The laptop is in danger of becoming redundant. It’s not like we don’t need it at home. But we check our mails and tweets on our smartphones, browse websites, play games and watch YouTube videos on our tablets. The laptop, well, is meant for transferring data to these devices. And does it really matter whether it has 3GB RAM or 4GB to do that?
The tablet’s allure is already hurting laptop manufacturers. Just this week, HP and Dell announced poor third quarter results due to falling PC sales. But two other companies stand to lose more than anyone else: Intel, which makes the chips that laptops run on, and Microsoft, which has made its fortune selling operating systems (OS).
But the two giants are fighting back. Both in terms of hardware and software, the laptop is undergoing a reinvention of sorts. And a bulk of the inspiration for the redesign comes from tablets and smartphones. What began with the launch of ultrabooks last year, will culminate on October 26, when Microsoft launches Windows 8.

The app advantage
Windows 8 is Microsoft’s most radical update to any OS it has built since Windows 95. For starters, it has done away with the ‘Start’ button. After all, people who are used to firing up apps straight from the home screen of their tablets or smartphone are likely to find it tedious to click on ‘Start’ and then search for the programs.
So out goes the traditional desktop and icons. To give quicker access to the things you want get done, the home screen will have ‘Tiles’ of the apps that you install on the laptop.
Yes, you heard that right. Just like tablets and smartphones, you will soon be able to install apps like Twitter or Angry Birds on your laptop. Unlike a bulky software program, an app fulfills just a few functions, and will be easier to use than the software progams you use today.
While heavy duty programs like, say, Photoshop will still be around for the experts, lay people can have fun with smaller apps like Photomatic or Instagram.
Finding these apps will get easier as well. Just as you have the App Store for iOS and Google Play for Android phones, Windows 8 will have its own app store. All apps developed for Windows 8 will be available this single store. Compare this to scouring the web to find programs and games for your laptop.

Share central
Laptops will also learn to share more, just like tablets. Today, sharing a picture, document, or even a web page is tough on laptops. Sure, there are options to email files, but even that is buried deep within the software program. Also, different programs have their sharing options in different places.
In smartphones and tablets, sharing is built into the OS itself. In Android phones, pressing the options button in most apps brings up sharing. If the Twitter app is installed, ‘share to Twitter’ automatically appears in this menu. Which is why we are more likely to tweet about a great article we’ve read on a smartphone than on a laptop.
In Windows 8, no matter which app is open, there’ll always be a sharing option available through which you can either email the things you want or share them on social networks.

The hardware edge
What laptops will never be able to do, however, is be as portable as tablets. However, Intel worked with all major hardware manufacturers, to come up with ultrabooks last year, which address the many expectations consumers have built up after using tablets.
For starters, Intel has tweaked its processors to help ultrabooks last longer on a single charge. As a result, ultrabooks average 6-8 hours before you have to plug the charger again. This may not be in the league of tablets that last an entire day, but it is an improvement over notebooks. In addition to the hard disk, some ultrabooks also include a form of storage (called SSDs) which allows for quick startups of the device.
All these innovations don’t mean that tablets are going to be used any less. But it does make a case for using a laptop for more than transferring files to the tablet.

The markets have not seen any correction despite a logjam on the reforms front. What’s keeping them resilient?
There have been three factors that have kept Indian markets buoyant – one, liquidity in global markets has eased considerably over the past 6 months or so, and I have very little doubt that we will see further liquidity injection by central banks on either side of the Atlantic. The European Central Bank has no choice but to buy Spanish bonds although they may make this conditional on Spain behaving itself fiscally. Similarly in the US, even though Fed Chairman Ben Bernanke may couch his words in a diplomatic fashion this weekend, there is very high likelihood that we will see some sort of monetary easing soon.
The second factor which has worked in India’s favour is the Chinese economy is not faring well. Most investors expect a slowdown in Chinese growth even though some anticipate a hard landing while others see a soft landing. The slowdown in China means Brazil and Russia too may not do well as they are export-dependent economies with the bulk of their commodity exports being to China. This has led FIIs to go underweight on Brazil, Russia and China while increasing their weight on India as they have a fair degree of confidence that domestic demand in India is relatively robust.
The third driver, though a minor one, has been the change of guard in the finance ministry. Mr Chidambaram’s entry is viewed positively by most investors.
What has led to change in FII sentiment towards India in recent months?
The new FM has brought in a degree of sanity in both words and actions and there seems to be better co-ordination between the PM’s office and finance ministry, which was missing earlier. There is willingness shown by the FM to communicate with markets in a better way and has allayed fears related to GAAR and retrospective taxation. While the final report of the Shome committee will be out by September 30, 2012 and with the draft likely to be published soon, the indications are that GAAR provisions will be diluted quite substantially. This has gone down well with FIIs. Some 3-4 months ago, when I went to the US, nobody seemed to be interested discussing India. There has been a drastic change in FIIs’ stance towards India lately. Two weeks ago, when I met the same US investors, they were palpably more interested in India.
What do you make out of domestic and global macros?
There are some signs of life coming back into the US economy and you can make out from interactions with the people at the ground level like taxi drivers, retailers etc. who believe that there are more jobs being created. The economic data points, too, suggest some recovery there. On the other hand, the domestic scene in India looks worrying with no economic turnaround seen so far. Our survey of large distributors across the country suggests that big-ticket discretionary spending on items like two wheelers, consumer durables, jewellery, etc. has seen a major crack while consumer staples demand is still there. But there’s no point correlating economic growth with stock market performance as there is no link between economic growth and the stock market.
The domestic economy is not doing well and macro conditions remain weak? Do these pose risk to market upside?
Whether its in our country or anywhere else in the world, there’s no real correlation between stock markets and economic growth. The economy never leads the market, not here or anywhere else. To give you some sense, take the case of Chinese economy which has grown strongly over the past several years but the Chinese stock markets haven’t gone anywhere. Similarly the case with the US between 1966 to 1982, but the US markets gave you zero returns in spite of the economic growth holding up fairly well at the beginning of this period. In most markets, the ratio of market capitalisation to national income gyrates significantly and there’s no significant correlation between the two. If anything holds true, it’s the fact that stock markets lead the economy and not the other way around. There is normally a lag of around 6 months between markets moving up and the subsequent improvement in economic activity.
What do you make out of consistent downward revisions in Sensex earnings’ estimates and its impact on markets?
The price to earnings multiples in India in the past have been quite flexible. Hence, a modest 4-5% change in EPS gets easily overshadowed by a P/E rerating if there is a rise in the risk appetite of investors. We have seen P/E in Indian markets going from over 24 times in the late 2007 to as low as 11 times in the months after the Lehman crisis. With so much gyration in P/E multiples, which in turn is dependent on liquidity conditions and global investors’ risk appetite, minor downgrades in EPS of, say 4%, won’t make much of an impact. Although we may see a further 4% points drop in EPS, the same is not likely to influence the markets much. The big story at this point in time is whether the P/E multiple can expand from 15 times to 17 times and if it does so, it will take our markets beyond 19000. Our base case suggests Sensex target of 18500 by Diwali which seems very much on the cards. However, for markets to cross 19000 this year, P/E needs to expand beyond 17 times, which seems unlikely this year. For that to happen, you need an extra notch of investor confidence which may come in by the next year if the US economy shows a more definitive recovery or if we see big-ticket reforms from the government.
Which are the sectors you are overweight on currently?
We are positive on the consumer durables space that includes companies making pressure cookers, toasters, heaters, etc. There is a whole new generation of consumer that is making their first branded goods purchase and this will likely keep the volumes steady. Also, we like selective light industrial manufacturing companies. Key consumer staples or FMCG companies continue to look good with volume growth remaining robust for them. We also like selective auto and auto ancillary stocks which are export oriented and may benefit from rupee depreciation as they are now price competitive with Chinese exports in African and other emerging markets.
What’s your call on the banking sector?
We are heavily underweight on banking stocks — both PSU and private banks. While public sector banks struggle with asset quality concerns, private banks are trading at high valuations with markets having already made the differentiation. As a result, I am losing more sleep over the private sector banks than the PSUs. Also, the banking as a sector is dependent on the economic growth of the country and with GDP slowing, the scope for profitable financial intermediation has reduced. Hence, GDP growth has a direct correlation with the weight of banking segment in the overall market index… we expect the weight of BFSI sector in index to come down from 26% currently to a significantly lower figure a year hence.
How do you see markets from here on?
I expect small-ticket reforms to come through once the monsoon session of Parliament ends as the government doesn’t have too many options if it wants to avoid a potential sovereign downgrade. Though we may not see big-ticket reforms during the term of the current government, crucial measures like diesel price hike or partial deregulation along with reforms on the FDI front are likely to bring cheer to the markets. We should see markets touching 18K and there is always an outside probability that with abundant liquidity around and some positive reforms in India, we may see 5-10% further upside. We have been maintaining that markets may inch up towards 18000 to 19000 and that view remains intact. We remain constructive on Indian markets in the near term.

I have a home loan from HDFC. If I were to transfer the loan to another bank, will HDFC charge a prepayment penalty? I am also being given an option by HDFC to convert to a lower interest rate after paying a fee. Which is the better option?
In view of the latest circular of National Housing Bank (NHB) dated August 7, 2012, you need not pay prepayment fees to HDFC for transferring your loan to another lender as long as it is not a fixed rate loan. Even in the case of teaser rate home loans, the prepayment can only be levied during the fixed rate period and not beyond that. You have not mentioned the amount of loan outstanding and the new interest rate being offered by HDFC.
But if by paying 0.56% (0.50% plus service tax) of the outstanding loan, you are able to get a floating rate of interest of 10.50%, you should go for the conversion. If the new rate being offered is higher than that, you should look at the possibility of transferring your loan to SBI (if the outstanding loan amount is below `50 lakh) or to foreign banks if the outstanding loan amount is above `50 lakh. The options are available only if you have a spotless track record of repayment with not only HDFC but also on any other loan or credit card availed by you from any other institution. You can get a copy of your own credit score online itself on www.cibil.com . Please obtain your credit score before you examine options. A better score will give you the better ability to negotiate with the lender.

Are you sweating over the missed opportunity to file taxes for one last time, that just went by on August 31? Well, take heart, not all seems to be lost. For all practical purposes, you have as many as 7 more months, that’s till March 31 next year, to honour your commitment. Here are a couple of issues that are worth a look before you actually start off.
Tax liability
First thing first. It’s the liability that’s serves as a broad indicator of your tax status. You will be better off if tax has been deducted at source or any advance tax, for that matter, has been filed. This makes the task easier as you can now afford to file returns before March 31 without, of course, paying any penalty. “However, if you idle around and even miss this deadline, get ready to pay a penalty of up to `5,000,” warns Balwant Jain, chief financial officer of Apnapaisa.
Let’s consider the second scenario where no taxes have been paid. There’s a little bit of math that kicks in here, that is you will have to cough up a penalty at the rate of 1% every month for the period of non-payment. If the liability is upwards of `10,000, then an advance tax is due. Any non-compliance will attract an interest that will be charged from the date the tax has not been paid.
A simple error in Form 16 can create complications too. That’s why you must bring it to the notice of your employer and get it sorted out immediately. “In this scenario, people should not wait for the rectification to come, instead they should go ahead and file returns. What is essential is the information being keyed in should remain authentic,” adds Jain.
The no-go zone
There may be some room to file taxes even after the extended cut-off, but as they say there’s no free lunch — you are up against certain restrictions if you fail to measure up.
Ravindra Jain, principal consultant-corporate advisory and taxation services, RSM Astute Consulting, points out that no revision of returns is allowed under these circumstances. This means one has to be extremely cautious while filing returns and any margin of error is just not acceptable once the deadline is over.
There’s more, you can not carry forward any losses while filing taxes. In general scheme of things, if you suffer loss while investing in mutual funds or stocks, the tax department allows you to carry forward the same for eight years. But in the case of missed deadlines, this window of exemption gets severely restricted. And it shows in refunds too as a delay in all probability can upset all your calculations.
Your tax discipline has a ripple effect as well —for instance, it determines your chances of securing a loan in future. The ITR form for the last three assessment years gives the authorities a fair idea of your track record, which helps in disbursement of a loan. So, it definitely works to your advantage if you make sure not to overshoot the line.
Ignore these at your own peril
Most instances of breach, experts feel, come in from those who fall in the lower tax bracket and have a lesser tax outgo. This year, the extended opportunity for tax payers followed a blackout of a massive scale in North India on July 31. The key takeaway, thus, is when it comes to return filing, any procrastination can ultimately prove pricey. But as in life, there’s always a second chance.