Cash Stash

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…

Eye on WPI

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…

RBI April Policy

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…

Demonetization

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…

RBI says Neutral

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…

Budget & Markets

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…

Budget & Macros

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…

Budget & Equities

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……