Does a multibagger stock keep rising all the time? It doesn't. Then how do you spot it? Market veteran Vetri Subramaniam has a very practical take on this: When you look at the history of a multibagger stock, you find all through the period during which it became one, it may have come down 30% in a given year, or may have dropped 50% twice in a span of 20 years. Thus, eventually it made money only for those who had the ability to hold on to it with conviction through the ups and downs. That's more important than one's ability to identify the potential in a stock in the first place.
STREET PULSE: Where we stand Nifty futures on the Singapore Exchange traded 22 points lower at 11,962.50, indicating weakness ahead on Dalal Street. Asian stocks steadied on hopes of additional Chinese stimulus to lessen the economic impact of a coronavirus outbreak, but risks remain as the illness continues to spread and the death toll neared 500.
HERE'S WHAT TO WATCH  | MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3 per cent. Australian shares were up 0.58 per cent, while Japan's Nikkei stock index rose 1.19 per cent |
| Overnight US stocks finished significantly higher, adding to the previous session's rebound, fueled by solid gains in technology shares. Dow jumped 407 points, or 1.44 per cent, S&P500 index went up 48.67 points, or 1.5 per cent, and Nasdaq soared 194.57 points, or 2.1 per cent. |
| Oil prices rose, reversing out of a 1 per cent slump in the previous session, boosted by producers weighing further output cuts to counter a potential squeeze on global oil demand resulting from China's fast-spreading coronavirus. Brent crude oil futures were up 44 cents, or 0.8 per cent, to $54.40 a barrel level. |
| The rupee on Tuesday appreciated by 11 paise to close at 71.27 against the US dollar, tracking heavy buying in domestic equities and easing crude prices. |
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Nifty Bounce to Stay… The rebound in Nifty on Tuesday after a sharp fall on the Budget day may sustain in the near-term going by the trend in the long-short ratio of FPIs. The ratio dropped to 0.3 in the current derivatives series, a rare reading in the past seven years indicating a bottom. While the low reading suggests weakness in the market, a bottom-out trend is harbinger of a turnaround. In the past two occasions since 2012 (totalling 15 sessions), when the ratio touched 0.3, the indices bounced by over 5% in the following month.
Read More Sebi M-Cap Rejig Coming… Sebi is looking at reclassification of midcap and smallcap mutual fund schemes, chairman Ajay Tyagi said on Tuesday. The move is aimed at allowing these products to invest in a wider set of stocks. In 2017, Sebi introduced categorisation and rationalisation of mutual fund schemes so that investors could make accurate comparison of schemes. Earlier, each fund house would employ its own criteria for deciding the classification. Meanwhile, the markets regulator has also asked for clarification from Franklin Templeton Mutual Fund on marking down the value of its Vodafone Idea holdings mid-January.
Read More Shift Tax Regime As You Like… Taxpayers can switch back and forth between the existing income tax regime and the new one that offers lower slabs without exemptions, CBDT chairman PC Mody said. However, business owners won't have this option. "Let it be very clearly noted that this is an optional scheme — there's no compulsion for you to go to the new scheme," he said. "If you find the new scheme preferable, you can move to it. If you're better off in the old system, then you can continue.
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Fake and Bleed… There's now a heavy price to pay for a common tax fraud many businesses indulge in. Fake bills to lower profits and evade tax through artificial expenses will attract a stiff penalty from the next financial year. Companies caught with false entries in their account books will have to cough up a penalty as high as the total value of such an invoice — over and above the amount of tax it will have to pay. Earlier, a fake entry of Rs 10 crore would have led to a total outgo of Rs 6-8 crore (including tax and penalty); now, it will be Rs 14 crore (including penalty of Rs 10 crore).
Read More ZEE Books Under Lens… The Ministry of Corporate Affairs has directed its western region head to inspect the books of Zee Entertainment Enterprises. The inquiry comes after the resignation of two independent directors, who had raised corporate governance issues. According to people in the know, the inquiry will be carried out in accordance with a provision in the Companies Act that allows the ministry to seek information or explanation in writing, or documents, from a company.
Read More Meanwhile... 10% DDT on MF Gains... CBDT has clarified that mutual funds will only deduct a 10% tax at source on the dividend payment, and not on the capital gains arising from redemption of units. "A mutual fund shall be required to deduct TDS @10% only on dividend payment, and no tax shall be required to be deducted by the mutual fund on income which is in the nature of capital gains," CBDT said on Tuesday. The Finance Bill has proposed to scrap DDT at the company level and instead move to the classical system of taxing dividend at the hands of shareholders.
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