Latest news with #Jasani
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Business Standard
7 days ago
- Business
- Business Standard
India-UK trade deal fails to lift stocks as earnings concerns dominate mkts
The much-anticipated signing of the Comprehensive Economic and Trade Agreement (CETA) between India and the UK did little to buoy Indian equity markets, as a broad sell-off overshadowed sector-specific optimism. While companies across textiles, pharmaceuticals, jewellery, automotive, and agriculture are positioned to benefit from tariff reductions under CETA, most stocks in these sectors closed lower on Friday. The decline was driven by pervasive concerns over weak earnings, which sent the Nifty Smallcap 100 index down by more than 2 per cent. Several sectors are poised for long-term growth from CETA; however, they did not see immediate stock gains as sentiment remained risk-averse, with investors focusing on disappointing earnings. Jasani added that the corporate results will be the immediate trigger for market movement. "The first batch of results is not very positive, and one has to see how the rest of the listed universe fares," he said. The Nifty Healthcare index stood out, rising 0.7 per cent—primarily fueled by a 3.2 per cent surge in Cipla. Healthcare and pharma stocks were the only Nifty sectoral indices to end in positive territory. Domestic liquor shares, particularly Som Distilleries & Breweries, came under pressure due to fears that CETA could intensify competition by easing market access for international brands. Despite short-term market weakness, analysts remain optimistic about companies well-positioned in export-oriented sectors, as they stand to realise gains as tariff reductions take effect and trade flows gradually increase. "The stocks will react to the earnings, and these benefits will need to be reflected in terms of revenue and profit growth. Moreover, the India-US trade deal is the most anticipated event," said Pramod Gubbi, founder of Marcellus Investment Managers.
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Business Standard
26-06-2025
- Business
- Business Standard
Nifty IT worst performer so far in 2025, drops 10%; time to bottom fish?
IT stocks in focus: Indian IT stocks have been caught in a storm this year, underperforming the broader market by a wide margin as global and domestic headwinds continue to pile up. Once a darling of investors, the sector has struggled to find its footing in the first half of calendar year 2025, weighed down by persistent FII outflows, geopolitical uncertainty, a sluggish deal pipeline, and global macro risks, analysts said. Between January 1 and June 25, the Nifty IT index has slumped 10 per cent, in stark contrast to the Nifty 50, which is up 6.3 per cent during the same period, NSE data showed. Individually, Infosys has plunged about 14 per cent this year-to-date (Y-T-D), Tech Mahindra remained flat with a negative bias, Wipro and HCLTech slipped over 10 per cent each. LTIMindtree tanked 4.6 per cent, while Coforge fell 2.4 per cent. The divergence is striking even when compared to other sectors. Nifty Auto has gained 4.3 per cent, Nifty Bank has surged 10 per cent, and Nifty Metal is up 8 per cent. Other indices including Nifty FMCG (down 3.5 per cent), Pharma (down 7 per cent), and Realty (down 2 per cent), too, have managed to outperform IT. One of the biggest drags has been sustained selling by foreign institutional investors. FIIs have pulled out a net ₹1.35 trillion from Indian equities in the first six months of 2025, led by heavy outflows in January (₹87,374.66 crore) and February (₹58,988.08 crore). Although March to May saw marginal inflows, selling resumed in June, reflecting growing global caution. Track Stock Market LIVE Updates The rupee's underperformance has added to the concerns. It has depreciated by 0.3 per cent so far this year, ranking among the worst in Asia, Bloomberg data showed. While a weaker rupee usually benefits IT exporters, in this instance, it has done little to cushion sentiment as the global environment remains fraught with uncertainty. The US-China trade conflict has only made things worse. Rising tariffs and protectionist rhetoric have cast a long shadow on global tech spending. Indian IT firms, which earn the lion's share of their revenues from the US, are particularly vulnerable to cutbacks in discretionary spending and delays in outsourcing decisions. Trade tensions have also disrupted supply chains and led to postponement of digital transformation deals. Market veteran Deepak Jasani noted that IT companies are currently struggling with revenue visibility due to the absence of large deal wins. While smaller deals are still taking place, they haven't provided much reassurance to the sector. 'The disruptions driven by artificial intelligence (AI) have created uncertainty among IT spenders and investors regarding where—and whether—to spend or invest in the IT space.' Additionally, ongoing tariff wars, Jasani said, pose a broader risk to global economic growth, which, if it slows, could further pressure IT companies by reducing deal flow. Contrasting this, Kotak Institutional Equities noted that AI adoption is progressing, moving from proof-of-concept (POC) to production in areas like software development, content creation, and BPO services. Tools like GitHub Copilot and Claude are gaining traction, and clients are encouraging vendors to integrate generative AI for efficiency gains. While these efficiencies can be meaningful, they currently fall short of the lofty claims made by hyperscalers. Opinions remain split on AI's deflationary impact. While IT firms expect savings to be reinvested into new initiatives, potentially boosting demand, others in the industry worry that GenAI may ultimately prove a net negative for services revenue. A mixed set of Q4FY25 results from major IT players further weighed on sector sentiment. Infosys, HCLTech, and Wipro all posted subdued performances, citing weak demand and delayed deal ramp-ups. Infosys reported a sequential revenue decline in constant currency and cut its FY26 growth guidance to 0–3 per cent. HCLTech's results were in line, but soft project execution led it to trim FY26 guidance to 2–5 per cent. Wipro posted just 0.8 per cent CC revenue growth and forecast a Q1FY26 decline of 1.5–3.5 per cent, reflecting weak discretionary spending and cautious client sentiment. On the investment front, Jasani suggested focusing on select mid-cap IT stocks, while exercising caution with large-cap names, which appear overowned at current levels.
Time of India
02-06-2025
- Time of India
Thieves decamp with Rs24.6L in cash, jewellery
Nagpur: Unidentified thieves decamped with valuables totalling over ₹24 lakh from a locked house in Mahal late Saturday night. According to police, the burglary occurred between 10pm on May 31 and 5am on June 1. The complainant, Sanket Jasani (31), had gone to Amravati with his family to attend a wedding when the incident took place. Police said the burglars gained entry by breaking the latch and lock of the main door. They stole ₹5 lakh in cash from a cupboard in the bedroom, along with gold and diamond jewellery. Imitation ornaments and two watches were also taken. The total value of the stolen items is estimated at ₹24,66,800. The theft was discovered early Sunday morning when the family returned and found the main door broken and the cupboards emptied. A complaint was immediately lodged at Kotwali Police Station. Jasani, a resident of Jalaram Niwas, told the police that he had locked his house before leaving. Based on his statement, a case has been registered against unidentified accused under BNS Sections 305 and 331(4). Sources said authorities are currently reviewing CCTV footage from nearby areas for potential leads. No arrests have been made so far.
Al Etihad
01-06-2025
- Business
- Al Etihad
Corporate tax: Unincorporated partnerships can benefit if they opt to be taxed
1 June 2025 15:57 A. SREENIVASA REDDY (ABU DHABI)The Ministry of Finance (MoF) has issued a Cabinet Decision that grants unincorporated partnerships the option, subject to Federal Tax Authority (FTA) approval, to be treated as taxable persons for corporate tax purposes in the new provision allows such partnerships to choose between remaining tax-transparent entities or opting to be taxed in their own right—marking a step forward in enhancing tax clarity and improving the ease of doing business. To understand the implications of this move, Aletihad spoke with tax practitioners to seek clarity on the issue. What is unincorporated partnership?"An unincorporated partnership is an entity that hasn't been registered as a legal entity separate from its owner. Two or more individuals, companies and other legal entities may join with others to form a partnership and decide on key terms of partnership," said Dhaval Jasani, Founder & CEO of ZTI Global, a corporate services firm. Crucially, such partnerships do not possess a separate legal personality. "Each partner is treated as if the partner is conducting business, holding assets and being a party to an arrangement where the partnership is concerned," Jasani outlined in a WAM report, unincorporated partnerships are typically treated as tax-transparent structures—meaning the partnership itself is not taxed. Instead, each partner is individually liable to tax on their share of the income. "Corporate tax compliance is dealt with by the partners in their individual capacity," Jasani Cabinet Decision introduces a notable shift by giving unincorporated partnerships the option to be taxed as a standalone entity. "The law gives them an option to be taxed as a separate person. If they don't choose this, then they remain tax transparent—meaning each partner must still pay tax on their portion of the profits," explained Krishnan Narayanan Venkat, Chairman of the ICAI Abu Dhabi Chapter and Partner at Andersen UAE."A tax-transparent entity is one that passes through its income to the owners, who then pay tax individually. The entity itself doesn't pay tax. Under the UAE CT Law, unincorporated partnerships and certain trusts can be treated this way," Narayanan Venkat are practical advantages to choosing separate taxation, particularly in complex ownership structures. "This can simplify tax filings—especially when there are many partners or when some are based outside the UAE. The partnership files one tax return and pays tax centrally," said Narayanan further explained, "If an unincorporated partnership opts to be taxed as a separate entity, it will be treated just like a company—meaning: it will file its own corporate tax return. It will calculate its taxable income based on the same accounting and tax rules as a company. It can claim allowable expenses, carry forward losses, etc.""With this choice of taxation, unincorporated partnerships can benefit from the exemptions and reliefs available to legal persons under the Corporate Tax Law, such as interest deduction and carry forward of losses," Jasani added. He noted that taxing the unincorporated partnership eases the burden of reporting at the individual partner's level, as the taxable income is calculated centrally at the partnership level. The MoF's latest decision is part of the ongoing evolution of the UAE's corporate tax framework, and it provides greater flexibility for partnerships operating under non-corporate structures, particularly in cross-border or multi-partner scenarios. Source: Aletihad - Abu Dhabi
