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…

Short Selling

SEBI curbs on short selling may work, but it may be a tad too late During the week, the regulator stopped short of imposing a ban on short selling. Instead, it tweaked the MWPL limits and the margin requirements to discourage the creation of naked short positions. It may still work in curbing speculation but…

Yes Bank

Who is actually paying the price of the Yes Bank bailout? It has been a hectic 15 days for the depositors and investors in Yes Bank. The bank had come under an RBI moratorium on 06 March but it was rescued in less than 2 weeks. While the rescue is done and dusted, the question…

Private Banks

What explains the sharp fall in Private Banks in March? Between Jan-20 and March-20, the Nifty Private Bank index lost 38%. What was more surprising was that 30% out of the 38% correction happened in the month of March. What explains this sell-off in private banks? Economic slowdown worries The Coronavirus has put a cloud…

Repo Rate Cut

It’s time for the RBI to intervene and cut rates at the earliest In the immediate aftermath of the Fed rate cut in March-20, there were strong expectations that the RBI would follow suit. However, the RBI has chosen to go slow and avoided jumping into a rate cut. Is it really time for the…