Lowering of INR against Dollar

How exchange rates are determined?

Market forces, like demand and supply fluctuates the exchange rates within the economy. In case of US Dollar to INR, if demand of US dollar increases against INR then rate of USD against INR will also increase but there are many factors which affect market condition or market forces.

Volatile Market

When market becomes volatile investor tries to withdraw their funds from the market till the market become stable and when US investors start withdrawing their funds then the demand of dollar suddenly increases which leads to the appreciation of USD.

Analysis Report - eClerx

eClerx

About The Company

eClerx Services Limited founded in 2000 is a leading knowledge process outsourcing company providing operational support, data management and analytics solutions to over 30 Fortune 500 companies. Its Headquarter is in Mumbai and has five delivery centers across India to support a diverse global client base. The company was founded by Anjan Malik and PD Mundhra who identified significant opportunity in the outsourcing marketplace for a “virtual” outsourced services model for large global organizations going through rapid business and technology transformation. Its India’s first publicly listed KPO company and since 2007 the company is publicly listed on both the National and Bombay Stock Exchanges in India.

GST : One Country One Tax

Introduction

"Goods and Services Tax" would be a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India, to replace taxes levied by the Central and State governments. Goods and services tax would be levied and collected at each stage of sale or purchase of goods or services based on the input tax credit method. This method allows GST-registered businesses to claim tax credit to the value of GST they paid on purchase of goods or services as part of their normal commercial activity. Taxable goods and services are not distinguished from one another and are taxed at a single rate in a supply chain till the goods or services reach the consumer.

Balance of Trade

The balance of trade is the net difference between the value of exports and imports, if value of exports is more than value of import then it is known as trade surplus (foreign exchange increasing) and if value of import is more than value of exports then it is known as trade deficit (foreign exchange decreasing).Balance of trade also known as commercial balance and net export.

                       

Balance of trade = Value of exports – Value of imports

India balance of trade

Balance of Trade in India is reported by the Ministry of Commerce and Industry, India monthly.  India Balance of trade from October 2014 to September 2015. 

Impact of GST on Economy

Impact of GST on Economy

What is GST ?

• The Goods and Services Tax Bill or GST Bill, formally known as The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, suggests a national Value added Tax to be implemented in India from April 2016.
•  It was introduced in Lok Sabha on December 19, 2014 by Finance Minister Arun Jaitley.
• GST is an indirect tax on manufacture, sale and consumption of goods and services all over India and it will replace taxes implemented by the Central and State governments. It would be levied and collected at each stage of sale or purchase of goods or services based on the input tax credit metho.

India’s annual exports falling to lowest of five years

India's trade deficit narrowed for the third straight month in March to $5.07 billion, the lowest in five years, as imports shrank at a faster pace than exports. For March 2016, the merchandise exports and imports fell by 5.47 percent and 21.56 percent to $ 22.71 billion and $ 27.78 billion, respectively, as compared to the same period previous year.

For the whole of FY 2015-16, total exports were down 15.9 percent from a year ago to $261.1 billion. Imports fell 15.3 percent to $379.6 during the same period.

Analysis Report : Dabur (BUY; Estimated Price: Rs. 510)

Dabur 

About The Company

Dabur was founded in 1884 by Dr. S. K. Burman in Calcutta to make health care products. It has portfolio of over 381 products in 21 product categories over 1000 SKUs. It is the world’s largest Ayurvedic medicine & related products manufacturer and natural Health Care Company. It has 20 ultra-modern manufacturing units spread around the globe and market in over 100 countries. Dabur’s overseas revenue accounts for over 31% of the total turnover. Its annual turnover was 7806 crores in FY 2014-15.

Analysis Report: Marico Limited (BUY; Estimated Price: Rs. 630)

Marico Limited

About the Company

Marico Limited founded in 1987, is one of India's leading consumer products companies operating in the beauty and wellness space. Currently present in 25 countries across emerging markets of Asia and Africa, Marico has nurtured multiple brands in the categories of hair care, skin care, health foods, male grooming, and fabric care. Marico's India business markets household brands such as Parachute Advansed, Saffola,

Wholesale Price Index

Wholesale Price Index
     
        Introduction and Calculation methods:

• The Wholesale Price Index is the price of a representative basket of wholesale goods.  Countries like Japan, Greece, Turkey and Philippines use the changes in this index to measure inflation in their economies.
• The Indian WPI figure used to be released weekly on every Thursday. But since 2009, it has been made monthly. It also influences stock and fixed price markets. The Wholesale Price Index focuses on the price of goods traded between corporations. The purpose of the WPI is to monitor price movements that reflect supply and demand in industry, manufacturing and construction. In India, inflation is measured by CPI (Consumer Price Index).

Analysis Report: Britannia ( Estimated Price: Rs. 8300 )

Britannia

About The Company

Over the last century and a quarter, Britannia has been serving the Indian consumer with a range of fresh, nutritious and flavor-rich products. Today, Britannia is a leading food company in India with over Rs. 6000 Crores in revenues, delivering products in over 5 categories through 3.5 million retail outlets to more than half the Indian population. Britannia Dairy had its beginnings in 1997. Britannia was one of the first companies in India to pioneer category defining innovations like Cream Cheese and introducing a host of international flavors for its cubes & spreads in India.

Analyst Report : Federal Bank (Target Price :76.70, CMP :56.54 )

Federal Bank

Federal Bank, the erstwhile Travancore Federal Bank, is medium sized Indian commercial bank in the private sector headquartered at Aluva, Kerala. The Bank was incorporated on April 23, 1931 under the Travancore Companies Regulation, 1916. Late K. P. Hormis took up the reigns in 1945 and built the bank a nationwide institution. Later it scheduled commercial bank under the Second Schedule of Reserve Bank of India Act, 1934 in July 20, 1970.