Valuations are factoring deep into the future When Reliance AMC announced its IPO last year, the big question was why does an AMC need an IPO and a listing? After all, an AMC is in the business of managing money on behalf of retail and institutional investors. Mutual fund inflows have been quite robust and…
How it offers a new model of bringing down promoter stake… Under the RBI regulations, the promoter groups of private banks are required to reduce their holdings in a phased way. This is to ensure much wider public participation in bank equity. Under the RBI guidelines, Mr. Uday Kotak was required to reduce his stake…
Have rate hikes been front-ended for 2018? The August monetary policy was not on the same plane as the June policy. Ahead of the June policy there was a virtual unanimity that the RBI would hike rate by 25 basis points. Inflation had gone up sharply and neither crude nor food inflation was giving any…
Is it temporary or a structural downturn? You do not have to be too perceptive to fathom that the mid caps and the small caps are in serious trouble. One only needs to look at the three indices in the last 7 months and it is clear that it is the small and mid caps…
No surprises, but opens up new equations for 2019… When the final count of the trust vote was announced by the speaker, there was little by way of surprise. In fact, it was a foregone conclusion right from the very beginning. By the time the formality of the voting started, even the TDP and the…
A lot of questions are still left unanswered… Source: Moneycontrol If one really wants to understand what has gone wrong with ICICI Bank, one needs to look at the price performance. As the chart indicates, ICICI has not only underperformed its peer, HDFC Bank, but even the Bank Nifty by a huge margin. The problem…
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…
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…
What explains the sharp selling in the Nifty…? Source: Google Finance The Nifty showed signs of getting closer to the 10,500 mark during the week but closed below the 10,200 mark. The selling in the last 2 days was quite hectic taking the markets down sharply. What were the key triggers? Politics gets shaky… In…
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…
