It has been hectic week for the investigators and government authorities what with new findings into scams and various regulatory reports coming out almost every other day, as the investigation into slew of corruption charges takes its route.
On the other hand, even stock markets have reacted negatively based on same old news of inflation, rising interest rates and corruption charges. However, the fact remains that food inflation has softened for the week ended January 29.
At a time when Nifty has sulked by 1000 points over last 3 months, it gives me a feeling that markets have corrected on the back of almost no news at all. Inflation is the only genuine macro-economic concern on the block right now. It just needed a reason to correct after last 2 years of scorching bull run. Here’s a list of Top 10 Stocks to pick in this falling markets.
Let’s have a check on some important news of this week:
2G Spectrum Scam – Got Smaller in Size!
Telecom regulator TRAI has come out with new recommendations on 2G spectrum pricing parameters. The excess 2G pricing is likely to steeply increase pay-outs of telecom service providers to the extent of Rs.16000 crore for the spectrum.
Further, the new regulatory norm undermines the findings of CAG report’s estimated losses on account of 2G spectrum allocation scam from Rs.1.76 lakh crore to Rs.1.24 lakh.
Health Insurance Portability – Going Beyond MNP!
In India, the term ‘Portability’ has hardly been used in the context of business or finance related products / services until now. At best, I can remember electronic gadgets like iPod which were referred as portable music players.
But, with introduction of the mobile number portability in India, we all know what it is about. In fact, now even policyholders can ditch their current health insurer and carry on the benefits with a better insurance company. What’s more? Now they can also carry benefits for pre-existing conditions. Health insurance portability will start from July 1.
ADAG Stocks Mauled by Investors!
Few weeks back, we had an article on how Anil Ambani does flip-flops which making statements and revealing partial truth to the investors. However, this time around it was investors who mauled the ADAG stocks on the back of certain rumors and corporate governance issues coming on fore.
On 9th February, junior Ambani-led Reliance Infrastructure and other leading ADA Group stocks such as Reliance Communications, Reliance Capital and Reliance Mediaworks almost lost their 1/5th of the market capitalization on Indian bourses.
And, what proceeded later? No points for guessing! The famous blame game…
Food Inflation Subsides – Oh! Really?
Finally, all the hoopla surrounding the infamous food inflation seems to have taken a toll on the pricing pressures. Yes, the wholesale food inflation has dropped substantially to 7-week low of 13.07% for the week ended Jan 29.
The Analyst community differs on their views on food inflation – while some of them have pointed out that this softening in prices is due to last year’s high statistical base effect when food inflation stood at high of 22%; the others suggest that prices of food articles have genuinely dropped as the supply-pressures have eased.
Infra Bonds – Race to Save upto Rs. 6158/-
It’s time for the financial year end and investors are lapping everything that comes up as tax-saving instruments. Further, from this fiscal, the government has allowed an additional deduction amount of Rs.20, 000 for investment in long-term infrastructure bonds under Section 80 CCF of the Income Tax Act.
In latest, IDFC has raised around Rs.765 crore through its second tranche of such infrastructure bond issue with a face value of Rs.5000 each. Another government-notified company to raise money through this route is L&T Infra which has come up with tax-saving bonds of 10-year tenor period of face value of Rs.1000 each.
So, have you invested in the tax-saving instruments? Or are you still waiting for the last minute March-end entry into them?