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View Poll Results: Stocks as a percentage of my net assets are -
0 - 25% -- I'm like the most conservative Indians. I love FDs. 220 31.88%
26 - 50% -- I have a few stocks. 307 44.49%
51 - 75% -- I'm an active trader. 113 16.38%
76 - 100% -- Hey, I'm an i-banker!!! 50 7.25%
Voters: 690. You may not vote on this poll

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Old 12th February 2016, 12:00   #3211
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Default Re: Do you play the stock market

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Originally Posted by nowwhat? View Post
Most PSU banks are really not interested in retail loans despite the fact that it is one of the most securitized debt out there..
Very well articulated about the reason for current situation of NPAs in PSU banks.

My knowledge in this is very limited. I didn't get why there is No liquidity in the system. I thought RBI has reduced interest rates repeatedly to infuse liquidity in the system. Please throw some more light where I went wrong.

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As I have said before, the incumbent RBI Governor is a doomsday economist, high CRR has sucked liquidity out whereas a high interest rate has kept borrowers out. The government is unable to implement GST or land reform and is stuck in the UPA-economics of keeping inflation and CAD low.
Again I thought keeping inflation and CAD low was the target from the start. Agree on the govt getting stuck in GST and land reforms.

Fordday.
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Old 12th February 2016, 12:06   #3212
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Thanks nowwhat for explaining the scenario lucidly. Ghodlur, dont worry too much - accumulate SBI in small tranches for long term gains. Even I am doing the same. Bought some at 213, 156. waiting for it to fall 50-60 levels (very pessimistic) which may not happen though. Its current mcap is 1.1 lakh crores (at cmp of 155) which is a pittance.
If I had that money, I would love to buy SBI and dictate terms to them :-) It has lots of potential.
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Old 12th February 2016, 12:38   #3213
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The current problem with NPAs is because the RBI Governor has directed all banks to fully disclose their NPAs this quarter.

This is a foolhardy move as it was bound to hit the banking system because commercial lending is sometimes like a giant Ponzi scheme.

When there is liquidity, a promoter may see that a business not doing that well, he may finance another business and then pay off the non performing loan for the sake of his credit history to avail more loans in future.

However right now there is NO liquidity in the banking system which is why banks are not fully passing on the few rate cuts the RBI announced.
Sorry to contradict, but things are not so simple as what has been stated.

First of all, it is not a simple disclosure of NPAs by Banks. Let's hope when RBI says 'Banks', they mean all - Public + Private. IIRC, even ICICI had higher NPA numbers. What RBI is saying that balance sheet clean up is needed.

Second, commercial lending is a broad term. Right now, the problem is with tthe economy. In India, we do not have a developed financial market (bonds, funds etc.) from where a corporate can raise long term resources. There are practically no infrastructure funding financial institutions. (ICICI Bank origins can be traced back to a lending institution and IDBI is a commerical bank today). Ergo, all banks - Public & Private - funded long term projects (where cash flow cannot be predicted easily), instead of financing only working capital requirements. Difference in PSB & Pvt being that PSBs are left holding the exposure, whereas Pvt Banks have exited at an opportune time!

If credit history is the only defining criteria, plenty of people would be ineligible to borrow today.... as said earlier, our financial markets are still in the process of development.

Liquidity is totally different issue. CRR is only 4% of the liabilities of the Bank. This money is lying with RBI. What is RBI doing with it? I would say it is the Govt which is responsible. Crude oil prices have plummeted - have the retail prices of fuel come down? Re vs $ exchange rate is down. Has the exports improved? Service Tax collection is up!?!

Anyway, coming back to the topic of this thread -

Not all shares are down to the same level they were three years ago. There are some which are still up. Factoring the bonus given by Infosys, it is still +. TCS is still 2000+. M&M is above 1000. Maruti is still above 3400. Reliance dropped below 900 now. SBI might have touched all time low, but depending upon one's risk appetite, one can buy it.

Sensex / Nifty down doesn't mean all scrips are down......

And there are bigger players in the market who are making money in the market right now, even as I am (& may be, you are, too!) pondering whether to invest further or not. It is the money which is coming in (from outside) and the bigger players who are spooking the Sensex.

Last edited by vrprabhu : 12th February 2016 at 12:40. Reason: spelling mistakes
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Old 18th February 2016, 10:06   #3214
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Sorry to contradict, but things are not so simple as what has been stated.
Don't listen to me, here's what Deepak Parekh from HDFC said:

Quote:
"The RBI has clearly articulated that band aid solutions no longer work and that deep surgery is needed. I agree. The RBI went on further to state that the recognition of NPAs was the anesthetic needed for the surgery. While I absolutely do not wish to second guess the regulators and I do not at all doubt their competence in assessment of the situation, I only wish to caution that too much of anesthesia can also result in a patient becoming comatose."
Right now, it looks like an overdose of anesthesia without figuring what surgery to do.

What is obvious in the current situation is that the RBI has no plan to recapitalize banks, increase liquidity, deal with current NPAs, institute governance mechanisms to lower future NPAs, etc. Instead, after the NPA bloodbath, they seem to be looking to the government to institute remedial measures, in which case the RBI should have coordinated with the government first before the bloodbath.

The worry in the current situation is that banks get so spooked that they reduce loans to private industry altogether.
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Old 20th February 2016, 10:24   #3215
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OK, nowwhat! I see your point.

With views of Mr. Deepak Parekh and Dr. Chakraborthy (retd. Dy. Guv. of RBI) floating around, your conclusion is likely.

But, these are the views of the respective persons and not what Dr. Rajan intends!

BTW, recapitalisation is the primary responsibility of respective banks' boards and GOI being the majority owner.

RBI definitely is interested in tackling the NPAs and addressing capitalisation and liquidity concerns.

Wonder why the media is not giving more publicity to the Guv's views that the businessmen / industrialists who don't repay the bank loans shouldn't flaunt their lifestyles and behave responsibly?

Finally, remember that out of the 70+ lakh crore of credit extended by the bank only 15% (outer limit) is bad - there are still more than 60+ lakh crore with borrowers who are genuinely repaying their dues......

Anyway, coming back to the topic of this thread -

- news is that FPIs are pulling out of the market, even as domestic institutional investors and mutual funds continue to buy.

- the way the market is moving suggests that money is being made through short sale covering?!

- and, despite our discussion above on NPAs, BoB and SBI are showing signs of reversals (BoBs IPO was at Rs. 75/- for a Rs. 10/- share, if I memory serves me right....)

Last edited by vrprabhu : 20th February 2016 at 10:34. Reason: back to main topic.....
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Old 22nd February 2016, 20:07   #3216
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Anyone interested in the NTPC OFS starting tomorrow? The floor price is Rs. 122 with 5% retail discount as usual. This is the 1st OFS where retail investors will bid on T+1, i.e. day after tomorrow.
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Old 26th February 2016, 16:33   #3217
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While discussing investing with friends today, came up with a question but google could not help much so reaching out to the mates here.

Are we required to inform the IT department about our purchases done in the stock market (during any financial year) voluntarily when we file It return??
If so, is there a basic limit which if crossed in a single stock then we need to inform (say if I buy shares of a single company above INR XX) or if we buy above a certain limit (across stocks) like say total purchase in equity market being above INR 5 lakhs then we need to inform?

The discussion was a hypothetical one that say someone had invested 1 lakh in 8K Miles company 2 years back when it was 100~120 odd and exited at 2500 odd then s/he would have made a tax free capital gain of 19~20L. This has to be declared in the IT returns under LTCG but since amount is substantial would the It department issue a notice or seek clarification and ask for proof of purchases and why was it not declared at time of purchase.

Since all demat accounts are linked via PAN, the information would be flowing to IT department I would think but are we still required to do so pro-actively while filing returns, if so what is the threshold?

Cheers,
S
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Old 26th February 2016, 19:33   #3218
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Originally Posted by sukhoi View Post

Are we required to inform the IT department about our purchases done in the stock market (during any financial year) voluntarily when we file It return??
Hi Sukhoi , There is no need to inform or report your stock purchases to the IT department as you mentioned yourself these days every transaction is mapped to PAN so IT department already has all the data. If you have short term capital gains you will have to fill the relevant details in the IT form and pay the taxes due And For long term capital gains which are exempt , you just have to mention the gain amount in "exempt income" column no other detail is required.
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Old 27th February 2016, 14:51   #3219
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Default Re: Do you play the stock market

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Originally Posted by sukhoi View Post

Are we required to inform the IT department about our purchases done in the stock market (during any financial year) voluntarily when we file It return??

Cheers,
S
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Originally Posted by spookey View Post
Hi Sukhoi , There is no need to inform or report your stock purchases to the IT department as you mentioned yourself these days every transaction is mapped to PAN so IT department already has all the data. .
@Sukhoi - You are a Honest Chap. You will disclose.. But will everyone do the same???.

The answer is simple. No one will do that. To answer your question - You don't have to do anything, but the person with whom you are transacting will have to file a return called "Annual Information Return". Isn't our IT dept brilliant?

Just read the link below for your information.

http://www.incometaxindia.gov.in/Rul...0000007545.htm

Last edited by rki2007 : 27th February 2016 at 14:58.
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Old 4th March 2016, 00:38   #3220
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Default Re: Do you play the stock market

Quote:
Originally Posted by sukhoi View Post
While discussing investing with friends today, came up with a question but google could not help much so reaching out to the mates here.

Are we required to inform the IT department about our purchases done in the stock market (during any financial year) voluntarily when we file It return??
If so, is there a basic limit which if crossed in a single stock then we need to inform (say if I buy shares of a single company above INR XX) or if we buy above a certain limit (across stocks) like say total purchase in equity market being above INR 5 lakhs then we need to inform?

The discussion was a hypothetical one that say someone had invested 1 lakh in 8K Miles company 2 years back when it was 100~120 odd and exited at 2500 odd then s/he would have made a tax free capital gain of 19~20L. This has to be declared in the IT returns under LTCG but since amount is substantial would the It department issue a notice or seek clarification and ask for proof of purchases and why was it not declared at time of purchase.

Since all demat accounts are linked via PAN, the information would be flowing to IT department I would think but are we still required to do so pro-actively while filing returns, if so what is the threshold?

Cheers,
S
Sukhoi
Hi.
I am not a chartered accountant.
If you are a salaried employee then you may not have filed your balance sheet but if you are self employed or if you own a business then you would have filed a balance sheet.
If you are an employee then as a safety measure just keep the purchase bill with you. Your depository would have sent you a statement and would have shown this scrip's receipt. Keep this as well as the 31st March statement. Request an yearly statement which has all the debits and credits on a single page.
When you sell your depository statement will reflect the transaction.
As long as STT is paid and you have held for more than one year then is an exempted income.But do bear in mind that anything out of the ordinary may attract the attention.
RKI has given a good link but I could not see the criteria for the stock market turnover. AFAIR there is a limit and that is 30 lakhs turnover.Please tag RKI and request clarification
Regards
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Old 7th March 2016, 23:30   #3221
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Guys, Eicher motors, Aurobindo Pharma, Bharthi Infratel , Tata Motors DVR to list in Nifty from Apr 1, 2016 replacing 3 stocks. Yes, there will be 51 scripts in Nifty but only 50 companies. Wonder whats the driving force for Eicher motors to jump from 4300 to 19000 in 2 years!!
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Old 8th March 2016, 10:36   #3222
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Guys I have 50k that I can invest now and I am thinking of putting half of it in TVS Motors. I feel very optimistic about TVS Motors because most of their products seem selling very well and will sell very well in the rural India. I plan to hold it for 2 to 3 years. What do you guys think? Or any other company/field that I can think of?

I already hold a few in TataMotors, Ashok Leyland and Suzlon.
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Old 21st March 2016, 19:12   #3223
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What is the view on Axis Bank and Aurobindo pharma? If anyone has any views on the same. Please share
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Old 28th April 2016, 12:04   #3224
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Wanted to apply for Thyrocare Ipo, just spoke to motilal oswal where I have a demat account. Usually I told them on phone how many lots to apply and gave them a cheque. But now they are saying to apply from my bank. My bank is BOI and when I contacted them they had no idea. Has the process for applying to an IPO changed? What should I do. Had last applied for Dr.lal and Alkem
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Old 28th April 2016, 12:26   #3225
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Default Re: Do you play the stock market

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What is the view on Axis Bank and Aurobindo pharma? If anyone has any views on the same. Please share
Do not invest in individual companies if you are not aware of what you are doing. Go sector wise. For example, a good idea in the short term is to look at an Auto SIP which may ride on the back of a good monsoon
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