ECONOMICS

RBI rate hike

RBI Policy Review – No more accommodative

In an off-cycle meeting, the RBI raised the policy rate by 40 bps to 4.40%. Consequently, the SDF rate was increased to 4.15% and MSF rate to 4.65%. Yesterday’s surprise move is perhaps instigated by a couple of factors. Firstly, the 50 bps FED rate hike which came yesterday night. Secondly, the upcoming April inflation …

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Inflation global

Global Inflation drives G-Sec yields

Markets have been range bound over the last month as inflation increased leading to increase in 10 year G-sec rates globally. NIFTY & SENSEX were up 19.4% & 17.5% in FY 22. This move has largely been driven by DIIs due to strong inflows into mutual funds which offset strong FII outflows over last year. …

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Global Inflation

Global inflation spooks markets

Markets corrected marginally over the last month partly due to rise in global inflation & talks of interest rate hikes. Markets have corrected ~10% from all time highs. We expect 2022 to bring significant relief & hope for everyone due to economic revival, though inflation remains the primary concern. December quarter earnings have been mostly …

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Bull 2021

The bull on the rampage in 2021

Markets remain buoyant as both NIFTY & SENSEX reclaimed 18,000 & 60,000 levels. For CY21 the NIFTY was up by 24.1% while SEXSEX was up by 22% for the full year. Markets have been quite resilient through the year despite the 2nd covid wave as markets have hardly corrected 10% at any point of time. …

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beyond covid

Looking beyond COVID

Markets were range bound over the last month as NIFTY & SENSEX consolidated around 18,000 & 60,000 respectively. COVID numbers have also been declining gradually as vaccinations pick up. Liquidity remains strong on the domestic front though we are witnessing some foreign outflows. The markets look over heated at the moment. We have just concluded …

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Retrospective taxation

Retrospective taxation- Overhang removed

“Retrospective Taxation”, these two words have roiled foreign investors looking at India over the years, and led to multiple disputes between the Indian government and global majors like Vodafone and Cairn. Going back in history, in May 2007, Vodafone bought majority stake in Hutchison Whampoa for $11 bn. The Indian government has raised a demand of Rs 7,990 cr …

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markets new highs

Markets scaling new highs

Markets remained buoyant as NIFTY & SENSEX hit new highs but failed to break out remaining range bound over the last month. NIFTY has been range bound between 15500-15950 levels. Liquidity remains strong especially on the domestic front. The markets have hardly been impacted by the 2nd wave of COVID over the last 3 months. …

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COVID

COVID rearing its head up- April 2021

Markets remained buoyant as NIFTY & SENSEX were up 71% & 68% in FY 21. This move has largely been driven by liquidity due to strong FII inflows over last few months. Although we are currently witnessing the 2nd wave of COVID with a sharp spurt in cases, mortality rates remain low, partly due to …

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oil on the boil

Oil on the boil – March 2021

Markets remained buoyant as both NIFTY & SENSEX hit new highs, SENSEX above the 50,000 mark while NIFTY is above 15,000. This move has largely been driven by liquidity due to strong FII inflows over last few months. Sentiments have further been boosted by declining COVID numbers & increased vaccination. FII have been buying heavily …

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Union Budget 21-22

UNION BUDGET 2021-22 – Driving growth

The Union Budget 2021-22 was presented on 1st February 2021 amid a challenging macro environment. With the first decline in nominal/real GDP in four decades, the Government had to walk the tightrope, which they seem to have done. Though there is no large fiscal stimulus, the absence of any tax hikes and better fiscal math …

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