2. Buy Reliance Infrastructure at Rs.528, T: Rs.545, SL: Rs. 526. Temporary bottom seems to have been formed on daily chart.
3. Buy Reliance Power at Rs.43.60, T: Rs.45-47, SL: Rs.42. The Anil Ambani-led power producer reported a consolidated net profit of Rs275.70 crore, against Rs241.06 crore a year ago. Net sales rose 14.2% to Rs2,456.31 crore in the quarter from Rs2,150.49 crore a year earlier.
Reliance Power's Sasan project is the world's largest power generation plant to be registered under the UN framework, entitling the company to earn 22.4 million carbon credits.
Arun Jaitley’s 10% tax on income from carbon credits is good for companies like Reliance Power Ltd.
According to the explanatory memorandum to the Finance Bill, the income tax (I-T) department has been treating the income earned on transfer of carbon credits as business income subject to tax at the rate of 30%.
Now Direct taxes code had recommended that income from sale of carbon credits be treated as business income. Therefore, the tax levy of 10% may be considered to be beneficial, for companies like Reliance Power Ltd (Rs.43.60).