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Net FII investments in stocks plunge to 3-yr low in FY12
Stocks overshadow gold’s glitter with strong Q1 rally
Top six Sensex firms added Rs 18,234 cr in m-cap last week
India likely to grow at 6.1%
in 2012: E&Y
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Tax Advice
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Net FII investments in stocks plunge to 3-yr low in FY12
Mumbai, April 8 In FY 2008-09 foreign fund houses had offloaded shares worth Rs 47,706 crore. Fears of a global economic slowdown and domestic troubles with inflation, interest rates, lack of reforms and the falling rupee all collaborated to make the foreign investors cautious in 2011-12, experts said. Destimoney Securities' Managing Director and CEO Sudip Bandyopadhyay said, "Eurozone worries have pushed the Indian market into risk aversion mode and other emerging countries are performing better than India, so FIIs are staying away from our market." However, the January-March period of the fiscal saw robust inflows. Out of the total net investment of Rs 47,935 crore, Rs 43,951 crore came during the last quarter of FY12. Market analysts attributed strong FII inflows in January-March to signs of a reversal in the Reserve Bank of India's monetary policy and the subsequent impact of improved liquidity position. They expect the positive trend to continue further, given that the liquidity conditions remain strong. "FIIs have been infusing money into the Indian market due to change in the central bank’s monetary policy that has added liquidity to the system. This liquidity will help in growth of the country," Wellindia executive director Hemant Mamtani said. — PTI
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Stocks overshadow gold’s glitter with strong Q1 rally
Mumbai, April 8 After outperforming the stock market for more than a decade, the appreciation in gold prices during the first three months of 2012 was lower than that of equities —in India as well as the global markets. An analysis of gold prices and stock market movements shows that the Indian stock market rose by about 15 per cent during the first quarter of this year — as against a gain of just about three per cent in gold prices. The silver has fared relatively better than gold with a gain of about nine per cent, but it still could not match the lustre of stock market rally during this period. Stocks' outperformance over the bullion market in the first quarter of 2012 comes marks a major reversal of trends seen in the previous year. While the stock market plunged by about 25% in 2011, gold had turned out to be the best asset class with a 31% surge. Despite its highly volatile moves, the silver prices had also ended the last year with a gain of about 8%. The historical data shows gold has given positive returns over the 12 out of last 15 years. Also, gold prices have appreciated by an average of 20% over the last 10 years, as against about 18% for equities. However, both the benchmark indices of Indian stock market, the BSE Sensex and the National Stock Exchange Nifty, have outperformed gold and silver in the first three months of 2012. The Sensex gained 12.68% between January and March, 2012, while Nifty rose 14.7%. In comparison, gold prices rose by about three per cent and silver by about 8% between January-March 2012. Gold prices in India rose from about Rs 27,600 per 10 grams to near Rs 28,400 during this period, while silver rallied from about Rs 51,100 to Rs 56,200 per kg. In global market also, the gold prices have risen by just about four per cent in the first three months of 2012, which is lower than most of the major global stock indices. During this period, the Dow Jones Industrial Average has gained about 6.6 per cent, Nasdaq has rallied 16.7 per cent, Japan's Nikkei rose 17.7 per cent and Hong Kong's Hang Seng index has surged 8.9 per cent. — PTI
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Top six Sensex firms added Rs 18,234 cr in m-cap last week
Mumbai, April 8 The market value of ONGC gained Rs 5,219 crore to reach Rs 2,33,907 crore in the shortened first trading week of the fiscal 2012-13 that saw the BSE benchmark index gain 0.47% over March 30 closing. Last week, markets operated for three days with Thursday and Friday being public holidays.
In contrast to the gains made by these companies, Reliance Industries, Coal India, Infosys and Bharti Airtel saw erosion in value. Bharti lost Rs 2,563 crore from its m-cap which was Rs 1,25,318 crore as on Wednesday, while CIL's worth slipped by Rs 947 crore to Rs 2,15,767 crore. Infosys saw a decline of Rs 829 crore from its value, while Reliance Industries shed Rs 377 crore from its market worth. Infosys’ m-cap was Rs 1,63,681 crore, while that of RIL was 2,44,641 crore as on April 4. RIL retained the no. 1 position in the list of top 10 companies in terms of market value, while ONGC remained the second most valued firm, followed by TCS. State-owned Coal India was the fourth most valued firm, followed by ITC, Infosys, SBI, NTPC, Bharti and HDFC Bank. — PTI
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India likely to grow at 6.1%
in 2012: E&Y
Mumbai, April 8 Growth should be picking up in H2 2012, provided the global economy does not experience a further shock. Over the medium term, we expect a strong recovery in investment, which will help lift overall GDP growth over 9% by 2014, it said. "India's domestic demand-driven growth model is acting as a catalyst for attracting foreign investments into the country. Although the ongoing global uncertainty may have prompted global investors to become more cautious, India's inherent advantages and proven resilience to counter-act macroeconomic challenges generally outweighs these concerns," E&Y India partner Farokh Balsara said.
— PTI |
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Income tax deductions on medical expenses
By S.C. Vasudeva Q I'm a central government employee. My father, who retired as a stenographer at a civil court and gets a monthly pension of about Rs 16,000, underwent coronary bypass surgery in June 2011 for which an expenditure of Rs 2.25 lakh was incurred. I contributed Rs 50,000 from my bank savings account for the operation. Am I eligible for tax benefit for this amount under Section 80DDB or any other provision of the Income Tax Act? — Anand Kumar Sinha A: Section 80DDB of the Income Tax Act, 1961 applies where a resident assessee has actually paid for medical treatment of such diseases or ailments as may be specified in the tax regulations for himself or a dependent, in case the assessee is an individual. Rule 11DD of the Income Tax Rules, 1962 specifies the diseases and ailments for deduction under the aforesaid section. However, the said rule doesn't cover coronary bypass surgery as one of the specified diseases. You are therefore not entitled to claim any relief under the said section. Q: I'm a senior citizen and a central government pensioner. Here is a breakdown of my total income and savings in fiscal 2011-12 are: Total pension (including arrears) - Rs 369,108; interest income(savings plus National Savings Certificates & MIS - Rs 79,576; total income Rs. 448,684; investment in National Savings Certificates - Rs 100,000; income tax exemption limit - Rs 250,000; total exemption - Rs 350,000; taxable income - Rs 98,684. Can I avoid total tax payable on Rs 98,684 by gifting Rs. 100,000 by cheque to my 37-year-old son who has no source of income and is mentally disabled (as certified by PGI, Chandigarh)? If not, how can I save the maximum amount of income tax on the amount mentioned above and under what sections of the income tax provisions? — Baldev Raj A: The amount of money you intend to gift your son will not be deductible from your total income. You could have purchased infrastructure bonds worth Rs 20,000 on or before March 31, 2012 so as to reduce your total income by another Rs 20,000. Since you did not you will be liable to pay tax on your total income of Rs 348,684. The tax payable on such total income would be Rs 10,164. There is no other avenue available for saving tax. However, this is assuming you are aged less than 80 years. Q: I'm a state government pensioner and underwent surgery in the ENT department of a private facility - Apollo Hospital, New Delhi - in February 2011. The Punjab government had approved any private hospital anywhere in the country for medical treatment of its employees with effect from March 3, 2003. Reimbursement for treatment is exempted fully from income tax under subclause (ii)(a) of 17(2) but my department officials don't agree. Please clarify on the matter. — M.L. Mittal A: The issue raised by you depends on the fact whether the nature of illness for which an operation has been performed at Apollo Hospital, New Delhi is covered by the rules provided for exemption of reimbursement of expenditure on medical treatment under Section 17(2) of the Income Tax Act, 1961. As you haven't indicated the nature of your illness it isn't possible to comment on the response of your department officials.
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Health insurance is a way of covering you and your family against any medical emergency arising out of any diseases or illness or accident. In India health insurance premium is considered as expense. This is because we don’t give importance to eventualities. It’s also true that, as the age of an individual increases, medical bills are likely to rise and become a burden on the family. We need to think seriously and act immediately. When we meet clients, usually we find one or two life insurance policy in each and every home but the health cover is mostly missing there, not only because of lack of awareness but also because of unwillingness to pay the premium from the customer side. At present less than 10% of India's total population have a health insurance plan. It is far better to take early steps to cover yourself and your family before it is too late. Mediclaim policies
A mediclaim policy covers hospitalization expenses for the treatment taken for disease or illness or accident. It also covers pre and post hospitalization expenses up to certain days and certain limit of sum assured. This limits differs from company to company depending upon the policy and sum assured. Today a mediclaim policy of Rs 50,000 or Rs 100,000 sum assured will not suffice. Individually we require a minimum Rs 3 to 5 lakh health cover. You can also buy a family floater with an extra top up plans. Most firms now also offer cashless facility if the patient is hospitalized in a network hospital. Thus, we can concentrate only on illness of the patient and save time and energy spent on raising funds from friends and relatives. Other benefits
General exclusions
Things to check before signing
proposal form
A healthy life means many more working years and chance of wealth creation and financial freedom in your life. The author is head of financial planning at Apnapaisa.com, a price and features comparison engine for loans & investments. The views expressed are his own |
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Q4 results, credit policy to set tone for bourses
The short week behaved exactly as expected and the markets, which gained on the first two days, lost on the third and closed with negative signs for the week ahead. The Bombay Stock Exchange Sensex gained 81.82 points or 0.47% to close at 17,486.02 points. The National Stock Exchange Nifty gained 27.35 points or 0.52% to close at 5,322.90 points. The broader markets fared better with the BSE 100, BSE 200 and BSE 500 gaining 0.89%, 1.00% and 1.12%, respectively. The BSE MidCap and BSE SmallCap were big gainers and rose 2.01% and 3.25%, respectively, showing that the smaller stocks have fared well in the three days of trading during the week. Amongst sectoral indices the top gainers were the BSE Cap that gained 3.3% while the BSE PSU rose 2.07%. However, the BSE Auto lost 0.70%. In individual stocks REC was a big gainer and closed at Rs 226.95, a gain of 10.41%. IVRCL rose 7.47% and the action in the counter would continue with Zee having made an offer to buy out the promoter at Rs 90 against the closing price of Rs 71.20. PFC was up 6.63% while BHEL rose 6.46%. The gold loan companies - Muthoot and Mannapuram - which were badly hammered last week recovered with gains of 3.40% and 18.26%, respectively. Foreign institutional investors continued their purchases and were net buyers to the extent of Rs 1,712 crore and domestic institutions bought shares worth Rs 144 crore. The Indian rupee depreciated to Rs 51.11 in the short week. The week ahead would have lot of action with two IPOs from NBCC and MT Educare listing during the week. Infosys will declare its results on Friday and the result season would kick off in full steam shortly. The Coal India issue was partially resolved with a presidential directive being issued, which is likely to benefit the company's shareholders with the government holding a 90% stake. The fuel supply agreement to be signed would be applicable to the extent of 80% of the long term agreements for power supply of 20 years and imported coal would be supplied on cost plus basis. The penalty in case of shortfall would be decided by the company. This is a great victory for corporate governance and independent shareholders. The bourses turned bearish after Wednesday's movement and the technical pattern formed does not augur well for the short term movement in the markets. Post the closure of our markets global markets in Europe and the United States were weak and trading on Thursday was also not very bullish though they were marginally positive. The markets need to open with a positive gap on Monday if they are to turn positive in the immediate short term. Whether this happens or not will be known only on Monday, but the quarterly results next week, global markets and then the RBI credit policy in the following week will decide how the Indian markets fare. The week ahead is likely to open with a negative bias unless we open with an upside gap and trade higher than 17,600 on the Sensex and 5,350 on the Nifty. The indices need to end in positive territory and close higher than the close of 17,664 and 5,379, respectively, on Tuesday. The Sensex has support at 17,430, then at 17,357, then at 17,211 and finally at 17,075 points. It has resistance at 17,547, then at 17,663, then at 17,825 and finally at 17,921 points. The Nifty has support at 5,306 points, then at 5,273, then at 5,205 and finally at 5,174 points. It has resistance at 5,339, then at 5,373, then at 5,427 and finally at 5,474 points. It's a possibility that after opening weak and failing to cross the bearish gap last week markets may initially fall and then recover as the weak draws to a close. Trade cautiously. Market pointers
The author is founder of KRIS, an investment advisory firm. The views expressed are his own |
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Net investments by foreign institutional investors in the Indian stock market in 2011-12 was the lowest in the last three years at Rs 47,935 crore. FIIs made a net investment of Rs 47,935 crore in the equity market during the fiscal ended March 31, 2012, which was way below the figure of Rs 1.1 lakh crore in 2010-11 and Rs 96,857 crore during 2009-10, according to SEBI data.
Gold has been glittering bright for investors for many years, but the stock market seems to have begun 2012 on a brighter note with better returns than the yellow metal in the first quarter of this year.
The combined market capitalization of six of the top 10 BSE Sensex companies advanced by Rs 18,234 crore last week, led by state-owned energy major Oil & Natural Gas Corp whose value rose over Rs 5,000 crore.
The m-cap of the country's biggest lender, SBI, climbed Rs 4,400 crore to Rs 1,37,432 crore, followed by NTPC which added Rs 4,164 crore to its value at Rs 1,38,317 crore. IT bellwether TCS saw a jump of Rs 2,055 crore in its m-cap which reached Rs 2,30,629 crore, while HDFC Bank gained Rs 1,656 crore taking its value to Rs 1,23,416 crore. Similarly, ITC's worth advanced by Rs 740 crore to Rs 1,77,595 crore.
It has been rightly said that 'Health is Wealth'. But truly speaking how many of us are really serious about it? Today, when everything is uncertain, nobody can be sure what will happen tomorrow. We all are aware that medical bills are as it is quite high and are set to get higher. Still we do not buy health insurance plans.
