|
|
|
|
|
Markets on edge as analysts hope for minimum sell-off
Downgrade revives slugfest between governments, rating agencies
|
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
1 in 3 chance of further US downgrade: S&P
NMDC willing to raise iron ore supplies to meet demand
Tax Advice
FDI inflow in mining rises
|
|
Markets on edge as analysts hope for minimum sell-off
Mumbai, August 7 "Needless to say, the markets could remain weak in the short term and will move in line with the global markets and fund flows, which could be negative for all emerging markets," said Dipen Shah, senior vice president, private client group research, Kotak Securities. “The immediate trigger for the markets could be the US Federal Reserve meeting on Tuesday. It will be watched very carefully to get any message on what does Fed think about further stimulus. Markets are expecting some comments about further stimulus looking at the recent spate of weak economic data from that country,” he added. Policymakers, however, put up a brave face in the wake of a crisis. “Our (Indian) growth story is intact and our fundamentals are strong. The markets have shown that they can withstand external pressures,” Finance Minister Pranab Mukherjee said at a lecture on 20 years of reforms in India organised by CII. The US treasury bond has traditionally been considered as one of the safest avenues for investments. World over, governments and central banks have invested heavily in these treasury bonds. For the week, the Sensex and the benchmark of the National Stock Exchange lost 4.9 per cent and 5.19 percent respectively. Another major stock broking firm, Angel Broking said that both benchmark indices could slip further in the coming week. “If Friday’s lows are breached after a minor bounce, then strong negative momentum is likely to be witnessed in the coming trading sessions, which can drag indices to lower levels of 16750-16650 (for the Sensex) and 5050- 950 (for the Nifty),” said Angel Broking in its outlook for the coming week. "In a worse-case scenario, if our markets fail to hold these support levels, then the benchmarks may test 16,000 or 4,800 level. We advise traders to stay light on their positions and trade with proper stop losses," it added. Edelweiss Securities in a research note said: "Overall, risk assets, specially emerging market equities will continue to face painful bouts of volatility owing to the debt impasse in Europe and US. This will, in all probability, affect market sentiments in India as well." Giving a different view, some experts said that the situation might prove to be a boon for Indian markets in the long-term, as India is fundamentally stronger among its peers and attracts more international inward financial flows. —Agencies
|
||
|
Downgrade revives slugfest between governments, rating agencies
While India had expressed doubts more than two years ago over the rationale adopted by rating agencies in downgrade actions, the dissenting voices have become louder now, including from the US and several European countries. The US has unleashed a no-holds-barred attack on Standard and Poor's, while legendary investor Warren Buffett has went on to say that the downgrade did not make any sense at all. Buffett is a major shareholder in S&P's rival rating agency Moody's. Reacting to Standard and Poor's decision to downgrade the long-term sovereign credit rating from the top-notch 'AAA' level, to a notch lower at 'AA+', the US administration went on to question the credibility and integrity of S&P. The rating agency justified its action and has said that the angry reaction from the US was on expected lines from any country or company being downgraded. The US has also accused S&P of first arriving at a conclusion and then fitting in the required logic to support its downgrade action.— Agencies
|
||
|
1 in 3 chance of further US downgrade: S&P
Washinton, August 7 "We have a negative outlook ... from six months to 24 months," he said on ABC's "This Week." "And if the fiscal position of the United States deteriorates further or if the political gridlock becomes more entrenched, then that could lead to a downgrade. The outlook indicates at least a one in three chance of a downgrade over that period." Chambers said that it would take some time for the United States to recover its AAA rating. "It would take a stabilization of the debt as a share of the economy and eventual decline. And it would take, I think, more ability to reach consensus in Washington than what we're observing now," he said.— Reuters
|
||
|
NMDC willing to raise iron ore supplies to meet demand
New Delhi, August 7 Moreover, the company will take a decision on Tuesday, in consultation with the Steel Ministry, on modalities of raising the mineral supplies to steel and allied industry, NMDC Chairman Rana Som said. The move of the state-run miner comes in the back drop of an apex court order of Friday, which allowed mining of iron ore in Karnataka's Bellary region to NMDC only and fixed the quantity at one million tonnes per month. The chairman indicated that preference may be given to customers having long-term contracts . "We are gearing up to meet the demand and will increase supplies substantially to meet the shortages. We will take a decision on modalities of supply on August 9, after consulting the Steel Ministry," he said.— PTI
|
||
|
Tax Advice
Q I am a retired Punjab government officer. I get LTC (lump sum) after every 2 years. In January, 2011 I received Rs 13,798 as LTC. I visited some faraway place in India. Some journey I performed by rail & some by taxi. My queries : -
a) Will I get exemption in respect of journey performed by Rail (money spent) b) What should be done where I hired a taxi c) I suppose no exemption is granted on money spent for stay in hotel. — VK A a) You will be entitled to claim exemption from the taxability in respect of amount actually incurred for your rail travel which will be computed with reference to the shortest route to the place of destination. b)In case the place of origin and destination or part thereof are not connected by rail and the journey is performed between such places, the amount eligible for exemption would be: (i) Where there is a recognised public transport in operation, an amount not exceeding Ist class or deluxe class fare in such transport by the shortest route. (ii) Where no recognised transport system exists an amount equivalent to air-conditioned rail fare, for the distance of the journey performed by the shortest route as if journey had been performed by rail. c) The rules do not provide for the exemption of the amount spent for stay in a Hotel. Q TDS amounting to
Rs 1,24,952 was deducted by certain banks from the interests of my NRO Accounts during the financial year 2008-09. I had filed my income tax return in June, 2009 alongwith original TDS certificates in Form 16A supplied to me by the banks. I had tax liability of Rs 11,926 and refund of Rs 1,13,050 was due to the paid to me.I learnt that the banks had not entered my PAN No. in their TDS Statements, submitted to income tax / NSDL, so the amount was not showing in Form 26 AS. I pursued the matter with the banks for submitting revised TDS Statements mentioning my PAN No. I now find a sum of Rs 87,087 in my TDS Account in Form 26AS for that year, but I have not receive any further refund so far despite repeated requests and having filed application u/s 154 also. Rs 25,900 was deducted as TDS for that year by the HSBC Bank, but this amount is not being shown in Form 26 AS. I have sent half a dozen communications to the bank but there is no response. For 2009-10, also, I have claimed refund of Rs 1,05,770 but I have not received it too so far. Please advise — Richa Goyal A You may approach the ombudsman of the tax department for the purpose. The address: Room No. 251, C.R. Building, IP Estate, New Delhi-110002 Baljit Motyani- C-11,/63, Shahjahan Road, New Delhi-110011, Phone: 011-23379925 Surendra Khera 011-23379925, 9868239054 |
||
|
New Delhi, August 8 "FDI in exploration and mining in India is not considered huge in comparison to the total domestic sector, whose annual production is estimated at Rs 2 lakh cr,” he said.— PTI
|
Coal India, Sun Pharma to enter Sensex Telcos will pay tax on SIM card sale Aircel launches ‘Talk & Surf FRC 123’ L&T bags three orders worth $889 mn IT, finance grab 52% share in M&As SBI to open 800 branches this fiscal
|
|||||
|
| HOME PAGE | |
Punjab | Haryana | Jammu & Kashmir |
Himachal Pradesh | Regional Briefs |
Nation | Opinions | | Business | Sports | World | Letters | Chandigarh | Ludhiana | Delhi | | Calendar | Weather | Archive | Subscribe | E-mail | |
Indian equities markets are expected to start the week’s trade with a negative bias Monday as a fallout of the US economy downgrade continues to pull down bourses across the world, say analysts.
The unprecedented move of US being stripped off its top-notch credit rating has opened a pandora's box with questions being raised over the 'credibility and integrity' of rating agencies.
New Delhi/Washington, August 7
