Headless chickens!!!!

Now please don’t salivate at the thought of having butter chicken or kebabs after reading the title. I am describing the situation we are in with respect to the market. Monday we are up on a thumping note, yesterday we were down for some reason despite Asia being up; today we are down and then up. Now by this logic tomorrow we should be up and then down and on Friday we should close flat. Now I am trying my hand at astrology, but the market is such that every Tom, Dick and Harry can try his luck predicting the market as they do on TV everyday. Individually they would get certain part right, collectively they could get one part right and the other wrong and finally the system would do things which ensures nobody gets it right for most part.

Today’s session was very volatile to say the least. Index heavyweights were losing in the first half and came back in green as the day progressed. Of all the index names, it was perplexing to see heavyweights change course and turn green, green names getting stronger and red ones getting redder by the hour. So if people in the intra-day segment played for a turn around in the ones for the making a wild swing on a directional bet (that is hoping for deep red to close flat and make money and vice versa) they would be going home lighter on the pocket.

Asides, this Amul baby (remember the ACK remark on Rahul Gandhi earlier this year) which is usually calm looks really pissed off in the photo below. And this very well describes the sentiment and mood of the nation at this moment. Looks like we had had enough. Also, there seems to be another round of Anna Hazare campaign in the offing sometime in mid-December 2011, which again is a bad thing since no business would get done in the parliament. Not that there has been anything left of doing business, but still.

Finally, November 2011 closed as indicated earlier, with deep cuts – 9.85% down to be precise. On a monthly basis in terms of worse performing months, it would come very close to being right on top. One more month and we close 2011. In 2012 the Armageddon strikes anyways, so let’s start the party. This was on a lighter side. Sleep tight.

source- Rh daily rant

Morning Bell!!!!..... Key Indices trading in red, S&P downgraded rating of several Top US Banks

Indian Markets

Indian stocks came under pressure in early morning trade, with the NSE Nifty falling under the 4800 mark, as investors continue to be cautious amid a political stalemate over a whole host of issues.

The latest issue to spark a political storm has bee the Cabinet decision to open up the retail sector to foreign companies. Also weighing on the sentiment is weakness in the Asian benchmarks after Standard & Poor's downgraded several lenders, including top US banks citing a change in its ratings criteria.

US Markets

U.S. stocks finished mostly higher on Tuesday, with the Dow and S&P extending gains from the previous day's rally, as investors remained hopeful that leaders are making progress on addressing the eurozone debt crisis.

The Dow Jones industrial average rose 33 points, or 0.3%, and the S&P 500 added 3 points, or 0.2%. The Nasdaq composite finished lower, losing 12 points, or 0.5%, with Green Mountain Coffee Roasters, Wynn Resorts and Netflix dragging on the index.

Asian Markets

The Chinese market is the top loser, down ~2% while the Nikkei in Japan and the Hang Seng in Hong Kong and the Taiex in Taiwan are down 1% each. The parliament has been adjourned every single day during the winter session

Currencies & Commodities

Among the Metal prices, Aluminium & Nickel ended lower by 0.6% & 1.8% respectively, while Copper & Zinc gained 0.9% & 0.4% respectively. The dollar slumped against the euro, the British pound and the Japanese yen. Oil for January delivery rose $1.58 to settle $99.79 a barrel. Gold futures for December deliver rose $2.60 to settle at $1,713.40 an ounce.

Outlook for Today

Today, the Indian markets are likely to open lower and trade in a range with negative bias. Immediate support for Nifty is at 4766, while resistance is at 4866. Among the sectoral indices, FMCG and Healthcare are looking good, while Banks, Metals and Realty are looking weak.

source- hdfcsec,Rh morning market,iifl

Market Taking a breather!

Looks like it is time to stop and ponder for the market. With the kind of run we saw yesterday, it was only logical that we stopped and took some time off to breath. Today’s session was clearly a sandwich of sorts, what with Asia opening and continuing to stay green throughout. While we tried to break even mid way and then EU pulled us down. That region has been in some sort of news overhang. But clearly, just to think of it, isn’t it that we actually started the fire right in the eastern coast of the US in the fall of 2007; and now here we are in the middle of the globe all but talking about EU region and saving of the country after country; which seems to be far bigger problem combined than all kind of issues that lay open in the US.

Back home though, we have our own set of challenges, what with the opposition not playing ball with the FDI in retail and a laundry list of merchant associations taking to the streets; obviously at the behest of the opposition parties. So while most of the retail stock which flew away like soaring kites to the sky are now back down today like the same kites whose string was severed by design. Such is the trick of the market. Never rush, since the rush would only trample you.

That is also why investing is as much of an art as science, replete with technical jargon and computer models. So today we have the high flyers of yesterday again taking backseat; down anywhere from 1%-2.5% taking with it the market which closed 1% down. Tomorrow is another day. However, what and end to the month of November 2011. All in all, whatever happens tomorrow it could be either a single digit fall or a double digit one, the month closing down by a big margin is all but certainty

Morning Bell !!!!...........The main Indian equity benchmarks have opened with a negative

Indian Markets

The main Indian equity benchmarks have opened with a negative bias as the ongoing political confrontation between the Government and the Opposition parties has escalated over various issues, including the Cabinet's move to open up the retail sector to the foreign companies.

Shares of retail companies have fallen for second successive session as pressure mounts on the Government to rollback the decision on allowing up to 51% FDI in multi-brand retail trade.

US Markets

U.S. stocks posted sharp gains on Monday, following reports of strong Black Friday weekend sales and amid optimism that European leaders may be working toward a solution to the continent's debt crisis.

The Dow Jones industrial average soared 291 points, or 2.6%, the S&P 500 added 34 points, or 2.9%, and the Nasdaq composite rose 86 points, or 3.5%. The advance broke a 4-day losing streak for the Dow and seven consecutive days of declines for the S&P 500 and Nasdaq.

Asian Markets

Today, barring Strait Times, which is trading marginally lower by 0.1%, all the other Asian indices are trading in the green. Hang Seng & Taiwan are up by 0.7% & 0.7% respectively, while Shanghai & Nikkei are trading higher by 0.5% & 0.8% respectively. Kospi is trading higher by 1.5%.

Currencies & Commodities

Among the Metal prices, Aluminium & Copper ended higher by 0.8% & 2.4% respectively, while Zinc & Nickel gained 2.4% & 1.6% respectively. The dollar slumped against the euro and the British pound, but edged higher versus the Japanese yen. Oil for January delivery jumped $1.44 to settle at $98.21 a barrel. Gold futures for December delivery rose $25.10 to settle at $1,710.80 an ounce.

Outlook for Today

After a sharp rally yesterday, today we expect the markets to open on a flat note & trade in a narrow range. Immediate support for Nifty is at 4766, while resistance is at 4874. Among the sectoral indices, Oil & Gas, FMCG and Banks are looking good.

SOURCE- HDFCSEC,RH MORNING MARKET UPDATE

Key Economic Data

Source- nse,bse.rbi,

Morning Bell !!!.....The Sensex surged over 200 points in the opening trade, reacting to a solution to Italy's debt problems

Indian Markets

The key Indian stock indices rose smartly in early morning trade on the back of healthy gains in other Asian markets. Reports on European leaders readying draft rules for the region's bailout fund and the IMF preparing financial aid for debt-laden Italy have lifted the sagging sentiment across Asia. Also adding to the positive mood is news that US retail sales jumped over the Thanksgiving weekend.

The Sensex surged over 200 points in the opening trade, reacting to a solution to Italy's debt problems last week. There were reports that International Monetray Funds (IMF) is preparing Euro 600 billion loan for Italy in case the debt burden worsens. The week started on a good note as market witnessed broad based buying. The 30-share BSE Sensex was up 271 points at 15,966 and the 50-share NSE Nifty rose 81 points to 4,790 in the opening trade.

US Markets

U.S. stocks ended lower on Friday, logging the worst weekly losses in two months, as euro zone fears continued to weigh on investor sentiment.

Asian Markets

Today, the Asian indices are trading in the green with Taiwan trading up by 1.66%, Shanghai up by 0.45%, Hang Seng up by 1.84% and Strait Times up by 1.37%.

Currencies & Commodities

Among the Metal prices, Aluminium, Zinc, Copper & Nickel fell 1.1%, 0.8%, 0.9% & 0.9% respectively. The dollar gained strength against the euro, the British pound and the Japanese yen. Oil for January delivery rose 40 cents to $96.57 barrel. Gold futures for December delivery fell $10.10 to $1,685.70 an ounce.

Outlook for Today

Today, we expect the markets to open higher on reports that IMF is expected to provide upto Euro 400 bn assistance to Italy while France & Germany are exploring radical proposal for more rapid fiscal integration. Immediate support for Nifty is at 4639, while resistance is at 4771. Among the sectoral indices, Banks, CG and Realty could do well while IT and Healthcare could underperform.

source- hdfcsec,rhmorning market update

Tendulkar's Principles apply in investing - Consistency and discipline

"Dream Big and try consistently to get it" that's what the great Sachin Tendulkar says.And same thing applies to your financial goals too. I have a big dream to become a crorepati. And I am sure; you too must be nursing the same ambition.

Ok. Now that you and I have a dream we better get up and start working towards it. We have to figure out the shortest and the surest way to become a crorepati. A few ways, of course, are: 

1. Winning a lottery
2. Winning the KBC show
3. Getting it in inheritance
4. Saving and investing with a plan that can get you there

Unless I am really lucky or extra-ordinarily talented my chances of becoming rich are slim by the first three ways. The fourth way seems to me like something that we can do to achieve our goal.

  

I want to become a crorepati in 10 years

 Time is running out on you. Though 10 years is not a long duration, it is not too short either. So your dream can still be achievable.

Weekly Market Snapshot.....W-o-W, while the Sensex lost 4.3%, the Nifty lost 3.99% over the same period

The week gone by saw the markets continuing to slide lower. In the process, the crucial lows of 15745/4720 were broken and the Sensex/Nifty resumed their intermediate downtrend. It was the fourth consecutive week of losses. W-o-W, while the Sensex lost 4.3%, the Nifty lost 3.99% over the same period. Reflecting the weak sentiments seen during the week, market breadth was negative in three out of the five trading sessions of the week.

Global Markets

US crude oil fell more than $2 and Brent crude lost over $1 per barrel on worries over the prospects for global economic growth as debt crises dominated headlines on both sides of the Atlantic.

The euro zone's debt crisis struck again at the heart of Europe despite a clear-cut election victory in Spain for conservatives committed to tougher austerity.

German government bond yields hit their highest in nearly a month and world stocks held near 7-week lows on Thursday, a day after a weak debt sale in Berlin fanned fears the euro zone debt crisis is starting to threaten its biggest economy.

Indian Markets

The Securities and Exchange Board (Sebi) set a minimum allotment size of Rs 5 crore ($1 million) for issuing shares in an initial public offer to "anchor" or cornerstone investors.
The Cabinet cleared the bill to increase foreign direct investment to 51% in multi-brand retail and 100% in single brand.

Inflation is expected to moderate if the current easing trend in weekly food and fuel prices continues. Food inflation fell sharply to single digit at 9.01% for the week ended November 12 even as prices of most agricultural items, barring potatoes, onions and wheat, continued to rise, on an annual basis.

Amid falling value of rupee, the RBI today asked corporates to park funds raised through ECBs for domestic expenditure with local banks, a move which will increase inflow of foreign currency.

Outlook of the week

With the markets again resuming their downtrend after bouncing back on Thursday and the Sensex/Nifty trading below their previous lows of 15745/4720, the underlying trend remains down. Our immediate downside targets for the Nifty are at 4640. We continue with our go slow approach on fresh longs till we see signs of sustainable strength.

Source-hdfcsecurity

Gold: Mr Dependable in Crisis!!

Invest in gold as it has edge over equities: Investment in gold works both in hedge market fluctuation and inflation. Gold prices are less volatile than equities and gold gives a good return even in falling markets. Gold can be bought in physical form or in the form of ETFs (Exchange Traded Funds). It is easier to buy, hold and sell gold in ETF form. In case you don’t have a demat account, then gold funds are also available like other mutual fund units through SIP. Investment in gold is tax efficient too. As there is no income during the holding period, the tax liability is nil. You can also take a loan against gold as security for temporary needs at a reasonable rate of interest within minutes. If you need to sell, then the long term capital gain tax rates are also lower than normal rates. Moreover the cost of purchase gets increased by inflation index. Thus zero tax liability in holding while your money is appreciating more than the rate of interest or inflation in general and lower tax liability in case of sale also – that’s the advantage of buying Gold. Buy gold for long term needs, happiness and security. Buying gold coins from banks or MMTC at a premium from market price does not help. You may not be able to sell it at a premium too – your sale might be below the market price. Hence buying in ETF form is best or buy jewellery, to make your loved ones happy.

Source-taxplanner

Morning Bell !!!....Cabinet approves multi‐brand retail, 100% FDI allowed in single‐brand Retail.

Indian Market:

The key Indian stock benchmarks have managed to claw their way back in mid-morning trade after a soft opening, with Small-Cap and Mid-Cap shares leading from the front. As a result, the market breadth has turned higher. Barring IT, Oil & Gas and Metals, all the sectoral indices on the BSE are also in the positive zone.

At 10:45 am (IST), the BSE Sensex was 15,865, up 6 points over the previous close. It had earlier touched a day’s high of 15,891and a day’s low of 15,672. It opened at 15,781. NSE Nifty was quoting 4,759, up 3 points over the previous close. It has earlier touched a day’s high of 4,767 and a day’s low of 4,700. It opened at 4,731.

Yesterday’s closing Bell-

Sensex staged a pull‐back in the afternoon and closed the settlement day of November series on a positive note. Capital goods, auto and power stocks were the top sectoral performers while FMCG space ended marginally in the red. India's food inflation eased 9.01% for week ended November 12 against 10.63% a week ago. The primary articles price index was up 9.08 % as compared 10.39%. Cabinet approves multi‐brand retail, 100% FDI allowed in single‐brand Retail.

US Market:

US markets were closed yesterday on account of Thanksgiving.

Asian Market:

Asian stocks fell for a third day after German Chancellor Angela Merkel ruled out common euro‐area bonds and a bigger role for the European Central Bank in fighting the region’s debt crisis, damping the earnings outlook for Asian exporters.

Commodities:

Brent crude dropped in London, heading for a second weekly decline, as speculation Europe’s debt crisis threatens its economy countered concern violence in Saudi Arabia may destabilize the world’s biggest oil exporter.

Currency:

Euro edges up on short‐covering but still not far from a 7‐wk low hit the previous day, having suffered a steep fall after poor demand at a German bond sale fuelled fears the region's debt crisis was starting to threaten even Europe's biggest economy.

Today’s Market

Today market is likely to open on a flattish note but may advance during the day.

Source- NB,Rh morning update

How to calculate your life insurance coverage???

All of us know that life cover is the first step to financial planning, but the right quantum of life cover is something that seems to elude most. The calculation of Human Life Value (HLV) helps avail the right amount of cover. The right assessment of life risk and sufficient life cover is something we owe to our near and dear ones who depend on us for financial support.

Read more...

http://www.rediff.com/getahead/slide-show/slide-show-1-money-how-to-calculate-your-life-insurance-coverage/20111104.htm

Anil Rego

CEO, Right Horizons

Morning Bell !!!.....The Nifty fell 1% to trade way below the 4700 level

SENSEX 15506.82   -193.15 (-1.23%)                                NIFTY 4648.50   -57.95 (-1.23%) 

Indian Markets

The key Indian stock indices have edged up ever so slightly in early morning trade but were seen struggling to hold on to the early gains amid signs of choppiness ahead of the F&O expiry. The opening today is mildly better as compared to some of the previous sessions as Asian markets have not fallen as hard as their US and European counterparts did overnight following a rare failure at a German bond auction.

US Markets

U.S. stocks slid deep into the red on Wednesday, ending down more than 2%, as eurozone fears rumbled on and a preliminary report showed that Chinese manufacturing slowed sharply. A lackluster report on the U.S. job market added to the gloomy mood on Wall Street.

The Dow Jones industrial average dropped 236 points, or 2.1%. The selling was broad, with all 30 components of the blue chip index losing ground. Bank of America was the biggest loser on the Dow, with shares sliding more than 4% and hitting their lowest level since March 2009. The S&P 500 dropped 26 points, or 2.2%, and the Nasdaq lost 61 points, or 2.4%. Investors were rattled by a disappointing auction of German bonds.

Asian Markets

Today, the Asian indices are trading on a mix note with Shanghai & Nikkei trading lower by 1.4% & 0.7% respectively. Shanghai is down as Chinese manufacturing activity fell to a 32-month low. However, the other Asian indices like Hang Seng, Strait Times, Kospi & Taiwan are trading in the positive in the range of 0.5%-1%.

Currencies & Commodities

The dollar gained against the euro, the British pound and the Japanese yen. Oil for January delivery slipped $1.84 to settle at $96.17 a barrel. Gold futures for December delivery fell $6.50 to settle at $1,695.90 an ounce.

Outlook for Today

Today, we expect the markets to open marginally lower initially and then make an attempt to inch up. During the latter half of the session, it is likely to take cues from Dow Futures & European markets for further direction. With the Nifty breaking the crucial lows of 4720 yesterday, the underlying trend remains undoubtedly down in near term. However, considering a sharp fall over the last few trading sessions, we could see some bounce back in the markets for a day or two before the fresh downtrend resumes. Immediate support for Nifty is at 4641, while resistance is at 4759.

Source-hdfcsec, Rh morning update

Gift Tax-: Beware of receiving Money !!!

Any gift received from or given to non relatives above ` 50,000 is taxable. If you receive more than ` 50,000 during a financial year without any consideration, then, the entire sum is taxable. Below mentioned points are some exceptions to the case:

• On the occasion of marriage

• Under a will or by way of inheritance

• Gift from a relative

• In contemplation of death The limit of ` 50,000 is for the entire financial year (Apr 1, 2010 to Mar 31, 2011), irrespective of the number of people from whom you have received the money. For example if you received Rs. 10,000 from six persons, you will have to pay tax on the entire sum of ` 60,000. Also a gift received in kind, such as property, paintings, bonds, debentures and jewellery without consideration is also taxable. If you are gifted a painting worth ` 2 lakh, it will be included in your income and taxed as per your slabs. However if a property is received on consideration which is less than stamp duty value, then it will not be included in your income.

When you receive from your relatives

You can receive any amount or property from your relatives without paying income tax as presently, there is no gift-tax. The term “relative” includes:

• Spouse

• Brother or sister

• Brother or sister of the spouse

• Brother or sister of either of the parents of the individual

• Any lineal ascendant or descendent

• Any lineal ascendant or descendent of the spouse

• Spouse of the person referred to in (2) to (6)

A lineal descendant is a person who is in direct line to an ancestor: child, grandchild, great-grandchild and so on. Similarly, a lineal ascendant could be parent, grandparent, great-grandparent and so on. Hence gift from father, mother, brother, sister, father in law, mother in law, brother in law, sister in law, etc. will not attract any income tax. Similarly grand parents can give tax free gifts. Avoid gifts from mother’s father/mother (Nana/Nani) as these are not tax free. There are debates on treating them as lineal descendent. If you gift money or an asset to your daughterin- law, then the income from that money or asset will be clubbed in your income.

Source-: taxplanner

Morning Bell!!!!........Indian equity benchmark Sensex gave up all of yesterday's gains to slip below 16,000

SENSEX 15832.32   -233.10 (-1.45%)                           NIFTY 4743.40   -68.95 (-1.43%)

                                                

Indian Markets

Indian equity benchmark Sensex gave up all of yesterday's gains to slip below 16,000 in the opening trade. The 30-share BSE Sensex fell 230 points to 15,835.72 and the 50-share NSE Nifty lost 68 points to 4,744.

Markets bounced back on Tuesday after eight consecutive sessions of losses.While the BSE Sensex finally closed 119.32pts or 0.75% higher at 16,065.42, the Nifty gained 34.0pts or 0.71% to close at 4,812.35. Broad market indices ended higher as the BSE Mid Cap and Small Cap indices gained 0.34% and 0.03% respectively.

US Markets

Stocks ended in the red on Tuesday, amid worries about U.S. economic growth. But losses were trimmed after the International Monetary Fund unveiled an enhanced lending program to help countries struggling with short-term liquidity problems from Europe's debt crisis. The Dow Jones industrial average ended down 54 points, or 0.5%. The S&P 500 slipped 5 points, or 0.4%, and the Nasdaq composite lost 2 points, or 0.1%. Earlier, all three indexes were down about 1%.

Asian Markets

Today, the Asian indices are trading lower with Hang Seng, Shanghai trading lower by 0.7% & 2.1% respectively. Taiwan, Kospi & Strait Times are trading by 1.8%, 2% & 1.5% respectively.

Currencies & Commodities

The Indian rupee saw sharp recovery in the early trade as it seems that RBI may have sold dollars to cap the slide. It was trading at USD 51.88 to the dollar as against 52.30 on Tuesday. Oil for January delivery gained $1.09 to settle at $98.01 a barrel. Gold futures for December delivery rose $23.80 to settle at $1,702.40 an ounce.

Outlook for Today

Today, we expect the markets to open lower following negative global cues and remain weak throughout the session. The underlying trend remains down and our downside targets for the Nifty are at 4720, which it could test in a day a two if global markets continue to remain weak and rupee continues to depreciate. Any pullback rallies could find resistance at 4850-4874. Metals, Auto & Consumer Durables look weak & could underperform.

Source- HDFC SECURITY

Morning Bell !!!!!.....Short covering helped the market, Rupee hit an all-time low of 52.44 to the dollar

SENSEX 16055.41   109.31 (0.69%)                                          NIFTY 4805.90   27.55 (0.58%)

Indian Markets

The Indian equity benchmarks—Sensex and Nifty—opened above the 16,000 and 4,800 mark, respectively. Short covering helped the market. It was warranted after a fall of more than 1,600 points on the Sensex in the last eight days.

The 30-share BSE Sensex gained 135 points at 16,081.10 led by 27 stocks. Meanwhile, the 50-share NSE Nifty rose 39.6 points to 4,817.95 amid volatility.

The market shrugged off the falling rupee. It hit an all-time low of 52.44 to the dollar today. It was trading at 52.43 a dollar, down 27 paise from the previous closing price. It was down by 46 paise to 70.70 a euro.

Indian equity benchmarks fell for the eighth consecutive session on Monday. The Sensex has now shed more than 1600 points in eight days, tracking the sharp fall in the Indian rupee as it fell to fresh 32-month lows. Huge selling by foreign investors coupled with rising concerns over US and eurozone debt crisis helped the bears to gain control.

While the BSE Sensex finally closed 425.4pts or 2.6% lower at 15,946.1, the Nifty lost 127.5pts or 2.6% to close at 4,778.4. Broad market indices too ended lower as the BSE Midcap and Small Cap indices shed 1.86% and 1.68% respectively.

US Markets

Uncertainty caused all three major indexes to fall more than 2.5% for most of the trading day with the Dow losing more than 300 points at times. The Dow Jones industrial average closed 249 points lower, or down 2.1%; the S&P 500 lost 23 points, or 1.9%; and the Nasdaq composite fell 49 points, or 1.9%.

Asian Markets

Today, the Asian indices are trading on a mix note. Hang Seng, Shanghai & Nikkei are trading marginally lower by 0.1%, while Taiwan, Kospi & Strait Times are trading higher by 0.1%, 0.4% & 0.4% respectively.

Currencies & Commodities

All the Metal prices ended lower with Aluminum & Copper falling by 0.4% & 3.6% respectively. Zinc & Nickel ended lower by 0.3% & 1.5% respectively. Oil for January delivery slipped 50 cents to $97.17 a barrel. Gold futures for December delivery lost $46.50 to $1,678.60 an ounce.

Outlook for Today

After a sharp fall yesterday, we expect the Indian markets to open on a positive note. During the latter half of the session, it could take cues from the Dow Futures & European markets for further direction. Immediate support for Nifty is at 4741, while resistance is at 4874. Among the sectoral indices, IT, Metals & Oil & Gas look weak, while Banks could do well today.

Source-HDFCSECURITY

ELSS is still the best bet to save tax despite higher rates on NSC, PPF

Equity linked saving schemes are a kind of mutual funds like diversified equity funds with Tax benefits. It is just like other tax saving instruments like National Savings Certificate and Public Provident Fund. Main advantage with ELSS is lock-in period is only 3 years while for NSC it is 6 years and for PPF it is 15 years. At the same time risk factor is high in ELSS.

As per Income Tax act 80c investment up to Rs 1,00,000 are eligible for deduction from the gross total income hence reducing the total taxable income. For example if your total annual income is Rs 3,00,000 and you invest Rs 1,00,000 in ELSS then your taxable income will become Rs 2,00,000.

Advantages of ELSS over NSC and PPF

1. Main advantage of ELSS is its short lock-in period. Maturity period of NSC is 6 years and PPF is 15 years.

2. Since it is an equity linked scheme earning potential is very high.

3. Investor can opt for dividend option and get some gains during the lock-in period

4. Investor can opt for Systematic Investment Plan

5. Some ELSS schemes also offer personal accident death cover insurance

6. Provides 30 to 40% returns compared to 8% in NSC and PPF

Morning Bell !!!!.......The BSE benchmark Sensex fell over 150 points in the opening trade,rupee depreciated to 51.48 a dollar

SENSEX 16207.50 -164.01 (-1.00%)                                          NIFTY 4856.40 -49.40 (-1.01%)

Indian Markets

The BSE benchmark Sensex fell over 100 points in the opening trade, tracking weak global cues. The 30-share BSE Sensex dropped 158 points to 16,213.69 in the opening trade while the 50-share NSE Nifty lost 50 points to 4,856.05.

The Indian rupee depreciated to 51.48 a dollar in the morning trade, losing 0.3% as compared to Friday's rate of 51.33/USD.

Markets ended lower on Friday for the sixth consecutive session. A recovery in the afternoon session helped to curb the losses. While the BSE Sensex finally closed 90.2pts or 0.55% lower at 16,371.51, the Nifty lost 28.95pts or 0.59% to close at 4,905.80.

US Markets

U.S. stocks ended Friday?s session on a mix note. While Dow Jones ended higher by 0.2%, Nasdaq ended lower by 0.6%. S&P ended on a flat note.

The Indian ADRs ended on a mixed note. Wipro & ICICI Bank ended higher by 0.2% & 0.6% respectively, while Infosys, Dr. Reddy?s & Tata Motors ended lower by 0.6%, 1.1% & 0.9% respectively. HDFC Bank ended flat, while Tata Communications & MTNL ended lower by 2.6% & 1.9% respectively.

Asian Markets

Today, the Asian indices are trading on a weak note with Shanghai & Hang Seng trading down by 0.2% & 1.9% respectively. Nikkei & Taiwan are trading lower by 0.1% & 2.2% respectively, while Strait Times & Kospi are trading lower by 0.8% & 1.2% respectively.

Currencies & Commodities

Among the Metal prices, Aluminum ended flat, while Copper, Zinc & Nickel ended higher by 1.1%, 0.8% & 0.5% respectively.Oil for December delivery slipped $1.19 to close at $97.45 a barrel. Gold futures for December delivery fell $5.5 to $1,719.6 an ounce.

Outlook for Today

Today, we expect the markets to open in the red following weak global cues and trade in a range with negative bias throughout the session. Immediate support for Nifty is at 4838, while resistance is at 5000. Among the sectoral indices, Realty, Metals & Auto look weak and could underperform.

Source-HDFCSECURITY

Medical insurance premium paid for family, including parents, is deductible

When you pay an Insurance premium of up to ` 40,000 (must be paid by cheque) during a financial year for the health of self, spouse, dependant parents or children, it is allowed as a deduction from income. Hence taxable salary reduces up to maximum of ` 15,000 (up to ` 20,000 for senior citizen). Therefore, you get “health bhi aur wealth bhi”. Even if your parents are not dependant, you can pay for medical insurance and claim deduction. You must compare premium from different insurance companies, medical conditions and treatments covered and list of hospitals on the panel of the insurance company. We’d recommend that you go for cashless medical insurance. In cashless insurance, all hospital bills will be paid by the insurance company. If you incur hospital expenses on your own and your claim is later reimbursed by the insurance company, then that reimbursement is not taxable. There is zero maturity value of a medical insurance policy - just like car insurance. It only helps to mitigate the medical expenses in case of a sudden health problem. The premium paid by an employer for employee’s accidental cover is not taxable to the employee or the employer.

Source- tax planner

Morning bell !!!!.....The NSE Nifty has fallen below the 4,900 mark, Rupee depriciates to 51.27

Indian Markets

The key Indian stock indices have extended this week's losses in early morning trade on the back of persistent weakness across risky asset classes amid lingering concerns about the ever worsening credit crisis in the eurozone and its impact on the global economy. The NSE Nifty has fallen below the 4,900 mark. The BSE Sensex is down nearly 1%.

Indian markets witnessed a sharp downward spiral on Thursday after the Nifty broke the supports of 4990. While the BSE Sensex finally closed 314.16pts or 1.87% lower at 16,461.71, the Nifty lost 95.7pts or 1.9% to close at 4,934.75.

US Markets

U.S. stocks fell sharply on Thursday as jumpy investors dumped risky assets on fears of more debt trouble in the eurozone. The Dow Jones industrial average was down 135 points, or 1.3%, to end at 11,770; the S&P 500 fell 21 points, or 1.7%, to 1,216; the Nasdaq composite sank 51 points, or 1.9%, to 2,588. The selling gained momentum after the S&P 500 fell below 1,225, a key technical level that had been the recent moving average.

All the Indian ADRs ended on a weak note with Infosys & Wipro falling by 1.8% & 3.3% respectively. Dr. Reddy?s & Tata Motors ended lower by 4% & 6.4% respectively, while ICICI & HDFC Bank fell by 4.1% & 5.5% respectively. Tata Communications ended lower by 4.1%.

Asian Markets

Today, the Asian indices are trading on a weak note with Shanghai & Hang Seng trading down by 0.8% & 1.7% respectively. Nikkei & Taiwan are trading lower by 1.3% each. Strait Times & Kospi are trading lower by 1% & 1.7% respectively.

Currencies & Commodities

Among the Metal prices, Aluminum & Copper ended lower by 0.6% & 1.2% respectively, while Zinc & Nickel rose 0.2% & 0.5% respectively. Indian rupee depreciates to 51.27 compare to USD.

Outlook for Today

Today, we expect the markets to open on a weak note. However, during the latter half of the session, it could find support at lower levels and could recover some of its losses. In terms of strategy, we recommend a go-slow approach on fresh longs till we see signs of sustainable strength. Immediate support for Nifty is at 4885, while the crucial resistance is at 5000. Among the sectoral indices, Capital Goods, IT & Banks look weak and could underperform.

Sources- HDFCSEC

Morning Bell !!!.........Market is likely to open lower and may find short term support at 4985

SENSEX 16681.77   -94.10 (-0.56%)                                  NIFTY 5002.40   -28.05 (-0.56%)

Indian Markets

The BSE benchmark Sensex was choppy in the opening trade following mixed Asian cues. The 30-share BSE Sensex fell 2.6 points to 16,773.29 and the 50-share NSE Nifty was down just 0.15 points at 5,030.30.

Indian markets fell for the fifth consecutive session on Wednesday due to lack of clarity in the financial issues related to Greece & Italy. The Nifty witnessed huge volatility in the last couple of hours of trade as it tried twice to attempt full recovery but could not make it. While the BSE Sensex finally closed 107 pts or 0.6% lower at 16,776, the Nifty lost 38 pts or 0.8% to close at 5,030

US Markets

Dow Jones dropped 191 points, or 1.6%; S&P 500 lost 21 points, or 1.7%; and the Nasdaq composite fell 47 points, or 1.7%.

All the Indian ADRS ended in the red except Satyam, which rose by 1.8%. The other IT ADRs ended in the red with Wipro and Infosys losing 3.2% and 2.2% respectively. MTNL and Tata Communications fell by 2.8% and 1.8% respectively. Tata Motors and Dr Reddys ended lower by 1.6% and 1.4% respectively. ICICI Bank and HDFC Bank fell by 2% and 0.4% respectively.

Asian Markets

Today, all the Asian indices are trading in the red except Shanghai, which is marginally in the green. Hang Seng and Strait Times are trading lower by 0.9% and 0.8% respectively. Taiwan and Nikkei are down by 0.3% each while Kospi is down 0.1%.

Commodities

Among the metals, Aluminium and Copper fell by 0.9% while Nickel rose by 0.8%. Zinc ended higher by 0.3%. Oil for December delivery added $3.22 to $102.59 a barrel. Gold futures for December delivery fell $7.90 to $1,774.30 an ounce.

Outlook for Today

Today, we expect the Indian Markets to open in the red on the back of weak global cues and remain weak throughout the session. Among the sectors, IT, Capital Goods, Infrastructure and Oil & Gas stocks look weak

Source- hdfc sec, moneycontrol

Interest on Home Loan is Super tax saver for all !!!

An interesting tax saver can be your home loan! Interest on home loan is deductible from your salary, provided you have possession of the house. If your house is under construction, then interest will be accumulated till you get possession. Thereafter, deduction will be allowed in five equal installments for next five years, along with the interest of that financial year.

The total interest deductible is limited to ` 1.5 lakh for self occupied house. The interest rate of home loan has been on the rise. However, even today the effective interest rates are attractive i.e. home loan interest at 10% effectively gets reduced to 7% assuming you are in 30% tax bracket. Therefore, you should take a home loan if you have the opportunity and the risk capacity to invest in equities and mutual fund. The average return of equities is higher than 7-8% effective interest rate on home loan. You can prepay home loan if the interest being charged is @12% or more, instead of keeping your money in fixed deposits, bonds etc. (@9%). Another way of saving money is to take home loan with overdraft facility so that you can save interest by depositing additional funds in the home loan account. Banks like SBI, HDFC, and HSBC offer these loans as home saver, smart home etc. You can claim full interest as deduction in the case of let out property, even if it exceeds ` 1.5 lakh. You can take loan from your friends and relatives and claim interest deduction, however the principal payment will not be eligible for deduction under section 80C. The Direct Tax Code is expected from 1st April 2012 and the deduction for principal payment of home loan may be withdrawn. However the interest deduction may remain as before. Home loan interest is deductible on an accrual basis, hence even if the interest has not been paid to your relative/friend but accrued, then too the deduction is allowed

IDEAL HOME LOAN - Home loan of ` 16 lakh @10% for 15 years is an ideal position to optimize on tax benefits per person. EMI comes to ` 17,194 X 12 = ` 2,06,328. Out of this, interest payable during the financial year is ` 1,57,817 and principal repayment is ` 48,511.

Source- taxplanner

Morning Bell!!!!!..............Indian equity benchmark Sensex fell 100 points in the opening trade due to depreciating rupee to near 51

SENSEX 16752.23   -130.44 (-0.77%)                                      NIFTY 5026.10  -42.40 (-0.84%) 

  

Indian Markets

Indian equity benchmark Sensex fell 100 points in the opening trade due to depreciating rupee to near 51 a dollar (falls 0.5%). Weak Asian cues on euro zone debt crisis too weighed on the India. Yesterday bears at Dalal Street took charge of the markets in the last one-and-a-half hour of trade after trading in a range bound manner since morning. While the BSE Sensex finally closed 236 pts or 1.4% lower at 16,883. The Nifty lost 80 pts or 1.6% to close at 5,069. Session.

US Markets

U.S. stocks closed higher on Tuesday as a batch of better-than-expected U.S. economic data temporarily overshadowed ongoing fears about the euro zone debt crisis. Dow Jones added 17 points, or 0.1%, to close at 12,096. S&P 500 gained 6 points, or 0.5%, to 1,258, Nasdaq rose 29 points, or 1.1%, to 2,686.

Most of the Indian ADRS ended in the red with MTNL losing the most (4.4%). However, Wipro, Tata Motors and Infosys rose by 1.1%, 0.7% and 0.3% respectively. Satyam and ICICI Bank lost 3.5% and 1.9% respectively. Dr Reddys and Tata Communications ended lower by 0.9% and 0.8% respectively while HDFC Bank fell marginally by 0.1%.

Asian Markets

Today, all the Asian indices are trading in the red with Hang Seng and Shanghai trading lower by 1.7% and 1% respectively. Taiwan and Strait Times are down by 0.5% and 0.3% respectively. Nikkei is own 0.1% while Kospi is marginally in the red.

Commodities

Among the metals, Nickel fell by 2.5% while Aluminum and Zinc lost 1% each. Copper fell by 0.7%. Oil for December delivery rose 34 cents to close at $98.48 a barrel. Gold futures for December delivery slid $8.20 to end at $1,770.20 an ounce.

Outlook for Today

Today, we expect the Indian Markets to open in the red on the back of weak global cues. Support on Nifty is at 5,050-5,011 while resistance is at 5,100. Among the sectors, Banking stocks look weak.

Sources- hdfcsecurity, moneycontrol

Go High with Corporate Bonds!!!!!!!

Many companies use two ways to raise the money required for business growth. The way in which they do this is through issuing shares or issuing bonds. With shares you become a part owner of the company but with bonds you become a lender to the company. Corporate bonds are one of the main ways for them to raise capital. The question arises: just how safe are corporate bonds?

As with all bonds, corporate bond prices are sensitive to universal fluctuations in interest rates. CARE, Crisil or Fitch rate most bonds. Any with a rating of B B B or higher are considered to be investment grade. Those rated lower would be considered as a “junk bond.” The higher the rating the lower the rate of return the issuer can offer. While an investment-grade corporate bond may still default you can be more confident in its ability to repay its debt.

At the end of the day corporate bonds are only as safe as the company in which you invest. Read annual reports to learn about the company’s cash reserves, their outstanding debt and profit projections. Look for realistic responses to economic changes.

Benefits of Investing in Corporate Fixed Deposit

• Fixed Return on investment

• Relatively Safe return on Investment

• No Income Tax is deducted at source if the interest income is up to Rs 5,000 in one financial year. Investment can be spread in more than one company, so that interest from one company does not exceed Rs. 5,000.

Morning Bell!!!!....Sensex opens flat, Tata Power tanks 7%

Indian Markets

The BSE benchmark Sensex fell 40 points in opening trade following moderate sell-off across the globe. Technology, FMCG, Tata group and select financial stocks were witnessing selling pressure. Soon after, the 30-share BSE Sensex slumped another 63 points to 17,055.54 and the 50-share NSE Nifty dropped 25 points to 5,123.05

Indian equity benchmarks turned negative after a positive opening. This was due to disappointing second quarter numbers of some companies and a fall in European markets. While the BSE Sensex finally closed 74 pts or 0.4% lower at 17,119, the Nifty lost 21 pts or 0.4% to close at 5,148.

US Markets

U.S. stocks slid Monday as investors grew wary over whether political transitions in Greece and Italy will help resolve Europe's debt crisis. The Dow Jones industrial average dropped 75 points, or 0.6%, the S&P 500 lost 12 points, or 1%, and the Nasdaq composite fell 22 points, or 0.8%.

The Indian ADRS were in the red with Tata Motors losing the most (4.1%). MTNL, ICICI Bank and Satyam fell 3.4%, 3.3% and 3.1% respectively. Wipro fell 0.2% while Dr. Reddy?s fell 0.4%. HDFC Bank and Tata Communications fell 1.2% and 2.4% respectively.

Asian Markets

Today, all the Asian indices are trading in the red with Hang Seng and Kospi trading lower by 0.7% and 0.5% respectively. Taiwan and Nikkei are down 0.4% each. Strait times and Shanghai are down by 0.3% and 0.2% respectively. Japan's economy grew at a 6% annual rate in the third quarter, according to gross domestic product figures released Monday.

Commodities

Among the metals, Copper and Zinc rose by 3.6% and 2.8% respectively while Aluminium gained 1.1%. Nickel fell by 0.6%..Oil for December delivery slipped 85 cents to $98.14 a barrel. Gold futures for December delivery fell $9.70 to settle at $1,778.40 an ounce.

Outlook for Today

Today, we expect the Indian Markets to open in the red on the back of weak global cues. Later it could take cues from European markets. Among the sectors, IT and Auto stocks look weak.
Sources- HDFCSEC , Moneycontrol

Morning Bell!!!!!............Sensex opens 1% higher on strong global cues

SENSEX 17365.92   173.10 (1.01%)                                           NIFTY 5219.80   50.95 (0.99%

Indian Markets

The key Indian equity benchmarks have posted healthy gains in early morning trade, tracking firm global cues, as investors worldwide welcome leadership changes in Greece and Italy amid hope that they will be able to contain the damage from the eurozone debt crisis. Asian markets also gained after Japan's economy returned to growth in the third quarter (July to September) following three straight quarters of decline.

Markets ended lower on Friday. A recovery from the day?s low helped to curb the losses. While the BSE Sensex finally closed 169 pts or 1% lower at 17,193, the Nifty lost 52 pts or 1% to close at 5,169.

US Markets

U.S. stocks rallied on Friday, advancing for a second straight session, as leaders in Italy and Greece took measures to curb the region's ongoing debt crisis. Dow Jones climbed 260 points, or 2.2%, S&P 500 added 24 points, or 2%, and Nasdaq rose 54 points, or 2%. The day's gains helped the Dow finish up 1.4% and S&P 500 close up 0.9% for the week.

The Indian ADRS ended mixed MTNL losing the most 4.2% while Satyam gained the most 3.6%. Tata Communications fell by 2% while HDFC Bank ended lower by 1.3%. Wipro and Dr Reddys ended higher by 0.7% and 0.55 respectively. ICICI Bank rose by 0.2% while Tata Motors fell by 0.2%. Infosys ended marginally in the red.

Asian Markets

Today, all the Asian indices are trading in the green with Hang Seng trading higher by 2.4% while Kospi and Taiwan are up by 2.1% each. Shanghai and Strait Times are up 1.5% each while Nikkei is up 1.2%.

Commodities

Among the metals, Aluminium and Copper rose by 0.1% while Zinc fell by 0.5%.Oil for December delivery added $1.21 to settle at $98.99 a barrel. Gold futures for December delivery rose $25.20 to settle at $1,784.80 an ounce.

Outlook for Today

Today, we expect the Indian Markets to open in the green on the back of positive global cues. Support on Nifty is at 5,142 while resistance is at 5,317. Among the sectors, Auto and Oil & Gas stocks could outperform while Metal and Realty stocks look weak.

Source- HDFCSEC.

You can meet your wedding expenses just with Rs10000 monthly SIP!!!

                                      

Assume you are at age 25 and planning to built corpus of 5-6 lakhs after 3 years to meet your wedding expenses. You just need to put Rs 10000 into monthly Systematic Investment Plan {SIP} and you can achieve your goal like a magic.