X
Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.
This is an entirely free service. No payments are to be made.Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.
This is an entirely free service. No payments are to be made.
| Login Failure | ||||||||
|
||||||||
| Sign Up | Forgot Password? | ||||||||
After opening the day on a positive note, the Indian Markets have added to their early gains. Sectoral indices are trading on a positive note with stocks from the banking, financial and industrial sectors leading the gains.
The BSE Sensex is trading up 176 points (up 0.7%) and the NSE Nifty is trading up 52 points (up 0.7%). The BSE Mid Cap index is trading up by 0.5% while the BSE Small Cap index is trading up 0.7%. The rupee is trading at 67.56 to the US$.
Telecom stocks are trading on a positive note with Himachal Futuristic and Tata Teleservices witnessing maximum buying interest. Cellular Operators Association of India (COAI), the GSM industry body, has asked the government not to levy Swachh Bharat Cess (SBC) on telecommunication services. The body has mentioned that there are multiple other levies applicable on the industry and the levy of SBC will further burden the telecom operators.
In its budget recommendations, COAI said with the levy of SBC, the effective rate of service tax has further increased to 14.5% and this would increase the overall cost of telecommunications services for customers. One shall remember the government had imposed SBC at a rate of 0.5% on provision of all taxable services w.e.f. November 15. Along with this, it was also clarified that the credit of SBC cannot be availed and the cess cannot be paid by utilising credit of any other duty or tax.
Further, regarding direct taxes, COAI said there is some uncertainty on the withholding tax obligation, if any, under section 194J of the Income Tax Act, 1961 on payments made in consideration for spectrum acquired through trading. The body for this has asked to clarify that that payments made in connection with the trading/sharing of spectrum are not in the nature of royalty and hence do not attract withholding tax obligations. Lastly, it also asked the government to issue a clarification that spectrum fees is an intangible asset eligible for depreciation under section 32 of the Act (subscription required).
Stocks in the software space are trading mixed with Zylog Systems and Megasoft leading the losses. As per an economic daily, IT firm Mindtree has said that it will acquire Salesforce consulting partner Magnet 360 in an all cash deal of US$ 50 million. The deal is expected to close in the next two months and will see about 150 people joining Mindtree. The consideration includes an upfront payment of US$ 37 million and earn out and additional payout of up to US$ 13 million over the next two years.
With this acquisition, the company is looking to up its play in the fast growing cloud computing services area. The company has Honeywell, Nike, Cargill among its clients. The management of Mindtree said that this acquisition positions us for leadership in the fast-growing cloud-based services markets.
One shall note that, Mindtree has been aggressively acquiring companies to expand its services. Last year, the company has made three purchases namely Discoverture Solutions for over Rs 920 million, UK-based Bluefin Solutions for about Rs 4,196 million and Relational Solutions for about Rs 635 million. Previously, it has acquired firms like 7Strata, Kyocera Wireless and Aztecsoft.
Mindtree is a global information technology consulting firm specializing in corporate IT services and solutions. The company delivered a superb performance in 2QFY16. Total sales came in at US$ 180.3 million. This was largely driven by digital services, which grew 23% QoQ and 35.4% YoY (9.6% QoQ & 20.6% YoY excluding the recent acquisitions). Digital contributed to 35% of 2QFY16 sales and currently stands at 36.6% of the total consolidated sales of the company. If you are interested in the stock, here is our detailed result analysis report of the company (subscription required).
Presently the stock of Mindtree is trading down by nearly 1.8%.
For information on how to pick stocks that have the potential to deliver big returns, download our special report now!
Read the latest Market Commentary
|
| |
Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.
Copyright © Equitymaster Agora Research Private Limited.
Whitelist | Refer | Terms | Privacy | Contact | Advertise | About | Sitemap
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster requests your view! Post a comment on "Indian Markets Continue Their Rally". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!