Categories Financial News

Q2 Results: India Inc Witnesses a Substantial Surge in profits; Revenue Growth Remains Subdued

India Inc.’s profit growth during the September quarter earnings season remained robust driven mostly by reduction in input costs & by cost cutting measures. Notably, domestic cyclical companies in the automobile, BFSI, and cement sectors led the positive trend, while FMCG and IT sectors failed to make a significant impact on the markets due to subdued growth in both top and bottom-line figures.

Categories Financial News

JPMorgan Chase & Co. Will Add Indian Government Bonds To Its Benchmark Emerging-Market Index

JPMorgan Chase & Co. will add Indian government bonds to its benchmark emerging-market index (GBI-EM) starting June 28, 2024. This move carries substantial implications for India’s debt market and global investors, with India’s weight in the index limited to a maximum of 10% and eligible Government bonds valued at $330 billion, analysts said. Analysts estimates potential flows of up to $30 billion as a result of this.

Categories Economy Financial News

Review of India Inc’s Q1 Results: Stronger Margins Mitigate Slower Revenue Growth

Corporate India is currently reaping the benefits of remarkably elevated margins and profits. The collective net profit for publicly listed companies achieved an unprecedented peak in the quarter spanning April to June 2023. This achievement can be attributed to a significant upswing in both operating and net profits due to a moderation in cost of raw materials. The expansion of profit margins has effectively counterbalanced the deceleration in revenue growth, which during the same time period, dipped into single-digit territory for the first time in nine quarters.

Categories Economy Financial News

3 Compelling Reasons Investors Should Embrace Emerging Markets

Emerging market stocks have been overlooked by investors for most of 2022 & this year, but it’s time to take notice as this undervalued asset class could make a come back in the second half of 2023.

Emerging markets (EM) have experienced a more turbulent ride than the already volatile U.S. stock and bond markets over the past 2 years. Currently, EM stocks are enduring one of their longest bear markets, with the MSCI Emerging Markets Index down approximately 40% from its peak in February 2021.

Categories Financial News

LTCG Tax Benefits on Debt Mutual Funds Removed

Last night a proposal to amend the finance bill 2023 was announced.  The long-term tax benefit for Debt, Gold and FOFs investing in foreign MFs, if they invest less than 35 percent of their assets in Indian equities, will be stripped off. Such mutual funds will now attract short-term capital gains tax regardless of holding period. These amendments will impact mutual fund investors for investments made on or after April 1, 2023. This would mean additional tax collections for the government next year onward.

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