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Markets should See Strong Upward Movement When They Open for Trading

The announcements are not yet over with more to follow in the week ahead and the subsequent week

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Market, Trading, Finance
The true test would be the week ahead when one sees the response of her announcement from FPI's for whom it was primarily meant. Pixabay

What a dramatic week just went by. It shook the market and then on Friday evening we had the Finance Minister soothing the nerves with balm. The true test would be the week ahead when one sees the response of her announcement from FPI’s for whom it was primarily meant. The announcements are not yet over with more to follow in the week ahead and the subsequent week. It appears the housing sector would be a key beneficiary of announcements in the coming week. Trading

BSESENSEX lost 649.17 points or 1.74 per cent in the previous week to close at 36,701.16 points. What is of even greater significance is the fact that the low of the day on Friday was 600 points lower at 36,102.35 points. NIFTY lost 218.45 points or 1.98 per cent to close at 10,829.35 points. The low on Friday was 10,637.15 points, a recovery intra day of 194 points. The broader indices saw BSE100, BSE200 and BSE500 lose 2.01 per cent, 2.03 per cent and 2.12 per cent respectively. BSEMIDCAP was down 2.14 per cent while BSESMALLCAP lost 3.17 per cent.

The Indian Rupee continued to be under pressure and lost 51 paisa or 0.72 per cent at Rs 71.66 to the US Dollar. Dow Jones continued its wild swings and was down 257.11 points or 0.72 per cent at 25,628.90 points. President Donald Trump seems to be losing his cool in this one upmanship war with his Chinese counterpart. He has now asked American companies to stop using Chinese locations for their business, not realising that a large part of so-called American goods are actually manufactured in China. China has imposed further increase of duties on 75 billion of US exports to China. One hopes at the G-7 meeting being held in France over the weekend some sense dawns on Trump or it could be yet another terrible week for global markets.

In the last seven weeks since the Budget was presented, markets have lost 10 per cent on an intra-day basis and over 8 per cent on a closing basis. FPI’s have withdrawn close to 3 billion dollars of money in the same period. The sore point has been addressed and some more also announced for them during the course of last week.

Market, Trading, Finance
The true test would be the week ahead when one sees the response of her announcement from FPI’s for whom it was primarily meant. Pixabay

First, SEBI announced further simplification of registration for FPI’s. Secondly, it gave them a tax holiday of 10 years if they registered and did business from Gift City in Ahmedabad. To make things even sweeter for them, while the Finance Minister rolled back the surcharge imposed on them in the Budget, she also extended the same benefit from trading in derivatives which was earlier treated as business income.

Besides covering the FPI’s, the Finance Minister also announced measures for a number of sectors. These included the auto sector where additional depreciation has been provided for purchase made in the period ending between now and March 31, 2020. This deprecation is being doubled from the present 15 per cent to 30 per cent. Further, the freeze on government departments for replacing old cars would be lifted. As far as BS-IV vehicles are concerned, the Minister made it clear that they would be allowed to remain registered as long as the validity of the registration is issued when purchased.

A number of measures which would help in ease of business were also announced which concerned the IT department, refund of GST pending, SME and MSME and also that banks would pass the benefit of any rate cuts in totality. She announced that another so called ‘package’ would be announced mid-week in the coming week and the third and final one sometime next week.

It would be fair to assume that with such a carrot dangling; market men would dare not short any rally which sets in motion beginning on Monday morning. It would be important to see how much of the billion of sales is bought back. If FPIs buy even half of that amount in the coming weeks, markets would regain almost the entire lost ground as confidence would have been boosted and the rupee would also have gained.

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The two primary issues which listed during the week gone by did not have a very successful debut. Shares of Spandana Sphoorty Financial Ltd which had issued shares at Rs 856 ended the week with losses of 39.60 or 4.63 per cent to close at Rs 816.40. The other issue from EPC contractor Sterling & Wilson Solar Ltd which had issued shares at Rs 780 saw its price fall to Rs 625.15, a loss of Rs 154.85 or 19.85 per cent.

The former Finance Minister and Home Minister P. Chidambaram was arrested last week after his anticipatory bail application was turned down. The spectacle created on national television with his chief lawyers being present at his residence and the press conference at AICC headquarters was unbecoming of such a tall leader and senior advocate of the Supreme Court. The outcome of this arrest is going to be long and sordid.

Speaking of former finance ministers, yet another former Finance Minister, Arun Jaitley, passed away on Saturday. He was ailing for some time.

Markets should see strong upward movement when they open for trading on Monday morning. This should also be followed by short covering. I believe that market men would wait for the second set of announcements expected mid-week before taking any decision to sell into the ensuing rally. Enjoy the rally as it unfolds as this would be happening after a long time. The only joker in the pack could be Donald Trump. (IANS)

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The Main Benefits of Opening an Online Business

High internet connection speed and access to the global market are definitely the engine behind the development of many online companies

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Online Business
As the world gets busier, being able to access a website at any hour is an important facility and an Online Business. This is not available for e-commerce shops only, but also for all types of businesses which can offer their clients the possibility of researching their activities any time of the day. Pixabay

The number of people starting online businesses has increased a lot in the last several years thanks to the low maintenance costs and the possibility of accessing worldwide markets. Starting an Online Business has many advantages, among which these already mentioned are just a few of them. It must be noted, though, that registering an online company implies similar steps as for starting a traditional one. For example, when opening an e-commerce company in the Netherlands, incorporating a business entity the traditional way is still necessary. From this point of view, the Dutch private limited liability company is the easiest to register.

Returning to the advantages of an online company, we will present some of them below.

A great marketing tool

An online business is an important, if not the most important marketing tool, in our days. While e-commerce companies can sell goods through their websites, having a website is useful for traditional businesses too. For example, if running a dental office in Dubai, having a website where all the procedures, costs, testimonials from patients are gathered can help attracting more patients and also increasing the level of confidence in the business. As many studies indicate, people trust companies with websites as these act as extensions of a company.

Online Business
The number of people starting online businesses has increased a lot in the last several years thanks to the low maintenance costs and the possibility of accessing worldwide markets. Starting an Online Business has many advantages, among which these already mentioned are just a few of them. Pixabay

Round the clock access for clients

As the world gets busier, being able to access a website at any hour is an important facility and an online business. This is not available for e-commerce shops only, but also for all types of businesses which can offer their clients the possibility of researching their activities any time of the day. When it comes to shopping, the option of ordering a product online and having it delivered is even more important as clients will save time, energy and money with going to and back from the store.

Low logistics and labor costs

Renting or buying office space, warehousing space and dealing with other logistics-related processes is time and money-consuming for traditional companies. For online businesses these costs can be kept to a minimum thanks to the fact that most of the activities are completed online. When it comes to the labor costs, there is no need to hire many people to work for an online company, thus helping the owner save important amounts of money.

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High internet connection speed and access to the global market are definitely the engine behind the development of many online companies. Without a doubt, the world is heading towards a majority of Internet-based businesses thanks to the advantages mentioned above and also to new developments underway.