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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…

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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…

$200 Billion Cut

That is the trade deficit reduction that China has promised the US… As India obsesses over the likely outcome of the Karnataka elections, there is a more subtle shift that is happening globally. In the midst of all the saber rattling over trade-related issues, China has finally decided to raise the white flag and talk…

Brent $100/bbl

Over the last 5 years, the Nifty gave returns of 73.86% at a time when Brent crude gave (-26.13%). That is clearly a negative correlation. But, what happens if crude oil was to touch a level of $100/bbl by next year? At least, BOFA thinks that is a distinct possibility! What does that mean for…

Flipkart Sells Out

Raises bigger questions about Indian home-grown businesses… In one of the biggest ecommerce deals, Wal-Mart bought a 77% stake in Flipkart for a consideration of $16 billion. This gave Flipkart an enterprise valuation of $21 billion. For quite some time, Flipkart was looking for an honorable exit after it became clear that it would find…

Rupee at 70/$

Sounds scary, but that day may not be far off… In the last few weeks, the Indian rupee has shown some distinct weak signs. From a level of around 64/$ a year ago, the INR has weakened closer to the 68/$ mark in the first week of May. Broking reports are already indicating INR at…

Equity SIPs

What explains this huge traction in SIPs? Source: AMFI India The latest data put out by the Association of Mutual Funds of India (AMFI) on mutual fund SIPs is quite encouraging. There has been a sharp 53% growth in total SIPs in fiscal 2018 compared to fiscal 2017. What explains this huge traction on SIPs…

Are Boards Working

Damodaran is right on calls for greater governance… The former SEBI chairman has some serious reservations about the way boards function in India. In the aftermath of the ICICI conflict of interest case, Damodaran has been quite vocal about the role that directors of the board play in such exceptional events. According to Damodaran, in…