are known as short term capital gains and are taxable at 15 per cent.
If we talk about debt oriented mutual funds, the holding period decided by the Indian government should be more than 36 months, taxable at 20 per cent. Whereas the mutual fund's units held up for 36 months comes under short term capital gains and are taxable at applicable slab rates.
Long term Capital Gain on Sales of Equity Shares (Listed) or Equity Oriented Mutual Fund Units:
Long term instruments such as equity shares or equity-oriented mutual funds are those held for a period of 12 months.
For instance, equity shares or equity-oriented mutual funds come under long term capital gains and tax implications on the sales of these instruments shall be taxable at the rate of 10% if the gain on sale is more than 1.1 Lakh rupees. If the gain on sale is less than 1 lakh then the tax is exempted in such cases.
In equity-oriented mutual fund units, NRIs must be paid STT (Securities Transaction Tax) on the sale and acquisition of equity share units. Also, RBI doesn’t allow indexation benefits on the cost of acquisition.
If unlisted shares excluding (debt mutual funds) are held for more than 24 months, are classified under long term capital gains assets. The tax liability of unlisted shares is mentioned as 10%.
In terms of debt-oriented mutual funds, if the units are held for more than 36 months then they are defined as long term capital gain assets. The tax liability on debt-oriented mutual funds is 20% after indexation.
If the listed equity shares or equity-oriented mutual funds are sold before 12 months of its acquisitions, then the gains are considered as short term capital gain and these gains are taxable at 15%.
For short term capital gain, the securities and shares holding period must be less than 24 months. The tax on short term capital gain is applicable as per the slab rate assigned to the non-resident.
The debt oriented mutual funds are classified as short term if they are held for less than 36 months. However, the gain on such instruments is calculated based on the applicable tax slab rates.
Unlike Indian residents, NRIs are not allowed to get the basic benefits in health and education. It should be noted that any redemption made by a non-resident is subjected to tax deduction at the highest tax rates. The TDS applied for any short term capital gains on unlisted securities shall be at 30%.
If India has signed the Double Tax Avoidance Agreement (DTAA) with the country of NRI’s resident, then the NRI may feel some kind of relief. According to the treaty, the NRIs can pay tax in either of the countries or pay the taxes in both countries.
As investments come under different schemes/options that could be based on both repatriable or non-repatriable basis, it is crucial to understand the difference between the two modes.
The tax rates mentioned in this blog are exclusive of applicable surcharges. This should be taken into account to compute the actual rate of tax. Further, the NRIs can avail of the benefit of lower tax rates under the Double Tax Avoidance Agreement between India and the country of their residence.
Online (or virtual) communities are online platforms or virtual rooms where a bunch of individuals are interacting with one another on an everyday basis.
The technical evolution in dynamic content of internet sites and interacting with alternative users allowed the large development into the community world and eventually the social network world.
With therefore known as social media monitoring. Last year they learned to look at, analyze, and interpret the postings of individuals. So that they were able to react to any or all positive and negative opinions of them.
In contrast to marketplaces, online community members are united in an exceedingly common activity or interest. They will get to understand one another, move post queries and find answers. The most important characteristic, therefore, is that of member interaction.
Not as permanent as ancient media. Like paper, websites archive data for extended periods. World Wide Web users post content on websites for others to look at. The content could also be straightforward text, however, it would additionally contain multimedia system files together with pictures, sounds, videos, or streaming content. Examples include: wikipedia.com
Typically hosted online, mixes several aspects of email and sites. they involve discussion around one, restricted topic, however will crop up over months or years and involve dozens or perhaps many participants conversations that prolong indefinitely, involve massive numbers of individuals, and aren't similar to the temperament to email. Examples include:
In contrast to instant messages, emails are typically not expected to browse now upon receipt. The email could be a methodology originally supposed to imitate physical mail. Messages are delivered from one specific address to 1 or a lot of specific addresses. Users are alerted to the presence of recent messages in their inboxes by email shoppers that show the content and provide a chance to reply. Messages are primarily text. Therefore, email is ideally fitted for long, concerning conversations between 2 folks or among tiny teams of individuals. Examples include:
Typically supposed to be near-instant communication and maybe faster than a telephone text messaging uses cellular airwaves and protocols to deliver matter messages from one mobile phone to a different one or from one phone to a bunch of alternative phones.
The sender does not need to look ahead to the recipient to answer before delivering a message. Text electronic communication is informal and simple, it's typically referred to as chatting. Examples include:
In contrast to text messages that are delivered to solely tiny teams, social networking sites facilitate communication among folks with common interests or affiliations. Sites like Facebook and LinkedIn give places for folks to act, typically in real-time.
Microblogging services like Twitter, permit short-matter messages of no over a hundred and forty characters to be broadcast to an outsized audience microblog users will repost messages that they need to share with their followers, thus a microblog post will unfold quickly. Examples include:
Nothing beats face-to-face spoken communication. Video chats give associates immediacy to spoken communication.
Video chat is like instant electronic communication, most video chatting is conducted over web protocols that stream pictures from one device to a different one. Businesses typically use videoconferencing to assist in virtual conferences. Examples include:
The relationships established or increased online are a means to a mutual finish, like increased profits.
A lot of specifically, internet communities are established between business partners, between businesses and their customers, between totally different teams of shoppers, inside firms, and between individuals and teams dedicated to specific topics.
Task centered communities typically are additional structured and impersonal. His functionality of key tasks is integrated and synthesized. This necessitates less personnel, paperwork, and software system, and boosts potency, thereby minimizing operative prices and enhancing profit.
In times of the internet, the social media movement firms should not underestimate the ability of those channels online/virtual communities are the place wherever the web user is posting its opinions and receiving their data.
The community world has a big unmanageable world of many blogs, boards, communities, chats, and portals. n 2011 solely seven-membered of all cash pay on online advertising within America went to Facebook, whereas Google and yahoo took a combined share of fifty-two. being a part of it and making valuable content will influence the success financially and image-wise of an organization.
BSE -
BSE Exchange (Bombay Stock Exchange), India’s largest stock exchange by a number of companies listed. The Bombay Stock Exchange was established in the year 1875 as the first stock exchange in Asia. Today BSE has over 5000 companies listed on it, the highest in any exchange around the world.
World's two leading global exchanges, Deutsche Bourse and Singapore Exchange, are strategic partners of BSE. BSE offers to trade in Equity, Debt Instruments, Derivatives, Mutual Funds and SME Equity. The S&P BSE SENSEX is India’s most widely tracked stock market benchmark index.
BSE also offers services including risk management, clearing, settlement, market data services, IT services and solutions, licensing index products such as the S&P BSE SENSEX and financial & capital markets training. BSE Limited has the following strengths: 1.
Strong brand recognition with a track record of innovation 2. Diversified and integrated business model and active relationship with market participants 3. State-of-the-art infrastructure and technology.
CAMS -
Computer Age Management Services Ltd (CAMS) is a mutual fund (MFs) transfer agency with a focus on technology-based solutions. It offers services to alternative investment funds (AIFs) and insurance companies, through service centres, white label call centres, online mobile applications and chatbot services.
Mutual Fund distribution is a big business in India and the transaction processing environment is complex. There are many sub-agents of distributors in the country leading with a retail investor base and they will need information regarding Mutual Fund transactions. So, CAMS offer Distributor Services packages to all distributors who operate using retail sub-agents.
CDSL -
CDSL is the leading securities depository in India in terms of incremental beneficial owner (BO) accounts. CDSL earns revenue by charging annual issuer fee to corporates and account maintenance charges, user facility charges and transaction fees to depository participants (DPs).
The asset-light model, duopoly play on the secular increase in stockholder accounts coupled with potential market share gains is an added positive. While this itself is a successful recipe for growth, the icing on the cake could be the massive unexploited revenue opportunities in CDSL’s core activities, and leveraging its customer base and data for new businesses, a feat adroitly accomplished by similar sectors such as credit rating agencies (not to mention internet companies).
IEX –
INDIAN ENERGY EXCHANGE LIMITED (IEX) is the first and largest energy exchange in India providing a nationwide, automated trading platform for physical delivery of electricity, Renewable Energy Certificates and Energy Saving Certificates. The exchange platform enables efficient price discovery and increases the accessibility and transparency of the power market in India while also enhancing the speed and efficiency of trade execution.
IEX’s subsidiary Indian Gas Exchange Ltd. (IGX) is India’s first automated national level Gas Exchange to promote and sustain an efficient and robust Gas market and to foster gas trading in the country. The exchange features multiple buyers and sellers to trade in spot and forward contracts at designated physical hubs.
INDIAMART–
Indiamart Intermesh Limited is an online platform (www.indiamart.com.) for business buyers to connect with suppliers of products and services. Buyers can place a business enquiry by visiting suppliers (small and medium) online and explore their products and services. It has organised its listings across 54 industries.
It provides a platform for SMEs, large enterprises, and even individual buyers. Nearly 2.6 crore buyers can reach out to over 22 lakh suppliers coming from 52 different categories of industries and choose from the list of 3.3 crore products.
It is now rated as one of the largest e-commerce platforms for businesses of different kinds with a market share of more than 60%. It deals with 97000 product categories that cover a wide range of industries. IndiaMART is also one of the very few companies with zero debt and a sizeable cash balance.
IRCTC -
IRCTC is a ‘Mini-Ratna' company that derives revenues from four broad business segments — catering (selling food on rail journeys), travel & tourism (tour and destination-specific packages), e-ticketing and packaged drinking water (known for its brand Rail Neer).
Catering contributes 55 per cent to the company’s total revenues, followed by travel & tourism which provides 23.3 per cent, e-ticketing contributes 12.3 per cent and packaged drinking water, which contributes 9.2 per cent.
INFO EDGE (NAUKRI) -
Info Edge generates revenue through the provision of various services through its online recruitment, property, matrimonial, and education classifieds portals. The Company derives its revenue in the form of fees associated with its various services and advertising solutions.
It also derives revenue through commission income on property bookings placed with builders and developers. Today InfoEdge group directly operates 8 ventures and controls the other 6 through investments.
Jeevansaathi.com, the famous matrimonial site, was launched in 1998. In later years they came up with Shiksha.com, NaukriGulf, and Quadrangle. In 2012, they also launched their mobile app for Naukri.com In 2010, InfoEdge made an investment that realized much late but shows the vision of this investment was now food delivery and restaurant catalogue giant, Zomato.
This is what lies in the InfoEdge group. Zomato was not their only key investment. They also own now much known ‘Policybazaar’. The other ownerships are ‘Meritnation’ and ‘MyDala’. However, the one doing buzz lately is ‘99Acres’.
Zomato is one of the most anticipated IPOs of 2021.
Info Edge’s Startup Investment
Zomato, policy bazaar, happily unmarried, Unnati Pvt ltd, Zippserv, Wishbook, Nopaperforms, University, gramophone, Bijnis, Medcords, printo, Shopkirana, Greyt HR , adda247, terra economics & analytics lab, legit quest, Shipsy, Coding ninjas, Ayuki.
MATRIMONY -
Matrimony.com (till recently known as Consim Info Pvt Ltd) claims it has 60 per cent of the estimated Rs 300-crore online matchmaking market. The company runs 15 matrimonial websites under Bharat Matrimony and around 300 websites under Community Matrimony. From a one-man venture almost 15 years ago, the company now has 4,000 employees.
Matchmaking is only a small pie of the huge business opportunity in a conventional Indian marriage. "Around Rs, 8 lakh is spent on an average for a marriage and we were getting only one per cent of it as our revenue. We can get more and there is a huge opportunity lying there," says Janakiraman. Almost 90 per cent of its revenue comes from user subscription fee, which ranges from Rs 3,290 to Rs 50,000 (elite) for three months. It has 2.5 million active members.
MCX-
The Multi Commodity Exchange of India Limited (MCX), India's first listed exchange, is a state-of-the-art, commodity derivatives exchange that facilitates online trading of commodity derivatives transactions, thereby providing a platform for price discovery and risk management.
India has been the most liked investment destination for FIIs and also FIIs were net buyers in Indian equity trading markets to the tune of Rs 17 lakh crore in 2020, reduced stake in over 40 large-cap companies sequentially in the quarter ended in December.
Since 2012, banks have remained the investment choice for FIIs. In the last eight years, FIIs favorite sector was banking, oil and gas, capital products financials and more. Within the last 3 years, insurance as a sector got the eye of FIIs and attracted important flows.
Recently, it has come into notice that foreign institutional investors are reducing their stacks in the large caps in India as large-cap stocks have not been performing well in the Indian market.
Foreign investors are expecting that if the market falls, the large-cap stocks will be the first to bear huge losses.
Let’s have a detailed insight into Foreign Institutional Investors and their impact on Indian investors.
FIIs or foreign institutional investors are those investment funds that invest in foreign countries’ assets outside their headquarters. FII plays a significant role in any country’s economy. FIIs are those entities that invest in the Indian stock market.
There are numerous large organizations such as mutual fund entities, and banks that invest a huge amount in the Indian financial market. The presence of FIIs in stock trading and securities purchased by FIIs helps to move the market upward.
FIIs raising or reducing stakes should not be the only parameter by which investors should track before buying or selling a share or investing in a company.
Experts advise investors to do their own study and pick stocks that also match their risk profile. Investors can use both technical and fundamental parameters to make their buy or sell decisions.
Under fundamental parameters one can track Cash flows, EPS, PEG ratio, leverage on the books, revenue growth, as well as future CAPEX, spends, etc.
The reasons for buying, holding or selling any stock depends on the market participant – short term or positional trader, short-term or long-term investor, they say. Based on the financial and portfolio positioning, different actions can be taken.
“Besides fundamentals, there are technical parameters too that one tracks for making buying or selling decisions. One of the key parameters is the positioning of stocks relative to their respective 50, 100, and 200-day moving averages, as well as the direction of each of those averages,” says Kavalireddi, head at a renowned financial institution.
“A trader or a positional investor can use 50-day moving averages to identify short-term entry opportunities and 100/200-day moving averages to identify medium-term entry opportunities. Another technical parameter of importance is the price trend, both on the daily and weekly time frame charts,” he said.
Kavalireddi further added that investors can also track the put-call ratio of stock and index options, market breadth, ratio charts of stocks to indices, etc. “While these parameters do not provide an outright buy or sell signal, they can help one understand market sentiment and market positioning,” he said.
The companies in which FIIs have reduced stakes are mostly blue-chip companies and sector leaders. The primary reason behind the reduction of stakes in large-cap companies may be rebalancing the portfolio or booking the portfolio at a higher level. So if someone is holding any of the large-caps, they could still remain, net buyers, as the long term potential is intact.
Another reason for minimizing their stakes could be profit bookings as stocks like IFB Industries Limited and Adani Industries Limited have generated more than 200 percent returns, Likhita Chepa, a senior research analyst who works at a financial consultations company.
Chepa further added that the underlying reason for reducing their stake may be different for different stocks. Hence, it is advisable to go through a careful study with respect to each stock before making any decision.
Experts also said that the companies coming under Nifty 50 gave phenomenal returns. Most large-cap stock prices have gained a price hike, some delivering returns greater than 100 percent in a short time.
The four large-cap companies that have rallied more than 100 percent are JSW steel, Adani Enterprises, Tata Motors, and Laurus Labs. Meanwhile, nine stocks rose 50-100 percent since June 30.
Many investors think that FII’s decision to reduce stakes in large-cap companies is a negative sign for them. However, this is not so true. Instead, investors grab these opportunities to purchase high-quality stocks.
However, it should be noted that FII's decision to increase or reduce the percentage of shares should not be the only parameters investors should track before buying or selling stock in a company. Therefore, many experts advise investors to do stock market research and do their own study and pick stocks that also match their risk appetite. Also, investors can use both fundamental and technical analysis to make their buy or sell decisions.
Under fundamental analysis, one can track EPS, cash flow, leverage on the books, revenue growth, and more. Buying, holding, and selling any stock depends on the market participant - whether it is a short term or long-term investor. Different actions can be taken based on financial and portfolio positioning.
Foreign institutional investors and FIIs reduce their stakes in large-cap funds to book profits. This decision of FIIs is affecting Indian investor’s psychology that affects their decision whether to buy large-cap stocks or not. Therefore, many experts suggest not to panic about the situation and stick with quality stocks that will help you to develop future wealth creation. Staying or exiting in the large cap completely depends on the individual's decision. But before making any decision, do thorough research and analysis about a company that you want to invest in.
Creating a trading strategy that outperforms the market can seem like a difficult task, but with the right approach, it’s definitely achievable. Here’s a simple guide to help you develop a strategy that could give you an edge.
Before you start, think about what you want to achieve. Are you looking for short-term gains or long-term growth? Knowing your goals will help you shape your strategy to match.
Figure out how much risk you’re willing to take. Are you comfortable with high-risk, high-reward trades, or do you prefer a safer approach with steadier returns? Your risk tolerance will guide your investment choices and strategy.
Research is key. Study different markets and assets to understand how they behave. Look into historical data and trends to see what has worked in the past. This knowledge will help you make more informed decisions.
There are various trading styles to choose from:
Develop a detailed trading plan that includes:
Technical analysis involves studying price charts and patterns to predict future movements. Learn how to read charts, identify trends, and use indicators to make better trading decisions.
While technical analysis is important, don’t ignore the fundamentals. Pay attention to news and events that might impact the market, such as economic reports or company earnings.
Before you commit real money, test your strategy with a paper trading account or a small investment. This helps you see how your strategy performs without risking too much.
Once you start trading, keep track of your performance. Analyse what’s working and what isn’t. Be ready to adjust your strategy based on your results and changing market conditions.
Stick to your plan and avoid making impulsive decisions based on emotions. Discipline is crucial for long-term success.
Developing a trading strategy that beats the market takes time, effort, and patience. By setting clear goals, understanding your risk tolerance, doing thorough research, and staying disciplined, you can create a strategy that helps you achieve your financial objectives. Keep learning and adapting, and you’ll be on your way to becoming a successful trader.
Market Watchdog SEBI has brought a new policy to the initial public offering (IPO) process easier and faster in connection with the IPO. Another master move by SEBI is to simplify the entire procedures with a focus on reducing the listing time from 6 days to 4 days.
Also, SEBI considers IPO investor grievances for those who use a unified payment interface (UPI) for payment. The market regulator has further said that it has allowed the Payment UPI for investors who wish to invest in IPOs. According to SBI norms, only the UPI handles it has mandated can be used for issuing IPO mandates.
The SEBI has already minimized the listing time from seven days to six days post-closing of the bidding. This blocks the fund of an investor if he could not get the entire subscription.
Earlier, the regulator had ended the practice of allowing the issuer to block the entire subscription amount in the Demat account by allowing the money to be blocked in the investor’s account through the Absa facility. This helped investors not to block their money in a third party account till the IPO process is over.
SEBI chairman Ajay Tyagi further said SEBI is trying to simplify the process of IPO by reducing the time taken for listing a company on the stock exchange after the IPO to four days from six days.
This year, the IPO market or share market is giving satisfying results as the fund raising through the primary issues is more than six years combined. According to Ajay Tyagi, the formalization of the economy after the demonetization, softer interest rate regime, as well as increasing public awareness about mutual funds, has uplifted the demand side, while outstanding issues have helped the supply side.
In order to maintain the stable regulations, Tyagi said, he wants to continue with the stable regulations as any sort of overburden will lead to lower investment which is not good for the primary market.
Seeking the broader investor’s participation in the MF industry, Ajay Tyagi said the AUM of the industry is still working well over at Rs 21 trillion which is one-fifth of the banking sector.
In order to grow the MF industry in a transparent manner, he said the SEBI has created a separate division that primarily focuses on mutual funds so that there is no miss-selling.
For the smooth process of IPO, SEBI will address the delays of the mandate by investors for blocking of funds because of the problems that occurred at the stock brokers’ end.
The share trading policy will also work on the issues regarding the unblocking of funds in partial allotment cases after the finalization of BOA (the basis of allotment).
The basis of allotment is a document that contains the basics on which the equity shares are allotted to the successful bidders. BOA is a document that is published by the registrar of IPO after the share finalization based on SEBI guidelines.
SEBI also set a new framework in which sponsor banks are required to send any pending application for unblocking of funds to the registrar along with the allotment file not later than 12.30 pm on BOA+1.
Next, the registrar would submit bank-wise pending UPI applications to SCSBs with the allotment file for unblocking before 2 pm on BOA+1. This will be followed by the confirmation submitted by SCSBs to lead managers on BOA+1. If SCB fails to provide any details on the time, then SEBI will take strict action for this.
These changes will come into effect from May 1, 2021. SEBI’s new framework comprises a lot of things that include that the self-certified syndicate banks SCSBs will be required to find out the nodal offer for SME IPO applications that are processed through UPI payment gateway. Also, SCSBs need to submit all the processing details to SEBI within seven working days.
According to the new framework, SEBI gives clear instructions that brokers and investment bankers need to compensate any IPO applicants by paying Rs 100 or 15 per cent interest per annum on the application amount depending on which one of the two is higher.
In addition to this, the sponsor banks will host a portal for intermediaries or stock brokers where the IPO date is listed. The portal comprises all the details of the blocking or unblocking of funds, apps, any downtime or delays, the performance of UPI handles and more. Overall, any process that is involved in the bidding process of the IPO will be documented.
The intermediaries, aka online stock broker that include in IPO are merchant bankers, underwriters, registrars are registered by SEBI. These intermediaries perform all the IPO related activities including preparation of draft offer documents, the basis of allotment, and crediting of shares to the successful applicants of IPOs.
In 2018, SEBI had introduced the use of UPI as a payment gateway for retail individual investors. This acronym ASBA refers to an investor’s application to SCSBs. The application contains an authorization to block bank account debit till it is selected for allotment after finalization on the basis of allotment. The ASBA facility was made mandatory for all investors who were applying for an IPO in 2016.
Needless to say, the use of the UPI payment method will not only uplift the process for IPOs by investors but also increase their confidence while entering the market. According to NITI aayog, the popularity of UPI has suddenly increased over time with nearly 2.3 billion transactions amounting to Rs 4.2 trillion.
Market regulator SEBI’s primary objective is to ensure that the upcoming IPO process should be smooth, efficient and fast so that the maximum investors can get the maximum benefit from the seamless process. It also assists investors to object to grievances. Also, through UPI payment method, investors can successfully carry out the IPO application process, which is a quite popular payment gateway and easily used on any electronic device like a laptop, smartphone, tablets. By doing so, SEBI makes a great effort in making the process seamless, fast and effective for all investors involved.
In today’s world, it is extremely important for a woman to achieve financial liberty and independence. For those with an impactful career and becoming an essential part of the workplace, financial empowerment is just as much an essential factor for a secured future; something that is applicable to the homemakers as well.
We believe that each and every woman must give thought to grow financially and secure their positions for the long term. This can be achieved by making the right investment decisions.
In fact, making investments related to market-linked instruments can serve as a constant income source like a simple job for ladies.
In India, there are plenty of investment options available that offer long-term benefits to long-term investors. However, everyone should understand how and where to invest their hard-earned money.
Investment options such as mutual funds and stocks help women in creating and incrementing and compounding liquid cash reserves. Financial instruments such as Fixed Deposit, PPF, and EPF can help in saving your money while saving one’s money.
Also, several investment options can be used to generate constant monthly income, by earning interest on the principal amount. Apart from this, investing in fixed assets can generate financial security over the years.
Here are the top 10 investment vehicles that can secure and empower Indian Women financially:
PPF is still considered one of the most popular investment plans in India. This scheme is available in post offices and banks.
This low investment scheme has a tenure of 15 years with an interest rate of 7.1% Also, the PPF scheme helps one to save a lot of tax. This is because an investment amount in PPF can be claimed for a tax deduction under Section 80c of the Income Tax Act.
The annual investment amount of the PPF scheme ranges from ₹500 to ₹1.5 Lakh.
The biggest benefit of investing in a PPF account is its flexibility. i.e once can withdraw 50% of the amount after completing 5 years in investing in the PPF scheme.
Furthermore, the accumulated interest amount and principal are also exempted from tax at the time of withdrawal.
NPS or National Pension Scheme is a long-term retired pension scheme that is movable across locations and jobs. That means you don’t require to change your fund while locating to another city or state.
The investment product is fully managed by the Pension Fund Regulatory and Development Authority (PFRDA). One of the prime benefits of having NPS is that you can generate returns from equity and debt.
While in PPF, you can only invest solely in interest-earning instruments.
The minimum annual contribution for an NPS tier I to remain active has been reduced to ₹1000 from ₹6000.
NPS is a mix of fixed deposits, corporate bonds, equities, corporate bonds, liquid funds, government funds and more.
Investing in stocks might not be everyone’s cup of tea but it is considered one of the most attractive options due to huge returns. In fact, a stock’s investment carries higher risk as it can generate higher returns.
Also, you can generate a yearly return of 15% - 18% from the stocks you invest in. For better investment, it is suggested to invest in the right stocks at the right time.
Employees’ provident fund is one of the best investment options for working women as with the help of schemes they can easily avail of tax benefits and gather tax-free savings.
According to the Government of India, new women employees are required to contribute only 8% instead of 10% for the first three years. This will certainly increase their take-home pay.
Under Section 80C of the Income Tax Act, the annual contribution up to ₹1.5 Lakh which you make towards the EPF account is free from tax.
Equity-linked savings schemes allow you to generate a higher rate of return about 15% to 18%. If we talk about the lock-in period, ELSS allows you to store away for just 3 years.
Any earnings that exceed ₹1 lakh are taxable. For better returns, one should keep in mind that ELSS can provide you with long term capital gains and taxed at 10%.
Bank Fixed deposits are another good investment for women that is available with both public and private sector banks. The investment amount and tenure are decided by the investor.
However, the interest rate of these deposits varies from bank to bank. As the investments have no maximum limits, fixed deposits can be broken and the amount can be withdrawn before the maturity date.
However, if one breaks the deposit before the completion of its tenure then it will affect the interest rate which is earned on the principal amount.
Mutual funds are also considered a good investment option, especially for women. Here, the investment amount is managed by the fund experts.
With SIP investment, you can earn subsequent wealth over a period of time, which reduces losses and maximizes ROI.
In mutual funds, investors can select the top funds offered by banks and numerous financial institutions. Also, it gives investors an opportunity to make choices from the products according to their requirements.
Mutual funds work on a strategy called a systematic investment plan or SIP wherein a specific amount is invested every month.
The key benefit of using SIP is to avoid huge losses.
Unit Linked Insurance Plan is the best way to create wealth with an addition to a life cover. The premiums that one pays for ULIP are eligible for deductions under section 80C.
Also, the return on maturity is exempted under section 10 10 (D). The returns generated from ULIP vary from the types of funds selected whether one opts for hybrid, debt or debt funds. Returns generated through ULIP are tax-free and could be quite impressive if the stock market performs well.
Buying gold is often considered a good investment option for Indian women. Although Gold prices are dynamic in nature, they can be considered as the safest instruments to invest in the long run.
Investment in gold requires no fixed quantity, which means as little as 5-gram gold coin in a year. Investing in gold gives you liquidity as when the price increases in the future, these coins can be exchanged either for cash or jewellery depends on the requirement.
Post office monthly income scheme aka Post office fixed deposit scheme is backed by the Government of India. This scheme holds a tenure of 5 years and the interest rate that is earned on this scheme is 6.9% per annum.
The minimum amount that can be deposited in the scheme is ₹1000 and the maximum amount that can be deposited is ₹1, 50, 000 per year.
Women spend 90 percent of their income on their families, and economically empowered women boost demand, have healthier and better-educated children, and raise human development levels.
On this women’s day, we firmly believe it is our moral obligation to empower women, to empower our Nation.
BSE - BSE Exchange (Bombay Stock Exchange), India’s largest stock exchange by a number of companies listed. The Bombay Stock Exchange was established in the year 1875 as the first stock exchange in Asia. Today BSE has over 5000 companies listed on it, the highest in any exchange around the world.
Worlds two leading global exchanges, Deutsche Bourse and Singapore Exchange are strategic partners of BSE. BSE offers to trade in Equity, Debt Instruments, Derivatives, Mutual Funds, SME Equity, SME IPO. The S&P BSE SENSEX is India’s most widely tracked stock market benchmark index.
BSE also offer services including risk management, clearing, settlement, stock trading data services, IT services and solutions, licensing index products such as the S&P, BSE SENSEX and financial & capital markets training.
BSE Limited has the following strengths 1. Strong brand recognition with a track record of innovation 2. Diversified and integrated business model and active relationship with market participants 3. State-of-the-art infrastructure and technology.
CAMS - Computer Age Management Services Ltd (CAMS) is a mutual fund (MFs) transfer agency with a focus on technology-based solutions. It offers services to alternative investment funds (AIFs) and insurance companies, through service centres, white label call centres, online mobile applications and chatbot services.
Mutual Fund distribution is big business in India and the transaction processing environment is complex. There are many sub-agents of distributors in the country leading with a retail investor base and they will need information regarding Mutual Fund transactions. So, CAMS offer Distributor Services packages to all distributors who operate using retail sub-agents.
CDSL - CDSL is the leading securities depository in India in terms of incremental beneficial owner (BO) accounts. CDSL earns revenue by charging annual issuer fee to corporates and account maintenance charges, user facility charges and transaction fees to depository participants (DPs). The asset-light model, duopoly play on the secular increase in stockholder accounts coupled with potential market share gains is an added positive.
While this itself is a successful recipe for growth, the icing on the cake could be the massive unexploited revenue opportunities in CDSL’s core activities, and leveraging its customer base and data for new businesses, a feat adroitly accomplished by similar sectors such as credit rating agencies (not to mention internet companies).
IEX – INDIAN ENERGY EXCHANGE LIMITED (IEX) is the first and largest energy exchange in India providing a nationwide, automated stock market trading platform for physical delivery of electricity, Renewable Energy Certificates and Energy Saving Certificates. The exchange platform enables efficient price discovery and increases the accessibility and transparency of the power market in India while also enhancing the speed and efficiency of trade execution.
IEX’s subsidiary Indian Gas Exchange Ltd. (IGX) is India’s first automated national level Gas Exchange to promote and sustain an efficient and robust Gas market and to foster gas trading in the country. The exchange features multiple buyers and sellers to trade in spot and forward contracts at designated physical hubs.
INDIAMART– Indiamart Intermesh Limited is an online trading platform (www.indiamart.com.) for business buyers to connect with suppliers of products and services. Buyers can place a business enquiry by visiting suppliers (small and medium) online and explore their products and services.
It has organized its listings across 54 industries. It provides a platform for SMEs, large enterprises, and even individual buyers. Nearly 2.6 crore buyers can reach out to over 22 lakh suppliers coming from 52 different categories of industries and choose from the list of 3.3 crore products.
It is now rated as one of the largest e-commerce platforms for businesses of different kinds with a market share of more than 60%. It deals with 97000 product categories that cover a wide range of industries. IndiaMART is also one of the very few companies with zero debt and a sizeable cash balance.
IRCTC - IRCTC is a ‘mini-Ratna’ company that derives revenues from four broad business segments — catering (selling food on rail journeys), travel & tourism (tour and destination-specific packages), e-ticketing and packaged drinking water (known for its brand Rail Neer).
Catering contributes 55 per cent to the company’s total revenues, followed by travel & tourism that provides 23.3 per cent, e-ticketing that contributes 12.3 per cent and packaged drinking water, which contributes 9.2 per cent.
INFO EDGE(NAUKRI) - Info Edge generates revenue through the provision of various services through its online recruitment, property, matrimonial, and education classifieds portals. The company derives its revenue in the form of fees associated with its various services and advertising solutions.
It also derives revenue through commission income on property bookings placed with builders and developers. Today InfoEdge group directly operates 8 ventures and controls other 6 through investments Jeevansaathi.com, the famous matrimonial site, was launched in 1998. In later years they came up with Shiksha.com, NaukriGulf, and Quadrangle.
In 2012, they also launched their mobile app for Naukri.com In 2010, InfoEdge made an investment that realized much late but shows the vision of this investment was now food delivery and restaurant catalogue giant, Zomato. This is what lies in the InfoEdge group. Zomato was not their only key investment. They also own now much known ‘Policybazaar’. Other ownerships are ‘Meritnation’ and ‘MyDala’. However, the one doing buzz lately is ‘99Acres’.
Zomato is one of the most awaited IPO of 2021.
Info Edge’s Startup Investment
Zomato, policy bazaar, happily unmarried, Unnati PVT ltd, Zippserv, Wishbook, Nopaperforms, Univariety, gramophone, Bijnis, Medcords, printo, Shopkirana, GreytHR , adda247, terra economics & analytics lab , legitquest, Shipsy, Coding ninjas, Ayuki
MATRIMONY- Matrimony.com (till recently known as Consim Info Pvt Ltd) claims it has 60 per cent of the estimated Rs 300-crore online matchmaking market. The company runs 15 matrimonial websites under Bharat Matrimony and around 300 websites under Community Matrimony. From a one-man venture almost 15 years ago, the company now has 4,000 employees. Matchmaking is only a small pie of the huge business opportunity in a conventional Indian marriage.
"Around Rs, 8 lakh is spent on an average for a marriage and we were getting only one per cent of it as our revenue. We can get more and there is a huge opportunity lying there," says Janakiraman. Almost 90 per cent of its revenue comes from user subscription fee, which ranges from Rs 3,290 to Rs 50,000 (elite) for three months. It has 2.5 million active members.
MCX- The Multi Commodity Exchange of India Limited (MCX), India's first listed exchange, is a state-of-the-art, commodity derivatives exchange that facilitates commodity trading online of commodity derivatives transactions, thereby providing a platform for price discovery and risk management.
If you are one of them who doesn't follow the stock market or stock trading much, GameStop is the name that could be heard in the past week. If you are keeping an eye on the news, you may have heard about Gamestop and how its stock price rose?
This is because the gaming and game device company, which was valued at 3.25$ per stock a year ago, saw its stock market rise by 8000 percent within 6 months. On January 26, 2021, the stock closed at $145.60, then increased to $345 the next day, peaking at $469.42 on 28 January 2021. But where did it all start?
Read the Full Story Here:
GameStop is a gaming company that specializes in the trading of game and game devices. So how did a struggling company with an old-fashioned business model suddenly become a hot topic about stocks?
The primary reason behind the sudden shine of GameStop is r/wallstreetbets, a subreddit on an internet forum called Reddit who was responsible to raise the stock price by 1700 per cent.
Swastika explains how GameStop is grabbing all the attention of all the investors.
GameStop is a brick and mortar company, specializing in trading of games and game devices. Before making a high buzz on everyone’s Tweet feeds, over the last few days, GameStop has had a poor record since 2017.
Furthermore, the retailer company also has hit the news for all the wrong reasons. In 2017, it came into limelight because of its Circle of Life policy. Circle of Life is a rating system that GameStop uses to convince customers to buy games, trade old ones and ensure that the money that customers get back goes towards buying more pre-owned games.
Employees were given scores to represent how they fared and anyone with low scores would likely find their job on the line.
Before we take dig deep into GameStop’s stock, there is some lingo which would probably help to familiarize the GameStop controversy.
Day trading refers to the buying and selling of stocks multiple times during the day. The primary goal is here, to make small incremental profits that add up as they trade. As you might have guessed, day trading is quite risky and is used by a lot of scam artists.
Short selling is the process of selling stock and buys back the stock to return it to the lender. Short sellers are betting that the stock they sell will drop in price. For example - Company A’s stock is trading at Rs 250 and you know that after some time, the shares of a particular stock will fall. For instance, it will fall to Rs 150.
Suppose you sell a share worth Rs 250 at the market price and after a while, you may notice that the price drops to Rs 150. Now you can buy that stock at the lowered stock. Now, you return the share to the broker at the lowered price. As you sold the first share at Rs 250 and bought the same share at Rs 150 before returning to the broker, you are left with Rs 100 as a profit.
Hedge Funds are a group of investors usually controlled by a money manager. These hedge funds are designed to make profits by short selling stocks on falling stocks. A big hedge fund has a pool of investment money which allows investors to invest aggressively and make complex investments for a bigger payout.
Till 2019, the stocks of the GameStop had been continuously falling. Reddit users heavily noticed about the heavily short hedge funds selling the stock, particularly the $13 billion hedge fund Melvin Capital.
In mid-2019, a Reddit user named (Roaring Kitty) posted that it had made an investment of $53,000 in the GameStop. Though the post didn't receive any intentions then, however, the users frequently tweeted about the GameStop investment and retail store.
Last week, the news came into the limelight and the retail store caught the attention of many young online traders. This in result, the share price rose to unwarranted levels.
According to the source, short-sellers lost an estimated $23.6 billion on GameStop. Melvin Capital lost 30 per cent of the $ 12.5 billion it invested in managing shorted stocks.
Concerning the whole situation, Wall Street demanded that short selling be made illegal, even though it is majorly used by the traders. To stop further stock crashes, many popular trading apps such as Robinhood stopped the purchase of Gamestop stock on their stocks.
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