Twin Deficits

Fiscal deficit may negate the benefits of current account surplus It was a week during which two major macroeconomic announcements by the government dominated the headlines. On 30 September, the current account balance for the Jun-20 quarter and the fiscal deficit for the first five months of this fiscal were announced. Here are some interesting…

Stamp Duties

What do uniform stamp duties mean for stock markets? During the week, the Ministry of Finance issued a circular announcing uniform stamp duty on all financial market transactions effective 09th January 2020. This had been on the cards for quite some time since Piyush Goyal first made the announcement in the interim budget 2019. Here…

Value Troika

How HDFC Bank, RIL and TCS have held the markets aloft On the day RIL results were announced, the company touched a record market cap of Rs.900,000 crore. This is a record of sorts and immediately led to worries in the market about rich valuations. Currently, 3 Indian companies; RIL, TCS and HDFC Bank are…

Macro Cues

Inflation and IIP growth a positive; Trade deficit widens It was a week of key macro data announcements. The week saw key data points being announced on inflation (both retail and wholesale), IIP growth and the trade data. There are some interesting signals coming from data. What’s the inflation message? CPI inflation has come under…