FPIs Cut Stakes in Adani Group, Retail Investors Stay Firm

In the third quarter of 2024, Foreign Portfolio Investors (FPIs) sold off a portion of their stakes in several Adani group companies, contributing to a sharp decline in share prices since November’s US Department of Justice notice. However, retail investors and mutual funds largely maintained their stock positions.

FPIs Reduce Stakes in Key Adani Stocks

According to reports, FPIs reduced their holdings in 4 major Adani group stocks:

Retail Investors and Mutual Funds

While FPIs sold off their Adani holdings, retail investors increased their positions by 4-120 basis points across the Adani group stocks. Mutual funds largely held their ground, with only ACC Ltd seeing a slight decrease in their holdings.

Impact of November’s Selloff

The Adani group faced a major hit in November after reports emerged that Gautam Adani was accused of being involved in a $250 million bribery scheme tied to solar power contracts. However, the group clarified that neither Gautam Adani nor other executives were charged with violating US laws.

Recent Developments

Despite the challenges, Adani Green Energy decided to cancel its dollar bond offering. The group is also exiting its joint venture with Adani Wilmar in a strategic move to raise additional funds and manage its debt.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

ITR Filing Deadline: Last Day to Submit Late Returns and Penalties

The last day to file belated or revised  ITR (Income Tax Returns) for the AY 2024-25 is January 15, 2025. The  CBDT (Central Board of Direct Taxes) has extended the original deadline of December 31, 2024, by 15 days to give taxpayers extra time.

Filing a Revised ITR

Taxpayers who have already filed their ITR before the deadline can still file a revised return if needed. A revised return can be filed only if the original return was filed by the deadline (July 31, 2024) for the FY 2023-24.

Penalties for Late Filing

If you miss the July 31, 2024 deadline, you can still file a belated return, but there are penalties:

  • Income up to ₹5 lakh: Late fee of ₹1,000.
  • Income above ₹5 lakh: Late fee of ₹5,000.

Additionally, you may be charged interest under Section 234A if there is any unpaid tax, calculated at 1% per month from the original due date (July 31, 2024).

What Happens If You Miss the January 15 Deadline?

Missing the January 15, 2025, deadline means you won’t be able to file or amend your ITR for AY 2024-25. Non-compliance can lead to legal notices and further penalties for failing to file an ITR.

Consequences of Late Filing

  • Carry Forward Losses: If you file after the original deadline, you won’t be able to carry forward any tax losses to offset future taxes.
  • Legal Notices: The Income Tax Department collects income details from various sources. Failure to file may lead to penalties and legal notices.

How to File a Late Return

  • Use the Income Tax Department’s e-filing portal for quick and easy submission.
  • Double-check your income, deductions, and tax payments to avoid errors.
  • Make sure to pay any outstanding tax, interest, or penalties before submitting your return.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Income Tax Can Seize Properties Without Real Owner’s Identification, Court Rules

The Income Tax (I-T) department has been given the authority to seize properties under the Prohibition of Benami Property Transactions (PBPT) Act, 1988, even if the actual owner or financier of the property cannot be identified. This was confirmed by a recent ruling from the Adjudicating Authority, highlighting the law’s strength in combating benami transactions.

Properties Seized in Kakori Case

In a significant case, the I-T department’s Lucknow unit seized land parcels in Kakori worth over ₹3.47 crore in 2023. These properties were linked to real estate firms that allegedly used unaccounted cash for purchases—a key indicator of benami transactions.

Understanding the PBPT Act

The PBPT Act prohibits buying property in someone else’s name (benamidar) using money from an unknown source, often to hide the real owner. The Act allows the I-T department to attach such properties, even if the real owner remains untraceable or fictitious.

Court Ruling Supports Property Attachments

In the Kakori case, the Adjudicating Authority upheld the attachment of 5 properties despite the absence of a named beneficial owner. The court cited Section 2(9)(D) of the PBPT Act, which allows seizures when the source of payment is unknown or fictitious.

Even though the department initially invoked Section 2(9)(A), which applies when the owner is known, the court ruled that the error did not invalidate the attachment, referencing a 2009 Supreme Court judgment.

Key Individuals and Real Estate Firms

One of the properties was registered under Ravi Kumar, an office assistant for Excella, a real estate company. While some firms and individuals initially linked to the case were cleared due to insufficient evidence, Ravi Kumar was deemed the benamidar. Haresh Kumar Mishra was identified as an accomplice, prompting further investigations into other assets linked to Kumar.

Crackdown on High-Value Transactions

The I-T department is intensifying its efforts to uncover and seize high-value benami assets, particularly in the real estate sector. In addition to the Kakori case, land worth ₹5.68 crore in Mohanlalganj was also seized for similar violations.

Legal Precedent and Caution for Investors

This ruling sets a critical precedent, showing that the absence of an identifiable owner won’t prevent the attachment of benami properties. Investors and property buyers are advised to steer clear of such transactions to avoid legal troubles as the government continues its crackdown on illicit ownership schemes.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Waaree and Premier Energies Drive Growth Through US Exports

Indian solar module makers Waaree Energies Ltd and Premier Energies Ltd are seeing significant growth from exports, particularly to the United States. While India’s domestic solar market remains strong, higher profitability in export markets drives these companies to expand overseas.

Export Markets Drive Revenues

  • Waaree Energies: India’s largest solar module manufacturer earned 58% of its FY24 revenues from exports, with the US as its key market.
  • Premier Energies: While US exports contributed 8.77% to its FY24 revenues, the company holds a 100% share of Indian solar cell exports to the US, making it the leading exporter in this category.

Why Exports Are More Profitable

The return on capital employed (ROCE) varies significantly:

  • Manufacturing solar modules in India yields a ROCE of 22%-28%.
  • Exporting these modules to the US boosts ROCE to over 72%.

Factors contributing to this profitability include backward integration, less competition, and the strategic advantages of manufacturing closer to export markets.

Expansion Plans in the US

  • Waaree Energies: The company is testing production at its new 1.6 GW solar module plant in the US. It also plans to establish a 3.4 GW solar module and 5 GW solar cell manufacturing facility there. Waaree is optimistic about the growth potential due to cost benefits in the US market.
  • Premier Energies: In partnership with Canada’s Heliene Inc., Premier Energies plans to set up a 1.2 GW solar cell plant in the US. However, the company is cautious and monitoring how US policies, like the Inflation Reduction Act, may affect its expansion plans.

Strategic Focus on the US

The US market offers lucrative opportunities for Indian solar companies, and Waaree and Premier Energies are tailoring their strategies to maximise returns while adapting to market and policy changes.

About Waaree Energies Limited

Waaree Energies Limited, established in December 1990, is an Indian company specializing in manufacturing solar PV modules. It has a total production capacity of 12 GW and operates five manufacturing plants in India, along with a presence in international markets.

As of January 15 at 10:19 AM, Waaree Energies share price is ₹2,624.95, reflecting a gain of ₹7.85 (0.30%) for the day. The stock opened at ₹2,655.00 and has traded between a high of ₹2,684.90 and a low of ₹2,617.25. With a market capitalisation of ₹75,410 crore, the company’s 52-week high is ₹3,743.00, and its 52-week low is ₹2,300.00.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

How a One-Time Investment of ₹5 Lakh Can Create ₹1.5 Crore Retirement Corpus

Planning for retirement is essential to ensure financial stability in your later years. Investing in either a lump sum or monthly SIPs over the long term can yield substantial returns, thanks to the power of compounding. Let’s explore how a one-time investment of ₹5 lakh can grow into a ₹1.5 crore corpus over 30 years.

Why is a Retirement Corpus Important?

After retiring, you’ll need a steady fund to cover living expenses without running out of money during your lifetime. Building a retirement corpus ensures you can meet these needs comfortably.

Investment Options for Retirement Planning

You can choose from:

  • Market-linked options: Mutual funds, equities.
  • Non-market-linked options: Fixed deposits, bonds.

One-Time vs. Monthly Investments

  • One-time investment: Deposit a lump sum and let it grow over time.
  • Monthly investment: Contribute a fixed amount every month, such as through SIPs.

How Do Investments Grow Over Time?

Here’s an example:

  • SIP: Investing ₹10,000 monthly for 25 years at a 12% annual return grows into ₹1.89 crore.
  • Lump Sum: A ₹2.5 lakh one-time investment for 25 years at the same return grows into ₹42.5 lakh.

Stretching Investment Duration

Increasing the investment duration to 30 years amplifies growth due to compounding:

  • SIP grows to ₹3.53 crore.
  • Lump sum grows to ₹74.9 lakh.

How ₹5 Lakh Can Grow into ₹1.5 Crore

Investing ₹5 lakh in mutual funds at a 12% annual return:

  • 10 years: Corpus grows to ₹15.5 lakh.
  • 20 years: Corpus grows to ₹48.2 lakh.
  • 30 years: Corpus grows to ₹1.5 crore.

Starting Early Benefits

If you invest ₹5 lakh at age 25, you’ll reach a ₹1.5 crore corpus by 55. Extending the investment to 60 years of age increases the corpus to ₹2.64 crore.

Compounding accelerates growth as returns are reinvested, making time your greatest ally in wealth creation. 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Budget 2025: Pharma and Healthcare Sector Seek Tax Relief and Increased Spending

The Indian pharmaceutical and healthcare industries are optimistic about Finance Minister Nirmala Sitharaman’s upcoming Union Budget 2025. Their wish list includes increased healthcare spending, tax cuts for research and development (R&D), and support for infrastructure growth to drive innovation and accessibility.

Boosting Research and Development

Industry leaders are urging the government to prioritise R&D support, emphasising its role in strengthening India’s position as a global healthcare leader.

  • Pharma Industry’s Demand

Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, suggests allocating at least 10% of the National Research Fund to life sciences and reinstating 200% weighted tax deductions for R&D expenses.

  • Diagnostics Sector’s Appeal

Ameera Shah, Chairperson of Metropolis Healthcare, stresses the need for incentives in diagnostic technology to enhance India’s role in healthcare innovation.

Call for Higher Healthcare Spending

Healthcare players are advocating for a larger budget allocation to improve infrastructure and expand access to quality care.

  • Budget Allocation Goals

Himanshu Baid, Managing Director of Poly Medicure, recommends increasing the healthcare budget to 2.5-3% of GDP.

  • GST Simplification

Baid also proposes standardising GST at 12% across all medical devices to streamline the tax structure and boost ease of business.

  • Export Incentives

Enhancing export incentives under the RoDTEP scheme from the current 0.6-0.9% to 2-2.5% could improve the global competitiveness of Indian-made medical devices.

Infrastructure and Tax Relief for Hospitals

Hospital leaders are seeking government support to reduce costs and accelerate infrastructure development.

  • Infrastructure Incentives

Suneeta Reddy, Managing Director of Apollo Hospitals, suggests introducing an Infrastructure Linked Incentive (ILI) scheme for hospitals. She proposes a 50% incentive on the capital expenditure of hospitals with over 100 beds to offset taxes and promote capacity building.

  • GST Reductions

Reddy also calls for reducing GST on key input services like lease rentals, housekeeping, and manpower to 5%, which could lower operational costs by 8-10%.

  • Customs Duty Reforms

Lowering customs duties on advanced cancer treatment drugs and devices is also a priority.

Encouraging Preventive Healthcare

Diagnostics companies emphasise the importance of fostering a culture of preventive care.

  • Higher Tax Exemptions

Increasing tax exemptions for preventive health check-ups from ₹5,000 to ₹10,000 and extending benefits to cover multiple family members could promote early diagnosis and regular health monitoring.

Conclusion

The pharmaceutical and healthcare industries are hopeful that Budget 2025 will address these critical demands, ensuring a stronger, more innovative healthcare system in India. Enhanced R&D support, higher healthcare spending, and infrastructure incentives are seen as essential steps toward making quality healthcare accessible to all.

To know more about major expectations from Union Budget 2025-26, click here.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Closing Bell: Markets Rebound as Sensex, Nifty End 4-Day Losing Streak on January 14, 2025

The BSE Sensex ended its 4-day losing streak on January 14, 2025, rising 169.62 points (0.22%) to close at 76,499.63. During the session, it fluctuated between a high of 76,835.61 and a low of 76,335.75. 

Similarly, the NSE Nifty50 closed in the green with a gain of 90.10 points (0.39%), settling at 23,176.05 after trading between a high of 23,264.95 and a low of 23,134.15.

Top Gainers and Losers

On the Nifty50 index, 34 of the 50 stocks recorded gains, led by Adani Enterprises (+7.05%), Shriram Finance, Hindalco, Adani Ports, and NTPC. However, 16 stocks ended lower, with HCL Tech (-8.52%), Hindustan Unilever, Apollo Hospitals, Titan, and Infosys among the top losers. The markets provided some relief to investors after four days of consecutive declines.

Sectoral Performance

Most sectoral indices on the NSE closed in the green, except for Nifty IT and FMCG. Banking stocks were the standout performers, with the Nifty PSU Bank index jumping 4.20%. The Bank Nifty and Nifty Private Bank indices also ended higher, up 1.43% and 1.14%, respectively.

Other sectoral indices, including Nifty Auto, Metal, Media, Financial Services, and Oil Marketing Companies (OMCs), recorded gains of up to 3.98%, further contributing to the market’s overall recovery.

Oil Prices

As of January 14, 2025, at 03:36 PM, Brent Crude was trading at $81.09, up by 0.14%.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

Ola Electric Surges 4.5% After 3-Day Slump

Ola Electric Mobility shares bounced back on January 14 after a 3-day losing streak. The stock opened at ₹71.50 and climbed to ₹73.46, marking a 4.61% gain from the previous close of ₹70.18. Despite this recovery, the stock remains 15% lower for January 2025 so far. Heavy selling pressure had pushed the share price below its IPO value of ₹76 earlier this month.

Regulatory Warning from SEBI

The stock faced setbacks after SEBI flagged Ola Electric for violating listing regulations. The company had shared plans for a 4-fold expansion of its store network on social media before informing the stock exchanges. Ola aims to increase its stores from 800 to 4,000 by December 2024, adding over 3,200 new outlets.

Consumer Protection Concerns

The Karnataka High Court granted Ola Electric a 6-week extension to respond to the Central Consumer Protection Authority (CCPA). This comes after the CCPA issued a show-cause notice in October 2024 over alleged violations of consumer rights, misleading ads, and unfair trade practices. Ola stated it had resolved 99.1% of the 10,644 complaints it received.

Record Sales in 2024

Ola Electric achieved record sales of 407,547 electric two-wheelers in 2024, a 52% increase from 267,376 units sold in 2023. The company strengthened its market leadership with a 35% market share in the 2W EV segment. Q1 2024 was the best-performing quarter, with 120,130 units sold.

Expanding Store Network

By Christmas 2024, Ola Electric had expanded its network to 4,000 stores, including 3,200 new outlets co-located with service centres. This move aims to increase EV accessibility in metro areas and smaller towns. Ola’s direct-to-consumer (D2C) model focuses on making EV ownership affordable and addressing rising petrol prices.

Future Outlook

Despite challenges, Ola Electric continues to strengthen its market position with strategic expansions and improved after-sales services. Its efforts to penetrate smaller towns and maintain leadership in the EV market are expected to drive growth in 2025.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

 

LIC Stock Hits 52-Week Low, Down 34% from August High

Life Insurance Corporation of India (LIC) share price dropped to a 52-week low of ₹806.85 during intraday trading on Tuesday. Although the stock recovered slightly, trading 0.74% higher at ₹814.90 by 12:37 PM, it has seen a 34% decline since its peak of ₹1,221.50 on August 1, 2024. Over the past 6 months, LIC’s shares have fallen 24%, underperforming the broader market, where the BSE Sensex declined by 5%.

Declining Premium Collections

LIC’s premium collections for December 2024 fell sharply, dropping 41.15% year-on-year (YoY) to ₹13,523.87 crore. This was mainly due to a notable drop in its group single premium, which halved to ₹8,191.29 crore. Additionally, individual non-single premium collections fell to ₹2,628.74 crore from ₹3,111.33 crore. In contrast, private insurers reported a 7% growth in new business premiums, reaching ₹16,694.85 crore during the same period.

Impact of New Regulations

The implementation of revised surrender value norms has significantly affected LIC. The company raised the minimum ticket size for many products, which has led to a decrease in policy counts and negatively impacted Retail Annualised Premium Equivalent (APE) growth. Pre-sales activity in September 2024, driven by a push to sell older products, further distorted growth figures for the December quarter (Q3FY25).

Focus on Profitable Segments

Despite challenges, LIC is leveraging its market leadership by focusing on profitable segments such as Protection, Non-PAR (non-participating), and Savings Annuity products. Efforts are underway to bridge the gap with private players through new product launches, enhanced distribution channels, and digital initiatives.

Product Redesign and Strategy

LIC has revamped its product portfolio, realigning offerings to meet regulatory expectations, enhance investor profitability, and maintain intermediary benefits. Out of 54 products, 32 have been relaunched with revised premium rates and updated designs. The changes aim to improve persistency while ensuring profitability margins are protected under the new surrender value regulations.

About LIC

Life Insurance Corporation of India is a public sector life insurance company based in Mumbai. It is the largest insurance provider in India and also the biggest institutional investor in the country, managing assets worth ₹52.52 trillion as of March 2024.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

Maha Kumbh 2025: Faith Fuels ₹25,000 Crore Economy

The Maha Kumbh Mela in Prayagraj, Uttar Pradesh, is not only a grand religious gathering but also an economic powerhouse. With an estimated 40 crore visitors expected during the event starting January 13, this 45-day festival is set to generate significant business opportunities across sectors like hospitality, tourism, and retail.

Massive Budget and Infrastructure Investment

The Uttar Pradesh government, led by CM Yogi Adityanath, has allocated a ₹6,990 crore budget for the Mela, focusing on 549 projects for infrastructure and sanitation. This is nearly double the ₹3,700 crore spent on 700 projects during the 2019 Kumbh. Officials project the Mela to generate ₹25,000 crore in revenue and contribute ₹2 lakh crore to the state economy.

₹25,000 Crore Turnover Predicted

The Confederation of All India Traders (CAIT) anticipates a ₹25,000 crore turnover from the Mela. Key revenue drivers include:

  • Puja items: ₹5,000 crore
  • Dairy products: ₹4,000 crore
  • Flowers: ₹800 crore
    The hospitality sector alone is expected to contribute ₹6,000 crore, with luxury accommodations in high demand.

Luxury Tents and Hotels

Over 1.6 lakh tents have been set up, including 2,200 luxury tents with nightly rates between ₹18,000 and ₹20,000. Premium options, like Sangam Nivas, cost ₹1 lakh per night, offering amenities like private bathrooms, Wi-Fi, and butler services. The Uttar Pradesh State Tourism Development Corporation has also introduced budget-friendly dormitories starting at ₹1,500 per night.

Food and Hospitality Boom

RR Hospitality Pvt Ltd. has invested ₹12-13 crore to set up food courts in 14 of the Mela’s 25 sectors. The company expects a turnover of ₹100-200 crore, featuring brands like Starbucks, Coca-Cola, and Domino’s. Over 7,000 vendors are participating, with 2,000 trained in digital payments to cater to the vast influx of pilgrims.

Enhancing Tourism and Infrastructure

To manage crowds of 10,000-20,000 pilgrims at a time, special corridors, floating jetties, and temple tourism have been introduced. Hotel infrastructure has also improved, with 100 homestays now registered, up from just 15 last year.

Pop-Up Economy Drivers

The Mela offers opportunities for businesses of all sizes, from small vendors to luxury hotel chains. Experts estimate the event will generate ₹200 crore in temporary livelihoods for workers and small-scale vendors.

A Gathering of Faith and Commerce

The Maha Kumbh Mela combines devotion and commerce, creating a marketplace where spirituality meets economic growth. Its massive scale offers businesses a unique opportunity to thrive while catering to millions of pilgrims.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.