BUDGET EFFECT : CAR MAKERS TO HIKE PRICES

FM has proposed the following additional taxes on car makers.

Break-up of new taxes on cars, SUVs, sedans and MPVs:

a. 1 % infra cess on small petrol/LPG/CNG cars of length not exceeding 4-metre with an engine capacity below 1200cc.

b. 2.5 % additional tax on sub-4 metre diesel cars with engine not exceeding 1500cc.

c. 1% luxury tax on all the cars above Rs 10 lakh.

d. 4 % tax on bigger sedans, MPVs and SUVs with higher engine capacity.

Car makers are likely to increase the prices of the cars accordingly.

2016 BUDGET HIGHLIGHTS

Direct Tax proposals to entail loss of Rs 1,000 crore Indirect proposals to yield Rs 20,000 cr; Net gain: Rs 19,000 cr.

Higher rate of TDS to NRIs not having a PAN card will no longer apply if they produce a suitable alternate document.

Retrospective Tax: High level committee headed by Revenue Secretary to allay fears
45% tax (30% tax + 7.5% surcharge + 7.5% penalty) on undisclosed income declared under new window between June 1 and September 30, with no provision of scrutiny of books.

Infra cess of 1% on all diesel cars of certain capacity, SUVs, some other cars as part of pollution control measure.

For first-time homebuyers, addl Rs 50,000 tax exemption for houses under Rs 50 lakh
Withdrawal up to 40% of corpus from Pension to be made tax-exempt.

10% tax on dividends in excess of Rs 10 lakh received by individuals, HUFs; this will be in addition to DDT; LTCG period for unlisted firms reduced to 2 years.

Corporate tax: Effective rate of tax comes to 24.8%. Accelerated depreciation limited to 40% for first year. IT rate for FY17 of relatively small enterprises, with turnover of less than Rs 5 crore limited to 29% plus cess.

Relief to those living in rented houses and not getting HRA from employers to go up from Rs 24,000 to Rs 60,000.

Relief to small tax payer earning less than 5,00,000 p.a, additional relief u/s 87A from Rs 2000 to Rs 5000.

Plan vs Non-Plan distinction to be erased in FY 2017. Every new scheme to have sunset date and outcome review.

15.3% increase in Plan Expenditure to Rs 5.5 lakh crore, this is the last year of the 12th Plan.

Fiscal deficit to be retained at 3.9% of GDP; FY17 fiscal deficit target at 3.5%.

Ease of doing business: Bill to amend Companies Act, will provide enabling platform, company registration to be completed in 1 day.

Rs 25,000 crore allocated for recapitalisation of PSU Banks; RBI Act to be amended for providing framework for Monetary Policy Code.

Comprehensive code on resolution of financial firms to be introduced in parliament to deal with bankruptcy in banks and insurance companies, will provide comprehensive resolution framework.

At start of year, 18,500 villages were not electrified. As of mid-Feb, 5,500 villages have been electrified. 100% rural electrification to be done by May 2018.

Rs 38,500 cr allocated for MGNREGA, highest amount ever under the scheme.

Rs 2.87 lakh crore as aid to Gram Panchayats as recommended by Finance Commission; quantum jump of 228%.

Proposed Rs 5,500 cr for crop insurance scheme.

Provision of Rs 15,000 crore to ease burden on loan repayment in form on interest subvention for farmers.

Rural Sadak Yojana allocation at Rs 19,000 cr for FY17 representing 60% of central funding, rest 40% to come from states, taking total allocation to Rs 27,000 cr; 100 km road construction per day currently to be stepped up.

Only 46% of 141 hectares of net cultivable area is irrigated, target 28.5 lakh ha to be brought under irrigation, at Rs 17,000 cr next year.

To double income of farmers by 2022, sets aside Rs 35, 984 crore for the purpose; to bring 28.5 lakh hectare under irrigation at a cost of Rs 17,000 crore.

CAD from $18.4 billion in first half of last year to $14.4 billion this year, projected to be 1.4% of GDP end of FY16.

GDP growth at 7.6% despite slowdown in Global economy from 3.4% to 3.1%. CPI inflation down to 5.4%.

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ULTRATECH BUYS JP GROUP'S CEMENT PLANT

UltraTech has acquired debt-ridden JP Group’s cement plants for nearly Rs. 17,000 crore.

UltraTech Cement says that it entered into a binding memorandum of understanding with Jaiprakash Associates Ltd for the acquisition of its identified cement plants having a total cement capacity of 22.4 mtpa situated in Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand, Andhra Pradesh and Karnataka.

The deal would further include a 4 mtpa plant under implementation at a cost of Rs. 470 crore.

BANKS BOARD BUREAU CONSTITUTED

Government has constituted Banks Board Bureau, which will advise the government on top-level appointments at public sector lenders and ways to address the bad loans problem among other issues.

Former CAG Vinod Rai was today appointed first Chairman of the Bureau.

ICICI Bank's former Joint Managing Director H N Sinor, Bank of Baroda's former CMD Anil K Khandelwal and rating agency CRISIL's former chief Rupa Kudwa have been appointed members.

E D TO PROBE RINGING BELLS FINANCES

Enforcement Directorate has started a probe into the finances of Ringing Bells, which has collected over Rs 1500 cr  as advance from public for supply of world's cheapest smartphone.

The company claims  that it can offer world's cheapest smartphone Freedom 251.

Sources says ED is looking into financial details and bank accounts of the company and its promoters. 

SBI TO RAISE RS 15000 CR

India's largest lender SBI has received its shareholders’ approval to raise up to Rs 15,000 crore by public issue or overseas issuance of shares.

The above is subject to the condition the the government holding should not fall below 51% under any circumstances.

RBI MODIFIES SDR GUIDELINES

According to revised guidelines banks can upgrade an asset to the standard asset category if they divest at least 26% of the stake to the new promoter within the specified period of 18 months.

Previously banks were directed to divest their entire 51% holding within the same time-frame.

RBI  yesterday has announced changes in its strategic debt restructuring (SDR) scheme, allowing banks more time to divest their holdings in companies they take control of.

FINALLY MALLYA QUITS UNITED SPIRIT

Bowing to public and shareholders pressure Group chairman Vijay Mallya has stepped down as non-executive chairman of United Spirits,  controlled by Diageo Plc. However he has struck a sweet deal with the UK firm which agreed to drop all charges of irregularities under his watch, and pay him $75 million over five years in return for getting him to go.

FORTH COMING IPO: HPL ELECTRIC & POWER LIMITED

ISSUE DETAILS

ISSUE SIZE	RS 450 CR
FACE VALUE	RS 10
ISSUE PRICE	NA
BUSINESS	ELECTRICAL EQUIPMENT MANUFACTURERS
PROMOTERS
LISTINGS	NSE, BSE
BRLMs	SBI CAPITAL MARKETS, ICICI SECURITIES, IDFC BANK
REGISTRAR	KARVY
IPO GRADE	NA

PNB SHOW CASES ITS WILFUL DEFAULTERS LIST

PNB's wilful defaulters list includes Kingfisher Airlines and its guarantors UB Holdings and Vijay Mallya. Kingfisher Airlines owes Rs 1,500 crore to PNB.

The bank has declared 904 entities as wilful defaulters with outstanding loan of Rs 10,869.71 crore at the end of December.

As per the list put out by PNB, some of the prominent defaulters include Winsome Diamonds & Jewellery which owes Rs 900.37 crore, followed by Forever Precious Jewellery & Diamonds Rs 747.98 crore, Zoom Developers Rs 410.18 crore, Nafed Rs 224.26 crore and S Kumar Nationwide Rs 146.82 crore.

L&T BAGS HUGE INTERNATIONAL ORDERS

Larsen & Toubro  has bagged international orders worth Rs 1,404 crore across various business verticals.

The first order is worth Rs 1,014 crore, which it has received for electrification upgradation work in the Middle East.

Another additional international order has been bagged is from Oman Electricity Transmission Company Ltd.

The company also received Rs 390 crore order from an ongoing metro job in the international market.

VISHAL SIKKA : INFY TO GROW AT 16% IN FY 16

CEO Vishal Sikka says that Infosys's revenue by 16% next year (2016-2017).

Infosys is likely to grow at 9.3% this year ending 31 March, larger rival Tata Consultancy Services at 8%, and Wipro around 5%.

BRAND FINANCE : TCS IS SUPER BRAND

Tata Consultancy Services has been recognised as the "Business Superbrand" in the UK for 2016, acknowledging its enhanced brand strength.

The Superbrands report is the latest recognition of TCS' enhanced brand strength. The company was recently ranked as the world's most-powerful IT services brand by Brand Finance with a score of 78.3 points -– earning it an AA+ rating.

RAJESH EXPORTS BAGS UAE ORDER

Jewellery exporter and retailer Rajesh Exports today said it has won Rs 840-crore export order from the UAE.

The order will be executed from its manufacturing facility in Bangalore and is to be completed by April 30, according to sources.

Rajesh Exports is one the stocks which has given a positive returns in the last one year, where as Sensex and NIFTY is down more than 13% during the same period.

LIC INCREASES EXPOSURE TO SENSEX STOCKS

 LIC has increased its exposure in 18 Sensex stocks including ICICI Bank, Axis Bank and Bharti Airtel in October-December, with purchase of shares estimated to be over Rs 10,400 crore at current valuation.

NSE REJIGS NIFTY

NSE has rejigged the NIFTY constituents.

The following stocks are removed from NIFTY from 01-04-2016:

1. PNB
2. Cairn
3. Vedanta

The following stocks are included to NIFTY:

1.Bharti Infratel
2. Aurobindo Pharma
3. Eicher Motors
4. Tata Motors (DVR).

IPO NEWS : UJJIVAN FINANCIAL SERVICES ALLOTS SHARES @ RS 205 A PIECE

Micro finance lender  Ujjivan Financial Services Ltd has raised over Rs.300 crore from a clutch of investors in a private placement round ahead of its IPO. 

The company has raised Rs.312 crore from almost 33 domestic investors including mutual funds, insurance firms, family offices and HNIs.

The domestic institutions, who participated in the fund raise include insurance firms such as HDFC Standard Life Insurance Co. Ltd, Shriram Life Insurance Co. Ltd, Bajaj Allianz General Insurance Co. Ltd, Kotak Mahindra Old Mutual Life Insurance Co. Ltd and mutual fund Sundaram Asset Management Co. Ltd.

Shares were allocated to investors at Rs.205 apiece, resulting in a price-to-book value multiple of 2.1 times.

CHRISTINE LAGARDE GETS ANOTHER TERM

International Monetary Fund  has given 5 year extension to its managing director Christine Lagarde, a second five-year term.

Lagarde, the first woman to hold the post, was the only candidate nominated. Her new term starts July 5.

FM TO OFFER SOME SOPS FOR SALARIED CLASS

FM is likely to offer some sops for individual taxpayers. Arun Jaitley is likely to raise the minimum income threshold for paying personal income tax for those below 60 years of age to Rs 3 lakh a year from Rs 2.5 lakh at present.

The income levels where the tax kicks in for senior citizens (of age above 60 years) and super seniors (age above 80 years) could also be correspondingly raised. 

NIFTY : TOP GAINERS

Symbol	LTP	% chng	Volume
ADANIPORTS NTPC HEROMOTOCO POWERGRID INDUSINDBK	200.40 127.60 2,519.00 139.30 826.90	4.84 2.24 0.46 0.43 0.39	91,09,852 50,50,949 2,48,444 38,03,275 22,41,894

BOB REPORTS HUGE LOSS IN Q3, STOCK UP 11 PERECENT

BOB has posted a net loss of Rs 3342 cr for the quarter ended December 31, 2015 as compared to net profit of Rs. 333 cr for the quarter ended December 31, 2014. 

The total income has decreased from Rs. 11808 cr for the quarter ended December 31, 2014 to Rs. 11726 cr for the quarter ended December 31, 2015.

However the stock has gained 11 percent (Rs 126) in today's opening trade.

RAILWAY EMPLOYEES TO GO STRIKE FROM APRIL 11TH

Railway employees led by  All India Railwaymen Federation  will go on strike from 11th of April, 2016. 

Their demand include better terms for seventh pay commission, scrapping of NPS, doing away with outsourcing of government jobs on contract basis, stalling corporatisation of postal services, and stalling FDI and PPP in railways.   

DNS Rating of FirstChoiceIPO

DNS Rating

A-	Rating by SolveDNS firstchoiceipoanalysis.com DNS tests had 0 failed tests and 8 warnings. 80.95% out of 100

CANARA BANK's NET NOSE DIVES

Bangalore based public sector Canara Bank has  posted a massive 87 per cent plunge in its net profit at Rs 85 crore in the quarter to December, pulled down by higher provisioning for bad loans.

The bank had registered a net profit of Rs 656 crore in the corresponding quarter a year ago.

Total income during the quarter fell to Rs 12,050 crore from Rs 12,228 crore in the October-December period a year earlier.

BSE CHANGES CIRCUIT FILTER FOR 31 STOCKS

BSE has changed the circuit filter for the following stocks with effect from February 15, 2016.

Sr. No.	Scrip Code	Scrip Name	Circuit Filter % Revised to
1	506074	Arshiya Ltd	10
2	509220	PTL Enterprises Ltd	10
3	523391	Nahar Polyfilms Ltd	10
4	516064	Arrow Coated Products Ltd	10
5	531569	Sanjivani Paranteral Ltd	10
6	531996	Odyssey Corporation Ltd	10
7	532282	Castex Technologies Ltd	10
8	532871	Celestial Biolabs Ltd	10
9	532952	Nahar Capital and Financial Services Ltd	10
10	536710	S R G Securities Finance Ltd	10
11	506197	Bliss GVS Pharma Ltd	10
12	530699	Raj Rayon Industries Ltd	10
13	523598	Shipping Corporation of India Ltd	10
14	539301	Arvind Infrastructure Ltd	5
15	534422	Looks Health Services Ltd	5
16	532372	Virinchi Technologies Ltd	5
17	532414	IKF Technologies Ltd	5
18	532673	K M Sugar Mills Ltd	5
19	532719	B. L. Kashyap and Sons Ltd	5
20	531712	Trilogic Digital Media Ltd	5
21	523021	Rishi Techtex Ltd	5
22	526971	Dhoot Industrial Finance Ltd	5
23	530047	Rai Saheb Rekhchand Mohota Spinning & Weaving Mills Ltd	5
24	531223	Anjani Synthetics Ltd	5
25	531547	Tirupati Industries India Ltd	5
26	513361	India Steel Works Ltd	5
27	500223	JCT Ltd	5
28	503663	Tilak Finance Ltd	5
29	504903	Rathi Steel & Power Ltd	5
30	539044	Manaksia Steels Ltd	5
31	506146	Visagar Polytex Ltd	5