Explained in Detail – The Demat Account

What is a Demat Account?

Demat Account is like a bank account except Demat holds the stocks in electronic form. A bank account holds money and a Demat account holds financial certificates of instruments like bonds, shares, government securities, mutual funds, and exchange-traded funds.

How to open a Demat account?

The fastest and quickest way is to select a brokerage firm and opt for Online Account opening. This is paperless mostly and does not take more than 10 minutes if all documents are ready.

This, however, was not always the case and before the advent of internet and camera phones it was not that easy. The steps for opening the Demat account are,

Select depository participant (DP)
Fill account opening form
Submit documents for verification
Sign a standardized agreement with DP
Verification of Documents
Demat Account number and ID generation
What are the advantages of a Demat Account?

Risk-free: The convenience of a Demat Account is coupled with its inherent safety. It’s a perfect safe way to hold all your securities and protects your against loss of physical certs, forgery etc
Time-saving: It’s an effective and time-saving way to buy/sell share immediately, automatic credit of shares when bonus or splits happen
Zero paperwork: Every transaction is in electronic format so the demat is super-flexible when it comes to handling securities
No hidden cost: All costs are known beforehand and handling expenses, stamp duty etc are eliminated
With the demat account an investor can receive benefits like dividends, interest, refunds, bonuses etc directly into the account
Can one open Multiple Demat Accounts?

Yes, One can open multiple demat account or just trading accounts but only one account with one broker.

Any minimum balance requirements?

NO, demat account has no such requirements.

What are the conditions for opening multiple demat accounts?

An individual can have only 1 account with 1 Broker. No multiple demat or trading accounts with same broker.
Every Demat account will have its separate Annual Maintenance Charges (AMC)
Unused Demat Accounts are likely to be frozen if dormant for a long time. To reactivate KYC procedures will be done again
No need for multiple trading account with multiple demat accounts
Multiple Demat Accounts have a major benefit; one can separate their trading and investment portfolios. One can also get the services of various brokers and use them to their advantage.

Mastering Home-Based Tax Filing: A Comprehensive Guide

Understanding Home-Based Tax Filing
Tax filing from home involves several key steps, from gathering your financial documents to choosing the right software for submission. For many homeowners, property taxes are often included in monthly mortgage payments, which helps spread out the financial burden over the year. According to the U.S. Census Bureau, approximately 65% of homeowners have mortgage payments that include property taxes and insurance.

Key Components of Your Tax Return
When preparing to file your taxes, consider all sources of income, which may include:

Wages from employment
Earnings from self-employment
Interest and dividends
Rental income
Capital gains
Deductions and Credits
Understanding what deductions and credits you’re eligible for can significantly reduce your tax liability. Common deductions include:

State and local taxes
Mortgage interest
Charitable contributions
Medical and dental expenses
Tax credits, which reduce your tax bill directly, can come from:

Education expenses
Energy-efficient home improvements
Child and dependent care
Tools for Efficient Tax Filing

To file your taxes from home, several reliable software options can guide you through the process, ensuring accuracy and maximizing potential deductions.

IRS Free File
For those with an adjusted gross income of $72,000 or less, the IRS Free File program offers access to free tax preparation software. This initiative, a partnership between the IRS and tax preparation companies, provides filers with a secure and efficient way to handle their taxes. Learn more about IRS Free File.

Commercial Tax Software
For those who do not qualify for Free File or prefer more guidance, commercial software options include:

TurboTax: Known for user-friendly interfaces and comprehensive coverage of tax situations.
H&R Block: Offers both online and software versions with options for expert assistance.
TaxAct: A cost-effective alternative that provides excellent tools and resources for a variety of tax needs.
Each software has its strengths, and choosing the right one depends on your specific tax situation and comfort level with tax laws.

Choosing the Right Software
When selecting tax software, consider the following:

Ease of use: Look for intuitive navigation and clear instructions.
Support options: Comprehensive help and support can clarify confusing aspects and provide reassurance.
Cost: Compare prices, including costs for state returns and potential upsells.
Strategies for a Stress-Free Tax Season
To ensure a smooth tax filing experience, consider these tips:

Organize your documents early: Gather all necessary documentation, such as W-2s, 1099s, receipts for deductions, and last year’s tax return, well before the deadline.
Check for updates in tax law: Tax laws change frequently, and staying informed can impact your return. The IRS website is a valuable resource for the latest information.
Consider professional advice: If your tax situation is complex, consulting with a tax professional can prevent costly errors and provide peace of mind.
Conclusion

Filing your taxes doesn’t have to be a daunting task. With the right preparation and tools, you can efficiently manage the process from your home. Whether you choose IRS Free File or a commercial software, the key is to start early and stay organized. For additional guidance, the IRS official website offers resources and contact information for expert help.

By embracing these practices, you can navigate tax season with confidence, ensuring compliance and optimizing your financial health.

What is an emergency fund and why do I need one?

This financial emergency could be in the form of

Medical expenses
A job loss
Repair work to your home or car
Unexpected travel expenses
or any other tough time.
2020 taught us the importance of saving for uncertainties, when unemployment rose and people started redeeming from their investments and increasing their debts. Having an emergency fund keeps you away from tapping into mutual funds reserved for long term goals.

How much to save

It is recommended that you need to have enough money at your disposal that can keep up with your consumption pattern for ideally 12 months. If your monthly expenses are Rs 50,000 then your emergency fund should save 50,000×12 = Rs.6,00,000 for your emergency fund.

However, the size of your emergency fund will vary depending on your lifestyle, monthly expenses, income, and financial dependents. Those who have EMIs or higher monthly expenses might need to start building a larger emergency corpus. If you have no financial obligations or if you are young, you can reduce your weightage to six months’ worth of expenses.

Where to invest

Follow the SLR (safety, liquidity, and return) philosophy while building this corpus. Consider financial instruments that prioritizes safety and liquidity of your money over returns. Consider bank deposits and liquid funds (with a short duration of 3 months) for building your emergency corpus. Those who are beginning to save can start with one month and then gradually build it up from there. As per SEBI norms, liquid funds invest in debt and money market securities with maturity of up to 91 days. The invested money is parked in market instruments such as Certificate of Deposits, Commercial Papers, Term Deposits, Call Money, Treasury Bills, and so on.

Things to consider when building your emergency corpus

Liquidity: Liquidity refers to how quickly your investments can be converted to cash. Invest in instruments that does not attract high penalties or exit loads.

Safety: Avoid saving in instruments that have high risk for capital erosion, instead, prioritize safety over returns.
Co-relation with other asset classes: Your investment portfolio has several asset classes, it’s important to evaluate how your emergency fund fits in with the rest of your portfolio.
Risk appetite: If you are conservative and have a low threshold for risk, you might want to consider a higher sum dedicated to your emergency fund.

The Role of the Mining Sector on the Nigerian Economy

Nigeria is a country blessed with various resources ranging from population, fertile land, forest, rivers, iron ore, uranium, coal, barites, limestone, crude oil, lead-zinc, gold, etc. However, the country has about 44 solid mineral commodities that can be found in about 450 locations nationwide. Seven of these minerals are considered strategic minerals by the Nigerian Ministry of Mines and Steel for accelerated development. These are Gold, Coal, Barytes, Tantalite, Iron ore, Bitumen, and Lead/Zinc. Currently, the Nigerian government relies immoderately on crude oil, and this has resulted in very little concentration of government in mining activities and it contributes to slowing the sector’s growth. The contribution of the mining sector as a percentage of GDP in Nigeria is only 0.33 percent. This shows sluggish improvement in the sector, as the domestic mining industry is underdeveloped, leading Nigeria to import some of the mineral commodities that it could produce within the country.

In the North-western part of Nigeria, there are abundant mineral resources such as Butyles, Kaolin, Marble and Salt, Gassiterite, Copper, Gemstone, Tantalite, Glass-Sand, Lead/Zinc, Pyrochinre, Tourmaline, Tentalime, Topaz, Graphite, Flosper, Asbestos, Amethyst, Kyanite, Aqua Marine, Superntinite, Mica, Rock Crystal, Sihnite, Sapphire, Ruby, Coal, Gypsum, Laterite, Limestone, Phosphate, Flakes, Clay, Potash, and Gold. But most of such resources are left unexploited and negligence occurs throughout the mining sector where the government and individuals are more concerned about revenue from the oil and gas sector. In a country like Zambia, Mining accounts for 12% of the country´s GDP and more than 70% of total export value. The sector is also a significant source of government revenue and formal employment, both directly and indirectly due to the massive investment made by the Zambian government and private sector.

Looking at the North-eastern region of the country also, there are precious natural resources such as Magnesite, Kaolin, Gypsum, Bentonite, Wolfram, Limestone, Coal, Lignite, Iron-ore, Cassiterite, Gold, Clay, Diatomite, Lead/Zinc, Soda Ash, etc. Sadly, with all these natural resources the Nigerian government has not put more emphasis on mining activities. Many Nigerians are living below the poverty line as they unknowingly sleep on the untapped mineral resources. The mining sector has been experiencing an ongoing resurgence despite the negligence of the past decades, but still, Nigeria has so far not secured the growing benefits from these resources despite their potentials as a major source of government revenue. In South Africa the mining sector contributes 7.3 % to GDP, it attracts valuable foreign direct Investment and huge revenue to the government, almost a half million people are earning income from the sector due to the efforts made by the South African government in mining activities.

The North-central part of Nigeria has blessed with plentiful natural resources includes Cassiterite, Clay, Marble, Dolomite, Lead/Zinc, Tantalite, Gold, Cole, Gypsum, Feldspar, Dolomite, Iron-ore, Talc, Kaolin, Columbite, Mica, Gold, Galena, Barite, Barytex, Chalcopyrite, Limestone, Sapphire, Tourmaline Quartz, Zireon, Bauxite, Bismuth, Betonite, Coal, Fluoride, Emeral, Granite, Gemstone, Molybdenite, Tin, Wolfram, Phrochlore, etc. Despite all of these mineral resources, Mining at large-scale operations exist only in a few places, but the sector is dominated by artisanal and small scale mining operations, mostly informal, working with unsophisticated methods and limited technical training. In Ghana, the mining industry accounts for about 5 percent contribution to GDP and increases government revenue and employment prospects due to the commitment of the Ghanaian government in developing the mining sector.

In the South-west region of the country alone, there are many mineral resources such as Bitumen, Lignite, Phosphate, Marble, Clay Dolomite, Limestone, Gypsum, Gold, Iron-ore, Granite, Syenite, Feldspar, Kaolin, Oil/Gas, Glass-sand, Cassiterite, Barytex, Chalcopyrite, Barite, Amethyst, Gemstone, Limestone, Dimension stone, Talc, Coal, Tourmaline, Aquamarine, Tantalite, Clay, Silimonite, etc. But despite the uncertainty, loss of oil revenue, and rising debt rates in Nigeria, the government has still depended immoderately on oil revenue and failed to diversify its economy. Mining is now a global phenomenon with various countries competing for exploration funds. The dominant strategy of foreign competition indicates that mining companies and their investment funds will only go to those countries where the enabling environment will allow the private sector to flourish unhindered. In Burkina Faso mining is one of the most dynamic sectors that create employment in the country, the gold sub-sector’s contribution to GDP is 10.6 percent in 2018 as a result of Burkina Faso’s incentive policies implemented for the mining sector.

Moving to the South-east part of the country where it has available of valuable natural resources such as Oil/Gas, Gold, Lead/Zinc, Limestone, Iron-ore, Lignite, Glass-sand, Clay, Gypsum, Phosphate and salt, Coal, Marcasite, etc. Many solid mineral mining operations are carried out illegally in Nigeria. Gold and other valuable minerals are smuggled into neighboring countries from where the raw materials find their way to the Middle East. Nigeria needs to plan and shift focus to mining as the oil value is shrinking in the Global market. The economy of Botswana is largely dependent upon mining. Diamond mining contributes 50 percent of government revenue mainly through its joint venture strategy with the private sector. The mining sector can be a major source of revenue and employment especially in countries with numerous mineral resources such as Nigeria.

The South-South region of Nigeria is blessed with natural resources such as Uranium, Oil/Gas, Lignite, Limestone, Lead/Zinc, Clay, Manganese, Gypsum, Glass-sand, Marble, Iron-ore, Kaolin, Bitumen, Phosphate, Dolomite, Gold, Barite, Salt, etc. Mining is primarily a source of mineral commodities that some of the African countries consider essential for revenue generation and improvement in the standard of living. Mining is seen as a stream of revenue for countries engaged in mining activities for economic development. It offers job opportunities, sources of revenue, business opportunities, trained workforce, increased GDP, and foreign-exchange sources. It is good for Nigeria to put more emphasis on mining due to the abundant mineral resources available in the country. Unlike countries like Ghana and Burkina Faso, Nigeria does not have a well developed large-scale mining industry, and the majority of the country’s gold mining is carried out by small-scale and artisanal miners. Out of 36 states in Nigeria and capital territory, there is no single state without mineral resources.

The country is undoubtedly blessed with vast natural resources but Nigeria’s lack of capacity to develop the mining sector is what restrained the country from earning huge revenue from the mineral resources. Nigeria needs to rethink its development strategy because oil revenue failed to make the country economically buoyant. The mining sector will help the country by ensuring an effective increase in the country’s economic growth that will in turn provide export value and jobs for the Nigerian increasing population. It is believed that several factors affecting mining in Nigeria such as security, poor fiscal policy, lack of good transportation facilities, illegal mining, the old method of mining, poor investment in the mining sector, etc.

Therefore, the Nigerian government projection of growth for the country’s mining sector from the current 0.33 percent contribution to GDP to 3 percent by 2025 can only be achieved if the government does something tangible in improving the mining sector. To improve the mining sector, there is a need for the government to reform laws and policies for mining, create a safe working condition for mining investment, build special centers and modern laboratory for mining activities, make a commitment to research and development, provide adequate finance, and infrastructure that attracts investment in the mining sector.

Things to Keep in Mind Before Applying For Gold Loan And Personal Loan

Here are sure checkpoints to assist you with benefiting the ideal loan choice as far as cost and quick access:

Loan amount
The loan amount will basically rely upon your pay, tenure, the loan type, and the estimation of the pledges submitted assuming any. For instance, the loan amount in the event of a standard loan against a credit card will simply be the extent of your endorsed credit limit.
Be that as it may, many credit card backers have begun offering loans once again or more your credit limit. The loan amount if there should be an occurrence of ordinary personal loans can run between Rs 50,000 and Rs 40 lakh, contingent upon your reimbursement limit. On account of gold loan, the loan amount can go up to 75 percent of the estimation of the gold swore with the moneylender.
Processing time
As money related emergencies require snappy admittance to reserves, loans requiring longer turnaround time for disbursals may not end up being a lot of value. Loans against a credit card, gold loan, and personal loan have the speediest processing and disbursal among the different credit choices.
While loans against credit cards and gold loans are normally prepared around the same time of a loan application, a personal loan may take around 2 to 7 days for disbursals. In any case, a few moneylenders guarantee to dispense personal loans around the same time of utilization.
Interest rate
The interest rates of your financing choices will essentially rely upon the sort of loan you decide on and your credit profile. Typically, made sure about loans have lower interest rates than the unstable ones. Also, those with a decent credit score and utilized with presumed corporates have higher odds of benefiting loans at lower interest rates.
Processing charges
Gold loans accompany one of the most reduced processing charges among all loan choices. A few banks charge a level processing expense of as low as Rs 10 on their gold loans though others charge anyplace between 0.10 percent and 2 percent of the loan amount as a processing charge. Fullerton India processing fees is up to 6% of the whole loan amount. This is a one-time charge which will be obviously referenced in the loan understanding. This amount is the personal loan ROI for all the administrations including loan application, record confirmation, legitimate methods, client care, and different administrations engaged with processing the loan
Loan tenure
The tenure of your loan assumes a significant part in deciding your EMI and by and large interest cost. Longer tenure would mean lower EMI yet would prompt higher interest cost and the other way around. Personal loans and loan against credit cards typically accompany loan tenures of 1-5 years.
Fullerton India’s personal loan interest rates start at 11.99% for salaried and independently employed candidates for a limit of 60 months, which implies you can get EMI as low as ¹ 2,224* every month. The interest rates and processing charge (Between 0% – 6% of the loan amount) compensate for the complete cost of the loan.

SGX Nifty Indicates Positive Opening; IGL, Apollo Hospital to Report Today

Yesterday, Nifty opened to strong gains on vaccine news. It kept the momentum intact throughout the day and made higher highs and higher lows in the hourly chart to close above 12,600, holding solid gains. Volume was significantly higher than the previous day. Nifty is currently trading 6.0% and 8.7% above its 21- and 50-DMA, respectively. In the broader market, both Midcap and Smallcap failed to catch up with Nifty50 again. Midcap closed 0.3% higher, while Smallcap was down 0.1%.

On the sectoral front, barring Nifty Pharma (-4.3%) and Nifty IT (-3.9%), all other sectors closed in the green. Financial stocks continued to rally ahead and advanced the most for the day. Nifty Bank, Financial Service, PSU Bank, and Pvt Bank advanced in the range of 3.5–4.1%. Market breadth remained in favor of decliners. FIIs were in a continuous buying spree. FIIs’ net buying was Rs 5,627 crore, while DIIs’ net selling was Rs 2,309 crore.

Currently, we are in a Confirmed Uptrend and are open to adding new positions coming out of proper base formation. We will look for leadership among some good stocks to push the market up. On the flip side, tracking distribution days is crucial. Accumulation of distribution days can halt the uptrend.

Key News

Bata India reported Q2 FY21 results. Revenue came in ahead of estimates. It reported a loss of Rs 44 crore compared with a profit of Rs 71 crore in Q2 FY20. Margin contracted 2,060bps to 4.9%.

HIL Limited reported Q2 FY21 results. Its roofing business revenue grew 27% y/y. The flooring business revenue grew 11% y/y. The company repaid Rs 170 crore of debt in H1 FY20.

Tata Power reported Q2 FY21 results. PAT was up 9.6% y/y to Rs 371 crore, while revenue up 8% y/y at Rs 8,289 crore. EBITDA came in at 11.3% at Rs 2,001 crore. EBITDA margin came in at 24.1% compared with 29.4% y/y.

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 65%; Rally Attempt, 5%; Uptrend Under Pressure, 25%; Downtrend, 5%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 75%; Rally Attempt, 0%; Uptrend Under Pressure, 25%; Downtrend, 0%.

Buy watchlist: Cholamandalam Inv.& Fin., Dixon Technologies (India), Polyplex, Balaji Amines Limited, Alkyl Amines Chemicals, Subros, Berger Paints India, Polycab India, Voltas (Nse), Divis Laboratories (Nse) Vinati Organics, Ratnamani Metals & Tubes, Balrampur Chini Mls(Nse), Coromandel International, Tata Consumer Products, HIL Limited, and Whirlpool Of India (Nse)

How to find the best cryptocurrency exchange platform in 2021?

For better options, you need to decide whether your trading is long-term or just frequent changes in regular aspects. The right platform will help users to buy, sell, and trade their cryptocurrencies safe and at ease. Koinbazar – one of the best centralized p2p cryptocurrency exchange platform allows users to buy, sell, and trade their assets. And also it comes with a crypto wallet that helps to store your cryptocurrencies for a long term or frequent trading.

In this article, we will help in choosing the best platform as per your expectations. And also you will find the crucial factors to look up before selecting the best cryptocurrency exchange platform.

Important aspects to look for cryptocurrency or bitcoin exchange:

AML or KYC:

Every cryptocurrency exchange sites follow different laws. It depends on the offering, practices, and, locations of the cryptocurrencies such as BTC, ETH, and others. Some of the platforms demand KYC (Know Your Customer) or AML (Anti-Money Laundering process. These practices are proposed for the users to submit some of their personal information which is required for creating their account and performs the exchange process.

Reputation of the crypto exchange platform:

Cryptocurrency is a massive industry today and gaining a lot of reputation in the market. Before picking the crypto exchange platform, reputation is essential for considering it. Because, some of the exchange sites have resulted in scams, hacks, and others. Before choosing the platform, you need to do proper research about the website to make sure that it is highly reputed. From this, you will get to know about the efficiency of the platform. However, you can also check out the terms and conditions of all exchange platforms to ensure that there is nothing doubtful in it.

Security aspects:

Almost all exchange platforms offer high security that helps to keep your investments and trading process safe. You need to make sure that the exchange sites offer two-factor authentication or not. In addition to this, you also need to consider whether it is compatible with google authentication or not. Because you can ensure better security for your exchange platforms. There are several safety measures that you need to look at before investing in any of the exchange sites. Some other security aspects are SSL certification, cold storage wallets. This security feature offers different trading experiences to the users.

Available in your country:

Not all platforms are available for the trading process worldwide. To ensure that the exchange website is available for your country or not. Many financial regulations are there which creates an impact on the cryptocurrency market. Keeping this aside, the regional factor is important to consider as some of the exchange platforms won’t allow trading in different countries rather than the one which is based on the country where the exchange platform available. However, do some research and ensure that you choose the right crypto exchange.

Trading fees:

You need to check out the trading fee which is charged by the exchange platform. You can buy cryptocurrency with exchange websites to ensure that you save some amount of money. A specific trading fee is there for every time you buy, sell, and trade cryptocurrency from the exchange platform. For daily traders, it is one of the crucial factors to consider. So, look for the platform who charges low trading fees.

Availability of cryptocurrency:

Before choosing the best exchange platform, you need to look at the availability of cryptocurrency options with the site. There should be various digital currencies available for buying, selling, or trading which help users to choose the right ones on the site. Moreover, liquidity is also an important factor that must fill orders on the platform. With the different options available for their choice, users will invest in the right one to gain profitable outcomes in the long run.

Conclusion:

The above-mentioned factors are important aspects to consider before you choosing the best cryptocurrency exchange platform for trading, buying, or selling cryptocurrencies. It might be tough to choose if you are a beginner. So, buy cryptocurrency such as bitcoin, ETH, or any other crypto coins after checking all the above factors. There are many spam and fraudulent sites which have resulted in a financial loss for many crypto traders. So, to keep your assets safe, go-through all aspects of the exchange platform that are mentioned clearly to pick and invest on the right platform.

By the numbers: COVID-19’s remittance impact on India

India received US$79 billion in remittances in 2018, making it the top remittance-receiving country in the world according to the World Bank. Remittances are thought to be so high given the large number of Indian expats – of which estimates suggest there are 17.5 million Indianmigrants around the world. Other studies report that approximately 1 out of every 20 immigrants around the world is born in India, a staggering statistic to say the least.

Given the size of the expat community from India, it’s unsurprising that Indians working in other countries have consistently been the world’s top remitters. Nations around the Persian Gulf and the United States drive most of the remittances to India with large numbers of expats living in the United Arab Emirates (3.4 million), the US (2.7 million) and Saudi Arabia (2.4 million).

Not only do remittances have direct impacts like poverty reduction, specifically for rural areas, they also have positive indirect impacts that include the multiplier effects of consumption spending. This is achieved when remittances received are spent on basic needs to stimulate further demand for goods and services, which goes on to stimulate other outputs and employment. With the importance of remittances clearly outlined, it becomes easier to see the dangers of stemming the flow of this money.

The impact of COVID-19 on remittance values

The economic shock induced by COVID-19 has had a huge impact on remittances. Reports have shown that 75% of the world’s migrants work in countries where three-quarters of the globe’s COVID-19 cases have been reported, according to Knomad. With countries engaging in economic shutdowns to suppress the virus, migrants may find themselves on a reduced wage or with no job at all. In some instances, they may be protected by government stimulus packages, but oftentimes many may find themselves excluded if they don’t meet proper residency or citizenship requirements.

The value of remittances sent home often depends on the migrant’s financial means, motivation and ability to physically send money to India. Given the circumstances, Knomad reports a 20% projected global slump in 2020 for remittances. India is expected to be hit even harder, with remittances expected to fall by 23% from $83 billion in 2019 to $64 billion in 2020.

As many major economies dip into recession, Indians living in those countries are likely to send less money back home. Migrants are particularly vulnerable to job loss as they’re more likely to be employed in roles where they cannot work remotely or in less formal roles. Around 45,000 people have been repatriated to India as a result of being unable to support themselves, according to The Hindu BusinessLine. Others are returning home to be close to their families during these trying times. In turn, all of this reduces the remittance flow into the country.

Foreign policy can also heavily reduce remittances. Recently, Kuwait’s National Assembly approved a draft bill to reduce the presence of foreign workers in the country. On the topic, Prime Minister Sheikh Sabah Al-Khaled Al-Sabah said foreign workers should be reduced from 70% of the population to 30%, a reduction of 2.5 million people. Indian immigrants are expected to be capped at 15% of the population, forcing an estimated 800,000 of 1.45 million Indians in the country to leave. Kuwait, being one of the top sources of foreign remittances to India, will heavily reduce remittance flows into India by limiting immigrants.

Migrants fortunate enough to retain their jobs still face challenges sending money back to India. Money transfer companies may need to reduce operating hours due to lockdowns while suffering lost productivity due to work from home orders. In turn this can impact an individual’s ability to send funds, especially when physical pick up or drop off is required. Companies dealing with volatile sending patterns and reduced revenue may also find it difficult to manage liquidity, leading to increased fees that eat further into remittance totals.

Providing support to migrants

Remittance-centric countries can provide much-needed support to those in need. For migrants who have returned home, the International Labour Organisation recommends a reintegration program. Returning migrant workers bring skills that can help boost productivity, and reintegration programs are instrumental for proper skill recognition and social protection. Public education is also an important component to help soothe concerns that returning migrants may steal jobs in an already competitive market.

For migrants still living overseas, the World Bank recommends social safety nets, employment retention policies and employment promotion policies. Safety nets may include direct support, such as cash-in-hand or access to free services to boost consumption and reduce poverty. Employment retention policies focus on incentivising employers to use subsidies or deductions to help retain staff. Employment promotion policies are geared toward matching workers with employers as well as adjusting any regulations, like visas, to ensure migrant workers can legally be employed.

Money transfer companies also have a part to play. If a country they operate in goes into lockdown they can start a dialogue with policy makers to be deemed an essential service. If physical trips to and from the store aren’t possible, companies should encourage the use of digital remittance channels and educate their customers on the benefits. Not only is this good for the customer, but it could also help money transfer companies manage their cash flow. Even while strapped for cash, people often still need to send money home – some major companies are reducing fees for the time being to help lighten the load. But without further intervention by governments and relief packages, how long will this temporary fix last?

SGX Nifty Indicates Positive Opening, Tata Steel Q3 Production Increases 2.9% y/y to 4.6MT

Market status: Confirmed Uptrend

Distribution days: Three

Global stock markets: Dow 30, +0.2%; S&P 500, +0.6%; Nasdaq, +1%; Nikkei, +2.4%; Hang Seng, +1.3%; Kospi, -0.1%

Last week, Nifty started on a strong note and closed above 14,000 decisively on Monday. Also, it traded above 14,000 in the next four trading sessions. Friday’s action qualified as an additional follow-through day as Nifty advanced about 1.5% on volume higher than the previous session. During the week, broader market indices outperformed the general market. Barring Nifty FMCG (-0.3%), all the sectors closed in the green. Nifty Metal (+8.3%) was the major gainer, followed by Nifty IT and Media, which advanced 6.9% and 5.9%, respectively.

With leadership broadening and indices above relevant intermediate-term moving averages, we will continue to look for leadership-quality growth names to form entry points. If a pullback/consolidation happens, it will be crucial for Nifty to hold its 21-DMA. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial as rising in distribution days can halt the uptrend.

Key News

Tata Consultancy Svs. posted its Q3 FY21 results. Profit was up 7.2% to Rs 8,701 crore as against Rs 8,118 crore for the same period last quarter, while revenue rose 4.7% to Rs 42,015 crore from Rs 40,135 crore on a q/q basis.

Tata Steel increased its Q3 production in India 2.9% y/y to 4.6MT, but deliveries fell 3.9% y/y to 4.66MT.

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 84%; Rally Attempt, 4%; Uptrend Under Pressure, 12%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 66%; Rally Attempt, 0%; Uptrend Under Pressure, 34%; Downtrend, 0%.

Visit Marketsmith India to Read More About Indian Share Market News, Daily Market Tips, Model Portfolio, etc.

RBI Says GNPA Ratio of Banks Improved; IIFL Securities Opens its Rs 90 Crore Share Buyback

Yesterday, Nifty opened at a record high above 13,900 but witnessed profit booking and traded toward the day’s low of 13,860 in the initial two hours of the session. However, it posted a smart recovery of about 70 points off lows during the day and closed holding decent gains. Volume was lower than the previous session. The broader market underperformed compared with the general market. Midcap closed 0.1% lower, while smallcap closed flat for the day.

On the sectoral front, the mixed reaction was observed. Nifty Pvt Bank (+1.6%) advanced the most, followed by Nifty Bank and Fin Service, which were up 1.4% and 1.0%, respectively. On the flip side, Nifty Media (-1.5%) and Nifty Metal (-1.1%) were the top two decliners. Market breadth was skewed toward decliners. Of 2,247 stocks traded, 942 advanced, 951 declined, and the remaining were unchanged.

With leadership broadening and indices above relevant intermediate-term moving averages, we will continue to look for leadership-quality growth names to form entry points. If a pullback/consolidation happens, it will be crucial for Nifty to hold its 21-DMA. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial as rising in distribution days can halt the uptrend.

Key News

Glenmark Pharms. (Nse) launched a fixed-dose combination drug to treat type-2 diabetes in the country.

Lupin (Nse) launched Mycophenolate Mofetil tablets in the US. The tablets are used to help prevent the body from rejecting an organ transplant.

Iifl Securities will open its Rs 90 crore share buyback from today.

According to a report published by RBI, GNPA ratio of scheduled commercial banks decreased from 9.1% in March 2019 to 8.2% in March 2020 and further to 7.5% in September 2020.

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 80%; Rally Attempt, 4%; Uptrend Under Pressure, 16%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 70%; Rally Attempt, 0%; Uptrend Under Pressure, 30%; Downtrend, 0%.

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