Current Account

The CAD is a lot more worrisome than the trade deficit… During the week the trade data was announced wherein the trade deficit came in sharply lower at $12 billion. This is in comparison to $16 billion reported in the month of January. Even the growth in exports of goods was sharper than the previous…

Equity Fund Flows

Flows continue unabated in Feb despite the LTCG overhang… At a time when the markets were worrying about the impact of LTCG on the equity fund flows, AMFI data for February shows otherwise. Consider the statistics. During the month of February, equity funds and ELSS schemes saw a net inflow of Rs.16,300 crore with more…

Crude Oil Prices

Shale output could hold the key to future oil prices… Between July 2017 and January 2018 the price of Brent Crude went up from $45/bbl to $70/bbl. While the price has toned down to $64/bbl, oil analysts are betting on oil prices staying elevated till the year 2020. Here is why! Supply cuts to continue……

Fugitive Legislation

The Draft Bill is far-reaching but should not be misused… In the immediate aftermath of the $2 billion PNB fraud caused by Nirav Modi of Firestar Diamonds, the government has approved the draft of the Fugitive Economic Offenders Bill in the cabinet. This is a far-reaching bill and gives the government broader powers to punish…

GDP Q3 Estimates

There is a bounce, but now it needs to sustain… The GDP estimates for the third quarter of the financial year came in at 7.2%. That is a sharp rise from 5.7% in the first quarter and 6.5% in the second quarter of the year. While the bounce in GDP estimates is evident, there is…