Smartian Capital Services Blog

Non - Resident Indians (NRIs) often invest in Indian Financial instruments like Mutual Funds and Stocks. However, the Tax Treatment of Capital Gains depends on their country of residence and whether india has a Double Taxation Avoidance Agreement (DTAA) with that country. Here's breakdown of how NRIs can benefit from tax exemptions. Key Points About Capital Gains Tax for NRIs : 1. Exemption for NRIs Residing in DTAA Countries NRIs residing in countries that have a DTAA with India (e.g., UAE, Singapore, Mauritius) are exempt from paying capital gains tax on Mutual Fund Investments Structured as Trusts. The capital gains tax is levied only in the NRI's country of residence rather than India. 2. Tax Residency Certificate (TRC) is Mandatory To avail of DTAA benefits, NRIs must submit a valid  Tax Residency Certificate (TRC) issued by their country of residence.  The TRC serves as proof that the individual qualifies for DTAA based tax exemptions. 3. Applicability of DTAA Benefits M...

  Nifty 50 at 25,000: What It Means for Your Mutual Fund Investments The Nifty 50, India’s benchmark equity index, has surged by 892.55 points , or 3.70% , over the past month, closing at 25,018.10 on May 19. This rise reflects more than just numbers—it's a sign of strengthening investor confidence, a resilient economy, and strong corporate earnings. The index is now inching closer to its 52-week high of 26,277.35 , sparking optimism across market participants. 🔍 Market Overview Monthly High : 25,062.95 Monthly Low : 24,965.80 Previous Close : 25,019.80 52-Week High : 26,277.35 52-Week Low : 21,281.45 Despite some short-term dips in April, the market has shown a strong recovery in May, riding on the back of favourable domestic and global cues. 🚀 Key Drivers of the Rally Robust Corporate Earnings – Especially in banking, auto, and IT sectors. Strong Retail Participation – SIPs and retail mutual fund investments have hit record highs. Stable Macroeco...

  How India-Pakistan Tensions Impact the Stock Market: A Historical Analysis Whenever geopolitical tensions rise—especially between India and Pakistan—investors often ask: What happens to the market? Should I stay invested? Should I exit? The emotional response is understandable. War or military conflict brings uncertainty, and markets hate uncertainty. But when we analyze past data, the story might surprise you. Historical Data: Nifty50’s Performance Around India-Pak Events Let’s analyze how the Nifty50 index has reacted to some of the most notable Indo-Pak conflict events over the past few decades: What the Data Tells Us 1. Short-Term Shock, Long-Term Recovery: Most events triggered minor to moderate declines or volatility in the 1-month window. However, in 4 out of 5 cases, the market gave positive returns in the 6- and 12-month periods following the event. 2. Exception – 2001 Parliament Attack: This is the only event after which the Nifty50 remained negative even 1...

 

  The stock market moves in cycles, influenced by corporate earnings, economic indicators, and market sentiment. Understanding corporate earnings trends and market valuation metrics is crucial for investors looking to identify undervalued stocks and sectors for mutual fund investments. In the current market scenario, where volatility is high, selecting the right investment opportunities can lead to substantial long-term wealth creation. 1. Understanding Corporate Earnings Trends Corporate earnings represent a company’s profitability and are key indicators of financial health. Investors should analyse earnings reports to assess whether a company or sector is growing, stable, or declining . Key Earnings Metrics to Watch: Revenue Growth: A steady increase in sales indicates strong business operations. Earnings per Share (EPS): Shows a company’s profitability on a per-share basis. Operating Margin: Higher margins indicate better efficiency in operations. Ret...