SENSEX Gets Cheaper: May see new highs in September

• SENSEX has gained 5.8% in past two months whereas 12 month profit projections have climbed 7.2% (according to about 800 analyst forecasts compiled by Bloomberg)
• SENSEX is valued at 15.5 times estimated profit (forward PE), down from this year’s high of 16.3, and it makes Sensex cheap compared to its average
• Major positives –

1. Falling crude oil prices are reducing import costs
2. Rising confidence that policies will revive economy
3. Main positive policy changes are – reduction in bureaucracy, faster project approvals, lower income taxes, attracting more FDI, working on land acquisition laws, focus on reducing coal shortage, initiatives on digitization and corruption free government, focus on roads and other infra, focus on manufacturing sector and job creation
4. Results of government actions will take time but there are clear signs of action, focus, and accountability – and it has improved business sentiment

Technical View

Nifty has maintained its uptrend and if it sustains above 7850, it may cross 8000 which is 161.8% Fibonacci Level. RSI is also indicating a bullish trending market. Above 8000, Nifty has a target of 8300.

Below 7850, it has strong support at 7730 and 7650.

RECOMMENDATION:

Several midcap, small-cap, and infrastructure stocks have fallen sharply, offering excellent opportunity to investors to enter.

The markets still offer opportunities for medium to long term investors in Equity Mutual Funds.

Click here to see our other Research Reports or visit:- http://goo.gl/cK9K67

Why Invest in LIC Nomura MF Diversified Equity Fund-Series 1

Equity markets are trading at attractive valuations from a medium to long term perspective. A close ended equity fund provides dis.. – A PowerPoint presentation

Source: www.authorstream.com

Equity markets are trading at attractive valuations from a medium to long term perspective. A close ended equity fund provides discipline to aim at potential wealth creation over long time. Scheme endeavors to invest in fundamentally strong businesses which are available at attractive valuations. Provides a room for investing in value oriented equity scheme.Helps to create wealth by investing in the potential leaders of tomorrow.

Product Suitability?

The scheme is suitable for investors with an objective of capital appreciation by investing in S&P BSE 200 Index companies. In view of the close ended nature, the scheme will be listed on exchange for liquidity purpose.

 

For more information please visit:- http://www.rrfinance.com

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Infrastructure: Sector Bottomming Out

• India’s infrastructure output growth rises to 7.3 pct, hits 9-month high in June
• IFC is raising $2.5b for Indian infrastructure
• According to a joint study by consultancy firm PwC and industry body ASSOCHAM, Indian e-commerce industry will spend $ 950-1,900 million by 2017-2020 on infrastructure, logistics and warehousing
• A proposed US dollar bond from the operator of Delhi Airport is shaping up as a test case of international appetite for Indian infrastructure projects. The big benefit bond markets provide to fund infrastructure is the access to long-term institutional investors.
• Success in land reforms will ensure a big boost to this sector

Technical View

CNXINFRA (CMP 3142) is near its resistance zone. First level is the resistance line of speed resistance lines at 3185, and next is the 61.8% Fibonacci level at 3215. A close above these levels will indicate beginning of an uptrend by infrastructure sector stocks.

RSI is indicating a divergence at bottom which is bullish.

It is important for this index to remain above 3050, else it will again enter into a minor downtrend by making a new low. It has a strong support at 2930, and if that is broken, the index will enter an intermediate bearish phase.

RECOMMENDATION:

Several midcap, small-cap, and infrastructure stocks have fallen sharply, offering excellent opportunity to investors to enter.

The markets still offer opportunities for medium to long term investors in Equity Mutual Funds.

Resource:- https://www.linkedin.com/today/post/article/20140826042738-247646391-infrastructure-sector-bottomming-out

NIFTY-Bull Rally may Continue

• Economic Data indicators are showing that the downtrend may be over. Several macro data i.e. corporate order books are rising, falling oil prices are going to substantially reduce deficit, monsoon has improved, export growth has improved, India may be rerated upwards and capital inflows are adequate.
• Stock markets continued to go up last week due to improving global conditions and higher retail participation. Markets were optimistic on PM’s Independence Day speech, and Govt.’s higher GDP growth expectations.

Technical View

Nifty has broken the 7850 resistance decisively and if it sustains above this, it will enter a new bullish zone with immediate target of 8040 which is an important 161.8% Fibonacci level. Above 8040, the next major resistance is 8300.

Strong supports exist at 7850 and 7650. The markets may move choppily and test the levels intraday early next week.

RECOMMENDATION:

Several midcap, small-cap, and infrastructure stocks have fallen sharply, offering excellent opportunity to investors to enter.

The markets still offer opportunities for medium to long term investors in Equity Mutual Funds.

Click here to see our all Research Reports or Visit:- https://www.linkedin.com/today/post/article/20140822110000-247646391-nifty-bull-rally-may-continue?trk=object-title

$2 b IFC Rupee Onshore Bond Sale: A vote of confidence

The International Finance Corporation (IFC), private finance arm of the World Bank, is set to raise $2 billion in a bumper onshore Rupee bond sale.

• It is the first onshore offer of such magnitude by an international blue chip entity
• It is a vote of confidence in Indian Economy and will help deepen and internationalize India’s corporate bond market. This top-rated offering is expected to boost interest in India’s debt market and help draw long-term funds from the insurance and pension sectors.
• Money raised will likely be used to fund private energy and infrastructure projects, of critical importance as India needs to boost energy supplies and improve facilities in order to create the right environment for growth and take full advantage of economic expansion. IFC has held discussions with Reserve Bank of India (RBI) and finance ministry officials on the proposed issue.

RECOMMENDATION:

India’s long term growth prospects are intact. Several midcap, small-cap, and infrastructure stocks have fallen in price recently, offering excellent opportunity to long term mutual fund investors.

Resource by:- http://goo.gl/s0sKD1

FMPs More Than 3 Years Still Score Over Fixed Deposits

A Fixed maturity Plan (FMP) is a closed-ended debt scheme for a fixed period of time, wherein the duration of debt papers is aligned with the tenure of the scheme.

Features of FMPs

• FMPs generally invest in Certificate of deposits (CDs), Commercial Papers (CPs), money market instruments, and corporate bonds.
• FMPs provide predictable return & are not subject to interest rate risk.
• On tax adjusted basis, return on FMPs are better than bank FDs, as 3 years Plus FMPs qualifies LTCG Tax.

Mutual fund investors have the option of paying Long term capital gains tax at 20.6% with or without Indexation.

Tax Advantages of FMP

Fixed Maturity Plans scores high on tax advantage when they are compared to similar instruments like

Fixed Deposits (FDs).  In FDs the interest earned is added to the investor’s income and taxed at individual personal income tax rate. Interest from Fixed Deposits is categorized as ‘Income from Other Sources’ under the Income Tax laws. In the case of FMP, the tax implication depends upon the investment option chosen – Dividend or Growth

Which Option Should You Choose?

1. Dividend Option: Dividends in FMPs are tax free in hands of investors. However, Mutual Fund companies have to pay a Dividend Distribution Tax (DDT) of 25% plus surcharge and cess for Individuals and HUFs (28.325%) and 30% plus surcharge and cess for others (33.99%) before distributing it to investors.
2. Growth Option: If any investor opts for Growth option, he is subject to Capital Gains Tax.
3. Short Term Capital Gains (if units are held for 36 months or less) are taxed as per the Tax Slab Rate.

For Long Term Capital Gains (if units are held for more than 36 months) are taxed at 20% with indexation. The indexation benefit inflates the cost of purchase lowering long term gains tax liability, which is not in the case of FDs.

The length of the holding period matters, especially when one has to decide between growth and dividend options. Investors can go for the growth option if the holding period is more than three year and for the dividend option if the holding period is less than three year.

For more information please visit:- http://rrfinance.com/Mutual%20Fund/Mutual_Fund_Home.aspx

SIP-PRESENTATION by RR Financial Consultants Ppt Presentation

Systematic Investment Plan SIP is an investment program that allows you to contribute a fixed amount (as low as Rs. 1000/-) in M.. – A PowerPoint presentation

Source: www.authorstream.com

Benefits of SIP:-

1) Disciplined way of investment.
2) Enjoy the power of compounding.
3) Take advantage of Rupee Cost Averaging.
4) Auto Debit facility.

For best terms please contact nearest RR Branch or call 9540056427, 01123636363 or dial toll free 1800110444, Or Visit:- http://www.rrfinance.com

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RBI’s monetary policy review on 5th Aug will dictate..

The Reserve Bank of India (RBI)’s monetary policy review on Tuesday, 5 August 2014, will dictate the near term trend on the bourses. Trend in investment by foreign portfolio investors (FPIs), trend in global markets, trend in other global emerging markets, the movement of rupee against the dollar, crude oil price movement.

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Stock-specific activity may dominate trade as a number of companies will be announcing first quarter results. Marico, Oriental Bank of Commerce, Petro net LNG, Power Grid Corporation of India and Tata Communications will announce their Q1 June 2014 earnings on Monday, 4 August 2014.

Hero MotoCorp, NHPC and Tata Chemicals will unveil Q1 June 2014 earnings on Tuesday, 5 August 2014. Bata India will unveil its Q2 June 2014 on the same day.

Adani Ports and Special Economic Zone, Adani Power, Amara Raja Batteries, Apollo Tyres, City Union Bank, IDBI Bank, Jindal Steel & Power and Piramal Enterprises will announce Q1 June 2014 earnings on Wednesday, 6 August 2014. GlaxoSmithkline Consumer Healthcare will also announce its April-June 2014 quarter earnings the same day.

Fortnightly Headlines

• Union Bank Q1 net profit up 19 per cent on steep fall in provisions.
• JSW Steel Ltd posts Rs 656.5 crore profit in Q1.
• IL&FS Investment Managers Ltd to Raise Rs 6,000 crore.
• Desh Deepak Misra takes over as HR director at ONGC.
• IL&FS Investment Managers Ltd to Raise Rs 6,000 crore
• Cyrus Mistry unveils new growth vision to Tata executives, co to invest $35 billion in 3 yrs.
• Royal Enfield sales up 79.99 per cent in July.
• Honda Motorcycle sales up 32.87% in July.
• Hero MotoCorp sales up 8.67 per cent in July.
• Hero MotoCorp to roll out 3 models in quick succession & unveil an ad blitz aimed at the young-at-heart.
• Apollo Tyres gets board nod to raise up to Rs 1,200 crore.
• Apollo Tyres to invest USD 340 million to upgrade facilities.
• Gitanjali Gems Ltd plans to raise Rs 175 crore for expansion.
  16) Indian Oil Corporation to set up two new plants in Uttarakhand.
• Nathpa Jhakri Hydro power station achieves highest-ever generation in July.
• Government persuading affluent customers to voluntarily give up subsidized LPG.

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