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The UAE is emerging as a global blockchain hub, driven by trends in Shariah-compliant services, dirham-pegged stablecoins, and an influx of international talent. Industry leaders emphasize the region's regulatory clarity and potential for rapid growth, particularly in decentralized finance. Recent developments include a stablecoin initiative approved by the central bank, highlighting the focus on local payment methods.
The Income Tax Appellate Tribunal in Jodhpur has ruled that profits from crypto sales before April 1, 2022, are to be classified as long-term capital gains, allowing for lower tax rates and deductions. This decision clarifies the tax treatment of digital assets, aligning it with international standards and providing a precedent for taxpayers. The ruling emphasizes that cryptocurrencies are considered property under the Income Tax Act, benefiting early adopters who faced ambiguity in tax obligations.
Renewable energy and data centres are leading investment opportunities in the infrastructure sector, driven by trends in decarbonisation and AI demand, according to a UBS report. While traditional sectors like utilities and transportation show lower investor sentiment, they still demonstrate stable earnings growth, indicating a positive outlook for overall infrastructure investments in the coming year.
India is advancing its regulatory framework for Virtual Digital Assets (VDAs), focusing on innovation and investor protection while addressing the global nature of cryptocurrencies. Key measures include anti-money laundering regulations, taxation as capital gains, and oversight under existing laws. During its G20 presidency, India contributed to international crypto governance, aiming for a collaborative approach to tackle the unique challenges posed by VDAs.
The S&P BSE Sensex plummeted nearly 1,000 points, hitting an intra-day low of 80,941.61, amid investor caution ahead of the US Federal Reserve's upcoming meeting. Key factors included a widening trade deficit of $37.8 billion and poor performance from heavyweight stocks like Reliance Industries and HDFC Bank. Despite the overall decline, midcap and smallcap stocks showed slightly better resilience, with only minor losses.
The stock market faced a significant downturn, with the BSE Sensex dropping over 1,000 points and the Nifty 50 declining by 1.4%. Key factors included investor caution ahead of the US Federal Reserve's meeting, fears of foreign institutional investor selling due to China's budget deficit plans, and weak global market cues. Among the major losers were HDFC Bank, Reliance Industries, and TCS, while only ITC and Hindustan Unilever showed gains in the Sensex.
Nestlé India has delivered a 62% total shareholder return over the past five years, despite a recent 12% drop in share price. While earnings per share grew at 12% annually, the market's pessimism is reflected in a P/E ratio of 66.83, indicating potential undervaluation. Shareholders have seen a 7.4% decline this year, contrasting with a 26% market rise, suggesting a need for careful evaluation of the company's fundamentals.
On December 17, 2024, market volatility is viewed as both a threat and an opportunity for investors, with strategies like asset allocation recommended for effective navigation. Notably, Trent's shares surged 126% year-to-date, while NMDC announced a record date for 2:1 bonus shares. Direct retail inflows reached nearly ₹1 trillion, indicating growing investor confidence amid market fluctuations.
UBS views the Indian property market as a structural growth opportunity, indicating it is far from its peak. Gautam Chhaochharia highlighted strong fundamentals such as affordability and inventory-to-sales ratios, suggesting significant growth potential, particularly in mid-segment housing, despite supply constraints in affordable housing. The sector's revival is linked to increasing wealth and demand for larger homes, with current inventory levels indicating room for further expansion.
Solana's price struggles to break the $234 resistance, recently dipping to $204 but recovering to around $220.78, with a notable increase in developer activity—7,625 new developers in the past year—positioning it as a strong competitor to Ethereum. Investor sentiment remains positive, with 27% of Solana's supply held long-term, indicating confidence in future price surges.
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