Caution: Cheap markets should not be bought

Today’s Daily Byte

Today marks a special day in the history of Indian markets, as they reached a new high, especially at a time when people were becoming increasingly cautious. In the last two to three sessions, even after the Fed rate cut, the markets appeared tentative. However, today, the market made a bold upward move, signaling a possible rate cut in India as well. Banks, in particular, are expected to perform exceptionally well this quarter if an Indian rate cut occurs, as their bonds will be re-rated, which seems to be driving the market. The banking index has led the market, reaching a new high after a prolonged period. It seems we are set to go even higher, given today's strong market surge.

The story of the day revolves around the Bajaj Housing IPO. Have you missed it? Was it a good thing if you did? Or for those who bought it due to FOMO on the day or the following day of listing, what should they be doing now?

Reading Time : 4 Minutes

Caution: Cheap markets should not be bought

A recent comparison between the Chinese and US stock markets reveals an interesting trend: Chinese stocks are getting significantly cheaper compared to their US counterparts. In fact, China is currently valued at just 40% of the US markets in terms of price-to-earnings (P/E) ratio. This is a drastic change from 2006-2008, when China and the US were valued similarly. Over time, Chinese stock prices have dropped substantially, causing this gap in valuations.

Reading Time : 3 Minutes

Should you start a business?

In recent years, there has been a noticeable shift in how taxes are collected in India. Corporate tax, which was once significantly higher than individual income tax, has seen a decline in comparison. About five years ago, corporate tax collections stood at ₹5.5 lakh crores, while individual income tax collections were slightly lower at ₹4.92 lakh crores. However, this trend has reversed, and now individual income tax collections have surpassed corporate tax collections by about 10-12%.

This has raised concerns about why corporations seem to be getting more favorable tax treatment compared to individuals.

Reading Time : 3 Minutes