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What BSE NSE shares should I buy Now in India?

What BSE NSE shares should I buy Now in India?

Investing in shares is a risky affair. If you invest in wrong stocks, your investment may result in negative returns. But it is very difficult to predict which shares will return a positive return over the next few years.

When I started investing in stocks few years back, I lost Rs. 2,00,000 in my first week of trading. The shares went down hill and never recovered. I did not have much experience in trading and I made mistakes. I also did not spend much time to study the market. The same is the case with many salaries people like me.

In the last two years, I used some algorithmic trend analysis to make a realistic prediction for which shares might perform good in short term. Also common sense and awareness helped a lot in taking decisions. Overall I lost Rs. 3,00,000 an gained Rs 14,70,000 in the past two years. So I thought why not share some information with other people who cannot afford to spend more time in market analysis.

Remember two facts regarding share market:

  1. Growth/fall in share price does not depend on the companies performance. It mostly depends on the public sentiments on the company.
  2. Share market is designed to be unpredictable. You cannot always predict the rise/fall in share price. If you can predict half the cases accurately, you will become freaking rich soon!

shares

Consider a share that gave multi-fold return – Mawana Sugars (MAWANASUG): The share price has grown 8 times between April 2015 to April 2017. If you invested Rs. 300,000 your gains on selling in April 2017 will be more than Rs.20,00,000.  Now I do not recommend buying this. Assume you invested in three shares with Rs. 3,00,000 each. If other two caused me a combined loss of Rs. 3,00,000, my net gains is more than Rs. 17,00,000.

I would suggest two approaches for choosing your lucky stocks.

  1. Buy the stocks that are likely to gain by government policies/market shift.
  2. Buy the shares that are at ALL-TIME-LOW. They may only rise.

The second option is pretty easy. The first approach requires huge technical work.  Every month I fetch the share prices from google finance and run an algorithm to identify the future trend. And these two approaches gave me significant returns that I could never get from Mutual Funds or fixed deposits.

Coming to the original question, which share I should buy NOW ??

GST is being rolled out, the factories are going to make profit. The manufacturing sector is a safe bet. Among the shares that have fallen to all time low, one is Anil Limited and other is Compuage Infocom. These two I can think of for this month. Will they make loss ?? May be! Can they give profit?? Most likely YES!! In case of profit, the loss will be comparatively much less.

Taking a breaking until next month!!

Disclaimer: I do not belong to any financial organization. I am just a programmer who takes interest in high performance computing and trading. Decide your investments at your own risk.

India Budget 2017 Overview

India Budget 2017 Overview

The budget presented by Finance minister Arun Jetley, is not very populist as had been expected because of state elections due shortly. Neither is this a pro-rich budget as the opposition had complained. For the first time, the railway budget has been clubbed with the general budget.

Individual Income Tax:

  • Income Tax rate reduced to 5% for individuals having income within range Rs 2.5 to Rs 5 lakh
  • 10% surcharge on individual income above Rs 50 lakh and upto Rs 1Cr to make up for Rs 15,000 Crore revenue loss of due to cut in IT rates
  • 15% surcharge on income above Rs 1 Crore
  • Simple one page IT return to be introduced and citizens who file their return for the first time will not be subject to scrutiny.

Corporate taxation:

  • 25% Income tax for smaller companies with turnover below Rs. 50 Crore
  • 96% of companies in India to be benefited from the move

India Budget 2017

Transparency in funding to political parties

  • Maximum amount of political contribution a political party can receive in cash is Rs 2000 from any one source.
  • Other contributions can only be received through cheque or digital mode and only in the registered bank accounts of political parties.
  • Electoral bonds to be introduced
  • Political parties to file returns

Railways:

  • Capital and development expenditure pegged at Rs 1.31 lakh Crores for Railways in 2017-18
  • Railway line of 3,500 km will be commissioned in 2017-18 as against 2,800 km in 2016-17
  • 500 stations will be differently-abled by providing lifts and escalators
  • Service charge on e-tickets booked through IRCTC will be withdrawn
  • The shares of railway CPSC’s like IRCTC and IRFC to be listed on various Stock Exchanges

Agriculture:

Agricultural sector is expected to grow at 4.1 % this Fiscal,

  • Target of agriculture credit fixed at Rs 10 lakh Crores in 2017-18
  • The allocation for rural agri and allied sector in 2017-18 is record Rs 1,81,223 Crores, up 24% from last year

Major allocations:

  • Railways: Rs.1.3 Lakh Crores
  • Defence Sector : Rs. 2.74 Lakh Crores
  • Transport Sector: Rs. 2.4 Lakh Crores
  • Agriculture/Rural: Rs. 1.87 Lakh Crores, up 24% from previous year

Others:

  • Revenue deficit reduced to 2.1% from 2.3% for 2016-17
  • Govt pegs fiscal deficit target at 3.2% for 2017-18 and 3% for next year.
  • Plan, non-plan classification of expenditure done away with in the Budget for 2017-18 to give a holistic picture
  • Govt to further liberalise FDI policy
  • 2 new AIIMS to come up in Jharkhand, Gujarat
  • Customs duty on LNG halved to 2.5 %
  • Monetary policy to be expansionary in major economies
  • More steps will be taken to benefit farmers and the weaker sections; budget being presented during weak global economy
  • Participation of women in MNREGA increased to 55% from 45% in past
  • 1.25 crore people have already adopted Bhim App for digital payments
  • Govt to introduce two new schemes to promote BHIM App referal bonus for users and cash back from traders
  • Aadhaar Pay- an app for merchants- to be launched, 20 lakh aadhaar-based POS by September 2017.
  • Government is considering introduction of new law to confiscate assets of offenders who escape the country

Interesting fact:

Finance Minister, Mr. Arun Jaitley pointed out how the direct tax collection was not in accordance with the income and expenditure pattern. He stated that, as per income tax returns filed in the previous year, there are only about 24 lakh Indians earning income above 10 lakhs per annum, and 1.72 lakh Indians above Rs 50 lakhs per annum, but 1.25crore cars were sold and more than 2 Crore Indians have traveled abroad in the same period. How is this possible if the tax returns are accurate.

Things which will get costly:

  • LED lamp components
  • Aluminum ores and concentrates
    • Cars, Bikes, other vehicles
    • Mechanical industry will get hit
  • Printed circuit board
    • Electronics items will be effected
  • Cigarettes, pan masala, cigar, cheroots, bidis, chewing tobacco
    • It happened every year
  • Cashew nuts (roasted and salted)
  • Polymer coated MS tapes used in manufacturing of optical fibres

Things which will get cheaper:

  • Booking railway tickets online
  • RO membrane elements for household usage
  • Solar tempered glass used in solar panels
  • Fuel cell based power generating systems
  • Wind operated energy generator
  • Vegetable tanning extracts used in making leather products
  • POS machines card and fingerprint readers
How the new 500, 2000 notes will travel to common man in India

How the new 500, 2000 notes will travel to common man in India

The new rupee notes are being printed at four mints. Together, they can print about three billion notes per month.

The mints have to replace about 14 trillion taken out of circulation. If half that value is printed in 500 rupee notes and the other half is printed in 2,000 rupee notes, the mints will have to print around 17.5 billion total notes to replace the value of the notes taken out of circulation.

To replace all of the money taken out of circulation, the mints will have to print about 17.5 billion notes, which would take about 175 days.

rupees

To replace 10 trillion, an amount the government says it expects to be returned by the people, the mints will have to print 12.5 billion pieces of banknotes, which would take about 125 days.

Printing 17.5 billion notes at a rate of three billion notes per month will take almost six months. Even if the mints began printing the replacement notes three months ago, they would still need around three more months to complete the printing.

But printing the notes is only half the battle. Once the notes are printed, they need to be distributed to banks and ATMs so they can find their way into your wallet.

Step 1: Printing presses

  • One of the two printing presses responsible for churning out new 2,000 notes is located in Mysuru, Karnataka. The other is in Salboni, West Bengal.
  • Two more presses — one in Dewas, Madhya Pradesh, and one in Nashik, Maharashtra — are printing 500 rupees notes to replace the old ones.

Step 2: RBI issue offices

  • Once printed, the notes are transported to the 19 Reserve Bank of India issue offices in major cities across the country.

Step 3: Currency chests

  • From the issue offices, the money is transported in high-security vans to more than four thousand currency chests across the country. Currency chests are operated by various banks.

Step 4: Bank branches

  • Once a bank has the money in its currency chest, it can restock its bank branches in the surrounding area.

Step 5: ATMs

  • From the bank branches, money is taken to nearby ATMs. Most of the country’s ATMs are not built to accommodate the new 2,000 notes. Thousands of engineers are working as fast as possible to retrofit the country’s 2.18 lakh ATMs. This enormous undertaking is expected to take a few more weeks.