CAduniya.com : CA India Blog

MUMBAI: Indian markets defied expectations of continuation of bull-run as investors who were stuck holding stocks at higher levels utilised the opportunity to reduce their portfolio by booking handsome profits.

While a group of investors cashed in profits, others bought on dips sensing revival in economic growth on hopes of a stable government. This resulted in a huge volatility in early session.

Market gave a thumbs-up to the UPA’s victory in 2009 general elections. The new government is expected to carry forward economic reforms more aggressively as it will not be bogged down by the Left parties or other regional parties. Trade halted on Monday after the benchmarks surged around 20 per cent triggering to two-upper circuits for the first time ever.

“We believe investors should use this opportunity to exit from the market as we anticipate a descent to levels of 13,500–13,750. While we recommend that every dip should be used as opportunity to enter into the market, it would be prudent to book profits at 14,800–15,000 levels. For the day we are positive on the market but advice profit booking at higher levels,” said Religare Securities report.

At 10:45 am, Bombay Stock Exchange’s Sensex was at 14386.81, up 102.60 points or 0.72 per cent. The 30-share index witnessed sharp volatility of over 900 points in early trade. The index touched an intra-day high of 14757.82 and low of 13834.13.

National Stock Exchange’s Nifty was at 4328.80, up 5.65 points or 0.13 per cent. The index swung 300 points early in the day between intra-day high of 4464.90 and low of 4167.65.
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Indian IT firms would not be impacted by the tax reform proposal of US President Barak Obama, Infosys Technologies chairman and chief mentor N.R. Narayana Murthy told President Pratibha Devisinh Patil on Friday.

“Obama’s tax proposal will not impact Indian firms as they already pay taxes in the US. It is only American firms operating in India who would have to repatriate taxes on profit earned outside the US when it becomes a law,” Murthy told Patil at an interactive session at the Infosys campus.

The president, who is on a three-day visit to Karnataka since Thursday, paid a visit to the sprawling Infosys campus housing its corporate headquarters on the outskirts of this tech hub.

When the company’s top management made a power-point presentation on its global operations during the interactive session, Patil also asked Murthy how the Indian IT industry could cope with the pressures of global recession and lower technology spending.

Murthy replied that the industry could sustain the growth momentum by expanding into the domestic market and driving the growth rate with innovation and product development.

“Indian firms will have to safeguard their IPRs (intellectual property rights) to move up the next level of value chain and compete with their peers in a global market,” Murthy argued.

“The president was keen to know about our guiding spirit and principles that drive Infosys’ growth in the global market,” Murthy told reporters later. President Patil planted a sapling in the Infosys campus and went on a buggy ride to see for herself the company’s state-of-the art facilities.

Beating the slowdown, chartered accountants (CAs) have bagged jobs with top-notch companies in the latest campus placement drive, which has also seen more newly qualified professionals get jobs.

State-run companies, especially from the financial services sector, have emerged as the biggest recruiters in the current round of hiring.

Four newly-qualified members of the Institute of Chartered Accountants
of India (ICAI), the apex body governing the profession, have been offered Rs 23 lakh each for international posting by the Tolaram group, a Singapore-based private company, compared with last year’s highest salary of Rs 21 lakh.

“When institutions of international repute are finding it hard to attract companies to their institutes to place their handful of students, the ICAI has proved itself to be an important destination to recruit finance, audit and compliance executives,” said ICAI President Uttam Prakash Agarwal.

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