Author: research@meghacapital

81 Highlights Of Indian Budget 2019

Indian Budget 2019 Highlights
  1. Fiscal deficit for 2018/19 seen at 3.4% of GDP
  2. Poor farmers to get ₹6,000 per year under PM Kisan scheme  
  3. Unorganised labour to get ₹3,000 per month after age of 60 under mega pension scheme 
  4. No income tax for income up to ₹5,00,000
  5. Standard deduction to be raised from ₹40,000 to ₹50,000
  6. All farmers affected by natural disasters to get 2% interest subvention upfront for entire loan period 
  7. Current account deficit for 2018/19 seen at 2.5% of GDP
  8. Farmers up to 2 hectare of land to come under PM Kisan scheme 
  9. Government launches mega pension scheme for social security coverage of unorganised labour 
  10. Fiscal deficit for 2018/19 seen at 3.4% of GDP
  11. Recovered ₹3 lakh crore via bankruptcy code
  12. Bank of India, Bank of Maharashtra and Oriental Bank no more under RBI’s prompt corrective action  
  13. Poor farmers to get ₹6,000 per year under PM Kisan scheme 
  14. PM Kisan to transfer cash directly to farmers under PM Kisan scheme 
  15. Poor farmers to get cash in three equal installments under PM Kisan scheme  
  16. PM Kisan scheme for poor farmers to cost government₹75,000 crore FY20
  17. PM Kisan scheme for poor farmers to get ₹20,000 crore in FY19 
  18. PM Kisan scheme to transfer cash directly to farmers’ accounts 
  19. PM Kisan scheme to start transfer of cash with effect from December 2018
  20. Government announces Rashriya Gokul Mission to support poor owning cows  
  21. Rashriya Gokul Mission cow scheme to get ₹750 crore in the current year
  22. Central government to alone support PM Kisan scheme 
  23. All farmers affected by natural disasters to get 2-5% interest subvention 
  24. Gratuity cap doubled to ₹20 lakh
  25. Government to contribute equally in pension accounts under mega pension scheme 
  26. Unorganised labour to get ₹3,000 per month after age of 60 under mega pension scheme 
  27. Government to implement mega pension scheme for unorganised labour from this year itself 
  28. Mega pension scheme is for people with income up to₹15,000 per month
  29. PM mega pension scheme to benefit 10 crore people 
  30. Total of 8 crore cooking gas cylinders to be distributed by next year under PM Ujwala Yojna 
  31. Government to contribute 14% under New Pension Scheme 
  32. India is the second biggest hub for start-ups
  33. A National Programme for Artificial Intelligence covering 9 areas to be promoted 
  34. Government projects to source 25% material from SMEs, 3% from only women-owned SMEs
  35. GEM platform to cover all public sector enterprises to promote local industry, trade 
  36. SME loans with ticket size of ₹1 crore to get 2% interest subvention 
  37. Defence Budget crosses ₹3 lakh crore mark in FY20 Budget
  38. Budgetary support for railways for FY20 is ₹64,587 crore 
  39. Railways’ operating ratio seen at 96.2% in FY19, 95% in FY20 
  40. North-east states to get 21% higher budget allocation at₹58,166 crore in FY20
  41. Will set up 1 lakh digital villages in next 5 years 
  42. JAN Dhan, Aadhar and mobile have been game changers 
  43. 34 crore Jan Dhan bank accounts opened in last 5 years 
  44. Single window clearance to be made available to Indian film makers 
  45. TV: Railways FY20 capex seen at ₹1.58 lakh crore 
  46. Direct tax collections estimated at ₹12 lakh crore in FY19
  47. Poised to become a $5 trillion economy in 5 years
  48. Aspire to become a $10 trillion economy in 8 years 
  49. ₹1.3 lakh crore undisclosed income brought under tax net
  50. 3,38,000 shell companies detected and their directors disqualified
  51. Average GST collection ₹97,100 crore 
  52. Government lays out 10-year roadmap to improve ease of living 
  53. Making India a pollution-free India in 10-year roadmap 
  54. To lead world in transport and energy storage devices
  55. To bring down dependent on imports for energy needs 
  56. Roadmap envisions people traveling in electric cars 
  57. Tenth dimension of government’s India 2030 vision is a healthy governance 
  58. Fiscal deficit pegged at 3.4% of GDP for FY20
  59. Fifth dimension of government’s India 2030 vision is clean rivers 
  60. Government to scale up Sagarmala programme 
  61. Seventh dimension of India 2030 is to lead in space programmes
  62. Eighth dimension of India 2030 is to grow food in environment friendly manner
  63. Ninth dimension of India 2030 is a healthy India 
  64. Tenth dimension of India 2030 programme is a comprehensive wellness system 
  65. FY20 total expenditure seen at ₹27.84 trillion rupees 
  66. FY20 capital expenditure seen at ₹3,36,292 crore 
  67. Central schemes to get ₹3,27,679 crore FY20
  68. National education mission to get ₹38,572 crore FY20
  69. Integrated child development scheme to get ₹27,584 crore FY20
  70. SC, ST welfare to get ₹76,800 crore FY20
  71. Salary earners, pensioners to get tax benefit 
  72. Salary earners up to ₹5,00,000 annual income to get full tax rebate 
  73. No income tax for income up to ₹5,00,000
  74. Salary earners of up to ₹6,50,000 income to not pay tax if they make tax related investments
  75. Standard deduction to be raised from ₹40,000 to ₹50,000
  76. No tax if you own second house 
  77. No TDS on post office savings up to ₹40,000
  78. No TDS on rental income up to ₹2,40,000 per year 
  79. No tax on notional rent on second house 
  80. Capital gains tax exemption under Section 54 raised to₹2 crore 
  81. Tax on notional rent on unsold inventory to not be paid for 2 years 

Hexaware : Short Term View

There is a good short term move in large cap IT names like Wipro, Infy, TCS in last month while the markets are behaving sideways with defensive element and currency card playing factors. Low PE ratios also supporting up moves in these stocks.

One can go long in HEXAWARE TECHNOLOGIES LTD. CMP-334. Above 340 close the stock is likely give great up side break out provided the markets does not fall in sell off mode and try to slip towards its lower end of the range of NIFTY 10700. As we can see this stock made 550 around high in September 2018 and has been languishing since, probably ready for some trading action.

Useful tips for investors from Indian Warren Buffett Mr. Parag Parikh

Parag Parikh is a person who is the real Warren Buffett of India. (Rakesh Junjhunwala is not. Yes, he himself said he is a trader. Warren Buffett does not trade. Not just that Rakesh Junjhunwala is said to be Warren Buffett of India mainly because he has amassed largest wealth by investing in stocks in India than any other individual. In our view, apart from that, he does not qualify to be said to be Warren Buffett of India. Because the Warren Buffet legacy is not only figures but principles that he follows. In our opinion Parag Parikh, whenever he talks, reflects the principles, style and attitude of a real Warren Buffett approach follower. In other words, if you disagree with Mr.Parikh, you are likely disagree with Mr.Buffett.

Legendary Value Investor Parag Parikh died in 2015 while he was on his way to attend AGM of Berkshire Hathaway of Warren Buffett in USA.

We request all to repeatedly watch/hear Mr.Parag Parikh and search his videos on youtube.com and hear him and digest him. Below are some of his

  1. If you have one set of losers and one set of winner stocks, and you need money then rather than selling the winners you may choose to sell half half of both. In this way you are managing your finances as well as avoiding behavioural anomalies.
  2. One should not have more than 20 stocks in a portfolios because it reduces return and it is difficult/impossible to track these many 20-50 stocks.
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India Cements Ltd: Short Term View

As we saw in our previous market views how the markets are in a range and may break out any side. The upside break out is above 11,000 and during that or after that happens we need to remain ready with our buy list of stocks, even if the break out doesn’t happen and market languish within the range, the individual midcap et al stocks will give rally and we need to take benefit of it. Pls remember these are just trading calls as we will see MF and inst. buying and lack of trading short selling by FPI and big traders. This is only technical bounce and some fundamental long only investors buying upmove. So, trade in that manner and not like its a continuing bull market trend. Everytime market or stocks go up is not a bull market. We are in a sideways market and you need to learn how to trade it. We will update more such short term technical buying calls.

So, buy India Cement around CMP 88.

Expect Upside Break-out Only Above 11,000 Nifty-50

As per our yesterday pre market review, the Indian stock markets, nifty-50, sensex-30 opened up but came down under selling pressure and made low 100 points lower in nifty. Those who followed our avice exited their longs and took short position and made good money.

MEGHA CAPITAL for premium equity research

Less has changed from our previous few week’s review. So pls go back and read it on our this blog as well as our old blog www.meghainvestments.blogspot.in. Become a member to get stock specific signals and alerts. www.meghacapital.in

Caution Ahead For Indian Stock Markets

On our blog www.meghainvestments.blogspot.in (oldest regularly updated blog in Indian stock market research and advisory field since 2008) we have been writing about inherent weakness in Indian stock markets as well as the non trendiness and sideways/range-bound kind of movement in the markets which has been exactly playing our like that only.

Trade with caution. Sensex , Nifty January 2019.

The markets are still in the same mode of buy on dips and sell on rise, however it is slowly inclining more towards the ‘sell on rise’ attitude. Also, the ‘triangle breakout’ pattern on Nifty-50 Index could be the make or break. Most world markets are in their H2-2018 bear market along with the equity beacon USA DJIA index which started its severest correction since 10 yrs of bull market in terms of time and price as well. To our analysts, this small bounce back will only persists for a little while and big trades are on the downside as we are always trying to hunt out big trades then small movements.

If markets are going to go up we will know it and get to it. The Nifty can give good conviction upside only above 11,000 and not before that. We need weekly close above it and then we are

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Past Performance

Below are our recommended stocks at various times. You can see the staggering rise of each stock after recommendation price.

Please check out the individual service as the return on your investment will vary as per your investment method weather it is Stock SIP Service, One time Individual Investment Service or other service.

In actuality, we believe, past track record is not a perfect judge for an investor to decide about selection of a good investment advisor. Because (1) past track record is no a guarantee of future performance (2) different clients have different requirements/services (3) different investor enter and exit at different time and price so their individual return will vary just the same as any incremental new client’s.

Year 2016 Recommendations

NAME OF STOCK RECOMMENDED PRICE PEAK PRICE %  RISE AFTER RECOMMENDATION
Zee Entertainment Enterprises Ltd. 400 590 47.50
Vedanta Limited 101 220 117.82
NMDC 95 140 47.37
Apollo Tyres Ltd. 160 235 46.88
DHFL 236 335 41.95
Asian Paints 934 1220 30.62
LML LTD. 10 16 60.00
BPCL 416 685 64.66
L&T Finance Holdings 83 109 31.33
Petronet LNG 250 410 64.00
Maruti 4000 5980 49.50
Tata Communications 450 680 51.11
Ceat Ltd 925 1400 51.35
Engineers India 160 275 71.88
Exide Industries 139 206 48.20
ICICI Bank 215 290 34.88
Oil India 325 420 29.23
Gayatri Sugars 3 13 333.33
India Cements 79 162 105.06
Edelweiss 55 125 127.27

IMPORTANT NOTES TO CONSIDER:

  • If you want past years’ recommendations track record then please contact us personally.
  • Some stocks are still in ‘hold’ mode while in many profit has been booked depending upon when the stock was recommended and to which client of which service out of our different services at different point of time.
  • Stock prices may be after or before adjustments of bonus, rights issue, split, capital reduction if any.
  • Many stocks are re-recommended, so some investor might have received a particular stock recommendation at lower level while some may have at higher level depending on their start of service.
  • Also note that some stocks are listed only on BSE  while some stocks are listed both on NSE and BSE.
  • Our most recommendations in the start of the year (2016) was from banking and NBFC sector and then onwards we covered PSU oil companies followed by Steel Sector mainly. Then other recommendations dominated from automobile and other sectors.
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9 Questions to ask and things to consider before Selection Your Stock Advisor

9 QUESTIONS TO ASK AND THINGS TO CONSIDER BEFORE SELECTING YOUR ADVISOR


  1. What risk-reward ratio will you give me?
  2. Please give me 10 investors and traders awareness and educational articles prepared by you.
  3. What is your educational qualification and experience in market of how many years?
  4. Are you providing advice and recommend only to trade or investment also? (one must recommend and suggest about long term investment also)
  5. Will you give me trading calls in segment which I tell you or will you tell me in which segments and sub segments to trade? (advisor must not let client to select their own segment and sub segment, because advisors must know better than clients who are seeking advice which segments and sub segments to trade and which not)
  6. Are you giving free trial or not? (true advisor will not give free trial. Reason is simple. He must be already having enough paid customers and not have time to give free tips. Also such advisor believes ‘free things has no value and quality thing always has value and are costly. He will ask you ‘How can you take judgment of my service in 2 day of sample calls? This is unreasonable’.)
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