Why we are obsessed with money

What a way to exist!

For most of us, practically the whole day all we are thinking is about money and more specifically how to have more money!

As if money was the only thing in life. Unfortunately for most of us, circumstances just do not permit any other thought!

We are running behind money most of the time which is almost akin to have become obsessed with money. Everything that we are doing in life is centred around money.

Unfortunately, this is because we need money for anything and everything that we do. There’s nothing wrong and what are you doing, however the problem is that over time, it becomes a compulsive habit to keep earning more.

That’s where the danger is. The problem is that there is a point where from we chase money as an addiction, we chase money because we like to do so. If we did not chase money we would not know what to chase now because we get out identity from money and the amount of money we have.

Another thing is that right from childhood we are always taught and our minds are conditioned that everything that we are doing is going to be for the sake of earning money.

There is no one who told you that money is just a means, and then there is something greater in life to achieve. Some examples are legacy; building something, charity; to giving something / helping someone, passion; pursuing something and living; simply to enjoy life and your money

We have got addicted to this and how!

There are three reasons for this:

First, we are what we do. It is the human behaviour. I know I should exercise and I don’t. I know I should eat healthy and I don’t. I know I should spend time with my kids and I don’t. I know that, yes, money isn’t going to make me happy and I still keep trying to make money.

We live by the laws of inertia, in a pattern which is hard to break. But we have to break it. For ourselves and for the sake of people and reasons for which we are chasing money.

Secondly, we need signals of progress. Money is a measure of how far you have progressed in life. The more the money you have the more you can make sure your progress. It’s simply the logic of evolution. People need validation of their success. Bigger house, bigger car, branded goods and list goes on.

Thirdly, it’s the easy way out. It’s only human to avoid difficult things. Important things are very difficult to measure.  Have I been a good father or husband? Have I groomed my child well?  Such things take years to measure and we still don’t have answers.

So, should we not be focused on creating money for ourselves?

I’m not saying that. Definitely create. Take care of yourself for sure!! Use it to the maximum to make yourself happy!!! You need a certain amount and beyond that is extra.

The definition of their certain amount is naturally different from one person to another. If that extra is going to happen easily, without stress and without your involvement, then its fine. Basically don’t kill yourself for that extra. Be Smart.

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a certified financial planner, wealth manager and financial freedom coach.

How the RBI actually helps you

RBI

Most of us in Mumbai, see this huge structure called the Reserve Bank of India and wonder what it really does. It’s also a tourist attraction!! It has so many other offices and again one wonders why they need to have so many offices. I’m going to try and highlight a very interesting part of RBI’s work and how it helps us directly on a day-to-day basis.

The RBI does a review of the monetary policy of the country at frequent intervals during the year. So how does the monetary policy help us investors to take smart decisions?

Monetary policy is a tool by which the RBI decides to raise interest rates or reduce interest rates or keep them steady.

In our country, as we’re an oil importing nation, this decision is very closely linked to Oil. Oil to a large extent contributes to inflation. We all know what happens when inflation keeps rising. We in India unfortunately do not see too much of inflation falling and things becoming cheaper.

Oil is Not Well

So when oil prices rise i.e. we see a rise in crude oil prices almost instantly we can expect rising food prices. This is because there is going to be a rising cost pressure for manufacturing & services. This rise obviously gets passed onto the retail consumers.

When this happens RBI adopts a hawkish stance, tries to pull money out of the system by raising interest rates. Now when interest rates rise no one seems to be interested in borrowing. This immediately puts a brakes on money circulation.  Less money chasing goods decreases the demand for money. This way it controls inflation.

There is yet another tool that the RBI has and that is known as the CRR or the cash reserve ratio.  This ratio in simple words means the amount of cash that the bank must maintain with the RBI as the percentage of the total assets. So when this increases banks are forced to park more with the RBI and this is also a way to control inflation.

On the other hand when things look dull, when there is a recession of sorts, the RBI comes to the rescue and gets into action to kickstart growth in the country. It does this by lowering the interest rates. This we all will understand quite easily because we see a direct benefit of this happening. We see a fall of interest outgo in our EMI’s for the home loan that we are carrying. New loans become cheaper.

Individuals are motivated to go out and make purchases, whether it is for a washing machine or a piece of real estate. Businesses are motivated to go out and borrow to buy more machinery, to expand capacity, to hire more staff and manpower and basically do everything that will add to the growth of business.

Economic growth results as a result of all this. It is also during this time that stock market rises, we see a rally in stock prices and mutual fund NAV’s jumping higher and higher each day. There is prosperity all around.

Critical Role

As you can see that the central bank of the country has a very very important role to play.  If it makes a mistake, things can go really wrong.  Imagine like the USA or Japan if our interest rates were very low; everyone would run to borrow, they would borrow more than they require because it would be cheap and easy to borrow. And that is very individuals would run into what is known as the debt trap, because someday you’ll have to pay back.

Each day the central bank attempts to make sure that everything in our country remains stable and financially there’s nothing that goes wrong dramatically.

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a Certified Financial Planner, Wealth Manager & Financial Freedom Coach.

The year of the bond, once again!

We are not talking of James Bond, we are talking of investment bonds.

We are in a situation where the fixed deposit rates are at a general low and there is a lot of discontent among depositors of fixed deposits.

Whenever we see a situation like this, one way or the other, the bond markets come to the rescue. It comes to the rescue of smart depositors, who are agile to move their money from fixed deposits to bond funds.

Let’s understand what is happening and why.

What Exactly is Happening in the Bond Markets?

It is likely that in this year, investors of bond funds will make handsome gains. Bond prices may rise and there may be capital gains. Investors of bond funds not only earn the rate of interest, but also earn capital gains. So that way, they make more than the return they would make on fixed deposits. The returns could be a high single digit or sometimes as high as double digits.

Over three years, this will become practically tax free or the tax would be a very small amount. So, basically, I am thinking that a rally will happen in the bond market. There are three main reasons for this — reduction in government borrowing (which is favourable), recovery of trading losses (which is favourable) and no change in monetary policy (which is neutral).

A word of caution, however, that such bond market investments are also subject to bond-market volatility and should be considered ideally with the help of a financial expert.

Before proceeding further, let us, therefore, quickly explain a bond, bond fund and bond market. We need to do this because few people understand the bond markets and even fewer invest in the bond markets.

Bond is nothing, but a commercial transaction where the borrower is issuing a bond to the lender and the lender will earn a certain rate of interest. When interest rates fall, everyone becomes interested in owning that bond.

As a result, the demand for the bond increases, the price of the bond increases and the bondholder makes capital gains.

A bond fund is a fund where ordinary investors pool in their money and a fund manager buys them a portfolio of bonds.

Moving onto the Reasons For a Rally in Bond Funds…

Now, the fundamental reason for a rally is reduction in interest rates as it stimulates economy and growth.

Firstly, the government is a massive borrower of funds. So a reduction in government borrowing reduces the demand for money in the economy. As a result, prices of bonds rise and this contributes to capital gains for bond holders.

Secondly, the Reserve Bank of India (RBI) recently announced that the commercial banks and RBI, which are the largest lenders to the government, will have another year to offset losses they have incurred on account of buying government bonds in the past. This action will lead to a rise in the price of bonds and this contributes to capital gains for bond holders.

Lastly, on one side due to the rise in oil prices, there is more inflation and thus more money is needed for circulation in the economy. On the other side, many government bonds are maturing, which will provide money supply. So, it is likely that we see a neutralising effect and thus RBI will take no action. This inaction here will support capital gains as explained above. Hence, this year might be a year of good gains for the bond investors.

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a Certified Financial Planner, Wealth Manager & Financial Freedom Coach.

Five new financial goals for you this summer

I am going to try and explain to you why the summer holidays of April and May are great months to get a lot of things started, financially speaking.

This time period in a way resets the financial clock. You also have the option to hit the reset button on everything you have done so far; financially speaking of course and hope to do better things better than you did last year.

Let’s look at some of the new and unusual things to do in April.

  • Make a learning budget

Learn something about money or anything you like. The best way to make money is to learn something about money. Just like if you wanted to learn cooking you will get into the cooking class. If you wanted to learn swimming you would enrol in the swimming class. If you find learning about money is too daunting task than learn something which is close at to your heart or related to your work. If you learn something new, there’s a possibility that you will use your new ideas to generate new income and in turn that will generate new wealth for you.  So make a budget, enrol somewhere and spend that budget. How about a % of your annual income? Spend it for sure!

  • Plan a unique holiday 

When you’re by yourself and without your mobile phone you will have the opportunity to think! When you have time to think, suddenly good ideas will come to your mind.  You may think this is silly but you can be sure that you will be amazed if your drivers experiment just once. So it might be a good idea to go for a holiday just by yourself. If you find that too intimidating, join a group of strangers. You can combine that with the adventures experience if you like.  Be extra careful if you’re going with your special buddies. Do this only if they are going to be in a position to help you discuss your idea and make it bigger. They must play the role of complimenting your thoughts. So make a schedule to do this holiday and obviously make a budget to make it happen. Think & create new ways of making wealth.

  • Make a prediction and make it happen

Be brave. Let’s aim to grow and multiply net worth by 50% by the time you come to the end of this financial year. This is not a joke and it is easier than you can imagine.  I’m speaking about NETWORTH and I’m not talking about return on investment. If your networth is Rs. 100 today, all I’m saying is that let’s aim to make this a 150 by the end of this year. This networth comprises of all your savings till date. This can be achieved by simply saving aggressively every month for the next twelve months. Just put this into a recurring deposit or liquid fund so you don’t spend it.  We just have to prove to ourselves that this is possible. Where and how we will invest this money will think about that later.

  • Eliminate a negative belief 

I want to give you an exercise here. Write down all your negative beliefs you have about money and wealth. Most people are not able to achieve the desired level of wealth because they think about wealth negatively. So even if you are earning a good amount of income you will never see yourself becoming wealthy. Examples are money causes problems, money causes a fight, managing money is complicated etc. Then for each negative thought, you have written down the positives i.e. the opposite for a few months. Soon negatively biased feelings will evaporate.

  • Make a new investment; something you have not done before

Again here you do not have to be a financial expert. The idea is to learn something new. There are hundreds of investment options. Our objective here is to learn something new. Talk to your advisor and seek his or her guidance. Just a word of caution here; don’t do anything which is speculative or is something that you just can’t understand. Do what do find easy you understand and do that then.

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a Certified Financial Planner, Wealth Manager & Financial Freedom Coach.

Seeking financial freedom? The time is NOW!

John Lewis famously remarked, “If not now, then when? If not us, then who?” This is so appropriate in the current financial world that we live in.

That statement will leave to rest every other argument that is conservative and against the idea of wealth creation. We are often faced with the situation where there is no option but to create wealth. Read on to know why!

Interest rates are painfully low. For all those diehard fans of guaranteed investment returns, there’s hardly any place to go to. Thinking of fixed deposits? Feeling happy with 7%? And fully taxable? That period is over. Period.

That doctrine of investing into pure fixed deposits and similar instruments is unfortunately standing challenged. There is no option but to sprinkle it with a combination of a little something that will add to the returns earned from fixed income type of securities. In fact this category of investors are in a way, best placed in terms of the current tax laws.

They can earn about 9-10% with minimal or near zero tax over about five years and more. Starting to generate rate of return above the inflation level of 7% is starting to create wealth. So there it is; there is no option but to move in the direction of creating wealth.

For more evolved investors, who invest in equities and who and still sitting on the sidelines tend to run out of patience every now and then. They are sometimes waiting for the right time, sometimes waiting for correction, sometimes waiting for valuation and sometimes waiting for just nothing. Sometimes, just too busy to take action!

I totally understand not wanting to lose hard-earned money. But if the money does not move it will stagnate. That’s the problem with money.

Hit the Ground Running

Inaction and inactivity kills it. Makes it costly to hold. Makes us lose opportunities, sometimes small and sometimes significant. I know of many people including my dad, who just kept investing into equities and holding forever. No doubt they were hugely (big HUGELY) better off then the people in the same time zone. I think they could have done far better with some smart lessons on asset allocation. This is because if they compare the growth rate of their holding over a period of 20 or maybe 30 years the compounded rate of return earned is often not impressive.

It is just marginally better or a few percentage points above the fixed deposit rate. Hence the need for asset allocation, which simply put is not to have all eggs in one basket at any given point in time. These sections of investors anyways create wealth, and, asset allocation is the tool that ensures that the process of wealth creation continues uninterrupted. So again there it is; even for this section there is not option but to start enhancing their wealth creation activities, else returns will continue to remain forever mediocre.

Then there are skeptics and there is nothing much for skeptics of everything, except that they need a serious dose of financial education. Perhaps what if needed is a proof of concept and for that, which better country to live in other than India where financial transparency in investments is so high that I sometimes feel, it comes from another planet.

 Your Money Needs Action

Today, there is a whole lot of variety to choose from and we have never been more spoilt for choice. But the most important thing in all this is to understand that your money needs action. It needs activity and for that the time is now!

And furthermore, if you asked me this question 10 years ago; I would have said that, the Time is NOW. If you ask this question 10 years hence, I will still say the Time is NOW. Any time is the right time to start the process of creating wealth. All that is important is that you take your first step; then continue it all the way with zeal and determination… till you have the level of wealth that you desire. And if you accumulate more than you need, still do it and share it with the world.

If you want your financial freedom; then the Time is NOW!

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a Certified Financial Planner, Wealth Manager and Financial Freedom Coach.

Young Turks: Here’s the success story of venture fund Aspada

Venture fund Aspada was co-founded by Kartik Srivatsa and Thomas Hyland in 2012 and has made 17 investments so far across Fin-tech, agriculture, health and edu-tech startups.

Young Turks takes a look at their investment thesis, their differentiated VC model and meet three of their portfolio companies – Capital Float that underwrites unsecured loans to startups and SMEs; Dunzo, a hyper local concierge and delivery player that is also Google’s first direct startup investment in India; WayCool, a Chennai-based agriculture-tech startup.

These are market expert Mitessh Thakkar’s top stock recommendations

markets this week

In his latest analysis, stock market expert Mitessh Thakkar of mitesshthakkar.com shared his views on what is moving the market today.

Here are his top stock recommendations:

  • Buy Asian Paints with a stop of Rs 1,766 and a target of Rs 1,815.
  • Buy Adani Transmission with a stop of Rs 240 and a target of Rs 285.
  • Sell Exide with a stop of Rs 185 and a target of Rs 172.

 

Follow stock recommendations by Mitessh Thakkar here:
https://www.cnbctv18.com/author/mitessh-thakkar-111/

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Market expert Ashwani Gujral is recommending to buy these stocks

Buy Sell market_stocks

In his latest analysis, stock market expert Ashwani Gujral of ashwanigujral.com shared his views on what is moving the market today.

Here are his top stock recommendations:

  • Buy M&M Financial with a stop of Rs 338 and a target of Rs 354.
  • Buy Jubilant Foodworks with a stop of Rs 1,400 and a target of Rs 1,520.
  • Buy ICICI Bank with a stop of Rs 446 and a target of Rs 462.
  • Buy Raymond with a stop of Rs 600 and a target of Rs 635.
  • Buy Petronet LNG with a stop of Rs 270 and a target of Rs 285.

 

Follow stock recommendations by Ashwani Gujral here: https://www.cnbctv18.com/author/ashwani-gujral-115/

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Axis Bank to see higher slippages in FY20 compared to FY19, says CLSA

Axis Bank

Brokerage firm CLSA, in its latest report, has said that Axis Bank is likely to witness higher slippages in the financial year (FY) 2020 against FY19. This, in turn, will keep the credit cost elevated this year, said CLSA.

The brokerage firm, however, said that “a normalisation from FY21 onwards will be key to a rebound in earnings”.

Axis Bank posted a healthy set of numbers for the second quarter on Tuesday. Net interest income grew by 17 percent to over Rs 6,100 crore and asset quality also saw an improvement.

The bank, however, reported a net loss of Rs 112.08 crore on a standalone basis for the second quarter due to a one-time tax impact.

“The key relieving trend was that additions to non-NPL (non-performing loans) stressed book was contained, the gross NPL ratio is at 5 percent of loans and total stressed loans are at 8.5 percent,” said CLSA.

The brokerage believes that the benefit of capital raise will improve the top-line growth, which along with a lower tax rate should provide headroom for the bank to invest in branches.

Last year, the CASA ratio was diluted by 700 basis points to 41 percent. “Any improvement here will be the key to support the growth and derisking of the asset mix,” said the brokerage firm.

It, however, lowered earnings FY20 estimates on higher tax incidence and slightly higher credit costs.

The brokerage maintains a ‘buy’ rating on Axis Bank with a target price of Rs 900 per share.

Here are some F&O calls from stock expert VK Sharma of HDFC Securities

SP Tulsian stock picks

The latest analysis and commentary by stock market guru VK Sharma of HDFC Securities on what is moving the markets today. Check out his top stock recommendations.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Infosys shares volatile after falling 4% in early trade over threats of Sebi inquiry, class-action suit

After losing over 16 percent in the previous session, Infosys shares declined over 4 percent on Wednesday over reports that market regulator Sebi may seek clarification from the IT firm over whistleblower complaints alleging unethical practices by top executives. Also, the company is facing a threat of a possible class-action lawsuit in the United States. Infosys shares fell as much as 4.39 percent to Rs 615 per share intraday on the BSE. But soon recovered to hit a high of Rs 650.35 per share, up 1.09 percent from its previous close.

CNBC-TV18 reported today that the Securities and Exchange Board of India is likely to seek clarification from Infosys over the whistleblower complaints alleging wrongdoing by Infosys CEO Salil Parekh and CFO Nilanjan Roy. Sebi may question Infosys about the company not informing the exchanges upon the receipt of whistleblower complaint dated September 30.

At 10:00 AM, Infosys’ stock price traded 0.20 percent lower at Rs 642 per share.

Infosys shares closed 16.21 percent lower at Rs 643.30 on BSE on Tuesday, wiping off over Rs 53,000 in its market capitalisation—its largest-ever market cap erosion in a single day.

Also Read: Nilekani statement on Infosys poses more questions than provides answers

Two US law firms—Rosen Law Firm and The Schall Law Firm—said they are investigating potential securities claims on behalf of shareholders of Infosys after allegations that Infosys may have issued misleading business information to the investors.

An unnamed group sent letters to Infosys’ Board and the US Securities and Exchange Commission alleging that the company had taken “unethical” steps to inappropriately boost short-term revenue and profit. The letter alleged that CEO Salil Parekh was bypassing standard reviews of large contracts in order to skirt accounting scrutiny.

Opening Bell: Market opens flat, Nifty below 11,600; Infosys among losers

Future Consumer stock

The Indian market opened flat on Wednesday as investors remained cautious over Q2 earnings and the global markets slipped after British lawmakers rejected the govt’s timetable to fast-track legislation for Brexit.

At 09:20 AM, the Sensex was trading 90.71 points or 0.08 percent higher at 38,994.55 while the Nifty50 was trading at 11,595, up 7.20 points or 0.06 percent. Broader indices declined, with the Nifty Midcap down 0.23 percent and the Nifty Smallcap 0.13 percent.

Sector-wise, the Nifty Media was the worst-performing index, declining 1.03 percent followed by the Nifty Realty and the Nifty Auto.

HCl Technologies, Bajaj Finserv, TCS, Axis Bank and Britannia were the top gainers on the Nifty50 index while Adani Ports, Tata Motors, YES Bank, IndusInd Bank and Zee Entertainment were the top laggards.

Infosys was down 0.68 percent or 4.35 points at Rs 631.20 per share on the NSE, at 9:29 am. The stock plunged 17 percent on Tuesday after the company’s CEO and CFO were accused by anonymous employees of malfunctioning accounting practices.

In global markets, US stock futures and Asian shares slipped on Wednesday as revenue warnings from Texas Instruments raised worries about the global tech sector and after British lawmakers forced the government to hit the pause button on the latest Brexit deal.

Infosys’ Salil Parekh, Nilanjan Roy denied whistleblower allegations during October 11 board meeting

Bengaluru: Infosys CEO Salil Parekh announces the first quarterly results of the company, in Bengaluru on Friday, July 13, 2018. (PTI Photo/Shailendra Bhojak) (PTI7_13_2018_000157B)

Infosys chief executive Salil Parekh and chief financial officer Nilanjan Roy denied the allegations of financial wrongdoing levelled against them during an October 11 board meeting, people aware of the development have told CNBC-TV18.

A letter was sent to the Infosys board on September 20 by a group of anonymous whistleblowers alleging financial wrongdoing by the company’s CEO and CFO in a bid to inflate numbers. A letter was also sent to the US Securities and Exchange Commission (SEC) making the same allegations.

On being questioned by the Infosys board about the veracity of the claims made in the letter during an October 11 meeting, the duo denied the allegations.

The Infosys board subsequently asked for an internal and external audit to look into the veracity of the whistleblower complaint.

Infosys on Tuesday issued a statement, saying that the allegations are being looked into in accordance with the company norm.

“The company has received anonymous whistleblower complaints alleging certain unethical practices. These have been placed before the audit committee as per the company’s practice and will be dealt with in accordance with the company’s whistleblower policy,” the statement said.

Infosys referred to Tuesday’s statement when queried by CNBC-TV18 about the October 11 development.

“We will not be able to comment on the below, other than the statement we issued in the morning, which can be found on our website,” it said.

>> Here’s everything that we know about the Infosys whistleblower complaint and its potential impact

Bolivians angry over vote count storm capital as election hangs in balance

Doctors and health employees march in protest against Bolivia’s President Evo Morales, in La Paz, Bolivia. Bolivians, furious over what they saw as an attempt by leftist President Evo Morales to rig Sunday’s election, protested outside the hotel in the capital city of La Paz where the country’s electoral board was processing remaining ballots on Tuesday. REUTERS/Ueslei Marcelino
Doctors and health employees march in protest against Bolivia’s President Evo Morales, in La Paz. With the official vote count at 96 percent, Morales extended his lead over his chief rival Carlos Mesa to 9.36 percentage points, just short of the 10-point lead he needs to avert a riskier run-off with Mesa. REUTERS/Ueslei Marcelino
Even if the pace of Morales’ lead holds and he secures an outright win, the election’s legitimacy has been scarred, with Mesa and his supporters vowing not to recognize that result. REUTERS/Ueslei Marcelino
Suspicions of vote manipulation were sparked on Sunday after the official electoral board, Supreme Electoral Tribunal (TSE), abruptly halted an electronic quick count after it showed Morales and Mesa were likely headed to second-round, with 84 percent of votes tallied. REUTERS/David Mercado
When the quick count resumed after an outcry on Monday, Morales had eked out a 10-point lead, sparking criticism from international election observers and a night of rioting across Bolivia, with several electoral offices attacked or set on fire, forcing two people to jump from a burning building in the city of Potosi. REUTERS/David Mercado
Morales’ government has denied any meddling and has called for calm. But in La Paz and other cities, protests resumed for a second day by nightfall on Tuesday. REUTERS/David Mercado

Top buy and sell ideas by Ashwani Gujral, Sudarshan Sukhani, Mitesh Thakkar for short term

Sensex, Nifty, Markets Today, Coal India shares Market News

The Indian markets opened flat as domestic investors remained cautious over Q2 earnings amid subdued global cues as British lawmakers rejected the Boris Johnson government’s timetable to fast-track legislation for Brexit.

Here’s what market experts Ashwani Gujral, Sudarshan Sukhani, Mitesh Thakkar are recommending for short term trade today:

Ashwani Gujral of ashwanigujral.com

-Buy M&M Financial Services with a stop loss of Rs 338, target of Rs 354

-Buy Jubilant Foodworks with a stop loss of Rs 1400, target of Rs 1520

-Buy ICICI Bank with a stop loss of Rs 446, target of Rs 462

-Buy Raymond with a stop loss of Rs 600, target of Rs 635

-Buy Petronet LNG with a stop loss of Rs 270, target of Rs 285

Sudarshan Sukhani of s2analytics.com

-Buy BEL with stop loss at Rs 109 and target of Rs 125

-Buy Maruti Suzuki with stop loss at Rs 7000 and target of Rs 7500

-Sell Engineers India with stop loss at Rs 110 and target of Rs 102

-Sell Hindustan Zinc with stop loss at Rs 212 and target of Rs 203

Mitesh Thakkar of Miteshthakkar.com

-Buy ICICI Prudential with a stop loss of Rs 1265 for target of Rs 1360

-Buy Asian Paints with a stop loss of Rs 1766 for target of Rs 1815

-Sell Exide Industries with a stop loss of Rs 185 for target of Rs 172

-Buy Adani Transmission with a stop loss of Rs 240 for target of Rs 285

Also, catch all the latest market action and updates with CNBCTV18.com’s blog.

Disclaimer: The CNBCTV18.com editorial team does not engage in speculative or active trading in stock markets and follows its Code of Conduct on securities trading and investment. Any investor/ viewer is advised to carry out necessary diligence on their own or through a certified registered financial advisor for investment decisions.

HCL Technologies Q2FY20 earnings today: Here’s what to expect

HCL Technologies

HCL Technologies is expected to release its Q2FY20 earnings report on Wednesday. The street expects a constant currency growth of about 6.3-6.4 percent. In dollar terms, revenue growth will stand at 5.5 percent sequentially.

HCL’s numbers will look a lot better than its peers because the company has integrated the IBM acquisition or intellectual property (IP) deals that it took over from the American giant.

Topline growth is likely to drive a strong rupee revenue growth, which is expected to be about 6.8 percent.

Margins are expected to expand sequentially by 150 basis points (bps) as they were depressed in the previous quarter due to the company accounting for expenses related to the IBM integration but not the revenues accrued.

Additionally, there are no visa costs in Q2 unlike in Q1. Also, the IBM revenues which will come on board this quarter have higher margins of around 30 percent. These factors suggest a strong profit growth of 14 percent.

HCL’s FY20 guidance will be closely watched. Currently, the company has guided for FY20 constant currency revenue growth of 14-16 percent, and street expectation is that it is not going to be tweaked — the management is likely to hold on to this guidance but if it is upped — because there is a case for organic growth to be better than what the company had earlier guided for — then it will be seen as a big positive.