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Top investment tips for Q2 FY2019

  • Posted Date: June 30, 2020

Elections, budget announcements and apprehensions over the same make this a delicate time for the stock market. The fresh financial year 2019 has just begun, and for the quarter, an investor is required to tread with a certain degree of due caution. A few of the stocks are more feasible for the long term and others for short term investment. For an investor who is looking to invest for a short term duration of 3-6 months, there are ways to keep the transactions most lucrative and make investments in such a way that the dividends received within 3-6 months are maximum. At such a juncture, aid of a prudent stock advisor can be very helpful and help an investor choose the right stocks to invest, for long term and short term alike. Stock tips and commodity tips of a knowledgeable advisory can let an investor make the best of his investments.

Let us take an overview at the best stock to invest into at this point of time.

1. TCS

TCS’s profit is likely to decline by 2.9% QoQ. But in constant currency terms, the revenue is likely to grow by 1.8% QoQ.

The Profit after Tax (PAT) estimate is of Rs. 7,840 crore. It has declined 3% QoQ as resulting from decline in sum of other income. It is likely that CC growth revenue will be at 2.3%, and the cross currency tailwind would be at 60 bps.

TCS is one of the prime stocks to invest in at this point of time. Buy TCS at 2100 target 2300, 2500, time frame 3-6 months.

2. Reliance Industries

We recently came across JIO’s top notch performance in the telecom sector. This has given rise to a similar expectation from digital ventures of the organization as well.

Fortunes of Reliance’s retailing business are likely to improve. This should be accompanied by growth in earnings in core businesses, such as refining and off gas tracker. Buy Reliance at 1320 target 1450, 1600, time frame 3-6 months.

3. Kotak Mahindra Bank

Shares of Kotak Mahindra Bank were up 1.27% on Monday and private bank shares traded with gains on Monday afternoon session. Kotak Mahindra bank comes across as one of the top stocks to invest in for next 3 months. Buy Kotak Bank at 1350 target 1500, 1700 time frame 3-6 months.

As the new financial year for 2019 begins in April, it is a fine time to take a look at the finances. Financial planners in general have a belief that the investment portfolio should be reviewed at least once yearly. April is probably the best time to do so.

This somehow is not limited to rebalancing of the portfolio alone. There are some basic steps that investors should undertake.

Even while this is the best time to focus upon tax planning, tax planning for the entire financial year need not be done all at once.

In general, taxing measures that are announced in the budget in February are effective April onwards. It makes the tax planning process smoother.

However for this year, tax payers may be taken by surprise, in case the rules come across a change in the full year budget which is announced in June.

It is hence best to keep the investments limited for some time now.

There are talks of a proposed tax rebate on a taxable income of up to 5 lakh. If the budget which will be announced in June chooses to stick to the same, it would imply that people from lower income bracket are not required to do any further investments.

But contrary to this, if there is a rise in Section 80C limitation of 1.5 lakh, and no rejig of tax slabs, then the tax payers would be required to invest additional funds in order to access the deduction.

Correspondingly, a tax payer should build more flexibility in his investment plan. It creates more room to make the best of tax measures that may be announced in July.

It is hence best to not make excess investment at this time, and stretch the investments across the year. It will allow tax payers to avail an alternative instrument for tax savings based upon the policies that are announced.

Tax proposals will bear maximum impact upon those, whose taxable income is a little more than 5 lakh. In April, they should create an estimate of annual taxable income received from all sources.

This would let them make the best of tax breaks at present time.

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