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The prices of high-end electric vehicles in Karnataka are set to increase as the state government has decided to collect a lifetime tax of 10% of the vehicle's cost at the time of registration. The new rule will apply to electric cars, jeeps, and buses, the govt said in a notification. Karnataka has been giving tax exemption for EVs for the last seven years, irrespective of the price range, to promote eco-friendly mobility systems. However, the govt is now rethinking its policy in view of the increasing number of luxury EVs which are being brought by the affluent people. The government estimates that by 2030, there will be around 23 lakh electric vehicles in Bengaluru alone, compared to the 80,000 currently in circulation in 2021. Across the state, the number of electric vehicles has already surpassed 3 lakh. Initially, there was a proposal to impose a lifetime tax on vehicles costing above Rs 20 lakh, but with the approval of the state government, the threshold has been revised to above Rs 25 lakh. After receiving consent from the governor, the Karnataka Motor Vehicles Taxation (Amendment) Act was published in the special state gazette, paving the way for the implementation of this tax.Apart from electric vehicles, petrol and diesel-driven transport and commercial vehicles will also face increased costs for registration. The amendment to the Act introduces a 3% cess on transport vehicles, with the aim of generating a fund for the welfare of drivers and other workers in the transport sector. The Act states, "In addition to the existing cess of the tax levied under Section 3 on motor vehicles registered under Motor Vehicles Act, 1988 (Central Act 59 of 1988), three percent additional cess shall be levied and collected on transport vehicles for the purpose of Karnataka Motor Transport and Other Allied Workers Social Security and Welfare Fund." This move is expected to generate approximately Rs 100 crore annually to support social security and welfare schemes in the unorganized sector.

Embarking on the journey of stock analysis as a beginner can feel overwhelming, with terms like PE ratio and EBITDA making it seem like a maze. However, fear not!This article seeks to illuminate the path by providing essential tools for evaluating a company's financial health, profitability, and growth potential.Understanding Fundamental AnalysisFundamental analysis, crucial for making wise investment decisions, involves carefully examining various company metrics.By analyzing the profit & loss statement, balance sheet, and cash flow statement, investors can determine a stock's true value.This value guides decisions to buy or sell based on comparison with the stock's current market price.Analysing Stock FundamentalsSales GrowthStart by looking at a company's sales growth, a key indicator of its economic strength. Investors seek sustainable growth potential aligned with GDP growth or outperforming peers.Operating MarginsOperating margins serve as a barometer of efficiency and profitability. Striving for margins surpassing the cost of capital, companies optimise strategies, encompassing geographical expansion, product mix enhancement, and astute cost management.Cash ProfitsBeyond nominal profits, investors delve into the realm of cash flows to discern a company's true financial health. Evaluating the efficiency of cash conversion provides insights into operational robustness and potential red flags.Debt LevelsAmidst growth aspirations, prudent management of debt becomes crucial. Monitoring debt levels and assessing liquidity ensures resilience during economic downturns, safeguarding against the perils of overleveraging.Valuation CheckAssessing a company's fair worth is essential. Metrics like the Price-Earnings (PE) ratio help balance growth prospects with valuation, avoiding overvaluation mistakes.ConclusionMastering fundamental analysis may seem challenging, but these basic principles offer clarity amidst complexity. Armed with these tools, investors can navigate the world of stock analysis with confidence, making informed decisions for financial success.Note: The article is for information purposes only. This is not an investment advice.(The author is Vice President of Research, TejiMandi)

Futures and options are two fancy terms used in financial markets that are becoming quite famous in the investor community.Online trading applications have helped new-age investors and traders participate in Futures and Options trading as per their requirements.Few novice investors and traders are curious and willing to explore this segment without understanding the risk involved in it.This blog will try to explain the difference between the Future and Options segments that may help investors and traders to choose the right derivative instrument.Before diving into the comparison, Let's get a basic understanding of both the financial terms.Futures are financial contracts obligating buyers to purchase or sellers to sell assets like equity, commodities, and currencies at a predetermined future date and price.Futures acts as a risk management tool; they allow investors to hedge against price fluctuations. Traders speculate on the future value of commodities, currencies, or equities, facilitating price discovery and market liquidity.These standardised agreements are traded on organised exchanges, providing a transparent platform for participants in the global financial markets.Options are financial instruments that give the buyer the right, but not the obligation, to buy the call option of an underlying asset at a predetermined price within a specified timeframe.This flexibility provides investors’ leverage in managing risk or capitalising on market movements.Types of Option ContractsCall options and put options. Both serve a different purpose and provide unique opportunities for traders and investors.● Call Options: It gives the right, without any obligation, to purchase an asset at a predetermined price before or at the option's expiration. Investors buy call options to capitalise on anticipated asset price increases. Call buyers pay a premium for this right, while call sellers are obligated to sell the asset if the buyer chooses to exercise the option, potentially profiting from the asset's upward movement.● Put Options: It gives the investor the right, without any obligation, to sell an asset at a predetermined price. Investors use put options to profit from anticipated asset price decreases. The Put buyer pays a premium for this right, while the Put seller is obliged to buy the asset if the option is exercised, creating opportunities for speculators and risk management strategies in financial markets.Use of Option StrategiesOptions trading involves predicting price fluctuations and offering a versatile approach for hedging, speculation, or income generation. It's a tool to empower traders with diverse strategies to navigate financial markets.The traders use many option strategies to manage their risk or even to generate returns. Commonly used strategies are straddles, strangles, bull put spread, bear call spread, iron condor, iron butterfly, etc.These options and strategies give flexibility to traders to tackle market volatility and changes in the market environment.Option strategies are very useful in dealing with the different phases of the market. In the past, we have seen that, at times, tradable instruments remain in a wide range. So, option strategies like Straddle and Strangle are used by traders to capitalise on such movements.Futures vs Options - Key Differences?Below is the table that provides a concise overview of the key differences between futures and options in the financial market. 108343914The choice between futures and options depends on your investment goals and risk tolerance – Both instruments can be used for hedging, but options offer more flexibility and limited risk.Futures offer higher potential profits but also higher risk, while options provide limited profit potential with capped losses. However, Options require lower upfront capital compared to futures.After studying Futures and Options, it can be said that both instruments have many differences and that they may be used by traders as per their requirements.(The author is CEO of Bigul)

The government of Uttar Pradesh is planning to build a new city new Agra, according to a report in the Times of India.As reported, the city will come up around 190 kms from Noida and it will be about 150 kms from the Noida airport in Jewar. The city will cover an area of 10,500 hectares, which is approximately half the size of Noida.To ensure a well-planned development, the Yamuna Expressway Authority (YXPA) has invited consultants to create a 10 year master plan to address various aspects such as transportation links with other cities, environmental impact assessment, and strategies for sustainable growth.The primary objective behind this new city is to accommodate the anticipated population surge that will be triggered by the upcoming Noida International Airport. The airport is expected to commence passenger operations later this year, attracting both domestic and international tourists. In addition, due to its proximity to Agra, where the iconic Taj Mahal is located, the airport will serve as a gateway for visitors to one of the world's seven wonders. Consequently, there will be a need for additional tourism facilities in the region.The official document shared by the YXPA with the consultants emphasizes the project's aim to enhance the investment climate and promote economic development through the creation of a sustainable environment. The jurisdiction of the YXPA covers land along the 165km-long expressway, including Noida, Bulandshahr, Mathura, Aligarh, and Agra. While master plans have already been developed for Gautam Budh Nagar, Aligarh, and Mathura, Agra has been lacking such a plan. Therefore, the YXPA is in the process of hiring a consultant to prepare a plan specifically for the development of the region surrounding the tourist city.Given the significance of the Taj Mahal, which is a UNESCO World Heritage Site, the environmental impact of the new city is of utmost importance. Shailendra Bhatia, an officer on special duty at YXPA, stressed that only green industries will be promoted in order to regulate pollution risks. Sustaining the pristine beauty of the monument is crucial, and therefore, no polluting activities will be permitted in its vicinity.Key points:The city will come uo on 10,500 hectaresIt will be half the size of NoidaThe city will about 190 kms from Noida, and 150 km from Jewar airportYXPA making a 10-year master planThe new city is being built considering population surge due to the Jewar airport

Investors fixated on earnings and monetary policy are starting to factor in another variable that could sway markets this year: the 2024 U.S. presidential election. In his State of the Union address on Thursday, U.S. President Joe Biden proposed raising corporate taxes, whereas his opponent, Republican candidate Donald Trump, signed a 2017 law that slashed taxes on companies and the wealthy. Biden also boasted of U.S. economic progress under his tenure. It is difficult to gauge how asset prices could be swayed by these proposals and whatever else the presidential candidates may put on the table in coming months. The winner is likely to face a narrowly divided Congress that would make it difficult to push through legislative changes. That has not stopped some strategists from assessing how the political outlook could coalesce with other factors that have been driving markets. These include excitement over the business potential of artificial intelligence and shifting expectations of how soon the Federal Reserve might ease monetary policy. The S&P 500 index is up about 7.4% year-to-date and stands near a record high. "You get a sense (investors) ... have a lot on their plates right now, and politics is starting to come into that," said Paul Christopher, head of global market strategy at Wells Fargo Investment Institute. "Even though everyone knows the candidates, it's going to be a pretty close race so it's very difficult to predict the outcome." Opinion polls show Biden, 81, and Trump, 77, closely matched. While the U.S. economy is performing better than most high-income countries, Americans overall give Trump better marks in polls for economic issues. Biden on Thursday proposed to increase to 21% a 15% corporate minimum tax on companies reporting over $1 billion in profit that he won as part of 2022 clean energy legislation. He also promised to renew his "billionaire tax" proposal, which would impose a 25% minimum tax on income for Americans with assets of more than $100 million. However, "it's going to be difficult for any tax policy proposal to pass by either side because it's going to come down to party lines," said Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report. Regardless of the election outcome, fiscal policy will likely be among the first items that the next administration tackles, Wells Fargo analysts wrote. A Republican sweep would likely mean that the 2017 tax cuts would be extended at the cost of higher inflation, while a Democratic sweep would lead to higher taxes on higher-income households and corporations, the firm noted. ELECTION YEAR TRENDS The S&P 500 has notched an average gain of 15.5% in years that a president has sought re-election, CFRA data going back to the end of World War II showed. That compares to an overall average annual return of 12.8% in that period. At the same time, election years come with their share of volatility. Analysts at BofA Global Research noted earlier this month that, in previous election years, the Cboe Volatility Index has risen by an average of 25% from the second quarter to November. Volatility tends to fall after election day with uncertainty removed, the firm said. The bank recently increased its target on the S&P 500 to 5,400, from 5000. October futures on the Cboe Volatility Index - which encompass options contracts that extend until the middle of the following month - were recently trading some 2.6 points higher than the September futures, suggesting investor wariness regarding election-related market swings. Historical trends may favor Biden as well. Since the emergence of Super Tuesday in 1976, year-to-date gains in the S&P 500 ahead of the primary have coincided with the president's political party winning the election 80% of the time, LPL Financial data showed. The firm noted, however, that the S&P 500 has lately been rising along with Trump's standing in national polls. "This economy is doing well - and we will see whether Biden gets credit for it," said Jeff Buchbinder, chief equity strategist for LPL Financial. EYES ON CPI The market also had to digest plenty of near-term economic data to gauge the Fed's monetary policy trajectory. U.S. job growth accelerated in February, Labor Department data showed Friday, but a rise in the unemployment rate and moderation in wage gains kept on the table an anticipated rate cut in June. Investors are also awaiting U.S. consumer price data on March 12 for further clarity on whether inflation has eased enough for policymakers to lower borrowing costs in coming months. "Continued normalization in wages coupled with a weak CPI print next week could increase the FOMC's confidence that inflation is on track to returning to target, potentially moving forward the prospects of rate cuts," wrote Jeff Schulze, head of economic and market strategy at ClearBridge Investments.