Month: January 2021

PM Modi greets nation on new year

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Prime Minister Narendra Modi greeted the nation on the first day of the new year on Friday. May the spirit of hope and wellness prevail, he wished.

”Wishing you a happy 2021! May this year bring good health, joy and prosperity. May the spirit of hope and wellness prevail,” the prime minister tweeted.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Electric vehicle maker Tesla to deliver China-made Model Y SUVs this month

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tesla Inc said on Friday it has started selling China-made Model Y sport-utility vehicles (SUV) and will deliver them to customers this month, as the US electric vehicle maker expands sales in the world’s biggest car market. China, which offers hefty subsidies for electric vehicles as it seeks to cut down on pollution from petrol or diesel cars, is key to Tesla’s global strategy. It is expanding its Shanghai car factory, where it also builds its Model 3 sedans. In October, it started exporting Model 3 vehicles to Europe.

It is also adding manufacturing capacity for EV chargers in Shanghai and expanding its sales and service network around the country. It sold over 20,000 vehicles in November.

The starting price of a Model Y in China is now 339,900 yuan ($52,091.95), according to its China website.

Tesla’s rivals in China include Volkswagen AG, BMW as well as local startups such as Nio Inc, Xpeng Inc, and Li Auto Inc, which all have electric SUV models. ($1=6.5250 Chinese yuan renminbi)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Maruti Suzuki total December sales rise 20% YoY to 1.6 lakh units

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The country’s largest passenger vehicle maker Maruti Suzuki India reported a total sales growth of 20.2 percent at 160,226 units in December 2020 as compared to 133,296 units in December 2019. The company’s sales beat CNBC-TV18’s estimates of 1.50 lakh units.

Total sales included domestic sales of 146,480 units and 3,808 units for other OEMs.

Maruti Suzuki’s exports jumped 31.4 percent to 9,938 units in December 2020 as against 7,561 units in December 2019.

Total domestic passenger vehicle sales during the month rose 14.6 percent to 140,754 units versus 122,784 units, YoY. This was led by a 14.5 percent increase in mini and compact segment cars.

The sales of Maruti Suzuki’s mid-size car Ciaz declined 28.9 percent YoY to 1,270 units during the month under review. Meanwhile, the company sold 5,726 units of its Light Commercial Vehicle (LCV) Super Carry in December 2020 as compared to 1,591 units in December 2019, a growth of more than 259 percent.

At 11:00 am, the shares of Maruti Suzuki India were trading 0.61 percent higher at Rs 7,696.00 apiece on the BSE as compared to a 0.32 percent gain in the benchmark Sensex.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Year 2021 for Indian equities: Vaccine, COVID situation, geopolitical trends, Budget to be key drivers, say analysts

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The global COVID-19 situation, rollout of vaccines, geopolitical trends, Union Budget and economic recovery would be the major factors driving investor sentiments in 2021 after a tumultuous year which saw both ’the worst of times and the best of times’ for the stock market, said analysts.

What a year 2020 turned out to be! From witnessing gigantic losses to record-shattering gains, investors went on a roller-coaster ride amid the coronavirus pandemic and massive stimulus measures.

Markets closed last year with remarkable gains of around 16 percent, but will the winning ways continue in 2021 as well? According to Hemant Kanawala, Head – Equity, Kotak Mahindra Life Insurance, ”If 2020 was a year of COVID infection, lockdown and recession, 2021 will be a year of vaccination, reopening and recovery.” Analysts are optimistic about the road ahead for the equity market but added that the quantum of rise would depend on multiple factors. Markets may see profit-taking ahead followed by consolidation initially but analysts expect the prevailing uptrend to continue in 2021 as long as there is no resurgence of COVID-19 cases and consequent lockdown.

Another important factor would be the geopolitical situation with a new US president set to take charge, they added. Dalal Street wrapped up 2020 on a bullish note, with the Sensex gaining 15.7 percent during the year marked with panic selling as well as record-breaking peaks.

”Markets have been continuously making newer highs led by strong liquidity flow, supportive global cues, positive news on progress of COVID vaccines and US stimulus announcement. However, we feel some consolidation at the start cannot be ruled out, citing stretched valuations across the board. “Nonetheless, we would see a decent performance in the markets, given overwhelming liquidity support from central banks, which is expected to continue in 2021 as well. On the domestic front, we believe improving India’s fiscal position and NPA situation would boost sentiments. Besides, the Union Budget and earnings are crucial events for investors…,” said Ajit Mishra, VP Research, Religare Broking.

Considering the present scenario, Sensex and Nifty have the potential to test 48,000-plus and 14,500-plus zones this year, he added. Mishra added that markets are trading at expensive valuations after the phenomenal recovery in the last nine months, so there could be profit-taking ahead followed by consolidation initially and earnings recovery would decide the future course of equities.

Vinod Nair, Head of Research at Geojit Financial Services said, ”Despite the havoc created by the COVID-19 pandemic, the economy is expected to recover in 2021 giving boost to the equity markets in addition to upgrades in corporate earnings.” ”We expect Sensex to touch 51,500 level, while Nifty is expected to cross 15,100 mark due to enough liquidity and better than expected recovery in businesses,” said Vinit Bolinjkar, Head of Research, Ventura Securities. According to analysts, the prospect of vaccines, additional stimulus package by developed countries and gradual recovery in the global economy will drive the domestic market.

Also Read: Here are the factors that will impact markets in 2021

”CY21 will be marked with hopes of early rollout of COVID-19 vaccine, normalisation of activities and unperturbed growth recovery. We expect CY21/FY22 to be a better year with likely strong recovery in both the economy and earnings,” said Jaideep Hansraj, MD & CEO, Kotak Securities. Going ahead, the key driver for markets would be revival in earnings to sustain these premium valuations, Mishra said, adding that the government has the opportunity to set the roadmap for sustained growth in the Union Budget early this year.

”Improvement in trade relations between India and the US under the new administration can play a critical role in expediting the recovery,” Mishra added. Vaccine optimism and liquidity supporting measures infused life into the equity market which had faced turbulent trading sessions in March due to concerns related to the pandemic and its impact on the economy.

March proved to be dreadful for Dalal Street, with the Sensex plunging a massive 8,828.8 points or 23 percent during the month. ”As long as we don’t have a resurgence of COVID and consequent lockdown, the situation should improve quickly and materially,” Bolinjkar added.

During the entire 2020, the 30-share BSE Sensex made monthly gains in seven while closing with losses in five of them. ”Continuity of global liquidity and how does the geopolitical situation change with the new US president can drive global sentiments,” said Santosh Kumar Singh, Head of Research at Motilal Oswal Asset Management Company.

Markets witnessed volatile trends during the year, with the BSE benchmark crashing to its one-year low of 25,638.9 on March 24, only to roar back to its record high of 47,896.97 on the last day of trade. ”We have a target of 14,500 for Nifty-50 for December 2021, with an upward bias based on the optimistic economic development seen in the latest data,” according to Vinod Nair, Head of Research at Geojit Financial Services.

Sentiment will also depend upon investment trend of foreign institutional investors, movement in rupee and Brent crude. All-in-all, we believe the market will run up ahead of, and in anticipation of, an ensuing economic recovery. If 2020 was largely about survival, both health-wise and finance-wise, it was also the most opportune time to tweak and tighten portfolios.

”In our reckoning, the best for the markets lies immediately ahead,” said Amar Ambani, Senior President and Head of Research – Institutional Equities, Yes Securities, On the market’s Budget wishlist, Mishra said market participants would keenly watch progress and plans on the disinvestment process by the government. Further, there would be wide expectations that some of the sectors like airline, travel and tourism, hotels and multiplexes would get some sort of relief package.

”Additionally, higher spending in social sectors like rural, infrastructure and agriculture would be taken positively by the markets,” he added. On sectors to watch out for in 2021, Mishra said banking would be a key sector to watch out for after severe underperformance. The sector has made a comeback in a big way recently, led by strong results from some of the large private and public sector lenders.

”We also like telecom as we believe the worst is over for the sector as lingering tension of pricing wars and the decision on AGR dues has subsided to some extent. ”The long-term growth story remains promising for the industry, thanks to increase in digital penetration, which has further accelerated post the pandemic and consistent rise in smartphone users,” he said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Filing income tax return? Don’t forget to include these incomes

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Income Tax Return (ITR) filing deadline for the financial year 2019-20 (assessment 2020-21) will end on January 10, 2021. While filing an income tax return (ITR), it is important to take into account all sources of income whether from previous or current employment or income from investments and file it under the appropriate ITR form.

According to the income tax (I-T) rule, if any income is not reported, then a discrepancy is bound to reflect in the TDS certificate (Form 16) and Form 26AS. The tax department can send a tax demand notice asking taxpayers to pay additional tax dues if any.

Here are some income sources one should include while filing ITR:

Income from capital gains on the sale of assets

As per experts, ITR requires complete details of the sale of capital assets, purchases and expenses to calculate the capital gains. Also, in case the taxpayer makes investments to claim capital gains exemption, the details of the investment and capital gains exemption should be given.

Income from investments such as interest income

A taxpayer should report interest income from fixed deposits, savings account, post office saving schemes, bonds and other investments.

According to Archit Gupta, founder and chief executive officer, ClearTax, the interest from savings accounts is also eligible for tax deduction up to Rs 10,000 for taxpayers who are less than 60 years of age.

“In the case of senior citizens (60 years and above), the interest from fixed deposits, savings accounts and post office deposits is eligible for tax deduction up to Rs 50,000,” Gupta explains.

Minor’s income

In case the taxpayers have made any investments in the minor child’s name, they should include the income such as interest income as part of the income. The clubbing of income is generally with the parent whose income is higher. Taxpayers can claim a deduction of up to Rs 1,500 per child up to two children.

Income from other sources

A taxpayer should also report income that is received after the deduction of tax or TDS. Taxpayers should also report exempt income such as PPF interest, agricultural income and LIC maturity proceeds in ITR.

The Income-tax Act, 1961 divides an individual income into five heads—i.e. salary, business or profession, house property, capital gain and ‘Income from other sources’.

According to Naveen Wadhwa, DGM, Taxmann, any income which has to be included in the total income of the assessee, but it cannot be included under the other four heads of income, is chargeable under the head other sources.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow