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Inflation Tapers

But will it change RBI’s interest rate strategy? Source: Trading Economics Retail inflation as measured by the CPI inflation tapered to 3.69% for the month of August. That is a 10-month low and that is the good news. But will it really change the outlook of the RBI with respect to interest rates and is…

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Inflation Tapers

But will it change RBI’s interest rate strategy? Source: Trading Economics Retail inflation as measured by the CPI inflation tapered to 3.69% for the month of August. That is a 10-month low and that is the good news. But will it really change the outlook of the RBI with respect to interest rates and is…

IL&FS Fiasco

Has India once again been caught napping? When IL&FS defaulted on its ICD with SIDBI for the second time on Friday, the alarm bells surely started ringing. In fact the warnings were already out when IL&FS first defaulted on its ICD to SIDBI a couple of weeks ago. That was the time most of the…

Rupee Package

Measures announced are too generic and far-fetched The rupee rallied sharply over the week-end after a touching a low of 72.91/$ to close at around 71.85/$. Even the 10-year bond yield tapered on expectation that the weekend package to revive the rupee would do away with the need to hike rates for the RBI. But…

Big Companies

They are almost all from the tech sector Source: PWC According to a recent study done by Price Waterhouse Coopers, the global market capitalization of the top 100 companies has increased by nearly $11.5 trillion in the last 9 years since the financial crisis. But what is striking is the dominance of a handful of…

Electric Vehicles

Gadkari’s projections may be ambitious… When Nitin Gadkari painted his picture of the future of Indian auto, it looked exciting and also a tad ambitious. Gadkari expects Electric Vehicles (EV) to constitute 15% of Indian auto sector by 2023 and 100% by 2033. While the numbers may sound a bit lofty, his thinking is surely…

Bond Yields

Will 8% be the new normal for the Indian bond markets? During the last one week, the 10-year bond yields decisively settled above the 8% mark. After touching a high of 8.06%, the bond yields settled around the 8.03% mark. What is material is that 8% is not the psychological barrier anymore and now appears…

Forex Reserves

The central bank has a real problem on hand… Source: Trading Economics For the first time during this year, the forex reserves of RBI fell below the $400 billion mark. This is a sharp fall from the levels of $427 billion at the beginning of this fiscal. So how did the dollars deplete so rapidly?…

L&T Buyback

What exactly could have driven the buyback by L&T? During the previous week, L&T announced its first ever buyback in history. The issue was also the third largest buyback in India, with the two largest tranches having been already completed by TCS. That raises a critical question. Buybacks are understandable for tech companies with mountains…