Key Budget Highlights:
– The government set a fiscal deficit target of 3.3%, lower than consensus. It plans to meet this target via increased non-tax revenue from disinvestments (Rs 1,05,000 crore), the Reserve Bank of India’s special dividend, and additional levies on petrol and diesel.
– Public sector banks (PSB) get recapitalization of 70,000 crore. This will be additional relief after the major PSBs improved their loan book quality and coverage ratios.
– Private investment will be encouraged in railways through Public-Private-Partnership (PPP) model. The government also announced 22.6% increase in road development outlay and the Pradhan Mantri Gram Sadak Yojana (PMGSY) completion target was advance to 2019 from 2022.
– The budget reiterates focus on Housing for All. Loans for affordable housing will get tax benefit, which is expected to boost demand.
– The turnover threshold for lower tax rates of 25% has been increased to Rs 400 crore from Rs 250 crore. Continue reading “Special Article : Union Budget 2019: What does it mean for the Common Man?”
● Fiscal Deficit Likely at 3.5% of GDP; Actual Receipts Lower than Revised Estimates
● Weaker-than-estimated Revenue Receipts, Change in Direct and LTCG Tax Unlikely
● Non-tax Revenue may Increase; Disinvestment Target Could be Increased to Rs. 900B
● Fiscal Stimulus Likely to Remain, as GDP Estimates Weaken Continue reading “Budget 2019 : Key Expectations From FY20 Budget”
In recent times, margins are under pressure due to pricing demands in the U.S., forcing companies to cut expenses. Delays in approval of new drugs by the USFDA is another issue that pharma companies are facing. There is an increasing opportunity in China as new rules reduce the entry barrier. The domestic market has the potential to boost growth, as India is increasing spending on health care.
The revenue of top 10 Indian pharmaceutical companies was Rs. 1.3T for FY 2018, of which more than 40% was derived from the U.S. market. The major categories of business include generic medicines, marketing of branded generic medicines, marketing of innovator medicines, and the manufacture and supply of active pharmaceutical ingredients (APIs). Continue reading “Special Article : Pharma Sector; Large Addressable Market, But Few Concerns Remain”
We all are aware of the basic terminology about bull market, bear market, and correction. In simple terms, a “bull market” is when the market moves higher and a “bear market” is when the market moves lower. However, one needs to understand that a new follow-through day and short-term uptrend do not necessarily signal a bull market. Similarly, short-term downtrend does not necessarily indicate a new bear market. Continue reading “Special Article : Bull and Bear Markets and How to Tackle Them”