Jainam Mehta on LinkedIn: RAILWAY SECTOR OF INDIA 1. Planning The planning phase is conducted by… (2024)

Unveiling the Hidden Burdens of Taxes in India1. High Tax Rates, Low Safety Net - Income of 1 Crore? Brace yourself for over 40% in taxes, plus indirect taxes. - But what if you lose your job next year? Your income drops to zero, yet there are no benefits in sight.2. Lack of Support - No safety net means no government schools for your kids, no treatment in public hospitals, and no access to free ration during tough times. - Taxpayers are left to fend for themselves in times of need, adding stress and pressure to their lives.3. One-Sided System - Taxpayers share their upside during prosperous times, but there's no concern for their downside when facing hardships. - The current taxation system fails to provide the necessary support for those who contribute to the country's development.4. Percentage of Non-Taxpayers - Shockingly, a significant percentage of people in India don't pay taxes. - This puts an extra burden on those who do pay taxes, further exacerbating the inequities in the system.5. Rethinking Taxation: - Taxes should serve as a fair means of funding public services and infrastructure. - It's time to reevaluate our approach to taxation and ensure that everyone receives the support they need, regardless of their income level.6. A Call for Change: - Taxes should benefit the people, not just fill government coffers. - Let's work towards a taxation system that truly serves the needs of all citizens, providing support and security in times of both prosperity and adversity.Personal response -In my view, taxes should be fair and provide support for everyone, especially during tough times. It's not right that some people pay high taxes without getting help when they need it most. We need a system that benefits all citizens and ensures nobody is left behind.credits Akshat Shrivastava

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1. Foreign Currency Assets: This means the money India holds in other currencies like the euro, pound, and yen. If these currencies go up or down in value compared to the US dollar, it affects how much money India has when counted in dollars.2. Gold Reserves: india also has a stash of gold. During the week, the value of this gold increased by $673 million to $52.16 billion.3.Special Drawing Rights (SDRs) These are assets held by countries at the International Monetary Fund (IMF). In the week, India's SDRs decreased by $73 million to $18.145 billion.4. Reserve Position with the IMF This is another type of asset that India holds at the IMF. In the week, it decreased by $2 million to $4.66 billion.5. Overall Foreign Exchange Reserves This is the total amount of money and assets (like gold and SDRs) that India has in foreign currencies. It increased by $2.951 billion to $645.583 billion for the week.6. Trend This is the sixth week in a row where India's reserves have increased. It had gone up by $140 million to $642.631 billion in the previous week.7. Previous High: In September 2021, India had reached its highest-ever reserves of $642.453 billion.8. Reason for Fluctuation Sometimes, the reserves go up or down because of actions taken by the central bank (Reserve Bank of India) to manage the value of the rupee compared to other currencies.9. Foreign Currency Assets IncreaseThe major part of the reserves, which is money held in other currencies, increased by $2.354 billion to $570.618 billion in the week.In simple terms, India's money and assets in other currencies, gold, and at the IMF went up this week, which is good news for the country's financial stability.MY PERSONAL VIEW :-India's rising foreign exchange reserves signal economic stability and resilience amidst global uncertainties. The record-high reserves, coupled with consistent growth, instill confidence in the economy and attract potential investors. Diversifying reserves with increased foreign currency assets and gold holdings enhances India's ability to manage currency fluctuations. Moving forward, prudent management of reserves will be vital for navigating future economic challenges and sustaining long-term financial health.

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Decoding HDFC Bank's Hidden Value: A Finance Case StudyThe Bajaj Finance IPO Paradox:When assessing Bajaj Housing Finance's IPO at $10 billion, it appears fairly valued given its ₹85,000 crore asset base. However, delving deeper, a fascinating narrative emerges.HDFC Bank's Home Loan Bonanza:Post-merger, HDFC Bank's home loan book skyrockets to ₹8 lakh crore, implying a staggering $100 billion valuation for this segment alone.The Enigmatic Valuation Puzzle:Despite HDFC Bank's colossal $300 billion loan book, the entire bank is valued at just $130 billion. But why the discrepancy?The Intrigue of Intrinsic Value:This anomaly underscores the importance of intrinsic value in finance. While loan book size is significant, it's not the sole factor in valuation.Unlocking HDFC Bank's True Worth:Beyond numbers, HDFC Bank's brand power, market positioning, growth potential, and robust risk management enhance its intrinsic value.Investment Insights:For investors, recognizing HDFC Bank's undervaluation presents an enticing opportunity. Considering its holistic intrinsic value can guide investment decisions in stocks or mutual funds.In essence, the tale of HDFC Bank's undervaluation unveils the intricate dance between apparent worth and intrinsic value, offering a compelling narrative for investors seeking financial insight.Inference:Recognizing the disparity between apparent value and intrinsic worth in HDFC Bank highlights the significance of holistic valuation metrics in investing.Personal Response:This case underscores the importance of thorough analysis and patience in identifying undervalued assets. As an investor, it motivates me to seek opportunities where market perception diverges from true intrinsic value.My View:Considering HDFC Bank's strong fundamentals and potential for growth, I see it as a compelling long-term investment. My strategy involves capitalizing on this opportunity while maintaining a diversified portfolio to mitigate risks and maximize returns.Credits Akshat Shrivastava

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1.Stocks Consider investing in solid companies with strong fundamentals, especially in sectors like technology, consumer discretionary, and healthcare, which typically perform well during economic expansions.2. Bonds Opt for shorter-term bonds or bond funds to minimize the impact of potential rate hikes. Diversifying into inflation-protected securities or high-quality corporate bonds can add stability.3. Gold Use gold as a hedge against economic uncertainty, but remember its volatility. Allocate a portion of your portfolio to gold investments for diversification.4. Oil Despite conflicting signals, invest in energy companies with robust balance sheets and diversified operations. Consider renewable energy firms for long-term sustainability.5. CryptocurrencyApproach cryptocurrency cautiously due to its volatility and regulatory risks. Invest only what you can afford to lose and conduct thorough research. Diversify your investments across different asset classes for risk management.What do I think Based on current trends, I'd consider investing in well-established stocks poised for growth. Bonds might be risky due to potential rate hikes. Gold could serve as a hedge against economic uncertainty. Oil investments seem promising, despite contradictory signals. I'd approach cryptocurrency cautiously, acknowledging its speculative nature.https://lnkd.in/dm-KMzYQ

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"Understanding Market Trends: A Simple Guide to What's Happening in Finance"1.Stocks going up People think the government might make borrowing money easier by lowering interest rates, which could help businesses grow.2. Bonds going down It seems like the government might start making borrowing money more expensive by raising interest rates, which could make older bonds less valuable.3. Gold going up: When people worry about the economy, they tend to buy gold because it's seen as a safe place to put their money.4.Oil going up Even though the economy seems okay, people are buying more oil, maybe because they think businesses will need more of it as they grow.5. Cryptocurrency going way up: Even though things might not seem great, people are excited about digital money and are buying a lot of it, pushing its price higher.These things can be confusing, but they happen because lots of different reasons affect how people decide to spend and invest their money.ILL MAKE A SUBSEQUENT POST FOR INVESTMENT IN THESE ASSET CLASSES .CREDITS Akshat Shrivastava Nayan Gaba

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RBI MPC MEETING POST(2/2)1. Policy Repo Rate Unchanged: The Reserve Bank of India (RBI) decided to keep the policy repo rate steady at 6.50%.2. Focus on Inflation Management: The RBI's primary concern is to ensure inflation remains under control, targeting a rate of 4% in the medium term.3. Economic Growth Outlook: With India's GDP growth projected at a robust 7% for FY2025, there's optimism for sustaining growth momentum.4. Expected Rate Cut Cycle Analysts anticipate a shallow rate cut cycle starting from the third quarter of FY2025, gradually moving towards a neutral stance by the end of the second quarter.5. Global Economic Dynamics Considered: The MPC acknowledged the fluidity of global economic narratives, emphasizing the need for flexibility in policy decisions to ensure financial stability.6. CBDC and Green Bonds InitiativesThe RBI announced plans to expand the distribution of Central Bank Digital Currency (CBDC) through non-bank payment system operators and facilitate trading of sovereign green bonds in the International Financial Services Centre (IFSC).7. Retail Direct Scheme Accessibility: A mobile application will be launched to enhance access to RBI's Retail Direct Scheme for retail investors interested in government securities (G-secs).8.Regulatory Compliance Emphasized: Financial entities, including banks and NBFCs, are reminded to prioritize adherence to regulatory guidelines and governance standards to maintain financial stability.9. Inflation Forecast: CPI-based retail inflation for FY2025 is forecasted at 4.5%, with slight adjustments in quarterly estimates.10. Currency and Market Response: The Indian rupee remained stable against the US dollar, and the stock market traded flat following the MPC outcome.MY Personal Response:- The RBI decided to keep interest rates steady to control inflation and support economic growth, which is good for stability. They're planning to introduce digital currency and make it easier to trade green bonds. It's important for banks to follow rules to keep our money safe. Liquidity management is also crucial, with SBI Research suggesting that temporary liquidity injections should replace withdrawals, emphasizing the importance of VRRR over OMO in balancing government cash balances. Overall, the RBI's decisions seem sensible and aimed at helping the economy grow steadily..

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RBI Monetary Policy Update (April 2024):(1/2)RBI (Reserve Bank of India) decided to keep the key interest rate unchanged at 6.5%.The policy stance remains at 'withdrawal of accommodation'.Predictions: India's real GDP growth for FY25 is expected to be 7%, while CPI inflation is estimated at 4.5%.Highlights from RBI MPC Meeting:RBI Governor, Shaktikanta Das, emphasized the importance of maintaining financial stability and promoting the financial sector, with a focus on stabilizing the Rupee.Sujan Hajra suggests that RBI seems cautious about initiating rate cuts, preferring a wait-and-see approach to balance growth and inflation control.The MPC anticipates strong domestic growth driven by rural recovery, private investment, and government spending, with moderated inflation. However, geopolitical tensions and crude oil prices pose risks to inflation.The decision to hold rates was expected, reflecting the MPC's focus on achieving medium-term inflation targets.Liquidity management tools like VRR and VRRR are likely to continue, with no significant changes anticipated.Overall, RBI remains vigilant about inflation while ensuring economic stability.Personal Inference:RBI's decision reflects a cautious approach, balancing the need for economic growth with inflation control.The focus on financial stability and liquidity management suggests a proactive stance to address potential risks.The emphasis on domestic growth drivers indicates confidence in India's economic resilience.Geopolitical tensions and crude oil prices remain key concerns, highlighting the importance of monitoring global developments.Overall, the RBI's strategy seems prudent, prioritizing stability and gradual adjustments in policy as needed.I will be posting a series of postsCREDITS TO moneycontrol.com

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Gold Price Movement: Anuj Gupta from HDFC Securities explains that when gold prices reach record highs, traders and jewelers often sell to make profits, causing a drop in retail prices.Market Reaction: This profit-taking behavior leads traders to sell gold and silver futures contracts, anticipating further price drops.Factors Influencing Prices: Gupta believes that despite this correction, factors like central bank demand for gold and soaring crude oil prices may limit the extent of the price drop.Investment Strategy: He suggests adopting a "buy-on-dips" strategy, meaning investors should buy gold and silver when prices dip, setting stop-loss levels to manage risks.Global Market Rates: In the international market, silver is trading between $23.80 to $28 per ounce, while gold is trading between $2,140 to $2,230 per ounce.Advice from Shashank Pal: Pal from PL Wealth Management emphasizes the impact of the US dollar's strength on gold prices.Factors to Monitor: Investors should watch inflation rates in the US and India, geopolitical events, and demand-supply dynamics to gauge gold price movements.Trade Volume Trends: Pal notes that futures and options trading volumes for gold globally are higher compared to the same period last year.Long-term Outlook: He suggests a potential 8-10% further upside from current levels over the next 12-18 months, with intermittent volatility.Investment Recommendation: Considering factors like central bank demand and geopolitical tensions, investing in gold could be a good idea for beginners. However, it's essential to stay informed about economic trends and risks involved.In conclusion, while gold investment presents opportunities for profit, it's crucial to understand the market dynamics and risks involved before making investment decisions. My personal response: It seems like a good idea to consider buying gold and silver when prices dip, especially with factors like central bank purchases and potential geopolitical tensions supporting prices. However, it's always wise to do thorough research and consider your own financial situation before making any investment decisions.CREDIT TO The Economic Times for images

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I ve been granted a CFA Program Access Scholarship MAJOR CREDITS TO Parth Verma sir for the yt video of accepted essays

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