THE ONLOOKER

Indian stock market is confused due to one after another global developments as political crises in Egypt, Libya followed by many other small countries in Africa and middle east. As usual immediate result is reflected in oil price soaring high. The Global market has been waiting apprehensively to what happens next. But contrary to the direction of expectation, came the bolt from blue, Tsunami in Japan ,leaving it in devastating stage. w hat is further shocking, the damage of nuclear plants! Reports suggest that Japan is worst hit than ever. So the Japanese economy too; the market waits anxiously, the indexes are plunging all over and India is no exception. Here I remind you lessons from history. Though it's ironical but global economy always looked up after the destruction or damage due to war or natural calamities. As immediate after the chaos is over the reconstructions start. Of-course this depends upon individual countries economical health. But Japan being one of the most d...

Here I publish the proposed direct tax codes (Income tax) , readers may take note of it for their future tax plan: The revised draft of DTC has proposed some major changes for the taxpayers. However, the changes in the revised draft are far from being the bold changes envisaged in the earlier draft. The objective of the new tax code seems to be now of simplifying the tax process. This article lists down the amendments proposed in the revised draft and its impact on taxpayers. Amendments 1) Under the new direct tax code, exemption for House rent allowance (HRA), Leave Travel Concession (LTC), medical allowance has been retained. However under the new tax code, LTC will be included as a part of your income. LTC was missing from the list of exemption which created perception that the incentive has been done away with. But it has been later clarified by a finance ministry official that the difference will only be on reporting mechanism. 2) The tax slabs will be changed with 10% tax...

Recent reports suggest that Indian stock index (SENSEX) is not likely to renege in near future. Rather it is likely to rise further slowly; not drastically. There several contradictory factors are involved in Indian economy. On one hand the rising inflation, on the other the increasing demand of engineering goods, automotives. The domestic car sells rose to its pick during last festive season. In tandem with the demands for accessories, tyre, steel, air-conditioners and plastic goods are rising. Recently the Reliance Industries found the oil source in Cambey bay, which is their second biggest finding in recent past. This pushed the share price of Reliance last week and that followed by several others pushing the SENSEX around 17000. At the same time gradually the rate of export is receding because of global, especially US demand slump. This is alarming; oil price in global crude market touched $80 per barrel will result in India’s net forex outflow adding fuel to inflation. This may f...

Taking the global queue, the Indian Stock indexes have plunged and everyday finding new low. Informed experts opine that the bear phase is ushering. Everybody is busy with all their wisdom, calculations how long the bear phase will last. No doubt it is pertinent question. The investors have deserted the market, without a sign of returning early. The day traders are trying hard to recover their loses. The general feelings of payment crises under existing circumstances is not ruled out. News are there as brokers committing suicides. Obviously it transpires that they did so apprehending trouble due to non payment of their dues. The Finance Minister assured neither Indian Banks nor Indian burses are under any sort of threat. Let us trust him and raise no question. Whenever the bear phase users in the market , you know, people start guessing the bottom. Because the bottom offers ideal time to enter the market. But most of us, keep guessing but can never identify the true bottom. Better not...

The Stock Market is going tumble tosser all over the world due to US economy. The sub prime crisis is finally taking heavy tolls. Many old bankers are getting bankrupt. The Indian banks are safe but the withdrawal of funds by FIIs is taking toll on its burses. The budding young investors should take the steps carefully and stage wise. Better they follow the simple rule of saving first. Few tips I am giving here. First of all budgeting is most important factor in young professional’s life. Unless you do that you wonder where your money goes! Writing a budget shows actually how do spend and shows the area and how you can control them. You can identify the area needs to be controlled. Never forget to add the expenses you do on shopping and entertainment and include your savings too. Keep a track on your utility bills and keep comparing them. Mind you the plastic money or credit cards are major boosters to spending. Not that they do not have any role to play. At an odd hours, god forbid,...

This year India has celebrated Independence Day with inflation rate touching new high; with same pomp and show, and the ruling government keeping the ensuing vote in mind has been generous with the largesse by hiking the pay of 5.5 millions government employees by 21% and more. Rest is left for to mend for themselves. Here is the release from Ministry of Finance Statement released by the Department of Economic Affairs, Ministry of Finance: "The rate of inflation for all commodities for the week ending August 2, 2008 stands at 12.44%, higher than the rate of 12.01% reported last week. After being nearly stable for four weeks, this rise has come as a major disappointment. The Wholesale Price Index (WPI) moved up from 239.6 in the week ending July 26, 2008 to 240.4 in the week ending August 2, 2008. The silver lining is that the inflation rate for the group of 30 essential commodities at 6.54 per cent was lower than the inflation rate of 6.66 per cent recorded in the previous we...

A recent study in the investment options for the fund managers and big investors has drawn my attention, it seems to be interesting, and so I thought why not to share this with my readers. We generally think when the stock market takes a south bound bend or plunges, showing the bear phase is out to take over, then the price of precious metal Gold go high. Gold has always been considered as a safe haven for investors to park their funds till the fresh opportunity emerges, so was the dollar earlier. With US economy under pressure and recession looming large, the dollars have lost much of its sheen. The investors and fund managers finding the unstable stock market in the emerging economy and US federal rate not being attractive, switched over to commodity market and speculating on crude. This led the world wide inflation and partially caused the food crisis too, these all issues have been discussed earlier on many of my articles. The current article is to focus on a new area of market a...

With spiraling oil price followed by inflation is taking toll not only on your monthly budget but on your investments and future investment options. In India the current inflation rate declared a week ago is around 11.05% . Mind you this is based on taking the price hike of few specific commodities, metal and oil prices (edible and fuel both). But the actual rate of inflation varies from city to city and depending upon quantum and type of individual consumption. The inflationary pressures are maximum on the labor forces of unorganized sector. Here in India they comprise 92% of total work force, they are deprived of the automatic adjustment of dearness allowance on the pay with the rate of inflation as available in organized sector. However, the mass in the lower rung of working class are not bothered about investment and portfolio management and safeguard their investments against inflation. It is only the people middle class whether professional, businessmen or service holders in orga...