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ICICI Bank

A lot of questions are still left unanswered… Source: Moneycontrol If one really wants to understand what has gone wrong with ICICI Bank, one needs to look at the price performance. As the chart indicates, ICICI has not only underperformed its peer, HDFC Bank, but even the Bank Nifty by a huge margin. The problem…

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ICICI Bank

A lot of questions are still left unanswered… Source: Moneycontrol If one really wants to understand what has gone wrong with ICICI Bank, one needs to look at the price performance. As the chart indicates, ICICI has not only underperformed its peer, HDFC Bank, but even the Bank Nifty by a huge margin. The problem…

IDBI Bank

Let us not push LIC also the UTI way… Late last week, the government hinted at selling part of its stake in IDBI Bank to LIC. To be fair, this is not the first time that LIC has bailed out the government by dipping into its reserves. During the last 1 year, the government has…

Global Trade War

Are we underplaying the consequences of a trade war? Even as we write the global trade war appears to be going into an endless spiral. One can argue that it was the US that started, but the US is not likely to be the loser in the entire game. The US dollar is still the…

Sensex Rejig

Pharma stocks lose relevance in the Sensex Source: Motilal Oswal With the Sensex Index Committee planning to drop Dr. Reddy from the index and replacing it with Vedanta, it will reduce the share of pharma further in the index. Lupin and Cipla are already out of the Sensex, leaving Sun Pharma as the only pharma…

NRI Bonds

The RBI may not really have much of an option now… India has had a history of falling back upon its NRIs to bail them out in the event of a likely currency crisis. The first time India actually did that was in the aftermath of the Pokhran sanctions in 1998 when it raised $5…

Fed Rate Hike

Why the language of the Fed matters more this time around… When the Fed concluded its meeting on the 13th of June, there was little by way of surprise. The Fed futures on the CME were already indicating a 97% chance of a rate hike. So, there was little surprise when the Fed hiked the…

Rupee & PFC Flows

Permanent Foreign Currency (PFC) flows are spooking the rupee… Source: Bloomberg Quint Over the last few months, the INR has been on a consistent downtrend. From a level of around Rs.64/$, the INR has already gone beyond Rs.68/$ and traders are actually anticipating the level of 70/$ to be breached soon. What exactly has changed…

June Credit Policy

RBI could interject with a 25 basis points rate hike… Most reports coming out ahead of the June credit policy appear to be hinting at a status quo on rates. The RBI has been expressing concerns over prices but the Monetary Policy Committee (MPC) has generally veered towards a status quo on rates. However, June…