Templeton Funds

FT has added a new dimension of risk to Indian debt funds On April 23rd, Franklin Templeton India announced the winding up of six of its debt funds. The common thread among all these funds was that they were all debt funds. These six funds would entail the winding up of 14 segregated fund portfolios.…

Oil Futures

Long traders in crude oil on the MCX must learn to take the losses On the evening of 20th April, the WTI oil futures contract dipped to a low of $- 37.66/bbl due to a sharp demand drop. The shortage of storage in the US also took the US crude into negative. In the process,…

Facebook Deal

Facebook stake in Reliance Platforms could have larger implications The much talked deal between Reliance and Facebook finally happened during the week. Facebook announced its investment of $5.7 billion into Reliance Platforms (owner of digital assets of Reliance) for a 9.99% stake. This would mark one of the biggest investments for a minority stake in…

Trade Data

The real worry could be the compression in exports and imports A cursory glance at the trade deficit numbers could actually be gratifying for the reader. Merchandise trade deficit at $9.7 billion is well within control. But that may not be the real narrative alt all. What the Indian economy must worry about is the…

SIP Closures

Investors and advisors must address the SIP Closure Ratio For the month of March 2020, the SIP closure ratio rose to a yearly record of 70%. To put that in perspective, for every 10 new SIPs that are opened, 7 of the existing SIPs are closed. The SIPs are still increasing but at a much…

RBI Package

Central Bank gives an aggressive boost to NBFCs and banks On 17th April, the RBI announced slew of measures to boost the sentiments in the market and specifically to bail out the NBFCs. While the package was for markets overall, the primary focus was to help the NBFCs survive the torrid challenges posed by COVID-19.…

Mutual Fund Flows

Mutual fund flows may face two key risks in the coming months For the month of March 2020, AMFI reported total mutual fund outflows to the tune of Rs.212,000 crore. That is the highest single-month outflows seen in mutual funds. Of course, this was led by outflows from debt funds even as equity fund flows…

Pharma Sector

Sweet spot for pharma sector comes with greater competition The pharma sector narrative changed drastically between February and March. In February, the concern was all about API supplies getting disrupted. By mid March, the narrative had changed to how pharma sector can capitalize on the opportunities presented by COVID-19. Look at the stock prices If…

IIP Growth

Feb IIP flatters, but the real challenge will be in March IIP The IIP for the month of February came in at an impressive 4.5%. This is far better than the 2.1% levels seen in the previous month. What does this hold for overall GDP growth and is it a signal of a turnaround in…