MUTUAL FUND INVESTMENTS

Today march 31 2008 the SENSEX fall down about 777 points and NSE fall down about 270 points.
Life insurance corporation had withdraw its MARKET PLUS - a ULIP policy which had a very good performance in the past two years create a huge proposals in this ending day. And there is an expectation of pushing HEALTH PLUS policy which covers health and sametime the ulip policy.
The another important thing is that the unfavourable situation in our indian market forced some changes in investing the mutual fund investments.

INVESTMENT IN PROPERTY IN HOTTEST PLACE I

Traditionally, the metropolitan towns of New Delhi, Mumbai (formerly Bombay), Chennai (formerly Madras), and Kolkata (formerly Calcutta) have been the hotspots of investment in the country. This was understandable since the country had not seen such rip-roaring success in the real estate sector prior to this time. Moreover, domestic and foreign investors were comfortable with the idea of investing in the cities with maximum connectivity within the country with well-established air, rail and road networks in and around these four metropolitan areas.
However, things have changed dramatically, with real estate investment bursting like never before in Tier II and Tier III cities. No doubt, the reason for this surge has been the overwhelming success of Indians in the service sectors, like IT and retail.
North India boasts of Chandigarh and its peripheral towns of Panchkula, Mohali, Dera Bassi, Zirakpur, and Baddi as the hottest and costliest real estate destinations in the country. Most of the luxurious flats are in the range of Rupees 1Billion-2Billion! Land for development is available only in the peripheral areas and that too at surging prices. The northern part of the country also has the National Capital Region (NCR) covering the capital New Delhi, Faridabad, Gurgaon, and Noida as major hotspots for residential, commercial, and industrial ventures.
Western India has its own success story with states of Gujarat and Maharashtra witnessing development at the rate of zeros. The cities of Mumbai, Pune, Nagpur, Ahmedabad, Surat, and Vadodara are being developed as role model cities for the entire country. These cities are historic in every sense of the term, yet the authorities are bent upon creating a marvelous blend of traditionalism and modernity where the development is equally relished along with historical charm.
If you are looking for a holiday home then property in Goa and Kerala are the best destinations. Of course, the price will be a little on the higher side, but these southern Indian states have been traditionally the hub of tourism in the country. If you are planning to invest in the Indian Silicon Valley, i.e., Bangalooru (formerly Bangalore), think again! The real estate market is out of bounds for the average investor. Only high-end investors can even think about having a property in this ultra-glam Indian city. Chennai is another option you can explore for residential and industrial property investment.
Eastern India is still learning the ropes as far as development is concerned. Barring Kolkata, most of this Indian region has largely remained bereft of too much development. However, with industrial majors, like Posco setting up their steel plant at Bhubaneswar, things are looking up in the poor state of Orissa. If you are looking to reap long-term real estate rewards, then East India is definitely a good investment opportunity.

TAKE DIVERSION IN FINANCE MARKET

Still now, the market can't be steady. So, take diversion in investing mode and turn your investment to the NFO's because, nobody wants their money to keep mom but wants to increase atleast a little bit daily. In the same time you can safeguard your money from loosing in the SHARE MARKET which dances for the international market's music. It is all interlinked with one another. If THE INTERNATIONAL MARKET performed good then our SENSEX and NIFTY will shows the green indices in which we all are happy. keep watching WWW.MONEYMADURAI.BLOGSPOT.COM which will give more and more information and tips for earning not only in SHARE MARKET but investing in REAL ESTATE and BUSSINESS.

INFRA STRUCTURE - A SMART INVESTMENT FIELD

One of the important learnings of this era of economic globalization has been the role of quality infrastructure in economic success.
It is now evident and clear that building high quality infrastructure is a pre-requisite for building a globally competitive economy.
The success stories built on investment in infrastructure in developed countries and more recently in South East Asia, Middle East and China etc are for all to see.
Global capital and models of public private partnerships are facilitating “early take - off” of these aspirations of building quality infrastructure.Whether it is growing Asia, emerging Europe, developing Africa or resurgent Latin America, the story of infrastructure development is on the front pages.
Closer home, we have witnessed success stories in the Golden Quadrilateral / Delhi Metro / Telecom infrastructure projects through public-private partnerships. New success stories in the areas of airports, power generation and distribution / SEZs are in the process of taking shape.
Thus the infrastructure phenomenon is happening in India and other growing economies.
The learning from other countries is helping to focus attention on building quality roads, airports, communication and power networks. Empirical evidence from the experience of developed economies suggests that development of urban infrastructure pays handsome dividends in establishing long term growth trajectories in growing economies.As we have seen economies in their growth phase show a much higher appetite and need for rapid infrastructure development, this has been chosen as the investment theme.The wheels of growing economies move on its infrastructure

BUDGET VIEW

This year’s Budget is largely neutral from the equity market point of view. The direction of the market, however, is largely going to be guided by global cues. The key thrust areas of investment are agriculture, irrigation, and education, which are medium to long-term positive for sustaining economic growth of 8 per cent. We find the government’s emphasis on the agriculture sector and the loan waiver schemes is designed to address needs of large segment of agri-based community and common populace (aam admi).
On the negative side, the lack of any economic reforms and initiatives in infrastructure segment, barring expression of intention for five further Ultra Mega Power Projects (UMPP) have come as major disappointment. There is a fierce debate on the issue of debt waiver/debt relief schemes announced for marginal and small farmers.
Including this waiver and one-time settlement schemes of other farmers, the total waiver is Rs 60,000 crore (Rs 50,000 crore + Rs 10,000 crore).
Based on the interaction with the PSU Bank’s management it is expected that the government will make budgetary provision to enable banks waive the outstanding amounts. However, post-Budget, the Finance Minister has mentioned a lack of budgetary provision for this populist move, which could expand the fiscal deficit to GDP ratio by 1 per cent.
The increase in personal income-tax slab will save Rs 44,000 – 47,000 as income tax in the hands of the assessee based on their gender (for taxable income up to Rs 5 lakh). This could spur personal consumption, as the disposable income will increase.
The cascading effect of Dividend Distribution Tax from subsidiaries to parent companies has been removed by allowing an offset mechanism. That should help many large corporate as operating subsidiaries are going to be more tax-efficient from dividend distribution point of view.
The measures that have come as a disappointment for the market are 1. Increase in short term capital gains tax from 10 per cent earlier to 15 per cent, and 2. Change of tax status of STT from set-off to income tax to income tax deductible expense item.
While the first factor is overall negative for short-term investors that provide liquidity to market, the second factor is expected to impact the arbitrager’s post-tax income.
Anoop Bhaskar, Head Equity, UTI AMC :
The Budget was largely positive for the debt market with the fiscal deficit projections and market borrowings lower than expectations. However, concerns remain on funding of the farm loans waiver and increased outlay for various sectors.
Increased spending plans along with reduced market borrowings could improve systemic liquidity and are positive for debt markets. The efforts to boost consumption through excise duty cuts, increased tax exemptions and measures to boost agriculture could be seen as pump priming.
The proposals to expand debt markets are positive and include launching of exchange -traded currency and interest rate futures, development of a transparent credit derivatives market, enabling investors to trade the embedded equity option in a convertible bond separately and market-based system for classifying financial instruments based on risks and complexity. Liquidity conditions impacted by lower-than-expected government spending in recent times could remain tight due to advanced tax flows. With global interest rates declining in recent months on the back of monetary easing by leading central banks across the globe, we expect interest rates to be steady with a downward bias.
The outlook for long-term bonds remains positive over a 9-12 month period and inflation along with liquidity are likely to drive market direction over the medium term. At this juncture, we believe investors should look at FMPs with double indexation benefits, short-term income funds and long-term bond funds (with appropriate risk profile).
Franklin Templeton Investments :
The main levers of the Indian economy are domestic consumption, domestic savings and the infrastructure investment cycle. Public-private partnerships in the domestic infrastructure sector get an additional boost from the increased budgetary outlay.
Also, the announcement of raising the minimum income-iax slab levels is very positive; redeeming significant resources in the hands of individual tax-payers. The increase in short-term capital gains is a positive step taken to make the domestic investors elongate their investment horizons.
Sandesh Kirkire, CEO, Kotak Mahindra
Asset Management
While this year’s Budget had relatively fewer provisions that have a major, direct impact on long-term investors, populist budgets are, in general, viewed as negative by the market, and this Budget was no exception, as evidenced by the subsequent fall. However, this Budget was made against the backdrop of an average GDP growth rate of 8.8 per cent over the last three years. GDP forecasts for next year are still over 8 per cent, and economic fundamentals continue to remain sound. Fidelity encourages investors to take a long-term view.
source: THE HINDU

NIFTY & SENSEX FACED THE HUGE FALL

NIFTY & SENSEX FACED THE HUGE FALL FROM THEIR ORIGINAL POINTS
Due to the collapse in the US market the total Asian market had to face the same impact,That is same in our Indian market. No body can predict the right situation, even the corporate SHARE BROKERS cannot picture the path of the Sensex or Nifty. On March 3rd , 2008 it’s a biggest fall ever before, Sensex down about 900.84 points which makes 17,000 pts to 16,667.88 pts. The same in the case of Nifty, which faced 270.50 pts down and closed at 4,963 pts.
Which factor makes this critical situation: The main reason is the SECURITY TRANSACTION TAX (STT) that altered in the budget proposals for 2008-2009. This is a big negative to the market. The same budget proposal done the favour for AUTOMOBILE section, which makes that particular section in green indication. Some what FMGC and Pharma stocks maintains the stability, but the bank sector faced the bad impact. We have to consider one thing, that the step back in bank index is not a real thing. Yes, without the huge volume transaction it meet out the downfall, so it is not a natural happening. These things make a wrong perception to the public, which avoids the entry of NEW INVESTORS to the market and the existing marketers too keep silent and watching the moving of INDIAN MARKET.
Let we hope the following announcements may move the market in forward:
1. KOTAK MAHINDRA put a distribution tie-up with ORIENTAL BANK OF COMMERCE. Kotak Mahindra plans to approach their product in this bank outlet. It is very easy to reach out to retail investors.
2. ICICI BANK planned to open three new branches in UK within sixmonths. They are having already nine branches in UK addition to that these plan is in execution. So there is a possibility for consolidated hike in global operation.
3. IVRCL the construction firm announced their projects which includes the Rs.478.48crore contract on NARMADA VALLEY DEVELOPMENT authority .
So all over the Indian companies are having good annual reports which gives us the confident of stable market.