Team-BHP - Do you play the stock market

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Originally Posted by LLL (Post 743652)

Need advice from experts on taxes related to share trading...

1. Should the gains/loss be treated as business income or capital gains income? what are the pros and cons?

AFAIK it depends on your main source of income (as decided by the assessing officer). e.g. If you are salaried and the capital gains/loss is not much compared to salary then it would be considered as capital gains.

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Originally Posted by LLL (Post 743652)

2. Are there any deductions allowed on capital gains? Can STT/brokerage be dedcuted from profits?

Again AFAIK. If its capital gains no deductions. If its business income, brokerage can be deducted. For 2008-2009 STT can be deducted but I guess for AY 2007-2008 it cannot; thanks to the clarification in budget.

thanks alto99.

BTW....looking at stock market today, i think it will be a capital loss. Down nearly 900 points and they are saying its going to go down further in next 2-3 days.... :(

Hi Tanveer,

I feel Bharti will touch 730/- and suzlon around 230/- where buying starts. so i suggest you buy few stocks when they reach bottom level in couple of days.

Sensex might touch 15000 mark very soon from where it might start bouncing back but 2008 year itself is bouncy one!

So any good analysis might turn wrong.

Ravi.

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Originally Posted by ravibhat (Post 744978)

You seem to be a pro my friend..definitely good analysis on you part...but I still think one should stay away from the market untill April and not try to engage in intra day gimmicks now...just my 2 cents

Hi
My in-laws hold some shares of SBI. Now SBI is offering a rights issue (at around Rs.1590/- each) which they can buy and transfer it to my name. Will the investment be worth it? Please advise..

I suggest Syndicate bank, vijayabank, Canara bank shares rather than SBI. the reason chances of appreciation of those cheap shares are more than already gained SBI.

ICICI, HDFC bank shares are bit risky to buy at this level. I do agree couple of months share market will fluctuate too much.

My other picks will be pharma shares like cipla, ranbaxy, auropharma, GUJNRECOKE, nagarjuna fert, arvind mills, hotel leela, ttml, itc and few power stocks like powergrid, ntpc, suzlon.

Be ready with your money to buy the shares once market hits 15500 mark.

Regards,

Ravi.

ravi you are scaring me. I have Suzlon at average price of 322 and Bharti at average price of 860. I plan to hold stuff till Aug-Sept timeframe. Should I exist with that goal in mind or will these shares bounce back?

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Originally Posted by tsk1979 (Post 745153)

If you can buy more of these at the levels mentioned by Ravi, it will be better. This will help to keep your average cost down. Else, just keep holding for another 6m to one year and sell.

Mod.....hold on to the stock. You do not have much options though. The stock will defnitely appreciate. Only time will tell. This is what I have learnt after burning my fingers quite badly. Fundamentally good stocks will always outperform the speculative scrips.

Bharti is a good scrip but i would still say dont invest in Telecom(things have changed for telecom as they were 2-3 yrs ago)

Suzlon is a gud buy at this point and will appreciate a lot in coming months.

But last but not least "Market is very volatile at this moment so small investors should use caution a lot" or invest at you own risk.

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Originally Posted by jvsatish (Post 745080)

which they can buy and transfer it to my name.

They can give a relinquishment in your name. You can directly apply for the shares - and even additional shares.

They can also apply for some and (without applying for additional shares), relinquish some in your favour. For this, they need to get a "split application form".

I will not comment on whether this is a sound investment right now. I may have applied, if I held any entitlement.

Buy Suzlon at 330 levels i am sure by by this year end it would give at least 50% returns from this level, target price 400/- in 8 months or lesser than that.

About Bharti I feel one needs to buy this stock once it hits 730 levels. It must bounce back to 900 rs from that level.

With lot of fluctuations its difficult to analyze :)

Regards,

Ravi.

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Sensex might touch 15000 mark very soon from where it might start bouncing back but 2008 year itself is bouncy one!

if you are looking for bottom , then 12000-13000 is more probable bottom
so invest accordingly .

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Originally Posted by ravibhat (Post 745130)

I suggest Syndicate bank, vijayabank, Canara bank shares rather than SBI. the reason chances of appreciation of those cheap shares are more than already gained SBI.

My other picks will be pharma shares like cipla, ranbaxy, auropharma, GUJNRECOKE, nagarjuna fert, arvind mills, hotel leela, ttml, itc and few power stocks like powergrid, ntpc, suzlon. Ravi.

Just because SBI shares are being traded at much higher level that other banks doesn't make it more expensive,rather if i am given the option i would chose SBI over other PSU banks which are much-much smaller than SBI.Looking at both longer and shorter term SBI stands better chance to rise further.Remember it had touched 3000 in Jan08.

I wont invest in pharma stocks either.These are less risky but will not appreciate much either.

Powergrid,Suzlon,NTPC are good for medium to longer duration.