Benefits of cost-indexation should be restored

When capital gain tax imposed in stock market at the rate of 12.5 and 20 percent for long and short term duration respectively it's affecting very much adversely for investors who have invested in this bear market in last two-there years back. They hardly could make any return from the market.In fact they are most probably looser in the market. If anyone has earned definitely the amount will be very little like 4, 5 or may be little more in this period. In such situations when earned money is very very small such as 4 or 5 percent on a big  investment like 40 lakhs or more and investor books it as profit  and paid long term capital gain tax at the rate of 12.5 percent, anyone can realise about his return. If investor gets benefit of cost -idexation his gain although small but might be saved. Cost-indexation generally eliminates the effect of inflation over the time period .It appears that benefits of cost -idexation should certainly be provided to the investors who invest their money in the stock market for long terms, otherwise investors realise big losses in terms of taxation as well as not getting the benefit of cost-indexation. So giving the benefit of cost-indexation to the investors will be a good practice for the healthy stock market. It should be taken seriously by concerned authorities. 

Why India's Market is Not Performing

Continuous selling by FII, Trump's tarrif and global uncertainties are the main reasons behind India's market not performing. Are there any other reasons reasons on which light should be thrown. One reason I would like to discuss here, continuously increasing bond yields despite rate cuts by RBI and inflation on the lowest level. The situation indicates heavy borrowing by Government as well as very low demand in the economy. Low demand is addressed by the Government and GST reform has been made and will be implemented very soon to create the demand in the economy.HighG

DP growth in Q1 26 is little bit confusing that it will be maintained in coming quarters. It's really doubtful in present scenario . So it looks under performance will continue until some clarities emerge.

Knowledge based trading

Trading in  stocks   is not random.It is knowledge based.  There are many trades in the market for the next session i. e. on  29062020 .If market opens  down and counters of infosys,TCS,IOC open down after waiting sometimes one should make long position in these counters. It is good that downside be 1.5-2 % when anyone is making long position.It is very high probability that after sometimes these counters will be in green, the time one should book profit. Only risk in these trades that at present FII's are seller in the market otherwise there is no risk in these trades.The logic behind these trades that these counters are very  very strong to trade in next session.Other conditions should be normal.

Market next week

For next week one should focus on technology stocks because result season is going to start.Accenture has already posted results better than expectation.One should expect better results from major technology companies   particularly    from Infosys,TCS,HCL Tech, Wipro and others. Though the environment is very very uncertain due to COVID,it is expected that these companies will post extremely good numbers. Traders  should make long positions in these stocks for short times.TCS will post it's result first on 8th April and will set trends for others.Before results smart traders will definitely think when , where an how they can make profit . In these stocks smart traders will definitely make profit by applying their own strategies.Other sector is banking where traders should be watchful.

Reasons behind current rally in Indian IT stocks

Recently Indian IT stocks rallied significantly just after TCS results . Reason is pent up demand of IT stocks because buying in IT stocks was almost neglected and it was expected that in this sector results will be very poor. When TCS results of Q1 24 were declared and analysed it was conceived that growth was muted and the numbers was not so bad . IT stocks TCS and Infosys were oversold and were at the position of value buying .One fact was more, a differential between level of NASDAQ and value of Indian IT stocks had been created. These situations leads to heavy buying in Indian IT stocks and gives rise a strong rally in Indian IT stocks specially in TCS and Infosys  The above perception has some how been changed after Infosys numbers.

What Stock Market Teaches Us

For traders  stock market teaches a number of lessons. According to some statistics more than 90% traders are loser in the market but to be in the club of less than 10% they try again and again and lose a lot of money over some period of time.A successful trader also passes through such situations but by utilising his analytical ability he learns  some techniques and skills to be followed while trading.Traders also observe about their behavior during trading. They might feel impatient and indecisive specially in situations of loss making. If anyone want to be a successful trader one should come out with these situations.Successful traders realize that stock market teaches atleast three things , one is patience, secondly discipline and third one is decision making.These all will be developed gradually. If all these virtues are being developed in your behavior and you are feeling it in yourself while trading certainly you are leading towards a successful trader.At last I would like to say with my own experience that it is  journey from stock trading to spirituality.You feel calm and cool when you become a successful trader.

About ITC

This view is just an angle to see  how deeply the stock price of ITC is depressed in coparision to the others FMCG stocks.On comparing its price to the price of HUL  it is just one third.  Imagine a company of Rs 430000 cr is just making  the profit of nearly Rs  2000 cr and a company of just Rs 215000 cr is making profit of more than  Rs 3200 cr. Is it justified? Absolutely not .But  it is stock market.Here prices of stocks doesn't follow any rule.Perhaps this is the beauty of stock market.