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Weekly Digest - 10 Oct 2009

Contents:


Stock Market & Investment
  • Dividend Payouts shrunk to conserve cash
  • Over 50% firms listing in 2 yrs trading below issue price 
  • Unit Linked Insurance Policy (ULIP) - Beware
  • The Gold price may soar ahead of Diwali - Good Investment?
Legal & Tax
  • Clarity on the goods and service tax (GST) rate is expected
  • Bonuses on LIC policies are taxable: Revenue Secy
  • Get affidavit for gift over Rs 50,000 from kin
Economy
  • Indian annual inflation at 0.7 pc Sept 26: Govt
  • Stimulus to continue: Prime Minister
  • Economy to pick up pace from 2nd half: Pranab Mukherjee 
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Dividend Payouts shrunk to conserve cash
Investors in large-cap firms who saw their wealth erode by some 37% because of a drop in share prices last fiscal also saw smaller dividend cheques as firms decided to conserve cash during the credit crunch. A Mint study of large-cap firms that constitute the Bombay Stock Exchange’s (BSE) bellwether equity index, the 30-stock Sensex, and the broader 50-stock Nifty showed that the dividend payout ratio, or the proportion of net profit distributed to shareholders, declined to a seven-year low. The analysis covers 29 Sensex stocks and 45 Nifty stocks for which comparable data is available. Barring one, all Sensex firms are part of the Nifty. CLICK HERE FOR FURTHER READING 

Over 50% firms listing in 2 yrs trading below issue price
In sharp contrast to the euphoria in the primary market, more than half of the companies, which got listed on bourses in the past two years, are trading well below their issue prices. According to an analysis of the performance of companies listed on the Bombay Stock Exchange in the past two years, as many as 27 out of the 40 stocks studied are trading much below their issue prices, which are fixed after their initial public offers. CLICK HERE FOR FURTHER READING  

Unit Linked Insurance Policy (ULIP) - Beware
There is a concerted attempt by many insurance distributors to take you for a ride when you buy a ULIP or unit linked insurance plan. Over the past five years, more than Rs 60,000 crore has been paid by investors as commissions to agents. In return, many have suffered huge losses as they were wrongly advised. As we discovered, rather than cracking down on this malpractice, companies seem more eager to continue paying hefty commissions. And all of it comes from your pocket. Click HERE for the VIDEO (Ensure your speakers volume is adjusted and not in MUTE)


The Gold price may soar ahead of Diwali - Good Investment?
Analysts feel that the Gold price may not come down in the near future and may soar ahead of Diwali season. Investing in  Gold Benchmark Exchange Traded Scheme (Gold BeES). Watch a video on the Gold price that may go up ahead of Diwali. CLICK HERE TO WATCH THE VIDEO


Clarity on the goods and service tax (GST) rate is expected
Clarity on the goods and service tax (GST) rate is expected by the end of October. The Empowered Committee of State Finance Ministers is slated to meet Union Finance Minister Pranab Mukherjee on October 27. The reason for the meeting is to settle the controversial outstanding issues. CNBC-TV18’s Abhijit Neogi and Akanksha Sethi report. CLICK HERE FOR FURTHER READING


Once I get a clear picture on the GST Roadmap, I will post on that.

Bonuses on LIC Policies are taxable : Revenue Secy
The new Direct Tax Code does not seem friendly towards investors of LIC policies. Revenue Secretary PV Bhide today indicated that bonus amounts received on maturity of LIC policies will be liable to tax. "The broad principle is whatever has accrued by March 31 will remain with you as benefit. But that does not apply to bonuses paid after that."

He also ruled out any tax concession for special economic zones under the new Direct Tax Code. "We are looking at long gestation period projects separately." 
Source: MoneyControl.com


Get affidavit for gift over Rs. 50,000 from kin
From now on, when you get gift-in-kind valued at more than Rs 50,000 from your parents or other relatives, make sure you have a sworn affidavit declaring the donor as your kin. CLICK HERE TO READ FURTHER

Indian annual inflation at 0.7 % Sept 26: Govt
India's wholesale price index rose 0.7 % in the 12 months to Sept. 26, lower that previous week's annual rise of 0.83 %, government data showed on Thursday. It compared with a median forecast of a 0.99 % rise in a Reuters poll. CLICK HERE FOR FURTHER READING.

I could not understand how they calculate these numbers.


Stimulus to continue: PM
“The stimulus package has to continue till the economy operates at full capacity. The consequences of the stimulus package on inflation are minimal,” the Primie Minister said at a press conference in Hyderabad. CLICK HERE TO READ FURTHER

Economy to pick up pace from 2nd half: Pranab Mukherjee
Finance minister Pranab Mukherjee on Thursday said the rate of economic expansion in the July-September second quarter is not expected to be much faster than the 6.1% pace set in the previous three-month period, but saw acceleration happening starting next month. CLICK HERE TO READ FURTHER. CLICK HERE FOR VIDEO

Cheers,
Gopal


1 comments:

Anonymous said...

Hello Sir,
This new look is superb. Contents are also good. Would it be possible to add management related articles also.
Thanks for all your efforts.
Regards, C.Sekar

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