The Tax Terrorism Machine: How India Taxed Its Way Out of Foreign Capital, and Why LTCG on Listed Equity Must Be Abolished

 Winning Strokes

The Indian bourses nosedived on last Friday. The BSE Sensex closed at 49,099.99 down by a whooping 1,939.32 points (-3.80%) while the Nifty50 dipped to 14,529.15 down 568.20 points (-3.76%). It was a sort of mayhem, after a long hiatus. 

However, deep correction was over due and I have mentioned that in several of my recent blog posts. 

On 22 February post, I had  clearly said: 'The Nifty50 may drift towards 14000/13600 in the coming days'. The Nifty is now very close to my 1st target, which I believe will be reached within a couple of weeks. 

Moreover, if the earnings doesn't improve from the current Nifty EPS (P/E: 39.65) of Rs.366.40, to near the NiftyFEPS of Rs.536, as one brokerage report mentioned earlier, the Nifty  spot may even slip to 12000/11700/9700 ranges, within this month (March). 

However, there is nothing to get too much worried, if your stock selection is excellent, as stock specific action will rule the roost in the coming days. 

#Those who bought Future Retail Ltd (Rs.69.65), during the last week, should accumulate on all declines. This is a sure shot story, which you need to go after. 

#I'll recommend another news driven scrip this week. Those who want to take the first mover advantage should get enrolled in my newly launched #Crorepati #Scheme, by Tuesday. I'll give the name of the stock to those investors/traders who are capable of investing at least Rs.2 lakhs. Moreover, 20% and 25% profit sharing quota got exhausted on 15 February, 2021. Now, the required percentage is 30% of the net profit. 

#By the way, I hope you remember how the scrip of National Fertilisers Ltd (Rs.52.95) was strongly recommended at several levels starting from Rs.17/18 to around Rs.27/29 in this blog. Photo: North East Now.

On last Friday, the scrip made an intra day high of Rs.53.80, which was also the 52 - week high for the stock. The bottomline is: If you invest in fundamentally strong companies with good visibility of earnings, then be prepared to rake in the fruits of good harvest. 

Also, let me reiterate once again, don't invest or trade in too many shares at a time; though many marketmen, especially those who sit in AC studios (behind cameras) and give calls, might advise you.  I have seen many of these so called "Market Gurus", asking traders to not to invest more than 5% of your total capital in any stock. The point is: over diversification of your portfolio is not a good idea. 

Listen carefully: Your stock selection should be a replica of or imitate  the prescription of a good doctor; who has a pin points accuracy on his diagnosis.