MFF – 090405 – 20:00 Hrs

+ What was being mentioned almost since ten months to a year now in this news letter is turning out to finally occur. It’s certain now that Indian Stock Market should stabilize after the elections and in particular after a new government is formed, condition being it should be BJP or congress forming the government and parties like Left and other constituents of Third Front should remain out atleast until 2014.

 

+ India today requires a strong and capable government which can handle the issues India is facing. It’s very clear that politics would decide the course of market in coming months and hence a separate totally political view would be posted later taking a clear stand on which party India should vote for. A separate article so that those who dislike the topic can avoid it, though reading it would be a must.

 

+ There is lot of talk on Black Money taking shelter at Swiss Bank Accounts. As mentioned in the SMS last week, we happened to attend a program on the topic. The snippets are as follows:

  1. The money hidden in those accounts is valued at more than Twice the size of Indian GDP!
  2. Indian money deposited is more than the sum of all other countries.
  3. If the money is brought back to India, at the current tax slab the Income Tax department can collect 25 years of collection in one shot!
  4. The money is valued at 13 times Indian External Debt!! (world must be laughing at us as S&P and Moodys downgrade India on account of Debt!)
  5. India would be No.1 in the world if the money can come back leaving behind even China.
  6. After 9/11 and Britain attacks, on account of pressure by the US and other countries, Swiss authorities agreed to declare the names of account holders, PROVIDED the respective governments request for the same.
  7. Till date India has not taken any serious step to request the names of account holders!
  8. The present Congress led UPA government is not keen on the issue.

 

+ MFF would vote for any party which vows to bring this money back. One can, by basic common sense estimate why the Congress is not keen on the issue. Our guesstimate is most of this money would be of Family Run Political Parties and there members. This money belongs to Indian public and should be spent on public welfare.

 

+ MFF believes if Govt can handle these people with steel hand, can bring this money back, and spend on Infrastructure, we can see Sensex at 30000+ within short time! The money is not small, IT dept can collect 25 yrs of Tax revenue in one shot, and hence if I were the PM I would have increased the Tax slab and made income upto 5 Lacs tax free!

 

+ Nifty if can test and cross 3250 – 3300 and stay above then 3480 – 3500 is a possibility, booking profits would be advisable there, we can re-enter once new Govt. is in place. The crisis which began in 2008/Jan would keep people booking profits as market goes up. Tuesday would be a market holiday hence chances of booking some profits cannot be rules out.

 

+ The New Pension Scheme which was set to launch on April/1 has been postponed to May/1 due to poll conduct guidance. The scheme is set to re-define the way a person plans for his retirement. Every investor should learn about the same. The details can be viewed by clicking here.

 

Jai Hind.

Indian Black Money in Swiss Bank Accounts.

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