panch-tattva/post result…itc,relcapital,tatamotors,pnb,MnM,ioc,tatacomm

ITC @188 (300708) gets 1004 panch-tattva points. It may be bought for long term regularly . Profits may be partly booked.

RELCAPITAL @1288 (300708) gets 951 panch-tattva points . It may be bought on good decline.

TATAMOTORS @415 (300708) gets 961 panch-tattva points . It is to be bought in a few strokes on days when it declines for long term.

PNB @464 (300708) gets 1080 panch-tattva points and you may make it part of your portfolio around current prices.

MnM @513 (300708) gets 789 panch-tattva points . You must and not rush into buying it.

IOC @414 (300708) gets 8070panch-tattva points . You may buy it on declines for long term.

TATACOMM @442 (300708) gets 810 panch-tattva points . You may wait till next result before entering this scrip. Those who are interested too much may buy on decling.

panch-tattva talk…RBI hikes rate

Friends,

 

RBI has thought it fit to raise the Repo-Rate by 50 bps to 9% as also the CRR by 25 bps to 9%. This was in the air alright and RBI has acted rather too harshly particularly when the crude is down to under $121 .  Since 2007 CRR has been raised up from 6.25% and since 2005 the repo rate has been up from 6.25%. POst announcement the Nifty lost heavily and closed 4189 points (-142).

 

The RBI action may not immediately affect the profitability of corporates as most of the leading ones are leveraged very mildly unlike during late 1990s and 2000-2002. That was the period when the corporates had borrowed heavily for expansion programmes , locally and abroad. Money had just become less scarce due to opening up of economy earlier. The inflation had started to moderate but RBI was late in its response and did not reduce rates in good time.

 

The case is different today and should be views likewise. THe adverse impact will come when RBI , once again, would be failing to see reason for the reversal of dear money policy. I think the banks would not raise long term deposit rates. Market may and should take RBI action in stride for the time being as the corrective movement in indices has already taken place.

 

The reverse repo rate is maintained at the old level , RBI simply has barred people from placing money with it. The borrowers of high rating will find it easier to borrow and the weaker ones will be shelving plans to expand on borrowed funds due to apathy of the lending institutions in light of recent developments. The efficiency of capital will see improvement  through continuous effort of the corporates. PEs wil be lower but only from higher profits , profits fall the PEs would go up in the course of time because it is blow alright but not deadly or irreversible.

 

I would sign off not on pessimistic note.

 

HariOm,

krsnaKhandelwal

panch_tattva/post resul…ntpc,herohonda

NTPC @178 (290708) gets 938 panch-tattva points and bu it for long term on down days.

 

HEROHONDA @735 (290708) gets 947 panc-tattva points and buy it on correction.

panch-tattva/post result…cairn,gail

CAIRN @228 (290708) gets 1103 panch-tattva points and is good for long term purchase.

 

GAIL @363 (290708) gets 1086 panch-tattva points and good for long term purchase.

panch-tattva/post result…ongc

ONGC @1011 (280708) gets 1236 panch-tattva points and should be bought. It was even earlier recommended for purchase and rewarded in a market which is otherwise drifting lower.

ONGC’s MD Mr R S Sharma has called upon govt-wallas to rather have provision for taking extra profit tax on windfall gains due to crude prices rising exhorbitantly and not subject it to (whimsically) asking it to give subsidies to oil marketing companies. He has also told that making cess on crude production advolerum instead of adquantum will take care of need to tax extra for gains in an transperant manner. I fully endorse his view . Earlier on I have many times raised this issue , if only the govt_wallas (the minister and the baboos) will listen. Now , with left aside , Mr Singh should sing some rational tunes.

panch-tattva/post result…hdfcbank,dabur

HDFCBANK @1127 (280708) gets 853 panch-tattva points and this is a good item to buy but now at this price, please wait for some correction before buying.

DABUR @92 (280708) gets 812 panch-tattva points and wait for buying it till the nextquarterly result.

panch-tattva/post result…hindalco,lt

LT @2720 (280708) gets 756 panch-tattva points and there is risk in buying it at current rates.This stock should however be a part of your portfolio and hence buy it in very small quantities over time on days when it declines. This way you will have built up desired level of holding in your hand and it will be unwise to sell any part of it on jumps.

HINDALCO @146 (280708) gets 1129 panch-tattva points and is OK for investment but you should not neglect to obtain panch-tattva advice when the price moves substantially up or down from this level or when the next result is announced.

panch-tattva talk…tax related

Friends,

You may give interest free loans to anybody including your own HUF or wife and you can not be subjected to tax on any notional interest income against such advances. The settled legal position in this regard would be as under:

‘If a tax payer advances an interest-free loan from his own funds or from borrowed funds on which he under no obligation to pay interest, the Income Tax Department can not question the decision as to why the tax-payer has not charged any interest on such loan advanced’

Only in a case , where the tax payer has diverted funds out of a borrowing on which he is paying interest can the tax authirities truly raise a grievance and that too on the ground of disaalowance of any interest paid.

The above is reported to you based on openion of Mr Mukesh Patel, an Ahmedabad based I-Tax consultant, appearing in todays addition of ToI.

HariOm,
KrsnaKhandelwal

panch-tattva talk…the menace of terrorism

Friends,

It was deadly week end. Banglore had seven blasts at public places and then came the turm of Ahmedabad which suffered 14 blasts and of deadlier kind too. No sane person can think of such things to do leave apart doing such a thing. So one thing is clear that it is an act of some insane person or group of such persons who have big money to recruit operatives to translate their hatred in practicle terms. It also calls for looking at the source at unlikely places and with suspicion on unlikely people. The elertness of public and much intenser intelligent effort of the governmental agencies may only bring the culprits to book and check further incidents. The making of much more stringent laws are required where the absense of conclusive evidense should not cause the relief to booked people on substantial circumstancial evidense. Such booked people should be allowed to be kept in custodey for any length of time if the further investigation remains in force. There may however be a clause to suitably compensate for the loss of income made by such a suspect for the period of detention if in the end he/she remains unconvicted. The law , balanced in all respects but with a greater room for working successfully for the police and other agencies , is really the need of hour. Also , there should be business as usual for the nation even after such episodes. to get destablised or not is our choice , not of the terrorist cowards.

If the market goes down tommorrow , selective buying should be made and the spirits should not be allowed to suffer.

HariOm,
KrsnaKhandelwal

panch-tattva/post result…ABB,bhartiartl,reliance

ABB @834 (250708) gets 736 panch-tattva points and buy this below Rs 800 for long term.

BHARTIARTL @796 (250708) gets 1063 panch-tattva points and should be outrightly bought for long term.

RELIANCE @2147 (250708) gets 897 panch-tattva points and this may be bought for long term in a few strokes.