Blog meant for 2 Feb 2017 Thursday
Dear friends,
Markets were quiet until the end of the Budget but once there were more major negative news for markets and economy, Nifty had a huge rally to rise by 155 points. Global cues are also on the positive side tonight.
Also, I suggest buying the Economic Times or any other Business newspaper tomorrow so that you can read in detail about what changes have been made in the Budget and how it may affect us professionally and personally.
The Income Tax rate for people who earn Rs.2.5-5.0 lakhs has been reduced from 10% to 5% which will result in some tax savings. There will be a rebate of Rs 12,500 for those who pay 20-30 percent tax.
Service tax has not been increased and stays at 15%.
For long term holdings, long term was classified as 3 yrs earlier but now it has become 2 years.
Income Tax for companies with turnover of less than Rs.50 crores is 25% as compared to 30% earlier.
The indications for short term are –
THE HOLDS ARE – ITC, MARUTI, TITAN, HDFC BANK, ASIAN PAINT, L&T, BHEL, M&M, SBI, HDFC,
BUY – AXIS BANK
THE DON’T BUYS – DIVISLAB, TCS
WAIT TO SELL – ONGC
WAIT TO BUY – RELIANCE, LUPIN
Majority of the stocks are in Hold zone for short term. We have to see whether there is some profit booking tomorrow after today’s huge rally or will the rally continue. Nifty has closed above 8700 and is inching closer to its lifetime high of around 9100.
The Budget looks like it will encourage good growth in the economy especially after demonetisation. Continue the monthly investments in bluechips in the long term.
All the best!
Dr.Bharath Chandra
About the author
Dr. Bharath Chandra
Hi there! This is Dr. Bharath Chandra & Rohan, International Trainers & Success Coaches. We have addressed more than a crore people on Stock Market, Personality Development, Wealth Management and Financial Planning over the past 35 years.
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