As we approach Infy Results, we see that markets have been relatively benign about the company in recent times. While the stock shot up over 5% in Jan (after Dec qtr results) it is comparatively little compared to earlier times, where a 5% move was a bit on the lower end of the spectrum.   Today, for the first time in a long time: Infy isn’t the first Big IT company to announce results: we have seen TCS results (30% Year on Year down on profits), HCL Tech (YoY profits up 3.6%), Wipro (YoY profits up 2%) Infy is releasing results mid-day instead of at 9 AM. So markets will not really move so much the previous day. The stock is on a medium term downtrend, at a support level of the high it reached post results last time with a bit of a drop today already: (Note: Blue arrows are previous results) What happens in results?… (Read On…)

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We write about the actions of Foreign investors in the Indian Debt and Equity markets. This post is for Capital Mind Premium subscribers only.

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The government has refused to budge on the FII tax issue, it seems. Recently, the tax department had started to issue notices for Minimum Alternate Tax (MAT) on gains made by foreign institutions ( Read our post ) after an Advance Ruling by the tax department that capital gains made by such investors, regardless of the tax treaty with Mauritius, is subject to MAT. MAT is applied so that people who use loopholes to avoid taxes will still pay at least a certain minimum tax amount. It’s only for companies though. Till now, companies didn’t include non-Indian companies (those who don’t have a base in India). But some ruling established that an FII –  a foreign based institution that invests in Indian stocks – is taxable in India, even on capital gains on shares. Such gains are otherwise untaxable because the Mauritius/Singapore treaties don’t allow them to be taxed in India, but the MAT concept is that if you don’t pay tax because of a loophole, you pay MAT.… (Read On…)

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After that insane 20,000 cr. volume in Sun Pharma yesterday as Daiichi sold a whopping Rs. 20,000 cr.  worth shares, who really bought them? Turns out the buyers weren’t named Dilip Shanghvi (the promoter of Sun Pharma). While we don’t know the identity of all other buyers, we do know from NSE’s Bulk Deals reporting that three big investors bought into Daiichi’s selling. Here they are: Temasek Aranda Investments, Mauritius is a subsidiary of Temasek , a Government of Singapore investment arm. 2.02 cr. shares Rs. 1,915 cr. Singapore Govt. The Goverment of Singapore also invested directly in the issue, and brought in over Rs. 1,000 cr.    1.26 cr. shares Rs. 1,197 cr. Goldman Sachs Goldman Sachs, Singapore also bought Daiichi’s holdings, with nearly 5,000 cr. invested in the issue.   5.12 cr. shares Rs. 4,864 cr. Note: We assume investments were made at Rs. 950. We will probably know of the others only if they bought more than 1% of the company or if they report these purchases elsewhere.… (Read On…)

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India’s Trade Deficit widened to $11.8 billion, which is the highest of the last four months (since November). Total imports fell 13% but exports fell over 20% in USD terms.   And the big help was oil imports which have fallen over 50% as a result of the price drop in crude oil, our largest  import. However, non oil imports seem to have gone up by about 11%. This is not a bad thing, as India’s economy relies largely on imports, and an increase in import growth indicates that there is consumption demand within India. However, most of that demand could just be Gold. Apparently, the change in regulation has made Indian gold imports double to 125 tonnes.     Total Trade Growth Falls Off Cliff Adding up Imports + Exports, our total trade too has fallen tremendously. Trade growth, year on year, is at the lowest in over five years at -16%.… (Read On…)

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When is the right time to exit? There are no good answers to this question, because there is no universal truth. Wait, that was more profound than it was intended to be. Let’s leave the larger philosophy of truth aside, and focus on the specific, earthly, mundane question: When do you get out of a stock? Let’s qualify our answer. The rest of this content is only available to premium members. Register for a premium membership today ! Apart from this content you will get our proprietary research and weekly newsletter too! Already a subscriber? Log in now !… (Read On…)

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