Central Bank Moves

What are the key takeaways from the Fed and BOJ policy stance? During the week, two key central banks made critical announcements. The US Fed and the Bank of Japan may not have moved rates but they did some critical moves from a long term perspective. More importantly, it is essential to understand the long…

Budget Shift

The Union Budget presented in 2017 could be unique… Budgets are normally staid documents and hence the structure and flow are rarely tampered with. To the extent possible, the prevailing practices are respected, unless absolutely necessary. It is in this light that three major changes in the budget format needs to be evaluated… No more…

Non-Compete Fees

The final decision may be a real tight-rope walk… In the proposed merger between HDFC Life and Max Life, a unique problem has arisen. It has got to do with corporate governance and putting the interests of minority shareholders paramount. Proxy advisory firms have cried foul over the payment of non-compete fee in the event…

Will RBI Cut Rates?

The RBI may finally have a compelling reason to cut rates… There has not been much clarity on the regulatory thinking on repo rates. The industry has been clamoring for rate cuts but till last month, high inflation had served as a dampener. When the RBI meets next for its monetary review on October 04,…

Direct Trading

It really may not add too much value for the FPIs… In its board meeting on 23rd September, SEBI proposes to offer exchange membership directly to the FPIs. Currently, foreign portfolio investors (FPIs) use the service of domestic and FII brokers to execute trades. If these FPIs are offered exchange membership, they will not require…

Mid-Cap Stocks

It looks like valuations are finally hitting a wall of worry… As leading Indian brokers take a negative view on mid-caps, the question is whether the rally is actually over. There may be no simple answers. However, there are early indications that the mid-cap valuations are climbing a wall of worry. Here are 4 reasons…

Q1 GDP Data

Should India get accustomed to a new normal in growth? The GDP data announced for the first quarter of the current fiscal has come in lower than expected. GDP growth rate was at 7.1% annualized for the quarter ending June 2016. This compares unfavorably with the 7.5% reported in the corresponding period last year and…

Reliance Jio Launch

Three things we need to remember about telecom disruption… If there was one underlying theme in Mukesh Ambani’s speech at the 42nd AGM, it was disruption in telecom. The telecom industry is likely to change substantially from here on. Data prices will be slashed and voice and messaging will become virtually, if not entirely, free.…