Indian Stock Market

[krish44]

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Have you wondered who drives the indian economy?

not surprisingly it is the middle class wage earner.

He pays the taxes.

He consumes also the maximum.

But Govt policies do not cater to this class.

They formulate policies to give doles to the poor and incentives to the industrialists to perform.

Yet these classes do not do much to aid the economy. Industrialists evade/avoid taxes ,the poor just live off

doles.

Middle class should be exempt from taxes on income. They any way are taxed indirectly on what they consume.

Govt can fire off the army of income tax officials who spend time targeting the IT returns of middle class.

Govt can save on their salaries and reduce corruption they indulge in .

 

[Janaki Jambunathan]

RBI rejects merger of LVB & India bulls
I think RBI is cautious after PMB bank fraud - It is right decision.

I wonder how PMB could open 21000 Acs. No KYC? Aadhar should be made mandatory to open a bank account - to avoid such fraud ! Courts may be approached to review their judgement.


Unlike scheduled banks If cooperative banks go bankrupt 1L insurance cover for all bank deposits of an individual I understand is not available!

What is in store for depositors?

In cash less economy push every transaction is through bank . Will it be possible when banks are not fully reliable!

 

[krish44]

Credibility of of indian banks/NBFC s has sunk so much that RBI has to repeatedly assure about their viability..

Since there is hardly any reliability of the banking system, better spread assets in gold ,real estate, multiple

banks both public and private besides some sizeable cash home.Preserving capital is more important than

interest rates offered.

India is not fully ready for cashless economy.Cash in hand is more reliable than money in banks.

Also spending money and living it up is an option.

Money today will get you far more than what it will in a year from now.

 

[Janaki Jambunathan]

.Preserving capital is more important than
interest rates offered.(#78)

We (J & JJ) have almost withdrawn our FD in Banks and reinvested in SCSS (5 yrs.) to the maximum permitted limit in SBI close to my flat in OMR and In PMVVY with 8% (10yrs.)

Our estimated income 2019 - 20 shows about 4 L available for investments after committed contribution to PPF & LIC premia. I am thinking of POMIS but yet to decide - These are available in Post Office only and not in SBI like PPF or SCSS -

Doing business in PO would be a pain I know!

 

[krish44]

Post offices should be last option for parking money for IT savvy investors.

TCS reported a not too good results for last quarter . Future does not appear rosy for IT biggies like TCS or

infosys. It professionals need to retrain for newer technologies very often and this puts a pressure on them.

They have a short shelf life and most end up burnt out and face retirement before 40 years.

Finance jobs are a better bet.Investing in SBI shares which is at lows around rs 250 is worthwhile. It can go as

high to 300 plus in a short time. For parking money private banks such as HDFC bank or Axis are better

 

[Janaki Jambunathan]

For a company whose promoters were sent to jail for GST fraud, are investors missing out on the minute details buried in its books?
The penny stock Manpasand Beverages rally seems fishy.

 

[krish44]

Festival sales on amazon and flipkart are hitting an all time high.It includes sales of 750 crores of smart phone.

Tier 2 and 3 cities of hindi belt contributed a lot to these numbers.

It makes one think whether figures put out are cooked up or real.

On one hand we are talking of downturn andon the other people splurging on iphones .

Who and where are the poor.?

I am just unable to understand what is happening.

Are people spending non existent money using EMIs and credit cards?

I have a feeling that poor have become richer and aspirational. Only the rich are becoming richer faster than

the others.

There are very few in dire poverty.

Govt is putting more money in the hands of govt employees serving and the retired thru DA increase of 4%.

Hopefully they will spend more.

I do not know what will happen to the fiscal deficit. It should have jumped up.

Sale of PSUs is on the cards to mop up money.

So public sector shares are jumping up.

Getting rid of PSU shares starting with Air india should improve the finances of the govt.

Inflation appears to be under control.

Are this the achhe din promised by NDA?

 

[Jaykay767]

One possibility is that my initial hypothesis post election is corrct. Ie, the msmes and others in the semi formal sector have all gone completely informal and they are doing very well - having rejigged their businesses in the intervening 2 yrs.

And they are the big buyers now, except that they are not buying anything where PAN is required to evade the hyper active income tax dept.

 

[Jaykay767]

So the formal sector is struggling along with the banks, but the poor people except far,m sector are doing well for once. By going completely informal they are saving both GST and personal and corporate income tax. So more money into the hands of the poor.

 

[Jaykay767]

And it makes sense, coz anyone wanting to start business today (not high tech) will do it informally t than go through the rediculous shenanigans of the income tax terrorism. Hence there are no formal jobs, taxes are falling, state finances are shot, but people have informal jobs and earning their livelihood.

 

[Jaykay767]

The Achilles heel is the banks, if they start collapsing, the same right wing mob will lynch the govt instead of the minorities. Lynchistan will come back to haunt them.

 

[Jaykay767]

Consumption seems to have shifted largely from formal to informal sector. So people are buying hand made biscuits instead of the branded ones. Same with clothes, they are buying unbranded ones on the informal market.

I mean, the construction workers and families are not sitting idle, they must all be engaged in informal sector even if they are dependent on the congress mnrega scheme which provided work only for max 50 days.

Hence all formal parameters are falling but people are not struggling on the ground due to informal sector doing well.

 

[Janaki Jambunathan]

The Achilles heel is the banks, if they start collapsing, the same right wing mob will lynch the govt instead of the minorities. Lynchistan will come back to haunt them.

Left heel is not but only right heel is Achilles heel?

Left liberals thinks so - Merging PSU banks
is against national interest but creating one Kerala Bank by merging dist co-op banks is not!

Left parties criticise Centre's decision to merge public sector banks

Criticising the Centre's decision to merge certain public sector banks, the Left parties on Saturday said the "unwarranted" move will lead to shrinkage of the network of branches and adversely impact financial inclusion. They alleged the decision is a deliberate attempt to divert attention from...

www.business-standard.com

 

[krish44]

Due to festival season , buying is picking up.

Amazon has reported 720 crores in sale of iphones .

auto drivers, car washing boys,vegetable vendors are tech savvy buying these items on EMIs.

The sale is more in tier 2 or 3 cities.

Where are the poor which the political parties talk about?

It is said that rural consumption is half of cities according to hindunilever.

GDP growth continues to be muted.

Consumption is likely to go down after the festive season.

For a change FII are buying in indian market and DII are selling.

Abhijeet Banerjee and his wife Esther Duflo winners of this year nobel prize for economics have warned on

further down turn in india.

Our FMs husband Parakala Prabhakar has criticized NDA govts economic policies and has a word of praise for

Narasimha rao-Manmohan singh reforms in an interview to The Hindu newspaper.

It is interesting that domestic differences on economic policies are occupying public space.Lol

 

[Jaykay767]

LOL. FMs husband is corrct , everyone knows the truth except our super govt and its supporters !!

 

[Jaykay767]

Clearly the FM is on the way out of this govt. given this statement coming on the backdrop of the Twitter war between FM and one right wing author,

 

[Jaykay767]

This is actually good for the country, FM is sending some much needed message for this govt via her husband !!

 

[krish44]

We still are a country who cannot accept a woman FM.

She has tried to engage every section of society and listened to make mid course corrections.

Granted that we have paid a price for demonetisation and GST not well conceived , she has done a lot of effort

to correct the imbalance at the cost of slipping fiscal deficit.

She might cover it up by passing on some of the burden to LIC and other govt agencies and window dress the

fiscal deficit.

Bad times will pass.

FIIs are back and pumping money into the share market.

For a change DII are selling.

There may be a few failed firms in indian industry due to govt tightening the screws.

Some cooperative banks will fail and NPAs of govt banks will snowball.

Yet india will muddle thru selling some govt navaratna PSUs and throwing a lot of money to corporates thru

tax concessions.

 

[Jaykay767]

The biggest risk in our analysis is, we don't have the all the correct data. I mean, I remember seeing an article on mass unemployment protest in Calcutta, but later this news was blanked out by our great media in cahoots with our great govt.

So, we need to keep that in mind that we have a lying ruling dispensation built on fake news, so have to calibrate with our own sources via social media to get to the truth !!

Sad, unfortunate but this is the reality of our fake times !'

 

[krish44]

We are living in a make believe world.

AS nothing -be it is data, economists,social media,newspapers,TV with Ads hard selling products and services

can be trusted,we would like to imagine that everything in honkydory and carry on joyously if possible.

Though delhi air we are warned is foul, we take walks thinking we are breathing freshest of air.

We shop and pay high prices for food and vegetables though everyone says there is a glut of some items and

there is recession.

Best is to imagine that life is beautiful and carry on acting dumb and enjoying the scenery avoiding the

potholes and excreta left behind by stray dogs .

If one wants to be happy, there is always a way.

I do not believe in after life.

So live the present one enjoying it to the hilt and putting away the negative sore feeling about majority of

things

 

[krish44]

Daily I look at the indian stock market to see if my holdings are going up or down .

I hear what all brokerages and analysts have to say and find at the end that market has a dynamics of its own.

It goes up or down and analysts again give reasons for it.

The fact is no one knows or can predict the market.

There is something fatalistic.If something has to happen, it will.

nows ince the govt is poised to sell PSU holdings , they are doing well.

IRCTC got under valued and on openng more than doubled in the share market.

The agencies responsible for valuing and offering IRCTC for throw away price gets away scot free.

It is a poor way to handle disinvestment.

Tomorrow they will say it is a scam

 

[krish44]

Yes bank is back in news.
Munjal and Sunil Mittal are showing interest in taking a stake in the bank.

At 0.6 or 0.7 % of book value it appears an attractive buy.

It shot up by 11% to rs 45 on news of interest by big industrialists.

JJ ji should feel relieved.

 

[krish44]

In last post it should read 60 or 70% of book value for yes bank.

Yes bank has recovered from the battering down to Rs 30 level.

Old promoters have sold of their stake and new ones are coming in.

Hopefully better times are ahead for the bank.

PMC account holders have approached Manmohan Singh for help.

They have gone to supreme court and the court is hearing them

Sikh community has offered to help the account holders.

Insider traders and scams in banks get uncovered frequently.

Security of bank deposits has become a concern for the retired .

The deposit rates have also been lowered .

Where does the common middle class person go for safety and decent returns?

I have no answers.

 

[Janaki Jambunathan]

JJ ji should feel relieved.(#97)

Security of bank deposits has become a concern for the retired .

The deposit rates have also been lowered .

Where does the common middle class person go for safety and decent returns?

I have no answers.(#18)

My concern with Yes Bank is parental and personal !

Parental concern:

I know there is always demand - even porching qualified experienced guys in financial sector

Personal Concern:

We had huge deposits with atleast 6 different PSU banks in Madurai Considated all closed - re invested in SCSS PMVY to the Maximum allowed for both of us - And regularly contribute to PPF & LIC to avail 80C & 80 D .In fact our contribution is in excess of the 80C limits and limited to the maximum in IT returns !

So where do you park your Money?

We are away from MF & Stock markets when we became Sr.Citizen

We have FD in 2 Banks ( Yes Bank - high-tech I don't even have Hard Copy of these FD certificate and the other old fashioned IOB near my house in OMR) and not spread over different banks and if one of them collapse we will be coponsated for 1 L each only!

Bank FD necessary evils ?

Or Postal savings POMI or NSC ?

Our projected Surplus for this financial year is around 5 L How do I mange this without squandering?

I also have no Idea!

 

[krish44]

JJ ji

HDFC bank is a good option for FDs

Their services are easily the best.

It is a favourite of all NRIs.

It is well managed

yes bank is wobbly with changes in management frequently.

Its exposure to some companies has let it down

Keep away from IDBI first bank and coop and rural banks like RBL.