The RBI raised interest rates by 0.25%. Should that really be a worry? If so, for whom? The banks aren’t going to sit around without passing on the cost increase. In fact, they may first try not to raise their cost. So, the deposit rates may well stay where they…
Steroids are wonder drugs meant to pull things up with recipients. Putting steroids to work is often an easy option before physicians who see a need to pull someone up quickly from a difficult situation. But, the recipients should be ready to take the impact of steroids. Putting an economy…
The third week of results season just went by. The last of the week’s results came from HDFC bank, India’s most adored bank. The numbers were trending down for a second quarter in succession. These numbers are a pointer. When a marquee company tends to trend down in performance, the…
Investors tend to be influenced by others when they decide what to do with their money. After all, investors always try to be on the same side of the majority. By that logic, Indian investors must have bought last year when the FII’s invested heavily in Indian equities. But, that…
The loss of public confidence is the most difficult thing that Nations face in building their infrastructure. If the investing public is confident that their government is capable of handling any crisis, they will remain invested and stead fast in their investment beliefs. The last decade must be called the…
2013 winds to a close and it is time to set expectations for 2014. Investors expected little from equities in 2013 and they clearly got more than they expected. Expectations for 2014 seem to be qualified by the election factor. A win for BJP would see a reset of expectations…
Quick Edit: The Indian parliament has sat for the least hours in 2013. Sad, isn’t it? But, in the year that Parliament failed to have its usual sessions, it has actually transacted the most important and pending business in recent history. So, FDI in retail, Lokpal and several important legislations…
One week we are celebrating political change. The next week is a very different one. The economic compulsion of politics simply takes over. The mood changes drastically. When food inflation is dogged and unrelenting, fighting it becomes a central banker’s job. But, in doing so, the RBI boss needs a…
When politics sets the agenda for the stock market, it often leads investors to a state of confusion. Should one put economic realities behind and make a leap of political faith? A rational mind will think otherwise. But, investing often goes beyond the rational. Most investors show readiness to overlook…
Quick edit: When will America withdraw their economic stimulus? What will happen if they stop pumping $ 85 billion every month into their economy? Will they actually stop stimulus? Rumor mills and speculation about America’s economic stimulus plans affects every emerging market. India is no exception. One thing is for…
The runaway inflation in agri products has virtually tied the RBI’s hands. Worse, it has tied the UPA in a bind. Inflation continues to stalk the economic policies of the UPA and this stalker isn’t going away anytime soon. The reasons are simple. When you create an asset bubble in…