What do IT companies do with so much cash? The issue of cash on the balance sheet of IT companies has come back into the limelight for a variety of reasons. Firstly, Cognizant declared a $3.4 billion buyback and logically Indian IT giants like TCS, Infosys and Wipro were expected to follow suit. Secondly, Indian…
Why the WPI inflation may become more critical going ahead… During the month of January there was a slight anomaly in the retail and WPI inflation numbers. Normally, the CPI number over the last 2 years has been higher than the WPI number. In fact, at one point in mid-2016, the gap between CPI inflation…
Why a rate cut is highly unlikely in the April Monetary Policy… Every since the RBI shifted its monetary stance in its Feb Policy to “Stable” from “Accommodative”, there have been questions over future rate hikes. While another 2 rate hikes during the current calendar year cannot be ruled out, we still feel that an…
Have we overestimated its negative impact on the economy? Even as the demonetization drive was in full swing during the months of November and December, the media was full of scary reports. It was predicted that the cash crunch caused by the demonetization drive will suppress liquidity, subdue demand and force a downside in the…
An age old conflict between the old and the new… Even as the simmering dispute in the Tata Group between the Mistry family and the Tata Family appears to be coming to an end, there is a new battle that is emerging. This one pertains to Infosys; a company that has not just been an…
Is it the end of the road for repo rate cuts by the RBI? The RBI decision not to cut rates in the monetary policy on Feb 08th did not really come as a surprise. What actually surprised the market was that the RBI changed its stance to “Neutral” from the previous “Accommodative”. That raises…
How financial Institutions will be impacted by the Budget… A very subtle aspect focused on by the budget was on financial markets and institutions. These have larger implications for the integrity of the markets. Here are some of the key institutions that the budget addressed… FIPB stands abolished… The Foreign Investment Promotion Board (FIPB) was…
This budget will make a substantive difference to macros… Probably, this budget had a lot more for India’s macros than she could have bargained for. Above all, this budget has tried out the fine balancing act of trying to push growth without going too lax on the fiscal deficit… No to pump priming… The big…
Why the Union Budget is a big boost to Indian equities… The Union Budget 2017-18 has been a morale booster for Indian equities. While there were some specific benefits for equities and some indirect benefits, the overall theme of growth and spending was the real story as far as equities were concerned… Rural spending story……
The Union Budget announced by Arun Jaitley on February 01st was the first budget that was announced a full month early. It was also the first budget to combine the Railway Budget after 93 years of having a separate Railway Budget. It was also an important budget as it came in the immediate aftermath of…
