Rupee & PFC Flows

Permanent Foreign Currency (PFC) flows are spooking the rupee… Source: Bloomberg Quint Over the last few months, the INR has been on a consistent downtrend. From a level of around Rs.64/$, the INR has already gone beyond Rs.68/$ and traders are actually anticipating the level of 70/$ to be breached soon. What exactly has changed…

June Credit Policy

RBI could interject with a 25 basis points rate hike… Most reports coming out ahead of the June credit policy appear to be hinting at a status quo on rates. The RBI has been expressing concerns over prices but the Monetary Policy Committee (MPC) has generally veered towards a status quo on rates. However, June…

$200 Billion Cut

That is the trade deficit reduction that China has promised the US… As India obsesses over the likely outcome of the Karnataka elections, there is a more subtle shift that is happening globally. In the midst of all the saber rattling over trade-related issues, China has finally decided to raise the white flag and talk…

Brent $100/bbl

Over the last 5 years, the Nifty gave returns of 73.86% at a time when Brent crude gave (-26.13%). That is clearly a negative correlation. But, what happens if crude oil was to touch a level of $100/bbl by next year? At least, BOFA thinks that is a distinct possibility! What does that mean for…

Flipkart Sells Out

Raises bigger questions about Indian home-grown businesses… In one of the biggest ecommerce deals, Wal-Mart bought a 77% stake in Flipkart for a consideration of $16 billion. This gave Flipkart an enterprise valuation of $21 billion. For quite some time, Flipkart was looking for an honorable exit after it became clear that it would find…

Rupee at 70/$

Sounds scary, but that day may not be far off… In the last few weeks, the Indian rupee has shown some distinct weak signs. From a level of around 64/$ a year ago, the INR has weakened closer to the 68/$ mark in the first week of May. Broking reports are already indicating INR at…