Concept Consultants

Following are the dates announced by the comapnies to meet to consider the Financial Results.

Board Meetings

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Results, news , Board Meetings

List of companies which have corporate action in the month of Jan 2009, such as Dividends, Bonus, stock splits, etc

Corporate Actions in Jan 2009

Indian Market News, news bonus, Dividends, spilts. corporate action

IDBI launches the new tax saving instrument called bondsurance with double tax benefit

What is Bondsurance

Another innovation from the house of IDBI Fortis.
A product that no other life insurance company has in the market today
A product that no other financial instrument company has in the market today
A product that will open the investment market more wider to  us
A product that is a blessing in times of such high volatility
This is Bondsurance.  A bond that is a  “FIVE YEAR PEACE OF MIND”.  A bond that is a “TEN  YEAR PEACE OF MIND”. A gift for someone you love and that someone could be yourself.

How will it work
Bondsurance will be a series of closed ended product. As  you know the interest rate is declining sharply and I expect the following thing for the first series of Bondsurance. The first day sales for us as a channel will be 15th of December 2008 and the last day maybe 31st December 2008. Remember even before 31st December this series can be withdrawn at the end of the day on which the notification of withdrawal is given out by the company.

How do I look at Bondsurance from a premium segment point of view
For premiums upto and including one lac
For premiums above 1 lac
This is meant for new clients. ie those who are not previously covered for any risk by us.
What is the pitch for sales

2) Tax Benefits
In the months from December to March … people are looking for tax solutions. What better product to have than Bondsurance
The different tax payable rates are 10.30 % , 20.60 % , 30.90 % and finally the highest slab of 33.99 %
Bondsurance in one product but with two tax benefits.
First , the Section 80 C benefit
For a person ( Age 8 to 32 or 13 to 32 ) in the highest tax bracket  and who contributes  and takes benefit of Rs. 1 lac under 80 (C) , the Guaranteed return on a 5 year bondsurance is Rs. 1,34,770 and on a 10 year bondsurance  is Rs. 2,03,190.
The net payment to the client after availing tax benefit is Rs. 66,010. So the numbers give us the pitch.  Guaranteed to double your money is 5 years and triple it in 10 years.
Second , the Section 10 ( 10 ) D benefit
The maturity money you receive is tax free under sec 10 10 (D). The power of the section is not realized by many. Tax free as it is exempt from income is what the section states. Remember when individuals lock in money with many other  financial instruments they are taxed at exit.  Individuals may today be in lower tax brackets but they all progress in life and when the instrument is due for exit they may be in the highest tax bracket.
Bondsurance ensures that you enjoy tax relief at entry and tax emption at exit. As I said one product and two powerful tax benefits. Enjoy.

3) Guarantees
Money that you earn has many colours
There is money that you spend
There is money that you save
In the money you save , there is money that that you can risk and there is money that needs to be protected.
In the money you save , there is money that is short term saving and there is money that is saved for longer terms
The market today is volatile and people are looking to save part of their money is longer term savings. They are looking to save part of their money where they don’t need to worry about returns. They are looking to save part of their money where they don’t need to worry about tax at exit.
There are only a few guaranteed products available in market and even there either the guaranteed % is limited or the amount one can save is limited.  Bondsurance has Guarantees and the Guarantees are Good and the Guarantees are net of risk cover that is being provided.

4) Your family is protected as you investment earns guaranteed returns
Individuals do invest and they will continue to invest in different financial instruments.
Rs. 1 lac is put in fixed deposit or post office for a period of time.  If unfortunately something happens to the individual then what is left for the family is the capital and the interest till that time.
Bondsurance protects the individual as his investment earns guaranteed returns
So the Rs.1 lac that is invested becomes Rs. 2,03,190 after 10 years but any time during the 10 years  the family is protected with a shield of Rs. 5 lacs sum assured if anything were to happen to the life assured.
This is Bondsurance peace of mind . Also remember the yield above doesn’t reduce because of the protection provided. The protection is the icing on the cake

5) Liquidity
An individual has invested with us for 5 year and there is an emergency  in 2 years time. The individual can withdraw his amount with us and today’s declared indicative special surrender value gets 103 % of his premium back.
So the individual has taken his tax benefits and after 2 years since it is a single premium plan, the 80 C benefit he has taken at entry remains protected.
Bondsurance has good liquidity   Liquidity after completion of one policy year. Individuals  can exit after one year.�
The special surrender values ,as of now, are given in the presentation above.
For liquidity the individual can also pledge Bondsurance  as collaterals to banks. It has no surrender value for the first year. So after one year individuals have the option to  pledge it and avail loan on it from the bank. We will make an effort to try and workout something with IDBI and / or Federal bank on this and we have one year’s time for the same.

news bonds, sec 10D, sec 80c, tax saving

After Vijay Mallya Led Kingfisher Airlines announced a fare cut, Sate owned carrier Air India on Monday announced a similar fare reduction from Jan 1-09

In view of the lower demand in post-peak season and continued decline in fuel prices, Air India will be adjusting domestic fares downwards on various sectors shortly,

Private carrier Kingfisher Airlines Sunday said it would cut fares from the new year.

Low cost carriers are also expected to follow suit, said an industry official.

Even Jet airways has reduce the fares between 15-40%

news air fares, downwords

Year 2008 has been not so good for the Indian stock markets, as the Nifty has lost nearly 53% in year’s time. The fall in prices has sharp and volatile and many large caps and other stocks have seen heavy selling and lost most of their gain achieved in last few years.
Some of the stocks lost to the extent of more than 90% and have become best buys, but one need to excises great degree of study before making investments in these companies.
There are some good companies which have lost quite a bit and have become good buys at current market prices.
These stocks have been picked based on technical analysis and can be invested only with long term view. Investor with 1-2 year holding period can buy these stocks for good returns.

portfolio of 9 best stocks with 10 lakhs investment for referance.  

Stocks to Invest in 2009

CMP As on 26-12-2008
As current markets are showing some kind of weakness and volatility so one has to understand even these stocks may see some downside from current levels. But in long term these stocks will see good upside.

Indian Market News, Market Gossip, Stock Tips, news investment, long term, picks

Options are different from forward and futures contracts. An option gives the holder of the option the right to do something. The holder does not have to exercise this right. Unlike, in a forward or futures contract, the two parties have committed themselves to doing something. Whereas it costs nothing (except margin requirements) to enter into a futures contract, but the purchase of an option requires an up-front payment called premium.

For the buyer of the Options the loss is limited to the amount of premium he has paid to buy the options. Where as the in futures contracts the holders of the contract is exposed to unlimited loss or profit.

Buyer of an option: The buyer of an option is the one who by paying the option premium buys the right but not the obligation to exercise his option on the seller/writer.

Writer of an option: The writer of a call/put option is the one who receives the option premium and is thereby obliged to sell/buy the asset if the buyer exercises on him.

Call option: A call option gives the holder the right but not the obligation to buy an asset by a certain date for a certain price.

Call options can be used if one has the bullish view underlying

Put option: A put option gives the holder the right but not the obligation to sell an asset by a certain date for a certain price.

Put options can be used if one has the Bearish view on the underlying

Option price/premium: Option price is the price which the option buyer pays to the option seller. It is also referred to as the option premium.

Derivatives, Indian Market News, news calls, FNO, Options, puts

In it’s periodic reviews of contract size/value of derivative contracts based on prescribed minimum value of INR 200,000 as per SEBI circular no. SEBI/DNPD/CIR-20/2004/02/23 dated February 23, 2004.   It is proposed to carry out revision of market lots for derivatives contract as given below:

List of underlying in which market lot is being revised downwards

FNO Lot Size Revised Downwards

List of underlying in which market lot is being revised upwards:

 To avoid operational complexities, in case 2 above, only the far month contract i.e. March 2009 expiry contracts will be revised for market lots. Contracts with maturity of January 2009 and February 2009 would continue to have the existing market lots. All subsequent contracts (i.e., March 2009 expiry and beyond) will have revised market lots.

Derivatives, news Derivatives, FNO, New Lot size

When barely few months left to the congress led UPA government to end its term the govt. has introduces the insurance reforms bill in Rajya Shbha.

 The key features of bill are.

Increase in FDI cap to 49%

The give permission to raise newer capital

Divestment curbs on the Indian promoters to go

Reduction in minimum capital requirement for pure health insurers.

Public sector general insurers to be allowed to tap markets

Both Life Insurance council and General insurance council are to be made self regulating bodies

The bill was introduced amid of strong options from the Left parties.

The lest parties have the major problem on increase in FDI limit to 49%

Indian Market News, news capital, congress, FDI, General insurance, Life Insurance, UPA

If one has to go by the amount of pessimism in the market and the mood being really negative and nothing but negative, then going by the past experiences, markets  bottom out when every  one is talking about only down sides ignoring the  fundamentals and the latest financial results.

One more point which may support these levels is the latest results which are not as bad as expected by the market.

At SENSEX level of 21000, we saw the same euphoria where every one was talking about only higher levels for the index, and not looking at the PE, Fundamentals, or results. That’s when market made the TOP.

So will market stop falling at this level of 8000-7600 which is nearly 70% from the peak and show some sideways movement?

Indian Market News, Market Gossip, Technical Analysis, news bottom, bottom out, levels, Sensex, sensex 8000, supports

SEBI acts again,
The Securities and Exchange Board of India, or SEBI, has hiked the creeping acquisition limit to 75% from current 55%.

Promoters could earlier not do creeping acquisition beyond 55%. Now, they can buy up to 5% every year till the 75% limit is hit. The market regulator said creeping acquisition beyond 55% will only be through open market normal segment and not bulk deals.

This move has can be seen has positive for the markets and will send positive singles in markets.

Indian Market News, news creeping, hike, promotor honding, SEBI