Recent changes that investors should note in the Indian Stock Market

Recent changes that investors should note in the Indian Stock Market


We are currently and almost in a recession globally. Quarterly results of Public listed companies for most of the sectors did not yield growth. Bigger companies are losing their revenue especially in the Automotive Sector. If the results of the next 2 - 3 quarters remain the same, then the recession can be assured.

The Economy slowdown is not just happening in India. There are few factors that impact for the Slowdown - Sino-US Trade war, Hong kong event, Tensions in the Oil nation and Domestic policies.

However, recent changes in the Indian stock market are driving the market on Post Budget 2019. The Foreign investors sold shares of worth more than USD 3 Billion.in the last two months in the Indian Stock market.

There are few changes in the Stock market - Post Budget India 2019,

  • Reduce the Promoters Holding to 65 Percent from 75 percent (For Listed Companies). It means enhancing the Public Share holding from 25 Percent to 35 Percent. This may lead for the Good Fundamental Companies with highest shareholding are likely to exit the Market - Delisting

  • 20 Percent Tax for the Buyback of Shares. Generally, Fundamentally good companies and those have good reserves, will buyback their Shares.

  • Tax Increased for the Foreign Portfolio Investors (FPI)

  • Disinvestment Target increased in the Budget 2019, the Government has decided to sell PSU Shares to over 51 Percent.

  • FPI Limit increased to 24 Percent. NRI investment merged with Foreign Portfolio Investments.

  • Housing Finance Companies under RBI regulation.

  • Corporate Tax of 25 Percent limit increased to Rs. 400 Crore from Rs. 250 Crore.


Over a period of time, the Fundamentally good companies have the largest percentage on Promoters Holding. Promoters holding more than 50 Percent is said to be a good stock based on Value Investing. But now, it costs a Disadvantage. The said things above are expected to change in the coming future, if they need to make.

Kindly share your views / comments with a smile :)

www.richinvestingideas.com

Comments

Post a Comment

Popular posts from this blog

What's your Earning - A Personal Cash Flow Meter

Image
What's your Earning  - A Personal Cash Flow Meter Earning money, isn't an easy one ? Absolutely, Earning money is an easy one, but it's hard to keep (grow) it. I mean that the Jobs and Earning money are easy on these techie days. Somebody have the value on their Dignity, Prosper and many of us have, earning more (Money) is a big value. Still, few one can make easy and more of them think that, it's hard to earn. Everyone of us, feeling that the rich one have more money and other's can't. But is it a right away to tell ? Not always, many of us hurting their health to make wealth (Money). Even Apple's Steve Jobs had earned a lot and respect too, but the health was not support for him. I am not telling you that, you have to earn more to be Rich (or) Financially Independent . The think is, how you utilize the earnings and to grow, while you have a little money or No job. What you have Earned ? As an individual, he earns  ₹  1,00,000 /- salary per month and spend
Read more

Infosys reported a net profit of Rs.5,945 Crore in Q1FY24 - Quarterly Results

Image
 Infosys reported a net profit of Rs.5,945 Crore in Q1FY24 - Quarterly Results   Infosys Limited - India's second largest IT Company after TCS, recently reported it's first quarterly results for the Financial year 2023-24. In the said April - June quarter, the company's revenue was Rs.37,933 Crore and the expenditure is said to be Rs.28,869 Crore as well. The Operating Profit were stood at Rs.9,064 Crore and the Operating Profit Margin(OPM) of 24 Percent in the First quarter of FY2024. It is noteworthy that the average of Quarterly OPM's are above 24 Percent for Infosys Limited. As other income, the company earned Rs.561 Crore in the June Q1 results.   Profit Before Tax(PBT) were stood at Rs.8,362 Crore and the bottom line which was the Net Profit is said to be Rs.5,945 Crore. As compared to the previous year's June quarter 2022-23, the current revenue has grown by 10 Percent and the Net Profit has also grown by 11 Percent. In the Past, the EPS was stood at Rs.12.74
Read more

10 Years of TATA Motors Ltd - Financial Statement - Fundamental Insights

Image
10 Years of TATA Motors Ltd - Financial Statement - Fundamental Insights   Tata Motors Limited is a leading global automobile manufacturer and India's second largest company in Automotive segment next to Maruti Suzuki. It is the part of Tata Group, an Indian multi-national conglomerate which provides its products and services on Buses, Cars, Defense Vehicles, Sports utility vehicles, Trucks and other related automotive in it's segment. It is noteworthy that Tata Motors bought the famous and iconic brands Jaguar and Land Rover in the year 2008, from the Ford Company. Tata Motors is the leading player in the Commercial vehicle segment with a market share of around 45 Percent as per the FY2022. It is also said to be a Market leader in the EV segment with a market share of around 87 Percent in the year FY22 in India. The company's last dividend was declared in the year 2016 for the Financial year 2015-16 with an amount of Rs. 0.20 per Share. Tata Motors Ltd is trading in the In
Read more