Archive for the ‘income tax’ Category

Jaggery(Gur) – “The Medicinal Sugar” Part 1

Hello Friends here we come up with another write up on “Commodity Corner Series”.

.

Jaggery(Gur) - "The Medicinal Sugar" Part 1

.

Here we would touch upon the aspects related to the commodity “Jaggery” also termed as a “Gur”.

We would also read about how it is formed, what is the market scenario of this commodity, current price value and production volume of jiggery in India.


🙂

Jaggery (Gur) is a coarse, unrefined sugar that has been made from sugar cane juice.

It is the natural mixture of sugar and molasses.

🙂

Formation:


This is considered unrefined and is produced by boiling raw sugar cane or palm juice in iron pans.

It is then formed into blocks.


As it does not go through additional processing, it does retain some of the natural vitamins and minerals of the ingredients used, though boiling the juice does deplete some of these.

Many people do consider jaggery healthier than more refined sugar since it is less stripped of natural nutrients.


This may be eaten in small slices alone as a dessert, or it may be combined with spices to make a variety of Indian desserts and candies.

Jaggery is most often available in cake form, and ranges from fairly crumbly to nearly rock-hard.

.

🙂

.

Market Scenario:


It is popular throughout southern and Southeast Asia.

Maharashtra is India’s largest producer and consumer of gur, with even a dedicated agricultural export zone.

Anakapalle is the biggest jaggery market yard in Andhra Pradesh and it caters to Orissa,West Bengal, Assam and other states besides Andhra Pradesh.

The major spot market is at the major terminal markets including Muzaffarnagar and Hapur.

.

🙂

.

Price-production Factor:


In 2009, the journey of gur futures at the NCDEX counter started at Rs.750 and is now ruling at Rs. 1100 per quintal.

These surges in prices have been influenced by the high sugarcane rates.


In 2008-09 season, which ended in September, some gur-making units in UP have paid as high as Rs 250-260 a quintal for sugarcane compared to Rs 150-155 a quintal by sugar mills, as the cane production was lower in the state.


Steep fall in production in the northern markets such as Uttar Pradesh and also in the South Karnataka has contributed to the price rise here.

Even in the other markets in AP, such as Nidadavolu in West Godavari, production has fallen drastically.


Drought in the State and uncongenial climate in the northern States were some of the contributory factors to the steep fall in production.

The sugarcane yields in Visakhapatnam, Vizianagaram, and East Godavari districts had fallen due to drought conditions and the recovery was also poor this year.


The festival demand for jaggery is strong all over the country thanks to Pongal festival in Tamil Nadu and Makara Sankranti in the northern and western regions.

It is nearly 56% over last year, largely due to dip in sugarcane availability.


Farmers are selling more cane to gur-making units as they pay higher than sugar mills.

The production in India is expected increase to 8.2 million tonnes in the 2009-10 season on higher prices.

Gur price has outpaced sugar price and as a result more sugarcane would be diverted for making gur during the ensuing 2009-10 season (October-September).

.

🙂

.

In next blog we would read about the Karnatka Govt initiative of setting up a Jaggery park at Mandya, the country’s fourth largest jaggery market.

Stay Tuned 🙂

.

Note : For More Latest Industry, Stock Market and Economy News and Updates, please click here

EQUITY MARKET OVERVIEW JANUARY 2010

EQUITY MARKET OVERVIEW JANUARY 2010

.

The year 2009 was an unconventional year with surprises galore.

The sharp recovery in the benchmark Sensex is evident of the same.

.

The year came with some shocks and some surprises, be it Satyam opening the Pandora’s Box, government coming to the rescue through fiscal stimulus or gold touching the new highs.


With appreciation of more than 75%, 2009 calendar year emerged as the best year bringing back hope and strengthening the faith and confidence of investors.

.

As we welcome the New Year, let’s have a glance at how was the sunset of 2009 with the happenings in the month of December.


The month started with not much action as the indices were little changed as every rise was seen as an opportunity to book profits as fear of rising inflation barred investors from building large positions.

.


The India’s industrial output jumped 11.7% in November 2009 from a year earlier, helped by stimulus measures and robust domestic demand.


The momentum in the country’s industrial output is likely to sustain in the coming months.


The facility for Indian companies to buy back their Foreign Currency Convertible Bonds (FCCBs) under the automatic route and approval route would be discontinued from January 2010 due to the improvement in the equity market.

.

The central bank said it would allow non-bank financial companies which are focused on financing infrastructure projects to borrow from overseas markets under the approval route.


During the middle of the month, profit taking pulled the key benchmark indices lower.

.


The worst monsoon since 1972 and flood in some parts of the country have pushed up food prices nearly to 17.28% annually in beginning of January, while the headline inflation accelerated to 7.31% in December.


The food supplies need to be boosted to stem the price rise as the current acceleration in inflation rate is not only due to loose monetary stance.


The government towards this, has cut the open sale price of wheat, while ministers have pledged to import food items that are in short supply to boost local supplies and stem inflation.

.

Dollar also showed strength and sparked fears of unwinding of dollar carry trade.

The Christmas week saw a ‘Santa Claus’ rally that took the market to 19 months’ closing high in a truncated trading week.

.

Further, the latest data showed that corporate advance tax payments for the October-December 2009 quarter shot up sharply, suggesting a higher profit growth in corporate sector in the third quarter (October-December) of the current fiscal.

.


The corporate advance tax payments for the quarter were up 44% to Rs.48300 crore against a 3.7% decline in April-June quarter and a 14.7% increase in July-September quarter.


The company-wise break-up of advance tax collection suggests a broad-based recovery with automobiles, cement, metals and consumer goods, doing well.

.

Amidst all this, we had the Finance Minister‘s statement that containing inflation and cutting fiscal deficit are the major challenges for the government in the short-to-medium term.


Towards this the government can even alter the proposed draft for the direct tax code to sustain the high economic growth.

🙂


Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here

Why Commodities Trading? Know Now.. Part 1

Why Commodities Trading? Know Now

.

Are you comfortable enough to answer these given questions with certain level of confidence and conviction?

🙂

For example,

What do you think gold prices will go up further?

Are you sure that crude oil prices are going to fall?

Have you heard that the soya crop this year is bad and will result in soya prices going up?


If you think that your answers and predictions have a good chance of coming true and are willing to bet some money on them, you could try your hand at playing the commodity futures market.

You might have heard about stock future trading quite often.

Lets discuss about commodity futures, now..

🙂


The commodity markets have changed a lot from the poky, little hole-in-the-wall trading offices in narrow streets next to crowded markets where traditional dhoti-clad merchants used to trade.


Now India’s boast of 3 major national level commodity exchanges which are :

.

National Commodity and Derivative Exchange(NCDEX),

Multi Commodity Exchange (MCX) and

National Multi Commodity Exchange of India(NMCE).

.

These brand commodities exchanges have been set up and these are fully computerized.


More and more stock brokers are setting up commodity brokerages as well, and trading volumes in commodity futures is widely predicted to rival the volume of derivative transactions (futures and options) on the stock exchanges.


What’s more, you can also trade online.

🙂


Well  first lets talk on the need and importance of commodities trading.


Why commodities trading?


Well, let’s suppose you want to buy gold because you believe that the price of gold will rise.

You could then buy gold ingots, store them, wait for them to go up in price, and then sell them at a profit.


But, you have to be sure that the gold you buy is pure, you have to find a place to store it, you have to provide the security, transport it to vault and other such hassles.


Therefore,a far better way to invest in gold would be to buy gold futures from the commodities exchange. This is much advisable step.

🙂


Next Blog we would touch upon issues like how can we do commodity trading, what is the process and how it works. 🙂

Stay Tuned for more and more on this 🙂


However For More latest Industry,Stock Market and Economy News Updates, Click Here

Indian Industry Expanded At A Fastest Rate in 25 Months :)

Indian Industry Expanded At A Fastest Rate in 25 Months

.

India’s industrial output rose at a faster-than-expected 11.7 per cent in November  from a year earlier, due to stimulus-backed demand for manufactured goods, particularly consumer goods.

.

Part of the industrial growth, measured by IIP is no doubt due to a low base of last year but it is mostly attributable to stimulus-driven demand.

Stimulus measures have boosted domestic demand for sure.

.

However, industrial growth was just 2.5% in November 2008.

.

India’s factory production in November was the fastest in 25 months, raising a debate on whether stimulus provided to spur the economy should continue.

.

Meanwhile, manufactured goods, which have around 80% weight in the Index of Industrial Production, which measures industrial growth, grew by 12.7% in November 2009 compared to 2.7% in the same month a year ago.

.

Within this category, consumer durable goods production expanded by 37.3% in the month against just 0.3% a year ago  while industrial output in Q1 of 2009-10 stood at 3.8% and in Q2 at 9.2%.

.

Moreover, with better-than-expected performance in November,  industrial production in the first 2 months of Q3 now expanded at more than 10%, as it grew by 10.3% in October.

.

As such, if the trend is maintained in December, industry would expand at faster pace in the third quarter.

.

On the other hand, the continuous rise of industrial production gives enough hope that the recovery is on a firm footing.

.

Though it is going to fuel the debate whether stimulus provided by the government to boost the economy should be withdrawn now or not.

🙂

.

Market experts believe that with respect to stimulus, there could be some withdrawal on the indirect taxes side. This could be required to make up for the fiscal deficit.

.

As part of stimulus, government had cut excise duty by six per cent and service tax by two per cent, besides stepping up Plan expenditure taking the total value of stimulus to Rs 1,86,000 crore.

.

🙂

Banks May Not Up Interest Rates For Next Six Months

Banks May Not Up Interest Rates For Next Six Months

.

New Year has brought a good news for the Corporate India.

.

SBI Bank chairman has indicated that there will be no increase in interest rates for next six months despite inflationary pressure.

.

As inflation is rising, there was speculation going around that RBI, (in its review of monetary policy) might take measures to tighten the money supply which would have led to the hardening of interest rates.

.

As the global economy is still in the grip of recession, industry players feel that any hike in interest rates will affect the economic recovery in India.

.

Banks authorities and market analysts feel that there was surplus liquidity in the system and credit offtake was slowly picking up.

.

This situation of liquidity surplus will force banks not to increase interest rates, in current situation.

.

Because of this surplus liquidity, banks have cut deposits rates.

But they are not cutting the lending rates due to slow credit offtake, despite the speculation that RBI can increase key rates (repo or reverse repo) to contain inflation.

.

🙂

.

In the eight months of the current financial year till December 4, while the deposits with the commercial banks rose by 3,69,535 crore, credit off take was only Rs 1,44,151 crore.

.

This forced the banks to park around Rs 100,000 crore with the RBI at reverse repo rate of 3.25%.

.

🙂

When the interest rate condition was benign, Banks had cut their lending rates, particularly home loan rate.

This had helped reviving real estate market. The buyers started coming back and cement and steel sectors also started improving.

.

The recession did not hit India the way it had affected European countries last year.

.

There was only a slowdown in the growth rate which came down to 7% from 9%.

.

Market experts believe that withdrawal of stimulus package by the government should not be done in the prevailing situation, but should be phased out in staggered manner.

.

🙂

Centre released Rs.361 crore to the States

Hello Friends here we come up with the Latest Agri Commodities updates from various parts of the country.

.

Centre released Rs.361 crore to the States

.

Centre releases Rs. 361 crore to States :

The Centre on Tuesday released to the State Rs.361 crore as its share of the 2008 kharif crop insurance.

Minister N. Raghuveera Reddy said the State and Central governments had sanctioned Rs.800 cr. under the crop insurance scheme claimed by 7.5 lakh farmers.

.

Out of which, the State already released its share of Rs.356 crore a month back.

The distribution process of the released funds would be completed in two-three days.

.

🙂

.

In Other major Commodities Updates, we can read about the stories of flour mills across the country buying of wheat from government under OMSS via electronic auction process on NCDEX Spot Exchange and on NSEL.

.

Also we will read of the story related to NCDEX, which is set to launch online spot trading in Rajasthan soon.

.

Flour mills to buy wheat from govt through e-auction:

.

Come January and flour mills across the country will start buying wheat from government under open market sales scheme (OMSS) via electronic auction process on NCDEX Spot Exchange and National Spot Exchange (NSEL).

State-owned Food Corporation of India (FCI) has decided to use electronic trading platform of both the bourses to offer wheat under OMSS.

.

Under OMSS, FCI has offered 1.5 million tonnes wheat in the first tranche in four states — Delhi, Haryana, Karnataka, and Andhra Pradesh.

The minimum quantity has been fixed at 100 tonnes and then in multiples of 10 tonnes.

.

🙂

.

NCDEX to start online spot trading in Rajasthan:

.

NCDEX Spot Exchange (NSPOT), a spot trading arm of the country’s largest agri commodities futures trading platform, National Commodity and Derivatives Exchange (NCDEX), is all set to launch online spot  trading in Rajasthan soon.

.

The exchange has already got permission from the state government to launch spot trading in rapeseed/mustardseed, chana and guarseed in the state.

.

With this, the exchange has secured permission to set up Spot exchanges in the states of Gujarat, Karnataka, Maharashtra, Haryana, Bihar, Rajasthan and Kerala.

It also has APMC cess paid contracts in Madhya Pradesh.

.

🙂

.

Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here

GST Introduction in April to Reduce Indirect Tax Burden

GST Introduction to Reduce Indirect Tax Burden

The Finance Ministry maintained that the net burden of indirect taxes on the people would reduce by 25-30% when the proposed Goods and Services Tax (GST) is introduced from April 1, 2010.

.

However, it is said that real estate would also be brought under the GST scanner and deliberations in this regard between the Centre and the States were almost conclusive.

.

The draft legislation on GST had been referred to legal experts and would be finalized in order to facilitate the government to achieve target of implementation of Goods and Services Tax as has been promised by April, 1, 2010.

.

Meanwhile, it is said that there were divergent views expressed by the Empowered Committee of State Finance Ministers and the Thirteenth Finance Commission (TFC) on certain issues relating to GST, but noted that these were on the verge of finding a solution.

.

On the other hand, according to the implementation programme, the government plans to introduce the GST regime from the new fiscal to replace excise duty and service tax at the Central level and the VAT at the State level, apart from others levies like cess, surcharges and local taxes as currently applicable on good and services.

🙂

FII investment, this year, is the highest ever inflow in India

FDI inflow India Last year Touched 80 Thousand crores

The FII investment of Rs 80,500 crore in 2009 is the highest ever inflow in the country in rupee terms in a single year and comes a year after they pulled out over Rs 50,000 crore.

🙂

FII inflow so far this year has broken the previous high of Rs 71,486 crore parked by foreign fund houses in domestic equities in 2007.

.

Market analysts believe that the FII inflow in India may continue in the next year as well, if the liquidity conditions remain strong.

.

As per Market experts, FIIs are expected to continue to be positive on domestic markets and in general Indian markets seems to fare well in 2010.

.

Delhi-based SMC Capitals Ltd’s Equity Head Jagannadham Thunuguntla has supported the view, saying,

“If liquidity conditions remain strong next year, one can expect FII inflow to remain strong into India even in 2010 as well.”

.

The Bombay Stock Exchange’s benchmark sensex, comprising 30 bluechip stocks, has gained more than 70% so far in 2009, one of the best performers among leading global bourses.

.

“However, if dollar-carrytrade-unwinding starts, then one can expect rush of FII outflow from the country, resulting in pressure on Indian markets,” he cautioned.

.

Significantly, last year the FIIs had pulled out a net Rs 52,900 crore from the domestic bourses — a trend triggered with the collapse of global financial services icon Lehman Brothers in the middle of September 2008.

This selling trend continued till the first two months of the passing year.

🙂

Global Market Outlook 2009 and 2010 :)

SMC Market Outlook

.

With markets giving returns on investment more than 79% in 2009 and showing a strong sign of recovery from mid 2009 on the back of strong domestic demand, policy reforms and stimulus packages, 2009 calendar year emerged as the best year for investors since 2000.

🙂

FII’s have once again proved to be the front runners in terms of the inflow, pumping more than Rs 82,000 crore in the Indian market this calendar.

.

But 2010 promises to be another testing year as fiscal and monetary stimulus in many of the world’s major economies begins to wane.

.

After being in consolidation for most of the month, in the week gone by the domestic markets suddenly jumped back to life and closed at their highest in 19 months as investors rushed to buy stocks on renewed optimism, after foreign direct investment into the nation jumped 60% in the first eight months of this fiscal year.

.

The FM`s comments on GDP growth and encouraging cues from global markets also boosted the market.

.

Both the indices, Sensex and Nifty made a new high for 2009 on the eve of Christmas, rekindling the festive spirit.

Bulls were in a mood of rejoice as Christmas took Nifty to a new high of 5,197.90.

The year ends with more than a spark of hope, and next year seems to be a stable and profitable one.

However, we believe that markets would continue to be volatile and hence it is important to manage risk in the coming year too.


🙂


For the forthcoming week, markets may remain volatile as traders will roll their positions in the derivative segment from December 2009 series to January 2010 series ahead of the expiry of the near month December 2009 contracts on Thursday, 31 December 2009.

.

On the flip side higher advance tax figures by India Inc which suggests better Q3 December 2009 results, may support the market.

.

Corporate advance tax payments for the quarter were up 44% to Rs 48,300 crore against a 3.7% decline in April-June quarter and a 14.7% increase in July-September quarter.

.

The global developments also need to be seen for any further directions.

Furthermore, food price index data for the year to 19 December 2009 will be closely watched which is going to release on Thursday, 31 December 2009.

The high food price inflation is a major worry for the policymakers as they contemplate a right approach to tame hike in inflation which seems to be more of a supply side issue.

.

The next quarterly review of monetary policy is scheduled on 29 January 2010 which may also give some direction to the markets.

.

On the global economic front, the US economy grew at a revised annual growth rate of 2.2% in the third quarter, much slower than initially projected.

.

Japan’s unemployment rate rose to 5.2 percent from 5.1 percent in October, for the first time in four months in November, an indication job growth may not be strong enough to support the economy’s recovery from its deepest postwar recession.

.

The world stock markets are not ready to react on the downside and after every consolidation they are moving up only.

4960 on nifty is strong support as was mentioned in last week magazine and the nifty touched there and moved up sharply.

Even the base metals and stocks are not reacting to the strong dollar.

Till the trend of stock markets is up, one should be playing from the long side of it.

Nifty has support between 5050-4970 and Sensex between 17100-16700 levels.

🙂

New Year celebration may result in thin trading this week.It may impact domestic bourses as well.

Regarding outlook, dollar index will give next direction to precious metals. If it notices a pause in its rally then precious metals may trade in a range or vice a versa.

Base metals will remain volatile.

Gap between lead and zinc should shrink gradually.

Fresh buying in steel may keep nickel at higher side.

If US crude and other inventories continue to decline then fresh buying will stimulate in crude oil.

However, it already saw spiky moves hence upside is limited.

🙂