India is managing inflation at multiple levels. The last time India cut a sorry figure was when we could not meet the supply for our growing demand. The only way the Government can battle inflation is to manage supply. Policies like the PLI scheme are a good example of producing…
When ownership is with the president of India, and control is with an operating ministry, the lack of alignment between ownership and control is a given. There is nothing new in it. If you go back in time and look at how operating ministries took decisions in PSUs, it will…
Market focus is not changing direction. We have seen in the last 18 months that small and mid-caps have been hugely profitable ideas. Returns have surpassed expectations. When the going is great, investors don’t want to take out resources. They want to be part of the trend. Valuations at such…
Experience teaches us how to respond when faced with similar situations comparable with our past. When we are faced with the same situation, we think about what we did the last time, remind ourselves how we made decisions, recognise the outcomes we got, and then decide how to respond to…
It is important to understand the reason for the government to be in a particular business. In most instances, the government need not be in one, yet we see otherwise. Such a legacy needs to be derailed. How do we deal with such a legacy? One way is to let…
Betting on the markets is betting on growth. That extra 1% GDP growth can translate into significantly higher corporate profit growth. The last 3 years have been lacklustre in terms of economic progress. If you notice even today our economy has not reached the pre-COVID level of growth. Growth is…
When a crisis arrives, there are two ways to respond to it. One is to solve it, and the other is to postpone action. The Evergrande crisis seems to be heading in the latter direction. The same approach is being taken by various Central Bankers in their response to inflation.…
Volatility erupting is not so predictable. It could start out of a housing crisis in China, a crash in iron ore prices, a shortage of semiconductors or even a hike in container freight rates. Any news that threatens the prospects of performing sectors can alter market perception suddenly and swiftly.…
Mr Market is telling us that there are no other investment alternatives. Other investment classes are simply not seen as attractive. Today, risk-taking is seen as a compulsion. This is driving investor anxiety up at a higher pace never seen before. Broad-based retail participation in Indian equities is at an…
Another buoyant week and the Nifty Index has touched a new all-time high. Interestingly the trigger for such enthusiasm seems more mood-related than related to actual corporate results. What Corporate India’s big honchos say is immediately loved by the market participants. Evidence would be the 1-1-1 promise by Mukesh Ambani…
The US Fed Meet clearly signaled its intent on interest rates. While making all the right noises, the Fed still stopped short of what we thought it would do. The markets have some relief to gain from this position. Raising rates or the imminent prospect of it will certainly be…
The markets were rattled by notes from the recent Fed meeting. The prospect of an early end of stimulus and a probable rise in interest rates came out of these notes. This was not quite unexpected. But, the markets were fervently hoping that it would take much longer. Event risk…