Today start Sensex drop’s 150 points, Nifty test’s
10,850; Bank stocks crack
NEW DELHI: Equity benchmarks
Sensex and Nifty opened in the negative territory on Monday Morning, breaking
the winning momentum of last two consecutive sessions, as a fresh spell of
selling emerged in bank stocks.
China market was closed and will remain so all week for Lunar
New Year.
The dollar hovered near a one-week high against the yen on
Monday, buoyed by stronger- than-expected US jobs and factory data,
Reuters reported.
Rupee's fall against the US dollar hit the
sentiment. The domestic unit on Monday opened 29 paise down at 71.54 against
the dollar on account of some buying in American currency by banks and
importers.
3 Stock’s
that could deliver Solid Return’s investment
By Adviser-Pushpendra: Markets are hovering around those 36,338
levels. The price to earning’s are not very cheap at the current level.
Benchmark indices are also expected to be volatile in the coming days, ahead of
the General Elections in May 2019. There are many stocks that continue to
remain undervalued at the current levels.
The share’s of India Bulls Housing has dropped from levels of Rs 1,400 to the
current levels of Rs 796. The fall has come largely on the back of the
liquidity crisis in the NBFC sector and the IL&FS fiasco. Nothing much has
change for India Bulls Housing though. The company continues to grow at solid
growth rates of almost 20 per cent. What is most interesting is that at the
current price of Rs 796, the dividend yield works to a healthy 5.27 per cent.
In fact, the company declares dividend’s almost 4 times every year. A further
fall in the price of the shares is ruled out, given the fact that dividends
paid by the company will support the share price.
Yes Bank
Yes Bank too is an undervalued stock,
which has gone through severe price damage in the last one year. The shares
have halved from levels of Rs 380 to the current price of Rs 190. However, the
problem with Yes Bank is that it has been plagued by numerous worries,
including the departure of Rana Kapoor as the CEO from Jan 31, 2019. Apart from
this there have been worries of under reporting of NPAs.
However, it is likely that we may see
worries at the bank subsiding over the more longer term. The shares are
definitely undervalued for the fourth largest private sector bank in the
country. The one year forward p/e is less than times, making the stock
attractive at the current levels.
Coal India
This is another stock that should be
bought because it is largely undervalued. The company declared a dividend of Rs
7.25 per share recently and another Rs 10 per share dividend is likely later in
Feb. The total dividend paid results in a dividend yield of more than 7 per
cent per year.
This makes the stock attractive. The
business prospects of the company are also good, given the fact that it is a
cash rich company and almost has a monopoly over the coal mining business in
India. The shares of Coal India have fallen from a high of Rs 326 to the
current price of Rs 227. At the current market price, the stock has very low
risk. A good bet for the long term.
How shares in India are taxed?
In India, if you sell your shares before
a period of 1 year, then short term capital gains of 15 per cent applies. On
the other hand, if you sell the shares after a period of 1 year, then long term
capital gains on shares apply. This is levied at 10 per cent currently.
It is important to note, that long term
capital gains only applies, where the profits exceed more than Rs 1 lakh per
year. It is hence very important to ensure that you plan the sale of your
shares accordingly.
Disclaimer
NEW DELHI: Equity benchmarks Sensex and Nifty opened in the negative territory on Monday Morning, breaking the winning momentum of last two consecutive sessions, as a fresh spell of selling emerged in bank stocks.
China market was closed and will remain so all week for Lunar New Year.
The dollar hovered near a one-week high against the yen on Monday, buoyed by stronger- than-expected US jobs and factory data, Reuters reported.
Rupee's fall against the US dollar hit the sentiment. The domestic unit on Monday opened 29 paise down at 71.54 against the dollar on account of some buying in American currency by banks and importers.
Yes Bank
