Rupee may fall to 70 per Dollar

The strong dollar put pressure on most major & emerging currencies, rupee was the worst hit in Asia. The rupee has lost nearly 3 percent in the month of July alone. The next trigger for the rupee will now come from the FOMC policy minutes on July 10 and that would set the direction for most assets.
there are reports of the Reserve Bank of India (RBI) intervening at 61.20 levels, the markets haven’t taken these interventions seriously. After a short bout of gains, the currency continued to remain weak.
We import 80 per cent of our crude requirements and so dollars […] Read more

How Exchange rate is Determined?

There is nothing extravagant to tell you as the rate is determined by market forces just like the price of goods and commodities is fixed. The value of any currency is based on the demand for it. If the people buy more of particular currency, value of that currency increases and vice versa. There are few other factors that play a role in determining the exchange rate when you leave the currency value to the market forces & the list is as follows:
Growth of the Economy
Inflation
Strength of the Economy including export & import
Employment/Unemployment
Government
Public Debt
Interest Rates
Speculation & fear

If all […] Read more

Income Tax Amendments for Assessment Year 2013-14

1.  The new amendment makes it very clear that the provisions relating to filing of Income-tax Return by the individuals in Form SAHAJ (ITR1) shall not be applicable to a person who is resident, other than not ordinarily resident in India specially if such person has assets (including financial interest in any entity) located outside India or such person has signing authority in any account located outside India.

2.  The SAHAJ Income-tax Return form also cannot be used by an individual claiming any double taxation tax relief under sections 90 or 90 A or 91 of the Income-tax Act, 1961.

3.  It is provided in […] Read more

Quality of Gold Loan Porfolio

The crash in gold prices have triggered a surge in demand for jewellery, but analysts are concerned that the dip could “significantly” hit the asset quality of gold loan companies.

Market Price of Gold was Rs 26,040 yesterday. It is now cheaper by 25% for every 10 grams. Due to fall in prices footfalls at jewellery shops have increased but it may be due to upcoming marriage season.

But glitter of gold is losing as consumers attention is now on banks and gold loan companies whose collateral value would be under stress. Analysts are of the view that the portfolio of […] Read more

Must have stocks for your portfolio in Financial Year 2014

For the new financial year (FY14), investors should park their funds in different asset class with well thought out allocation.
One should follow stock specific approach rather than sector/index specific, which may reap good returns going forward, as is proven historically.
FMCG, pharmaceutical and IT sector will acts as a shield during the market downturn.

Euro Zone crisis has a spill over effect, which may crop up in a country specific basis, though US is showing strong signs of recovery, looking at the data points on the last 6 months’ basis.Therefore, global problems may haunt Indian markets going forward as developed economies are […] Read more

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