Today Indian central bank, The RBI reduced CRR by 50 basis points to ease liquidity in the market. This measure was undertaken as an ad-hoc measure on a temporary basis. RBI has indicated that it will adopt a proactive policy and continue taking such ad-hoc measure from time to time depending on market conditions. The indian banks were facing tight liquidity crunch and this could have led to a major liquidity crisis hence all banks have welcomed this move and called for another 50 basis point drop. HDFC Bank chairman Mr. Deepak Parekh while welcoming this move said that this action was long overdue and infact should have been taken on last friday itself.
The RBI will hold a meeting at the end of this month where further actions are expected, this move is only expected to have an effect on overnight call rates and lending deposit rates will not be affected.
The above said action will come into effect from 11 Oct 2008 and will result in a liquidity release of 20,000 crores. Watch out for Banking stocks in tomorrow’s trading session.
Futures and Options Tips, Indian Market News, Stock Tips, Technical Analysis, news
CRR, RBI, Reserve Bank
Indian markets faced a severe selling pressure on the news that some of the European banks are also facing problems similar to US banks and seeking heavy bailout packages from respective governments has led Indian markets to see new lows since march 2007.
Metal stocks and Real Estate are the ones which are facing heavy selling pressure, highly leveraged stocks such as Aban Lloyd, DLF, Unitech, private banking major ICICI bank saw heavy cuts in today’s trade.
As per the traders, market is expected to see four digit tick on sensex in next few days.
Indian Market News, Stock Tips, news
BSE, DLF, ICICI, Indian Markets, Market fall, NSE, Sensex, Unitech
If you have not filed your Income Tax returns then better be quick and complete the formalities by July 31, here are some consequences which might occur if you fail to pay the tax or file your IT Returns:
1) The tax department may impose a penalty of up to Rs 5,000 under section 271F on you for not filing IT Return.
2) If you have unpaid tax of more than Rs 3,000 but less than Rs 1 Lakh, you can be sentenced for a jail term of three months along with the penalty.
3) If the unpaid tax amount is more than Rs 1 Lakh the jail tern can increase to a minimum of six months to a maximum of seven years, over and above the penalty.
4) In case a person does not file returns but submits documents like Form 16A and other TDS certificates after getting a notice, he can be still asked to pay a penalty of Rs 5000.
5) If the person ignores the notice then the penalty will increase to Rs 10,000 for each notice.
However, return filing can be extended to till April 2009, the last date of assessment year for 2007-08 if there is a genuine ground, There are several advantages also like:
1) Income tax law allows carry forward of set off business losses against the income in the subsequent years.
2) If more tax than the due amount is deducted from your income, you will get the refund only after filing the returns.
3) If you file the return by July 31, you will also get the interest on the refund amount for the period between April 1, 2008 and the date of refund but if you file your returns after July 31, 2008, you will not get the interest.
Futures and Options Tips, Indian Market News, Stock Tips
Filing of IT, Income Tax, IT Returns, Returns, Tax, Tax benefits, Tax returns, TDS
CMP: Rs. 230
Buy Jaiprakash Associates at the current market price of Rs. 230 with the stop loss of Rs. 200 for the targets of Rs. 270 and Rs. 315. The stock has completed corrective on channel supports and is gaining upside momentum.The stock has recovered from its low of 190 and has been showing lot of strength This stock also has been added to the index, which should get some buying from index mutual funds.
Stock Tips
invest, jaiprakash, jp associates
Last month in January FIIs were Sellers to the tune of $ 3 billion, whereas in the year 2007 they had net investments of $ 17.23 billion. Majority of the selling happened during the recent market crash between 16th Jan to 24th Jan, they sold $ 3.65 billion worth of shares. February seems to be better compared to January, as per SEBI data for 4th feb they were net buyers of $ 944 million.
We feel the major sell-off has already happened and the market has already seen its bottom. The market is likely to remain volatile but unlikely to go below the January low. Investors should buy at every fall but stay patient as the market will remain volatile for few more months.
Indian Market News, Market Gossip, Stock Tips
BSE, FIIs, Market fall, midcap, Mini Nifty, Nifty, NSE, Sensex, shares, stock trading
Short term trader can buy L&T Jan futures with stop loss 4050 for target price of Rs 4450 and 4500.
after the run up fr0m 2900 to 4690 the stock has been trading in the range of 4000 and 4400. The stock may give break out in the week.
Futures and Options Tips, Stock Tips
FNO, fno tips, Futures, L&T, Trading Calls
Short term traders can buy Air Deccan stocks with price target of 295-310 with stop loss 240.This stock can also be bought with view of investment with price target of 400+One of the leading news daily has reported that the company may appoint the hot film star and auction hero as its brand ambassador. This move may get the company good brand value and also boost the sales.
Stock Tips
air deccan target, buy air deccan, deccan air trarget, short term calls
This is the good time to pick some Quality mid cap stocks for investment as these stocks have come down from their recent highs and offer lot of upside from current levels.Suraj Diamonds, Deccan Chronicale, Voltas, and NdtvOne can invest in these stocks with holding period of one to two year.Stay invested in stocks for long term to gain big profits.
Stock Tips
investment calls, long term calls
One can have close look on the following stock in comming week as they look strong on the graphs.
These stocks can be bought with views of one to two months, these are based on technical daily graphs.
one can gain short term profits from these stocks as they might move up from these levels.
BAJAJ ELECTICALS
GBN
KM SUGARS
OMINI TECH
ONGC
KRBL LTD
these stock can move 10-12% in comming weeks
Stock Tips
short term stocks, stocks to watch, technical
ICICI Bank is planning to list four of its subsidiary units starting with ICICI Securities MR. Kamath CEO has said that this could happen within the next six months the board of directors are yet to take a decision on this.
When the subsidiary units do list it is expected to unlock potential value in the stock. This is expected to give good upside potential to ICICI Bank Stock. Investors can consider fresh purchases even at current levels with a one year view, existing share holders should hold or add more.
Stock Tips
ICICI Bank, ICICI Securities