Tuesday, 5 September 2017

Demonetization-Boon or Bane

Well it's always good to discuss and it was really nice discussing with you all however I don't wanna mention name here also m not a government spokesperson nor m i a opinion maker just wanna express my point of view and m not going to prove anyone wrong here but just after RBI released on demonstration(gained 16000 cr and printing new currency cost 21000cr so loss is 5000cr) people have made this calculation so easy which is not true and people blindly went on to criticise this move _to those would like to say that Demonetization is not a failure in fact it's a success however the extent of success is not as expected yet it is important to consider a few things here and those are:-
1. 1.4% itself results to approximately 16000 crores which is not a small amount.
2. 98.6% of money which came back can not be considered to be white money as long as IT department is not satisfied with the explanation given to the IT department pertaining to the notices sent to them regarding excess cash deposit during the Demonetization drive.
3. Under 1st Income Disclosure Scheme which ended 30th september 2016 at least ₹65,250 crore of undisclosed assets were declared in the one-time compliance window, yielding ₹29,362 crore in taxes to the government.
4. 2nd Income declaration scheme which started in December 2016 and ended on March 31st 2016 witnessed a declaration of approximately ₹20000 Crores out of which ₹10000 Crores were collected as tax and ₹5000 Crores were deposited in zero interest Pradhanmantri Garib Kalyan Deposit scheme for a period of 4 years.
5. Apart from the above benefits one of the benefit that went unnoticed is that a lot of money that was out of the mainstream banking channel came back to the banking channels which has resulted in low interest rate on different loans.
6. The money in the informal sector which was difficult to track by IT department and ED has come back to the mainstream and is under the scanner, lot of shell companies and Tax Evaders are being questioned and will certainly yield positive results.
7. Digitisation of the Economy has seen a positive growth and it can play a pivotal role in reducing the Corruption and curbing the Black Money as cash transactions have gone down by 8%
8. Tax Base has seen a growth of approximately 24%.
So, according to me it would be wrong to say that the Demonetization drive has failed, although I agree there have been prons and cons as well but I will not see it cynically and will wait and watch a little more to give a decisive verdict. I believe we should give some more time to the government to justify the claim...

Friday, 18 August 2017

I know a friend of mine, who is currently operating a recently funded startup for letting people take stuff's on rent from them.
I met him at 91springboard 
How he started the stuff, may help you understand the value of Rs.5k.
He first bought up 8 chairs by bargaining at olx  2 years back in 5K.. And sold it back to olx to someone else at Rs.8500. He then bought up 3 tables at 3000 rupees & one dinning table at 2800 rupees. He also bought 3 bed side table for 500 each. So total he spent from the 8500 was 7300 & saved 1200
He resold the stuff's on olx at 12K.
He took a loan from a common friend of 50K, who later became his co-founder at this present startup,  with a promise to return in 3 months. But within that month only by buying stuffs of 60K & Selling it at 94k, he was in a position to refund that interest free loan to his friend.
And then he explained to his friend how, he was able to return the loan within 3 weeks. And his present co-founder & the same friend, kind of liked his idea, and they started buying selling. They did it for 6 months & also included one other guy into that particular business. At the end, they had 7Lacs in hand.
They went to website developer  with the requirement of getting a website done, and that too on a payment of 30% of the development cost to be paid on spot. And rest once they start making some profits.
Although not in a liberty to name them, but once we get that basic website developed for them, they started buying stuff's from olx & other places. And post that they start giving those stuff's on rent.
IN couple of months time, by making some money out of it on top, they infact hired 2 people at a cost of 12k & 9K each. And these guy's were carpenter's. Their job was to polish & do the required fixing to the old bought in furnitures. By doing this, their rental subscription saw a 17% hike on the same stuff's which was earlier not the scenario.

Thursday, 1 June 2017


Yesterday i.e. May 31st is World No Tobacco Day, and to celebrate this, I thought of sharing my views on smoking with you all , and the ones I care about, quit the smoking habit now.
I’ve seen a lot of my friends smoking and felt that many of them smoke because it makes them look cool or treat this as an excuse to socialise. That’s how the cigarette companies advertised them earlier also. good positioning isn’t it.
Once you realise that there are no positives to smoking, the craving of cigarettes dips, and quitting becomes a lot easier. It’s all a matter of psychology, a plain simple mind game.
Puffing on a cigarette isn't as satisfying as you think
Many people struggle to quit smoking because they think it has a positive influence on their life. There are usually two positives that get cited: smoking relieves stress and aids concentration. But neither of them is true.
For one, cigarettes alleviate stress in no way whatsoever. In fact, nicotine is a chemical stimulant, so smoking actually agitates you!
Then there is the concentration that smoking supposedly helps. The only reason a smoker feels focused immediately after a cigarette is that, right after smoking, the distraction of craving a cigarette is at its lowest. As soon as your body demands nicotine again, your focus plummets.
“Quitting smoking won’t work if you see it as a sacrifice”.
Wrong ways to quit smoking:
People typically think that we’ll lose the desire to smoke if we go long enough sessions without it and that when you lose desire, you’ve successfully quit. But this only turns quitting into a sacrifice and making it much more difficult to quit.
Another common approach is cutting back cigarettes but by limiting your smoke to special moments, you’ll give smoking an even more positive association. Cutting back doesn’t make your craving less, but it makes you want them even more.
It’s just brainwashing by people & media
We use smoking to relieve ourselves of boredom and stress and to improve our concentration or relaxation. But smoking doesn’t make us less bored or calmer. These ideas are simply brainwashing done by the advertising, media, friends and family. 
On a related note, See this video by Sadhguru on smoking marijuana where presents some excellent insight into the reasons that people smoke and a great alternative to smoking.
Smoking isn’t any habit and nicotine is no hard drug; smoking is just an addiction, but one that can be overcome with the right mindset. You just need to realize that smoking cigarettes have absolutely nothing good to offer. 
Just question why you smoke, and what are you getting out of it. Prove to yourself where is the ROI in smoking and you’ll be able to convince yourself quit smoking very easily.
You won’t also instantly feel the differences after quitting, but you’ll feel the feeling of freedom. Feeling that in spite of knowing it’s extremely unhealthy, the cigarette isn’t controlling you. It doesn’t offer anything good, as soon as you realise this you’ll be on the path towards quitting and quitting for good.
"Every cigarette you don't smoke is doing you good"

Sunday, 5 March 2017

What is this "sensex" and how it is calculated ?

Every day when we pick up a newspaper the first page shows some figures like Sensex 28832 and then next day it is shows something totally different it either goes up or down what is this number, how it is calculated and what it says?

What is Sensex?

The SENSEX-(or Sensitive index) was introduced by the Bombay stock exchange(BSE) on 01/01/1986.The Sensex is designed to reflect the overall market sentiments. It comprises of 30 stocks. These companies are pretty well-established and financially sound companies from main sectors with excellent market capitalization.or we can say these companies represent the Sensex.

How it is calculated?

The method for calculating Sensex is the market capitalization weighted method in which weights are assigned according to the size of the company. Larger the size, higher the weight age.
Like if we see now weight in the index in terms of percentage ITC has 10.75 then we have Infosys 9.16 , Reliance industries 9.13 and so on these weight age are assigned according to their size of the company in terms of 
free float market capitalization. which means total number of shares available for the public to trade in the stock market. It excludes shares held by promoters, trusts or governments, Foreign direct investment etc.

Market capitalizationtotal number of shares outstanding*market price

Then if we multiply this by free float market value factor which is a percentage of free float shares of a particular company with the public we call it free float market capitalization. So we see more public holding company will have the high free float market capitalization and weight age also.Let's assume that the free-float market capitalization of Sensex (All 30 companies who represeSensex ) is Rs 1,00,00,000. and SENSEX is 25000 on Monday morning, after trading gets over at 3:30 PM prices of stocks have gone up and therefore free float market capitalization would also go up (because we know the formula which says market capitalization is equal to share price*no of shares) , What would be the value of Sensex on Tuesday morning if the new free-float market capitalization is Rs 1,15,00,000?

Free float market capitalization                                                 Sensex value
10000000                                                                                        250000
11500000                                                                                             ??


Index divisor =25000/10000000
So, Index divisor =.0025
Then we can find out new index =.0025*11500000=28750. so the value of Sensex on Tuesday morning (in every newspaper ) would be 28750. It is nothing but just a number which says the market has gone up by 15% (28750-25000/25000). 

It is an indicator of the general economic scenario of a country. If the stock market indices are growing, it signals that the overall economy of the country is stable and that the investors have faith in the growth of the economy and then they would keep on pouring money into stock market, however, if the economy of the country is in trouble then there would be a plunge in the stock market for sure and people would start selling their stock and the stock market would fall.
A stock index is created by selecting a group of high performing stocks. For example – The SENSEX ( the stock index of Bombay stock exchange) is constructed from the top companies trading in the Bombay stock exchange. If the Sensex records a jump over a period of time, it indicates that most of the top 30 companies in India are doing well at that point of time and that the investors are positive about putting their money in India.

If we dig more into this then we would see so many indices like Sensex, Nifty, Bankex, FMCG, IT, power etc. If we want to see the performance of all FMCG companies we can simply see the FMCG indices and figure things out.
For more details on indices like small cap mid cap etc email me. I would surely revert back.

Thanks & Regards

Jitender Kumar


Thursday, 2 March 2017

Where to invest our hard earned money to get the maximum return ?

All of us work really hard to earn money but inflation erodes all the saving that we do, so how to invest our money in the best possible manner wherein we get the higher return.
a lot of people go for Fixed deposits and buying houses or putting money into real estate which I personally feel is not a good investment now.Especially after Demonetization. those
days are gone now in which you buy a land and sell it in a massive return.

Seeing Indian equity market(Bombay stock Exchange and National stock Exchange ) in their best phase. I wonder why don't people put their money into stock market?? and one who does invest gets duped by folks who don't  have any idea about the stock market.
I mean how can you trust such a person who is just over phone and tells you the whole story about indices you do not  even get to see the person you are talking to and get cheated easily  , then what happens your belief in the stock market gets totally banished but it's not the market who gave you the negative return but the person who you believed in.

I have seen people loosing out their money because of wrong investment they just receive the call and put their money in which their broker wishes them to do. you don't even get to see your portfolio
I mean it's so simple all you need to do is get your Demat account open and do the trading yourself
its very easy it is not something which is next to impossible you just gotta give a shot.

why does anyone have to bring broker in between all they do is ruin your investment and make an incentive for themselves and move on. trust you me I  am not kidding on this. Watch boiler room a movie to learn from.

there is real-time instance I want to share with you all, I went to a wedding last night and I heard some doctors talking about shares, commodities, forex at the wedding. I was really taken aback I mean how can a doctor be knowing this much about finance.I found them extremely savvy they talked economics they understand the business facets and very importantly they knew the reasons for the prices of stock climbed.
they also talked about the technical, fundamental and economic reason of rising stock price.
I joined the conversation, later on,  we had some really nice discussion over the anual report of tata motors and how their share price jumped from Rs.340 to Rs.440 we also talked about Ashok Leyland balance sheet and their share price not being risen in fact it went down actually as compare to last the last year.
I was really enjoying the conversation but my main concern was how do they know so much .since they never studied all of that in their grad or post grad for that matter.
I finally went on asking the same and the replied made me respect them even more.
it is nothing but just one magazine who taught them this much
A magazine which transformed me as well that very famous magazine is DSIJ Dalal street investment journal  India's no.1 investment magazine since 1986.

What I really feel being a part of a business school students that colleges teach you all the ratio analysis, it gets you go through the annual report of the company.however, it doesn't give you the exposure in equity and commodity market.
So I endorse this particular magazine which will help you understand the nitty-gritty of financial market.

Features: It comprises the annual report of all the company in a nutshell who is listed on national stock exchange and Bombay stock exchange.
It gives you the brief idea about how an event like demonetization will affect you're earning in the financial sector.
It has a tax column which expedites your learning in taxes
You can get advice from the experts like warren buffet.
Apart from this, we carry special editions, special reports and interview from prominent personalities to provide unbiased research ideas to our investor.
It helps you built your portfolio and answers your question with facts and figures.
Advantage If you see other magazines most of them put false and fabricated data to get the attention or boom the price of that particular company by which a lot of investors lose hard earned money. We tell you to rely on our editors because all of them are well-known economists, analysts and that is the advantages we have over other magazines like India business journal, business today, money today, outlook money etc.

Since it gets issued every fortnight you will find all the big news from the business in this magazine in last 14 days. so you also have an advantage over newspaper because it gets monotonous to read the whole business newspaper every day.
once you start reading this magazine it really gives you an immense amount of knowledge in the financial sector.
Benefits to the customer, Easy language to understand (this is the biggest reason why I am recommending you all) it has helped me learn a lot about the stock market.
Subscription benefits-
A] Magazine availability: you don’t need to spend time in buying the magazine every time, Dalal street investment journal is available in digital and print version, you can choose your preferable mode of delivery (post/courier) and get your copy delivered at your place.
b] Early access to digital version: you can read this magazine in iPhone, kindle, or any mobile device and it will be less costly also as compare to print version.
c] Recommendation through SMS: Get messages via SMS to formulate the strategies for your investment in advance before it gets printed or come in the digital version.
d] Book profit in time: we not only recommend you but also track your investment and help you to book your profit on time.
We get your account opened with Dalal street wherein you can invest and do trading with virtual money and mind you other website do not provide the tutorial service.

For the ones who is really into the stock market, I believe you should go ahead and put your money into these blue chip companies stocks like   ITC and HDFC they do have a high target price.
I can email the details to the interested one about these companies without even charging anything you can also do your own analysis after that if you wish to.

Thanks & Regards
Jitender Kumar

Saturday, 25 February 2017

What is H-1B VISA and what is this issue all around?

H-1B VISA is a non-immigrant visa category for united states of America.

A non-immigrant visa is issued to person who wants to be in the US for temporary basis like tourism, some kind of medical treatment, study, leisure, temporary work etc
The duration of this visa is 3 years and it can be extended further up to 6 years.
other advantages of this visa are after 5 years of holding this visa we can apply for a green card to be a permanent citizen of America.

How it gets issued, Suppose I want to work for TCS(tata consultancy services ) then I will have to apply for H-1B visa, Now TCS would apply for employee's H-1B visa petition with of course US immigrant department.
That petition will only become work permit when US immigrant department approved it.

What if US immigrant department disapproved it or put some restriction that's what Mr.Trump is doing.he has been working hard on tightening immigration norms for the united states of America.
A bill was introduced in the US Congress to more than double the minimum salary of H-1B visa holders, which could significantly boost costs for IT companies.

when this bill was introduced IT giants like TCS,INFOSYS, WIPRO  shares fell over 4%on national stock exchange and Bombay stock exchange.
 The increases in salary will surely raise their operating cost,(by hiring locals in America at a higher cost ) increase in operating cost will lead to increase the price of services they provide consequently they will have lower foreign earnings.
this could be a major problem of the Indian economy because at large scale India continuously runs a large deficit in merchanting trade. this is funded through a surplus in service export. such an event will hit service export and then will have a negative impact in the current account deficit and exchange rate which will ruin our economic growth.

India has been gaining from H1-B visa scheme because all the IT giants like Infosys, Wipro, TCS
they were able to send engineers for their US operation and serve their American client in much cheaper cost. India's  employment rate was increasing besides those engineers who were working overseas send money to their parents in India and then the purchasing power of those family increases they would spend on cars, Houses, jewellery but after this bill being introduced  there would be slowdown in new  hiring by IT companies or lower salary growth will definitely hit the consumption demand  by which Indian GDP would  decrease and then lot of capital inflow would stop coming in Indian so if we understand this by this cycle we will be able to make out how harmful this decision is going to be for us(Indian) .

The beauty of economics is there would always be 2 implication in every aspect like if we see the advantages of this decision then we see a lot of Indian talent who is working overseas coming back in the country besides there would be a lot of R&D centres getting opened in India like Microsoft has already opened.

If we look at our balance of payment of last quarter we were on the surplus of $4.1 billion.revising the deficit of $855million dollar in July- September we also narrowed the current account deficit but after this trump move, we are unlikely to achieve what we expected to at the end of the fiscal year ...
let's see what happen next  "Indian IT firm to meet president  Donald trump"

Thanks & Regards
Jitender Kumar

Saturday, 11 February 2017

There are products been written "Made in India" and I feel jubilant seeing those products because that product is manufactured in India and that product must have given  employment to many individuals. In the same if we have more number of products being written made in India we can imagine our surplus in current account because we'd start exporting more to the rest of the world instead of importing. but How is it going to happen ??

if we become a manufacturing hub then of course we'd produce more and we shall be able to sell more to the rest of the world and increase our Export and to become manufacturing HUB we need to have 
1.Good infrastructure (enabling the environment to work )
2.Ease of doing business (policies have been eased, minimum govt intervention and easy approval  )
3.Skilled labor (India has immense manpower resources we just need to start  utilizing  them in best possible manner by educating them   )
4.Lesser cost (if government reduce tax or start giving tax incentives to businesses then it would be easier for new start up and existing businesses for producing more. which actually happened in 2017 budget   )
5.Government expenditure will also play very big role in this by multiplier effect .
Make in India to turn India into a global manufacturing hub has been appreciated across the country
and also as we know labor cost is increasing in china would have a big time  advantage for us to make in India successful.

More manufacturing unit means 
  • more jobs 
  • more smarter cities 
  • Growth in GDP and GVA 
  • increase in purchasing power 

Thanks & Regards
Jitender Kumar

Tuesday, 7 February 2017

Facts After Demonetization ?

It surely gives me an immense pleasure to let you know all that our GDP(gross domestic product) rose by 7.9% 2015-16 earlier it was 7.6% 2014-15 now what is interesting this time is in spite of demonetization it grew . we were hearing lot of politicians and economist saying that demonetization happened in wrong time, its not good for the Indian economy etc etc.. upward GDP growth and downward inflation(3.41%) is vindicating almost everything and its a tight slap on those faces who were giving us false and fabricated estimates . (CSO )Central Statistical Organisation revealed everything about Indian economy like our per capita net national income has increased and now its Rs 94178 and gross value added (GVA) grew at 7.8% ..

There is no doubt that for decades India has been plagued by black money and there’s a desperate need to tackle it but the question is how?? Is demonetization the best or even the right way of doing this
Well I think its good to reduce the black money that operates in the market
We will find out only when we would come to know how much money has not come back to the bank
But besides the black money issue, it will send a very good message against further a cruel of black money. I also think this will help against to fake currency notes which are coming from across the border to finance terrorism.
It to my mind also help against Naxalite in the country and overall it’s a good message.
now the question is what price are we end up paying?
Is the pain the country presently going through justified by this level of game
 I heard people saying it will be easier now to store black money when you have 2000 rupee note.
Well, we Indians have rebuttals of everything it's just the mindset that we need to change
In order to fill up CASH shortage quickly in the market, the government came up with the idea of 2000 notes ...
and also ATM has got certain constraint we all know this, i won't get into technicalities. but also a lot of people could take out money from the ATM and have access to more money they would've probably thought.
I heard big economist saying our GDP will go down and per capita would affect big time (they are just playing to the gallery most of them belong to some political party )
if govt could fill up the shortage of money quickly economy would not Affect it might get worse in short run but this surely gonna help in long run.
 PLANNING was not appropriate I would say govt has slipped there a little bit coz when u have the population for about 1.2 billion and u need to circulate the new currency, they could have given a second thought there.
Rest is pretty all right we should appreciate the fact we've finally got the PM who take these sort of bold step and doing tremendously well. KUDOS to him