Mutual Fund : Increase of stamp duty WEF 01 Jul 2020, all you need to know

Stamp duty on mutual funds from July 1: Here’s what you should know

Posted on July 3rd, 2020 in Mutual Funds

stamp duty impact on mutual funds

A stamp duty will be imposed on purchase of mutual funds – equity and debt funds – from July 1, 2020. The implementation of the stamp duty on mutual funds was slated for January, but it was deferred till April, and then July. 

In this blog, we will look into details of this stamp duty and how it will affect the mutual fund investors. 

Here, what investors should know about the stamp duty:

The rate of the stamp duty is .005%

As per SEBI, .005% stamp duty will be levied on purchase of mutual funds, including lump sum, SIP, STP, and dividend reinvestment. It is, however, not applicable on redemption of units. Meanwhile, a stamp duty of .015% will also be imposed in case of transfer of units between Demat accounts.

The stamp duty will be auto-deducted

As and when you will purchase a mutual fund, the stamp duty will be auto-deducted by the registrar and the transfer agent. You do not have to pay for it separately. That is, purchase of the unit will happen after deducting the stamp duty amount. 

How would the stamp duty impact mutual fund investors? 

Since, the stamp duty is a one time charge, the investors with an investment time horizon of less than 30 days will be most impacted. Refer to the table below: 

Impact on MF returns for .005% stamp dutyNumber of daysImpact in % term (absolute/day)Impact in % term (annualized)1.00501.8250003.0017.6083335.0010.3650007.0007.26071430.0002.06083360.0001.030417900.0202781800.0101393600.005000

As per the table above, the shorter the time horizon, the bigger the impact.

Does this have any impact on Retail Investors?

It doesn’t really unless you invest several crores for less than 3 months. For example, an investor will suffer Rs 5 for every Rs 1 lakh. So, for an investment of Rs 1 lakh, units will be allotted on Rs 99,995.

The illustration below will tell you that the returns are closer to normal for over 90 days.

Say you purchase liquid funds worth Rs 1 lakh, you will be allotted units worth Rs 99,995.

Now assuming an annualized return of 5%, after taking the impact of Stamp duty, the return will be slightly lower at 4.99% for a holding period of one year. However, if you hold the units for just a week or seven days, the returns will be 4.74%, implying the impact of 0.26%.Holding PeriodRedemption value (₹)Effective ReturnsImpact on Return1 Week100,090.894.7390%0.2610%2 Week100,186.774.8694%0.1306%1 Month100,405.944.9389%0.0611%6 Month102,460.634.9896%0.0104%1 Year104,994.754.9948%0.0052%3 Year114,994.254.9981%0.0019%5 Year124,993.754.9988%0.0012%

So as you can see in the table above, investors investing a few lakh rupees will have little to no impact on their investments. However, corporate investors investing several crores and also investing for a few days to a month in categories such as overnight funds may see some impact. 
Hence, for corporates or Institutional investors, it does impact their returns but for retail investors, it is not a big deal!. This just only takes you back to something that existed during the times of entry load.

Courtsey ET Money

Bank FDs : Are they relatively safe and productive?

At a time when equity markets are facing the heat due to the COVID-19 induced pandemic with volatility looming large, investors are scouting for a safe haven to preserve capital and get assured returns. In their bid to do so, they are turning to the de-facto instrument that has been the first choice across generations — bank fixed deposits (FDs).

Being latent to market volatility, bank FDs are viewed as the safest financial instrument by many. However, it’s a fallacy in reality. The safety quotient associated with them is nothing but a mirage, and this article will pinpoint the risks associated with them. Let’s begin.

Restrictions on Banks Make it Difficult to Access FDs

In the last few years, there have been several instances where the Reserve Bank of India (RBI) has put restrictions on banks, making it difficult for the public to access their money and even FDs. While such restrictions were imposed to protect depositors’ interest, it has driven home the point that FDs are not entirely safe.

In case you wish to park your money in an FD, it’s better to do so with a reputed bank and not get lured by high rates offered by banks that have commenced operations recently. To put it otherwise, interest rates shouldn’t be the sole guiding factor while choosing a bank for an FD.

You also need to take into account the bank’s corporate governance to ensure your hard-earned money doesn’t get locked-in.

Real Rate of Returns from FDs are in the Negative Territory

Real rate of returns is the return you get after adjusted for inflation. Because of a sluggish economy on account of the pandemic, the RBI has tried to infuse liquidity into the system by cutting the repo rate, which is also the rate at which it lends to banks.

A drop in repo rate has made banks slash their deposit rates by a significant margin which has pushed the real rate of returns from FDs in the negative territory. While rates may move up in the future, it’s difficult to predict when exactly interest rate cycles would turn upwards.

The risk with negative real returns is that you may fall short of the desired corpus. For long-term goals, it’s vital to park money in instruments that can beat the effects of inflation.

Also, if you have parked your money in a tax-saving FD, the tenure of which is 5 years, you can’t liquidate it before the end of 5 years. On the other hand, FDs locked in for 1 year or 2 years, if liquidated before maturity entails paying a penalty. Given the current state of affairs, it will not be surprising if FD rates head further south.

Default Risk

While bank defaults are rare, they can happen. Note that in the event of a default, deposit amount including interest of up to Rs. 5 lakhs is insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). Earlier, this amount was Rs. 1 lakh.

So, in the event of a default, as an account holder, your money only up to Rs. 5 lakhs is insured. Any amount over this is subject to default risk.

To Sum Up

As evident, bank FDs aren’t entirely safe as they are made out to be. In the current economic climate, re-investing the proceeds received from an FD runs the risk of getting locked in at a further lower rate of interest.

Therefore, if you wish to park money for an emergency or any other goal, it’s better to opt for an instrument that helps you beat the effects of inflation and can be easily liquidated in times of need.

Courtsey Edelweiss

With DOW Futures down 400pts will Nifty be able to cross 200EMA? Cues for 10 Jul 2020

With DOW Futures down 400pts and trading below 26,000 level due to US jobless data, will Nifty be able to cross 200 Day Simple Moving Average? Which stands at 10885. My answer is no. The call option data of Nifty for weekly option of 16 July and 23 Jul suggests that Nifty has open interest of 13 lakh shares in calls whereas on the put side it has 27 lakh shares till 10500 level. With the change in sentiments of global markets and speculative move in the last one hour in past two days it is highly possible that it may fall back and retest 10500 level till next expiry. Let’s analyse the data..

Key support and resistance levels for the NiftyAccording to pivot charts, the key support level for the Nifty is placed at 10,752.07, followed by 10,690.63. If the index moves up, the key resistance levels to watch out for are 10,855.87 and 10,898.23.Nifty BankThe Nifty Bank index ended 1.43 percent higher at 22,907.20 on July 9. The important pivot level, which will act as crucial support, is placed at 22,720.97, followed by 22,534.73. On the upside, key resistance levels are placed at 23,045.87 and 23,184.54.Call option dataMaximum call OI of 20.84 lakh contracts was seen at 11,000 strike, which will act as crucial resistance in the July series.This is followed by 11,200, which holds 12.12 lakh contracts, and 10,800 strikes, which has accumulated 10.46 lakh contracts.Significant call writing was seen at 10,800, which added 1.49 lakh contracts, followed by 10,900 strikes, which added 84,750 contracts.Call unwinding was witnessed at 11,000, which shed 1.27 lakh contracts, followed by 10,500 strikes, which shed 37,800 contracts.

Put option dataMaximum put OI of 18.17 lakh contracts was seen at 10,500 strike, which will act as crucial support in the July series.This is followed by 10,600, which holds 13.86 lakh contracts, and 10,400 strikes, which has accumulated 11.79 lakh contracts.Significant put writing was seen at 10,800, which added 5.41 lakh contracts, followed by 10,600 strikes, which added 4.28 lakh contracts.Put unwinding was witnessed at 10,500 strikes, which shed 90,675 contracts.

Courtsey : Investing.com, money control.in, zerodha.in, sensibull.

Books that links to your investment

V shape or U shape recovery? Cues for 08 Jul 2020

Excess Liquidity and support of FIIs and US Markets thrusting markets to recover 60% of Pre-Covid levels
Nifty recovered most than banknifty

The Indian equity markets ended on a positive note for the fifth straight day amid mixed global cues.The Sensex closed 187 points, or 0.51 percent, up at 36,674.52, and the Nifty ended 36 points, or 0.33 percent, up at 10,799.65.https://71ce93418f96672b1172e747202fb09d.safeframe.googlesyndication.com/safeframe/1-0-37/html/container.html”The market is factoring in positive macroeconomic data, strong rural economy and optimism over potential COVID-19 vaccine emerging soon. Further, hopes have now shifted to potential FY22E earnings recovery,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.”Nifty is trading at 21 times one-year forward P/E (premium to its long period average of 19 times) and is not looking as attractive as it did in March. Despite the near-term momentum, we would be more cautious or defensive in our approach going forward,” Khemka added.We have collated 15 data points to help you spot profitable trades:Note:The open interest (OI) and volume data of stocks given in this story are the aggregates of three- months data and not of the current month only.Key support and resistance levels for the NiftyAccording to pivot charts, the key support level for the Nifty is placed at 10,721.67, followed by 10,643.63. If the index moves up, the key resistance levels to watch out for are 10,845.77 and 10,891.83.Nifty BankThe Nifty Bank index ended 1.93 percent higher at 22,628 on July 7. The important pivot level, which will act as crucial support for the index, is placed at 22,220.7, followed by 21,813.4. On the upside, key resistance levels are placed at 22,854.9 and 23,081.8.Call option dataMaximum call OI of 22.4 lakh contracts was seen at 11,000 strike, which will act as crucial resistance in the July series.This is followed by 10,500, which holds 10.91 lakh contracts, and 11,200 strikes, which has accumulated 10.28 lakh contracts.Significant call writing was seen at 10,700, which added 1.39 lakh contracts, followed by 11,100 strikes, which added 79,125 contracts.Call unwinding was witnessed at 10,500, which shed 1.64 lakh contracts, followed by 11,000 strikes, which shed 1.56 lakh contracts.

Put option dataMaximum put OI of 17.82 lakh contracts was seen at 10,500 strike, which will act as crucial support in the July series.This is followed by 10,300, which holds 11.32 lakh contracts, and 10,600 strikes, which has accumulated 8.95 lakh contracts.Significant put writing was seen at 10,500, which added 1.24 lakh contracts, followed by 10,700 strikes, which added 1.04 lakh contracts.No significant put unwinding was witnessed on July 7.

Stocks with a high delivery percentageA high delivery percentage suggests that investors are showing interest in these stocks.

43 stocks saw long build-upBased on the OI future percentage, here are the top 10 stocks in which long build-up was seen.

31 stocks saw long unwindingBased on the OI future percentage, here are the top 10 stocks in which long unwinding was seen.

40 stocks saw short build-upAn increase in OI, along with a decrease in price, mostly indicates a build-up of short positions. Based on the OI future percentage, here are the top 10 stocks in which short build-up was seen.

29 stocks witnessed short-coveringA decrease in OI, along with an increase in price, mostly indicates a short-covering. Based on the OI future percentage, here are the top 10 stocks in which short-covering was seen.

Bulk dealsMerlin Marketing bought 3,50,000 shares of Kamat Hotels at an average price of Rs 34.76, bulk deal data on NSE showed.Yes Bank sold 43,00,000 shares of CG Power at an average price of Rs 10.75.Aviator Global Investment Fund bought 1,12,000 shares of Best Agrolife at an average price of Rs 464, bulk deal data on BSE showed.(For more bulk deals, click here)Results on July 8South Indian Bank, Automotive Stampings, Dish TV India, Kokuyo Camlin, Prozone Intu Properties, Radha Madhav Corporation and Swelect Energy Systems.Stocks in the newsShalimar Paints: Porinju Veliyath-owned Equity Intelligence India cuts stake in the company to 1.66 percent in the June quarter against 1.84 percent in the March quarter.Jammu & Kashmir Bank: The Reserve Bank of India extended the term of RK Chhibber, its Chairman and Managing Director, by another three months or till the appointment of MD and CEO, whichever is earlier.Birlasoft partnered with Innoveo to fast-track the journey to digital excellence.Zuari Agro Chemicals: A plant of the company has been shut down due to the non-availability of workers owing to COVID-19.Varun Beverages: Promoter Vivek Gupta released a pledge on 2,06,800 equity shares of the company.CEAT: Jwalamukhi Investment Holdings cut stake in the company to 8.723 percent from 10.929 percent earlier.Magma Fincorp: Magma partnered with Wadhwani Foundation to provide pro-bono business consulting to SME customers.Fund flow

FII and DII dataForeign institutional investors (FIIs) bought shares of worth Rs 829.9 crore while domestic institutional investors (DIIs) sold shares of worth Rs 784.47 crore in the Indian equity market on July 7, provisional data available on the NSE showed.Stock under F&O ban on NSEBHEL, Equitas Holdings, Glenmark Pharmaceuticals and Indiabulls Housing Finance are under the F&O ban for July 8. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

Source Money Control

Market set up : 07 Jul 2020, where are we heading? 10500 or 11000

Indian equity benchmark Nifty closed in the green for the fourth consecutive day, ending at a four-month high level, tracking positive global cues.The Sensex closed 466 points, or 1.29 percent, up at 36,487.28, and the Nifty ended 156 points, or 1.47 percent, up at 10,763.65.Positive macroeconomic data and hopes of a vaccine boosted sentiment that the global economy will bounce back from an expected recession this year.On the domestic side, strong loan growth numbers from HDFC Bank and initial signs of ease in tensions between India and China boosted investor sentiment. However, India has risen to become the third-most impacted country in terms of coronavirus cases after the US and Brazil, Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, said.Khemka pointed out that the market ended at a four-month high, even as the country struggled to contain the rising number of coronavirus cases. “Despite the near-term momentum being positive, traders should be stock-specific and look at booking profits at regular intervals,” he advised.We have collated 15 data points to help you spot profitable trades:Note:The open interest (OI) and volume data of stocks given in this story are the aggregates of three- months data and not of the current month only.Key support and resistance levels for the NiftyAccording to pivot charts, the key support level for the Nifty is placed at 10,702.07, followed by 10,640.43. If the index moves up, the key resistance levels to watch out for are 10,818.37 and 10,873.03.Nifty BankThe Nifty Bank index ended 1.59 percent higher at 22,198.95 on July 6. The important pivot level, which will act as crucial support for the index, is placed at 22,113.6, followed by 22,028.3. On the upside, key resistance levels are placed at 22,341.7 and 22,484.5.Call option dataMaximum call OI of 23.96 lakh contracts was seen at 11,000 strike, which will act as crucial resistance in the July series.This is followed by 10,500, which holds 12.54 lakh contracts, and 11,200 strikes, which has accumulated 9.66 lakh contracts.Significant call writing was seen at 11,300, which added 2.23 lakh contracts, followed by 10,800 strikes, which added 1.96 lakh contracts.Call unwinding was witnessed at 10,500, which shed 1.74 lakh contracts, followed by 10,400, which shed 64,050 contracts.

Put option dataMaximum put OI of 16.58 lakh contracts was seen at 10,500 strike, which will act as crucial support in the July series.This is followed by 10,300, which holds 11.12 lakh contracts, and 10,600 strikes, which has accumulated 8.65 lakh contracts.Significant put writing was seen at 10,700, which added 4.13 lakh contracts, followed by 10,600 strikes, which added 3.71 lakh contracts.No significant put unwinding was witnessed on July 6.

Stocks with a high delivery percentageA high delivery percentage suggests that investors are showing interest in these stocks.

62 stocks saw long build-upBased on the OI future percentage, here are the top 10 stocks in which long build-up was seen.

12 stocks saw long unwinding

19 stocks saw short build-upAn increase in OI, along with a decrease in price, mostly indicates a build-up of short positions. Based on the OI future percentage, here are the top 10 stocks in which short build-up was seen.

49 stocks witnessed short-coveringA decrease in OI, along with an increase in price, mostly indicates a short-covering. Based on the OI future percentage, here are the top 10 stocks in which short-covering was seen.

Bulk dealsJP Morgan Funds bought 30,34,518 shares, whereas Flagship Indian Investment Company (Mauritius ) sold as many shares of Gujarat Pipavav Port at an average price of Rs 77.85 per share, bulk deals data on the BSE showed.Agnus Holdings Pvt bought 26,80,555 shares, whereas Chayadeep Properties Pvt sold as many shares of Sequent Scientific at an average price of Rs 93.05.Infinity Holdings bought 6,63,586 shares of Camlin Fine Sciences at an average price of Rs 56 per share, bulk deals data on the NSE showed.Alpha Leon Enterprises sold 2,50,013 shares of Syncom Healthcare at an average price of Rs 3.33 per share.(For more bulk deals, click here)Results on July 7Shree Renuka Sugars, GKB Ophthalmics, Bazel International, Best Agrolife, Best Eastern Hotels, Bhanderi Infracon, Indian Acrylics, Marg Techno Projects and Polymac Thermoformers.Stocks in the newsGreaves Cotton: Subsidiary Ampere Vehicles to acquire shares of Bestway Agencies on a fully diluted basis through secondary purchase.Shriram Transport Finance fixed the issue price at Rs 570 per share for its Rs 1,500 crore rights issue.Godrej Consumer Products: At a consolidated level, the company expects absolute sales in Q1FY21 to be marginally lower compared to the base quarter.Karur Vysya Bank has partnered with Star Health & Allied Insurance to sell its health insurance products.Fund flow

FII and DII dataForeign institutional investors (FIIs) and domestic institutional investors (DIIs) bought shares worth Rs 348.35 crore and Rs 263.47 crore, respectively, in the Indian equity market on July 6, provisional data available on the NSE showed.Stock under F&O ban on NSEGlenmark PharmaceuticalsIndiabulls Housing FinanceVodafone Idea, Steel Authority of India (SAIL) and Bharat Heavy Electricals (BHEL) are under the F&O ban for July 7. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

Source money control

Market cues for 06 Jul 2020

Global cues positive, Dow up 92 points on Friday
Better than expected jobs report aid sentiment in US
4.8 mln jobs were created in the US in June 2020
Unemployment rate fell to 11.1% vs 13.3% in may
In india, Foreign investors bought 857cr in cash market on Friday
Foreign investors buy in cash after 6 days of selling
Domestic institution sold 332cr in cash market on Friday
Nifty conquered congestion zone of 10400-10500 last week 
nifty up 2% last week, midcaps up 0.5% , Auto index up 3.5% 

Stocks in the news

Marico – company says
Q1FY21 to see volume decline in low teens , margins to expand YoY
 
Sobha
1QFY20 operational highlights
Pre sales volume down 39% YoY at 0.65msf
Pre Sales Value down 40% YoY at 393cr
 
HDFC bank reports strong biz growth in Q1FY21
Advances up 21%, deposits up 25%
 
ICICI Bank
To consider fund raise on 8th July
 
Federal bank Q1 update 
CASA up 19%, Customer deposits up 16%
Advances +8%,  deposits +17%
 
Eclerx
Bd meet today to consider buyback of shares
 
Adani Ports
Achieves throughput of 41,5 MMT across 9 operating ports in Q1FY21

9100% return in just 5 months !! Is it possible?

Yes it’s possible. The name is Ruchi Soya, India’s largest FMCG company. It’s share price was 16.5 in Jan 2020 and it shot up to 1500 in Jun 2020, fetching 9100% return in 5 months. How a 4000cr debt company valued 4500cr plus in just five months? Here is the interesting story..

What’s happening with Ruchi Soya?

Did you cover Ruchi Soya?

Can you please talk about Ruchi Soya?

All right, we get it. Ruchi Soya is making headlines everywhere. The stock price has gone on a spectacular rally and nobody knows why. However, before we dive headfirst and try to work out this little mystery, perhaps it’s prudent to gain some context.


Ruchi Soya

Ruchi Soya is one of the largest FMCG companies in this country. They process crude palm oil and turn it into refined oil. You’ve probably heard of the brands Nutrela, Sunrich or Mahakosh. That’s all Ruchi Soya.

But the company has had a topsy turvy journey this past decade. Back in October 2011, Indonesia raised export duty on crude palm oil. Ruchi Soya’s input cost soared overnight since they imported most of their raw materials. Ideally, they should have been able to pass on this cost to their customers.

However, there was one tiny problem.

Indonesia had also cut export duty on refined edible oil — the end product Ruchi Soya sold. So manufacturers had a very enticing alternative — buy refined edible oil from Ruchi Soya or import from elsewhere. And since most manufacturers prioritize “cost of procurement” above all else, Ruchi Soya had no choice but to take a hit on margins. They kept competing with these cheap imports by bearing brunt of the burden themselves.

Then their seed extraction business started failing. Droughts in many parts of India hit the oilseed industry. Ruchi Soya’s manufacturing facilities were barely running at half capacity. Margins kept tumbling. It was bad and when you thought things couldn’t get worse, they lost a fortune betting on castor seeds. Then they were in hot waters with SEBI and soon after, the company’s customers started bailing too.

The final blow

Ruchi Soya made most of its money supplying refined edible oil to other consumer goods companies. However, in a bid to push sales, they offered very generous credit terms to their customers. Collecting cash became an afterthought and at the end of the day, they were left with receivables to the tune of 5000 crores. Receivables they simply couldn’t retrieve. So they gave up and took a hit on their bottom line once again. Their debt burden spiralled out of control.

And in late 2017, a couple of banks finally had had enough. They dragged Ruchi Soya to the bankruptcy court and the company was now there for the taking.

Here’s where things really get crazy. The lenders agreed to resolve the bankruptcy proceedings by selling Ruchi Soya to another FMCG company. Patanjali and Adani Wilmar were top contenders. Eventually, though, Patanjali won out. They acquired 99% of the company and settled ~4000 crores in dues. While this might look like an exorbitant sum, know that Ruchi Soya collectively owed ~9000 crores. Meaning the creditors only retrieved half their dues. The other half was… well… lost forever.

But wait, we are not done yet.

Putting up 4000 odd crores is no easy task and Patanjali did not have the resources to buy Ruchi Soya upfront. Instead, they put up around 1000 crores on their own and borrowed the rest from the same banks that had sold Ruchi Soya. So technically the banks loaned out ~3000 crores to Patanjali in a bid to retrieve 4000 crores in dues from Ruchi Soya.

Fascinating!!!

But wait, there’s more. Loans are often backed by collateral. Collateral that’s usually worth something. So when Patanjali borrowed 3000 crores, you’d expect them to put up something solid. Instead, they borrowed all this money by pledging Ruchi Soya shares as collateral. In fact, they pledged almost their entire shareholding (99% of Ruchi Soya) in the process.

Bottom line — They borrowed 3000 crores using shares of a bankrupt company and banks complied because….

Well, we don’t know.

Nonetheless, Ruchi Soya was all set to reemerge under a new promoter group and take a stab at reemerging from the void once again. The company relisted on the market back in Jan 27th, 2020. Shares that were pretty much worthless (just a year ago) began trading at 16.5. Perhaps people expected Ruchi Soya to turn the tide. But then in almost spectacular fashion, the company’s stock price rallied by a whopping 9100%. From 16.5 to 1500 in ~5 months, Ruchi Soya had defied all odds. A week ago, the company was worth 44,700 crores.

It’s almost comical, to be honest.

But then again, remember — less than 1% of Ruchi Soya’s shares are now trading on the open market. Very few people own these shares and if they could all act in unison they could keep buying and selling these shares at whatever value they deem fit. We’re not saying that’s what’s happening. We’re saying it’s possible.

So theoretically, a small coterie of traders could keep pumping the value of the company’s stock and in turn, boost the value of Patanjali’s shareholding. And then if Patanjali were to issue new shares, they could potentially sell it a premium. A very hefty premium in fact.

After all, regulations mandate Patanjali to reduce their shareholding to 90% in the next 12 months. So they’ll have to start issuing new shares or offload existing ones soon enough. Also, that collateral backing Patanjali’s ~3000 crore loan — It isn’t looking all that bad now, is it?

Anyhow, Ruchi Soya’s story is far from over. Some have called this the greatest miracle of 2020. Others have called for an investigation into the rapid rise in the company’s stock price. But no matter how you look at it, this is a story that’s definitely worth talking about and now you know why…

Courtsey Finshots/ Zerodha

The Indian Army ~ Second to None

Indian Army – “The Force Multiplier

The Indian Army is one of the best in the world, having freed the enemy’s sixes if the opportunity arises. Among the 10 major armies of the world, India’s Army is in second place while China’s Army is in first place.
There are 14 lakh soldiers in the army of India. Indian Army has 3 parts – Air Force, Navy and Air Force. Indian soldiers are known for their heroism and bravery. The Indian Army was established on 1 April 1895.
It currently employs 1237117 active jawans and 960000 reserve jawans. The Commander in Chief of the Indian armies is the President. The current Indian Defense Minister is “Nirmala Sitharaman”.
The first objective of the Indian Army is to protect the country and its borders. But nowadays some other tasks have also been given to Indian forces, such as internal security, peace keeping in Jammu and Kashmir and North Eastern state etc.
Its main goal is to immediately respond to any attack on the country. Our country’s military is so large that it can do many types of tasks.
Training of Indian soldiers is done by the Indian Military Academy Dehradun, Officers Training Academy, Chennai. Apart from this, the Indian Army is also trained in branches of Army War College – Madhya Pradesh, Gulmarg, Jammu and Kashmir.
Indian soldiers who have displayed bravery during the war are awarded with awards such as Paramvir Chakra, Mahavir Chakra, Veer Chakra, Kirti Chakra, Shaurya Chakra, Ashok Chakra. These types of awards include cash in addition to a citation and a medal.
Most of the weapons used by the Indian Army are indigenously manufactured with indigenous technology. DRDO (Defense Research and Development Organization (DRDO) makes weapons for the Indian Army. The institute makes radars, weapons, Arjun tanks for the Indian Army.
Indian Army intercontinental ballistic missile, anti tank missile, cruise missiles, guns, rocket, mortar, chetak, helicopter, ak-47 assault rifle, insas rifle, sniper rifle, snake anti tank guided missile, prithvi missile, prahar missile, valor missile A wide range of weapons such as, BrahMos missile, Nirbhay missile, Agni-5, Agni 6 missile exist.
The expenditure of the Indian Army in 2019-20 is 4,31,011 crore (US $ 60.9 Billion).

Some great facts about the Indian Army–
For fighting in the jungles, India’s army is considered superior to the world’s armies. To know the specialty of Indian Army, the armies of countries like Britain, Russia, America come to India and take training and information.
For the protection of the President of India, a contingent of the Army of India stays in Rashtrapati Bhavan, which protects the President for 24 hours.
In 1982, the Indian Army built the “Bailey Bridge” (which is the highest bridge in the world) between the Dras and Suru river in Ladakh.
The Indian Army has a contingent of cavalry. At present, only 3 countries have cavalry. India is one of them.
The Indian Army exercises exercises on the Siachen Glacier (the highest battleground in the world). This battleground is 5000 meters above sea level. The Indian Army conducts war exercises here under extremely adverse conditions.
The Indian Army has 53 cantonments and 9 army bases across the country.
India’s army is the second largest army in the world.
Indian Military Engineering Services is India’s largest arms manufacturer.
The Assam Rifle is the oldest paramilitary force of the Indian Army. It was founded in 1835.
According to the peace operation of the United Nations, India’s forces are sent to war in another country of the world.

Courtsey – ICJ

Can a stock double in two to three years?

My answer is yes. Based on technical analysis and the volume surge of 01 Jul I recommend PFIZER have the capability to double from current market price. Reason daily RSI above weekly RSI, weekly RSI above monthly RSI and value is above 50 which is positive long indication moreover stock has recovered from double bottom and volume surging. The most important reason on 02 jul stock closed above 30 DEMA and 200 DEMA. The dividend record is good and it belongs to the pharma sector which is today’s hotcake.

My recommendation is buy at 4000-4100 level with positional SL 3900 it has potential to grow at 18 to 20pc return annually.

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