Investment Guru

NBCC offers affordable flats around NCR for 6.75 Lac

Are you looking for a One bedroom flat with Balcony, Tiled flooring in living & Bed rooms, Kitchen with ceramic walls and brass fittings and all these at a price of 6.75 Lac ? NBCC has launched the “NBCC town” to materialize your dreams.
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After Tata Housing, its the turn of National Buildings Construction Corporation(NBCC) Limited to launch affordable housing scheme. NBCC has launched “NBCC Town” scheme at Khekra on Delhi – Sharanpur Highway. 19 Km Away from the ISBT, the flats start at a price of 6.75 Lac for One Bedroom Flat (493 Sq. ft.) at 4th Floor of Lotus Apartments. The scheme opens from 25th August,2009.
NBCC has come up with four type of apartments. The Lotus apartments (4 Storey) will house One bedroom Flats. Lilly apartments (4 storey) will house 2 bedroom flats. Tulip Apartment (4 storey) will house 3 Bedroom and Marigold Towers (7 storey) will also house 3 Bedroom flats but will have facility of stilt Car parking. You can check the prices of different flats on offer here.
If you are a working or retired Government / PSU Employee then you are eligible for a special discount of 5%.
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The payment schedule and plan has also been designed in a reasonable manner. The application form is available at the NBCC Bhawan at Lodhi Road and Sector 41 Noida at a price of Rs 100.
The application form for NBCC Town can be downloaded here.
The forms are also available at designated branches of HDFC Bank, Union Bank, Corporation Bank and Axis Bank.

The costliest flat in the scheme is located at the First Floor in the Marigold Towers with an area of 1100 Sq. Ft. and is prices at 17.8 Lac for 3 Bedrooms with 2 Balconies. Car parking will cost additional 1.25 Lac for flats at Marigold Towers.
Optional Open parking space is available for other apartments at a price of Rs. 50,000.
NBCC is also going to launch 2/3/4 Bedroom flats apartment and 4/5 bedroom flats with Penthouse at Gurgaon shortly.
Location Map of NBCC Town
Master Plan
Detailed Price Schedule

Update on 06th March,2011
List of Applicants who are eligible to apply for 'NBCC Heights' at Sector-89, Gurgoan
The Scheme is open from 25th February to 16th March, 2011
Download Application Form

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Adani Power- IPO Allotment & Listing Strategy

If you have applied for the Adani Power IPO, by now you would have become owner of this yet to be operational power generation company which is part of Adani Group. Check Allotment Status for Adani Power.

The Adani IPO has brought life back to the ailing primary markets. It has received tremendous response from the Qualified Institutional Buyers who have shown huge apatite for the stock. The QIB portion was subscribed more than 39 times. The Retail Investor segment got oversubscribed by just 3 times. A similar pattern was also seen in NHPC IPO. This trend shows that retail investor has still not come out openly and is still licking the old wounds caused by turmoil in stock markets as well as dismal performance of IPO’s. However, on a positive note it shows that the interest in primary markets is building back and it speaks of better prospects for the upcoming issues.

adani basis ipo

Another thing which was quite evident from the subscription pattern was that the investing community rates India as a good investment opportunity and in particular the pace at which infrastructure reforms are expected to take place has aroused significant interest in Power sector. In India the generation of power is far less than the demand which is estimated to rise at a far greater rate than in last 5 years.

According to the 17th Electric Power Survey, India’s peak demand will reach approximately 152,746 MW with an energy requirement of approximately 968 billion units by fiscal year 2012. By the fiscal year 2017, peak demand is expected to reach 218,209 MW with an energy requirement of 1,392 billion units. Currently we have a Peak Availability of just 97,669 MW. This shows the tremendous scope available to companies in power sector.

Listing Strategy for Adani Power

The stock is expected to list on August 20th,2009. We have been hearing a lot about overpricing of the IPO by the Adani’s. Whether the issue was overpriced or not will be finally decided by the markets. The company has not started operations yet and hence doesn’t have any earnings data. At Rs 100 per share the company would quote at a Price to Book Value of 2.8. NTPC, an existing profit making company is currently priced at 2.8 times its Book Value. This shows that Adani Power has been priced aggressively. However, one should remember the fact that Adani has certain impressive operational advantages such as location of projects in areas where peak time shortages is maximum, leverage of presence of Adani group in Coal mining, Shipping as well as power trading.

From a long term prospective the stock looks very promising. However from the current perspective the stock is priced aggressively. The current grey market premium is ruling at Rs. 8-10. The stock is expected to list in the range of Rs 110-115 and may go up or down depending on the buying by the QIB’s to cover for the shortfall in allotment. Investment Guru is of the view that Investors may book profits at a price above Rs 115 and take advantage of listing euphoria. Long term Investors can re-enter the stock at lower levels once the listing sensation is over.

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New Tax Code 2009 : Rewiring the Taxman

New Code aims to make tax laws and rates, Tax payer Friendly

taxfriendly I was recently discussing with a group of friends that the Indian tax rates structure needs a definite shift if the government wants voluntary compliance of tax laws and wants to increase the number of tax payers in the country. One of the discussion points was that government should introduce single tax rate of say 10% on the taxable income for individual tax payers and should do away with so many slabs and deductions. One suggestion was that income beyond 5 Lac should be taxed at 10% with no rebates or deductions whatsoever.

And here comes the New Direct Tax Code Bill, 2009 which attempts to simplify the lives of the tax payers. Though the bill does not fulfill the wish-list of our discussion, it is surely a step towards providing a more tax-payer friendly and simplified tax structure.

Following are the brief highlights of the New Direct tax code Bill,2009

The objective of the new tax code is to establish an efficient , effective and equitable direct tax structure in the country.
All direct taxes like Income Tax, Dividend distribution tax (DDT), Fringe benefit tax (FBT) and Wealth tax will be covered under this single tax code.
New Tax Rates will be applicable w.e.f. Financial year 2011 as under

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Savings will now be taxed on EET basis. This means that Savings when done under designated schemes would be exempt from tax in the year the saving is done (First ‘E”). It will continue to be exempted together with the accumulations/accretions till the time they remain invested (that means till they are not withdrawn, this is Second ‘E’). The savings will be taxable at normal tax rates in the year in which withdrawal is made (this is ‘T’).
However, accumulated balances as on 31st March,2011 in the Provident Fund will not be taxed.
Deduction on account of savings has been increased from current 1 Lac to 3 Lac. However, since the new code doesn’t mention deduction in respect of Housing loan, the same may go.
Dividends will continue to remain tax free in the hands of Investors.
Capital Gains would now be taxed as income. The concept of short term and long term capital gains has been removed from tax perspective. Indexation benefit would be available on asset held for more than one year.
The indexation base has been changed from 1981 to 2000.
Since all capital gains are now taxed, Securities Transaction Tax (STT) has been abolished under the new tax code.
Salary received in form of perks, perquisite, LTA, Rent free accommodation, Medical reimbursement will now form part of Income and will be taxable.
Wealth Tax has been Re-introduced. Net Wealth in excess of Rs. 50 Crore will be taxed @0.25%
In addition to deduction of Rs 3 Lac for notified savings schemes, Rs 15,000 deduction will be available for Medical Insurance Premium for self and family , and another Rs 15000 for parents. Up to Rs 50,000 can be claimed as deduction for treatment of disabled dependant , Rs 40,000 for prescribed diseases. Rs. 50,000 deduction would be available to handicapped and Rs 75000 for person with severe disability.

The New tax code is in discussion stage. You can give your comments and suggestions on the same by writing an email to directtaxescode-rev@nic.in

Keep a watch on this blog for posts related to implications of new tax code.

Download Discussion Paper

Download Direct Taxes Code Bill, 2009

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Markets set to cheer UPA Victory, expect Spectacular opening

The Results of General Assembly elections might have taken even the pundits of politics by surprise, however even a layman can tell you that markets are going to sky rocket on Monday. Yes, predicting Monday’s market opening is not a rocket science anymore. After a gap of 25 years, the Indian voters have been able to give a clear mandate to a single party to form a government and markets could not have wished better than this.

A 800-1000 Points gap up Opening Possible

Markets have built in an expectation of hung assembly and have been caught on a wrong footing! It is very likely that there will be mad rush of traders, who built on hopes of hung assembly and taken significant short positions, to cover up their trades and this may push sensex intraday rise in the range of 800-1000 points. Investors are advised to be cautious and not to buy shares on Monday for Investment purposes and wait for the euphoria to die down. However, traders can make a killing as the markets turn volatile.

I see these results as an opportunity for the markets to cheer up as the stable government would be able to take up reforms at a much better pace as compared to last 5 years since communist would not be seen in the new parliament. After the news of Global Recession, there was no major reason for markets to hold up and hence they are not likely to miss this opportunity.

FII’s are also expected to speed up their investments since they have more clarity on the political front. Domestic Investors and Mutual funds are also expected to jump on the bandwagon.

Which Stocks likely to move up?

Virtually every stock on Nifty is expected to move up since this would be a secular and broad based rally. However more focus will be on stocks which fall under sectors where the UPA government is going to focus as a part of its Manifesto.

The UPA Manifesto has out emphasis on Rural Development Schemes and Infrastructural development projects. Hence Stock of companies related to Agricultural products like irrigation and Fertilisers are set to catch fire. Keep an eye on Stocks like Nagarjuna Fertilisers and Jain irrigation. Infrastructure related companies in field of Power, Cement and Construction will also see a significant catch up. Keep a watch on stocks like ACC, GVK Power & BHEL .

Congress Manifesto also provides thrust on Education. With this stock like Educomp Solutions and Aptech are likely to remain in Limelight.

Another segment likely to fire up will be banks. Rumors are that the government may soon announce another stimulus package to drive further liquidity in the markets and decisions can be taken on revising the Bank Rates. Keep an eye on stocks like PNB and SBI and HDFC Bank.

Besides the Manifesto, the Ruling party is also expected to bring back on track its program of disinvestment in PSU companies. This had hit roadblock due to strong resistance from Left parties. Though this may not be on immediate agenda of the government, it would pave the way for Re-rating of the PSU stocks.

How long will this Rally continue ?

This a hard nut to crack. Though the new strong government has given a reason for sensex to rejoice, it would at best be a short term stimulus. The fact is that the Global economy is still in the clutches of recessionary forces created by its ill-doings. India being a open economy cannot escape the burnt. However, the First quarter result has not been as bad as thought of. This shows that the impact of slowdown in India (caused by global recession) would be lesser than perceived.

The best thing India and its government did was to get proactive in dealing with the situation. This is the difference between U.S. and India. They woke up only after ruining themselves while we were proactive enough to take steps to combat the slowdown. This may led us to believe that the worst is behind us and sensex may not retest its earlier lows. However, a lot depends on the global scenario in the coming quarters and any adverse development may well leave scars on our markets too.

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Verdict Out : Indians prefer Weak PM to Communal PM

Historical verdict shows Indians voted for Development and stability

The India’s political theatre has come out with an unprecedented show of results. Though the final results are yet to be declared, the leads show that Congress and its allies have managed to secure a astounding victory over the BJP led alliance by a huge margin. The red Flag of Left has been teared to pieces. The political blackmailers like SP and RJD have been shown the exit door. The election results have given a clear indication that Indian public wanted a government who can take the country forward to the path of progress and prosperity while maintaining stability and peace and the mandate has been clearly in favor of congress. BJP was unable to impress the public with its campaign of a determined leader in the form of LK Advani.

The Weak PM Campaign Backfired on BJP

The PM-in-waiting Mr. Advani has made it a major propaganda that Man Mohan Singh was the weakest Prime minster India ever had. However, this message didn’t went well among the voters. Advani’s main election plank of a weak PM actually Backfired on him and I feel this one factor itself did a huge damage to the party’s prospects. Why ?

Manmohan Singh’s image as a politician is of a very clean, Honest and a intelligent person. To put it more clearly , the work done Mannohan singh as a finance minster in the Narashima Rao government still lies deep rooted in the minds of the people. If you ask me , I would say that he is one person whose image of a clean and honest person and a person who has transformed the country’s fortune by his visionary economic wisdom is unparalleled even if you combine the intellectual wisdom all all the leaders of BJP.

Indian voters rejected Advani’s plea that Manmohan singh was a weak prime minister and this time they have made sure that he can emerge even more stronger.

Rahul Gandhi’s Acceptance among the Youth of India

Rahul Gandhi was successful in projecting himself as a leader who is capable of representing the youth of India. The charisma of Gandhi family, Rahul’s handling of the election campaign and his show of emotional attachment to the villages of India and the poor & backward people worked really well and transformed into a huge success of party not only in the written off state of U.P., but also helped it clinch a large number of seats due to acceptable of Rahul Gandhi among the youth’s. Rahul has definitely emerged as the youth icon of India and has established a place in their hearts.

People want development and not Temples

Every time elections happen, BJP starts its old tune of Jai Shree Ram and its promise of construction of Lord Ram’s Temple. This time also the party repeated its rhetoric but the Indian voters have made up their mind. They had enough of these slogan to arouse their religious sentiments for generating votes and have made up their mind that Ram Mandir should not be the criteria of choosing a party to lead the nation. They wanted a government who can make their lives better and work on developmental issues.

BJP didn’t offered a Unique Proposition

The lack of unity among the second rung leaders in BJP was clearly visible and the party didn’t offered any unique proposition to the public to vote for them. L K Advani could not impress the public with his promise of a determined leadership to the country. He proved too weak to steer the party on its own and projections of people like Narendra Modi as a future prime minister also proved self destructive to party’s image among the voters.

To summarize the election outcome, the Indian public has placed its trust on the performance of the UPA government and wants it to continue to take the nation on the path of development and prosperity. The task on hand is for sure a litmus test for the UPA and the expectation levels have gone up for sure.

Coming Next : Impact of Election results on Stock Markets

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Mhada Lottery draw to be held on 19th May

The fate of lacs of applicants for the allotment of 3863 Flats under Mhada Scheme is soon going to be decided. Mhada is going to held a draw by lottery to declare the successful applicants on Tuesday, 19th May,2009.

Around 4.35 Lac applicants are trying their luck to get a pie of the 3863 flats. Out of these, 5300 applications have been rejected due to lack of documentation. The list of applicants who are eligible to participate in the draw has been put on the Mhada Website. The lottery draw will be held at Rangsharada Auditorium at Bandra (W)

If you want to witness the lottery process, Mhada will distribute free passes on First cum first serve basis between 11-2 PM at the Mhada Head-office at Bandra (E). Results will also be displayed outside the Auditorium on the LED Screen.

The whole process of lottery would be video recorded to ensure transparency

List of Eligible Applicants

Mhada Circular on Lottery Results

Update : To view the list of persons qualified for the lottery of 3863 tenements to be held on 19th May 2009, click on the respective scheme code below