Seven of top-10 firms lose over Rs 38K cr in market capitalisation last week

MUMBAI: The combined market capitalisation of seven of the country's top 10 companies declined by Rs 38,767.51 crore last week, with banking giant State Bank of India emerging as the biggest loser. 

SBI shed Rs 10,883.72 crore from its market valuation, which stood at Rs 1,64,075.07 crore as on Friday last week. During the week, shares of SBI on the Bombay Stock Exchange fell by 6.22 per cent to Rs 2,583.90 on Friday. 

Two state-run firms mining entity Coal India (CIL) and power producer NTPC together lost Rs 12,764.46 crore from their combined valuations. The m-cap of CIL stood at Rs 1,84,374.55 crore while that of NTPC was at Rs 1,40,543.87 crore on Friday last week. 

Oil & gas explorer ONCG too witnessed an erosion of Rs 4,534.4 crore from its m-cap which stood at Rs 2,24,966.35 crore. IT bellwether Infosys Technologies' market worth also declined by Rs 5,060.87 crore to Rs 1,72,709.65 crore. 

The m-cap of telecom giant Bharti Airtel fell by Rs 1,120.27 crore to Rs 1,25,014.36 crore. 

ICICI Bank's m-cap diminished by Rs 4,403.79 crore to Rs 1,13,425.96 crore. 

However, country's most valued firm Reliance Industries (RIL) along with IT major TCS and FMCG honcho ITC were on the gainers side. 

RIL added Rs 9,360.92 crore to its market valuation which stood at Rs 3,16,160.26 crore on Friday last week. 

The market cap of TCS swelled by Rs 4,070.97 crore to Rs 2,17,484.06 crore, while ITC saw an addition of Rs 506.86 crore to its m-cap which stood at Rs 1,20,574.35 crore. 

The stock markets declined nearly 3 per cent during the week under review, following concerns over the rising global crude oil prices due to political tensions in the Middle East that might stoke up domestic inflation.

Vivek Kumar 

PGDM 2nd Sem

Direct-taxes-have-grown-by-20-this-year-Mukherjee

NEW DELHI: Direct Taxes have registered a growth of 20% during the current year so far with the collections reaching nearly Rs 3,35,000 crores (till mid-February).

Giving this information, finance minister Pranab Mukhrjee said on Saturday that this sustained growth has been possible due to rationalisation of tax structure and improvement in tax administration.

Mukherjee was speaking at a function at which he released released a commemorative coin in the denomination of Rs 150 to mark the completion of 150 years of Income Tax collections.

The Rs 150 coin is 44 millimetres in dimension and is made of 50% silver. The reverse face of the coin bears the portrait of Chanakya and a lotus with honeybee. The concept has been taken from the FM's past speeches where he had quoted Chanakya saying: "Governments should collect taxes like a honeybee, which sucks just the right amount of honey from the flower so that both can survive." 

Vivek Kumar 

PGDM 2nd Sem

Releasing the coin, the FM said Income Tax was introduced for the first time in 1860 imposing duties on profits arising from property, professions, trades and offices. It was passed by the Legislative Council of India and received the assent of the governor-general on July 24, 1860. This Act was the precursor to the modern income tax law in the country.

Direct taxes are now the major resource provider to the Centre for developmental work. The FM said that direct taxes collections have grown at an average annual rate of 24% in the last five years and have nearly trebled from Rs 1,32,771 crore in 2004-05 to about Rs 3,78,000 crore in 2009-10. He said that direct taxes share in GDP has also increased from 4.1% to 6.1%.

Infrastructure bond tax gains next year too

NEW DELHI: The Union budget for 2011-12 could extend the tax benefit on investments made in infrastructure bonds by a year while giving banks access to this special window in an effort to raise debt funds for building physical assets of the country. The last budget had allowed a deduction of an additional Rs 20,000 for investment in longterm infrastructure bonds, over and above the Rs 1 lakh limit prescribed for investments in tax saving schemes. Only dedicated infrastructure companies or lenders were allowed to raise funds through these tax savings bonds.

"Various options for infrastructure financing are being examined," said a government official, adding “extending this window is one of them” . The budget for 2009-10 had limited the tax benefit on infrastructure bonds for one year. This was because the government was hoping to roll out of the Direct Taxes Code from April this year. But now that the new code is unlikely to be implemented before April 2012, the government could extend the tax relief on these bonds.

“Keeping in view the infrastructure fund requirements of the country and also to make the to make the tax deduction more meaningful, the government should enhance the investment limit to . 50,000,” said Vikas Vasal, executive director, KPMG. Infrastructure Development Finance Company (IDFC), IFCI and L&T Infrastructure Finance have already raised about Rs 5000 crore so far in the fiscal through these bonds. IDFC has already raised over . 1,200 crore in two tranches of its infrastructure bond issue in the current financial year. The rate of interest offered on these bonds has been

                                                 NIRAJ KUMAR
                                      PGDM  2 SEM
    

NEW DELHI: The Union budget for 2011-12 could extend the tax benefit on investments made in infrastructure bonds by a year while giving banks access to this special window in an effort to raise debt funds for building physical assets of the country. The last budget had allowed a deduction of an additional Rs 20,000 for investment in longterm infrastructure bonds, over and above the Rs 1 lakh limit prescribed for investments in tax saving schemes. Only dedicated infrastructure companies or lenders were allowed to raise funds through these tax savings bonds.

"Various options for infrastructure financing are being examined," said a government official, adding “extending this window is one of them” . The budget for 2009-10 had limited the tax benefit on infrastructure bonds for one year. This was because the government was hoping to roll out of the Direct Taxes Code from April this year. But now that the new code is unlikely to be implemented before April 2012, the government could extend the tax relief on these bonds.

“Keeping in view the infrastructure fund requirements of the country and also to make the to make the tax deduction more meaningful, the government should enhance the investment limit to . 50,000,” said Vikas Vasal, executive director, KPMG. Infrastructure Development Finance Company (IDFC), IFCI and L&T Infrastructure Finance have already raised about Rs 5000 crore so far in the fiscal through these bonds. IDFC has already raised over . 1,200 crore in two tranches of its infrastructure bond issue in the current financial year. The rate of interest offered on these bonds has been in the range of 8% simple interest per annum.
Vikash Singh
PGDM 2nd Sem

Infrastructure bond tax gains next year too

NEW DELHI: The Union budget for 2011-12 could extend the tax benefit on investments made in infrastructure bonds by a year while giving banks access to this special window in an effort to raise debt funds for building physical assets of the country. The last budget had allowed a deduction of an additional Rs 20,000 for investment in longterm infrastructure bonds, over and above the Rs 1 lakh limit prescribed for investments in tax saving schemes. Only dedicated infrastructure companies or lenders were allowed to raise funds through these tax savings bonds.

"Various options for infrastructure financing are being examined," said a government official, adding “extending this window is one of them” . The budget for 2009-10 had limited the tax benefit on infrastructure bonds for one year. This was because the government was hoping to roll out of the Direct Taxes Code from April this year. But now that the new code is unlikely to be implemented before April 2012, the government could extend the tax relief on these bonds.

“Keeping in view the infrastructure fund requirements of the country and also to make the to make the tax deduction more meaningful, the government should enhance the investment limit to . 50,000,” said Vikas Vasal, executive director, KPMG. Infrastructure Development Finance Company (IDFC), IFCI and L&T Infrastructure Finance have already raised about Rs 5000 crore so far in the fiscal through these bonds. IDFC has already raised over . 1,200 crore in two tranches of its infrastructure bond issue in the current financial year. The rate of interest offered on these bonds has been in the range of 8% simple interest per annum.
                       

                                           PUSHPAM CHAURASIA

                                             PGDM  2 SEM

 

Infrastructure bond tax gains next year too

NEW DELHI: The Union budget for 2011-12 could extend the tax benefit on investments made in infrastructure bonds by a year while giving banks access to this special window in an effort to raise debt funds for building physical assets of the country. The last budget had allowed a deduction of an additional Rs 20,000 for investment in longterm infrastructure bonds, over and above the Rs 1 lakh limit prescribed for investments in tax saving schemes. Only dedicated infrastructure companies or lenders were allowed to raise funds through these tax savings bonds.

"Various options for infrastructure financing are being examined," said a government official, adding “extending this window is one of them” . The budget for 2009-10 had limited the tax benefit on infrastructure bonds for one year. This was because the government was hoping to roll out of the Direct Taxes Code from April this year. But now that the new code is unlikely to be implemented before April 2012, the government could extend the tax relief on these bonds.

“Keeping in view the infrastructure fund requirements of the country and also to make the to make the tax deduction more meaningful, the government should enhance the investment limit to . 50,000,” said Vikas Vasal, executive director, KPMG. Infrastructure Development Finance Company (IDFC), IFCI and L&T Infrastructure Finance have already raised about Rs 5000 crore so far in the fiscal through these bonds. IDFC has already raised over . 1,200 crore in two tranches of its infrastructure bond issue in the current financial year. The rate of interest offered on these bonds has been in the range of 8% simple interest per annum.
Vivek Kumar
PGDM 2nd Sem

Reliance Cap shares jump as brokers find them oversold

MUMBAI: Shares of Anil Ambani group firm Reliance Capital today rose by over 6 per cent after at least four brokerage firms termed the stock as undervalued following the recent plunge.

The shares were 6.1 per cent up at Rs 468.3 in early afternoon trade at the National Stock Exchange. At Bombay Stock Exchange also, the stock was trading 6.6 per cent higher at Rs 470.25.

Today's rally followed a positive stance taken by a number of brokerage firms on the stock after the company announced its quarterly results over the weekend.

In a report published today, Kotak Institutional Equities said that Reliance Capital continued to build its core businesses during the third quarter, with cost controls and fee income adding to its earnings.

"The stock has corrected significantly, likely due challenges in the operating environment across its businesses and general concerns in ADA Group," the brokerage firm said, while finding the stock attractively valued at current level.

It, however, said that investor's confidence on the ADA Group would be crucial in driving stock performance.

Reliance Capital's net profit rose by 68 per cent to Rs 106 crore in the quarter ended December 31, 2010.

In a separate report, Edelweiss said that earnings growth were robust for the companies' core businesses such as asset management and consumer financing.

Edelweiss further said that the stock has under-performed the sector considerably over the past one year due to regulatory concerns in life insurance and mutual fund businesses and business restructuring.

"However, we believe the concerns are largely priced in the current valuations and at this stage, the risk-reward ratio seems to be more favourable," it added.

Morgan Stanley also said that the company has seen improving profit trend in its core businesses as it recorded robust growth in asset management, consumer financing and broking and distribution businesses.

The shares today marked its third consecutive day of rise after falling sharply over most of the recent weeks. Prior, to the current three-day rally, the stock had plummeted by close to 40 per cent so far this year.

 

                            NIRAJ KUMAR

                              PGDM 2 SEM