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Budget 2017

Arun Jaitley last week presented his fourth Union Budget. Expectations were high and so were the challenges, and it was indeed a tough task for the Finance Minister to play a balancing act between growth stimulus and fiscal consolidation. The Budget places a lot of emphasis on agriculture, rural economy, social sector investments and infrastructure, but it is not at the cost of fiscal prudence. There is no attempt to resort to blatant populism, but needs of the poor and the underprivileged are taken care of. Key reform measures, including revamping of political funding and phasing out of  FIPB, are also proposed. Overall, Jaitley has managed to hit a fine balance to a fair degree.

As far as the MSME sector is concerned, it is a big relief to see the Budget coming up with several sops for the sector. One of the major announcements is reduction of corporate tax from 30 percent to 25 percent for those units whose annual turnover is less than Rs 50 crore. According to available data, out o…

The Monsoon Session 2016 | Except GST Bill

The Monsoon session is on the way and most of the parties are optimistic for the bill and so as the investors. Most of the conditions are fulfilled by the ruling party and opposition is looking much satisfied as well. Except GST Bill, another 21 bills are lined up and this time, experts are expecting them to get clearance as well.Logistics industry is projected to grow at a compounded annual growth rate of 15-20 percent between 2015-16 and 2019-20 that will get a further boost if GST is rolled out from this year, which can trim costs by 20 percent, says a report. The much-delayed GST rollout can help boost the GDP by 100-200 bps as this will help faster and cheaper movement of goods across the country with a uniform taxation structure, said a report by Care Ratings.Since GST will be levied on goods transportation and full credit will be available on interstate transactions, logistic cost is expected to come down by 1.5-2 percent of sales due to warehouse optimization and the resultant…

Kotak Select Focus Fund Growth Five Year Performance

Kotak Select Focus Fund - Regular Plan (G) Five Year Performance Investment Amount `1000/- month (SIP)
2011 2012 Month Nav Unit Month Nav Unit Jan Jan 10.48 95.45 Feb Feb 11.47 87.15 Mar Mar 11.02 90.74 Apr

Monsoon Update

Monsoon Update

Monsoon progressed well during the week, with cumulative rainfall now 1% surplus of normal as compared to 25% deficit in the mid of June. Monsoon has now covered all major agricultural states. However, sowing is down 22% YoY, which is understandable given that Kharif season has been delayed by around 15 days. There has been a sharp drop in Cotton and Oilseeds sowing, as certain state governments including Maharashtra advised farmers against sowing Cotton till monsoon sets in.

The focus would now be on the progress of monsoon through July-August (around 60% of total South West monsoon), as rainfall was above-normal in June last monsoon also (CY15) but dwindled as the season progressed. However, both IMD and Skymet have forecast above-normal rains in July and August this monsoon.

Outlook June'16

The credit policy of June '16 was along expected lines with RBI staying on hold until further clarity emerges on monsoon and its impact on food prices. RBI has reaffirmed that the stance of monetary policy will remain accommodative. The expectations of strong monsoon, low MSP hikes for kharif crops of 2016-17, continued reforms by the government and higher public capital expenditure to augment supply side capacity forms the basis for our positive view on inflation going forward. Additionally, continuing fiscal consolidation, and low current account deficit are also supportive of lower yields.

Source for various data points: RBI Website, Bloomberg and Reuters.

Pay hikes to boost retail loan growth by 17-20%: SBI VG Kannan, Managing Director, SBI

Pay hikes to boost retail loan growth by17-20%:SBI  VG Kannan, Managing Director, SBI 30thJune 2016;CNBC-TV18 ·Discussing the stressed asset situation, Kannan toldCNBC-TV18 that the worst is probably over. However, it does not mean that all bad news is done for. With monsoon playing well and implementation of 7th Pay Commission, growth trajectory is coming back in the economy, he says. Pay hikes will boost retail consumption and housing sector both. Kannan expects SBI's retail growth to be in the range of17-20percent on back of pay hikes. While there is also a possibility of a jump in inflation, it will not be substantial. ·SBI has always been raising this foreign country funds overseas at regular intervals. We are raising from half a billion to USD 1.5 billion over the last so many years and this is one of the regular fund raising activities to enable our foreign offices to fund the assets. The exact timing will be decided and we are looking at the various global scenarios…