Commodity Options

The biggest challenge will be liquidity and asymmetry… The SEBI took a major step this week by announcing the regulatory and operational framework for commodity options. The largest commodity bourse by volumes, MCX, has already indicated that it will be ready to launch commodity options in the next 3-4 months. Before we get into the…

Big Trade Question

Are we letting the INR ruin our trade equations? The trade data for the month of May 2017 has raised some serious question. While the exports are up 8.32% on a YOY basis, the imports are up by 33% during the same period. As a result, the trade deficit has settled at around the level…

Chasing Bank NPAs

How the RBI has taken two important steps to rescue the banks… In the last couple of months, the RBI has initiated two very important measures that will go a long way in alleviating the problem of NPAs in the banking system. At over $110 billion of NPAs and nearly $180 billion of stressed assets,…

Gold and GST

How it could be a game-changer for the Indian gold industry… The GST Council finally announced the rate of GST on gold. At 3% GST the Council has almost maintained the status quo on gold rates. Currently, gold attracts 1% excise plus 1% VAT and 0.5% cess. Thus the total impost on gold will marginally…

Infosys Promoters

What happens if they entirely exit the company? On the 09th of June, the Infosys stock price corrected sharply on the back of news that the founder promoters may be looking to completely exit the company. While the initial reaction was one of panic, the question is whether it could really impact the stock in…

RBI Turns Dovish

Could this be a signal for an impending rate cut? The RBI monetary policy announced on June 07th maintained status quo along expected lines. But focusing purely on the rates would be missing the bigger picture. There are four key takeaways from the policy which point towards a more dovish stance from the RBI… Finally,…

Paris Climate Accord

What happens after Trump has walked out? In a move that was not exactly surprising, Donald Trump announced the unilateral withdrawal from the Paris Climate Accord. Trump’s contention was that the Climate Deal was heavily loaded in favor of countries like China and India and was contrary to the interests of the US. The big…

RBI Rate Cut

Will the MPC bite the bullet in the June Credit Policy? A day after the GDP data was announced, there was little impact on the stock markets. Markets were expected to correct sharply after the weak Q4 GDP data. But the equity markets were giving a different twist to the argument. Markets believed that the…

Q4 GDP Growth

It looks more like a temporary weakness than a structural problem… The GDP estimates released for the fourth quarter of 2016-17 and for the full fiscal year have come in lower than expected. While the quarterly GDP growth came in at 6.1%, the full year GDP came in at 7.1%. A cursory look at the…