Prime Minister commenced his 4-nation tour with a visit to Germany. Based on initial reactions, at least, the visit appears to be a huge success. However, it is more important to understand the context of the visit and why the visit assumes special significance in the current circumstances. Continue reading →

The monetary policy announced by the RBI on 07^th June maintained status quo on the repo rates. This was along expected lines. The lower levels of inflation and the tepid growth in GDP did make a case for a rate cut on a theoretical basis. But, the RBI had different ideas. Their view was that recent data on inflation and growth may be temporary and may not be reflective of the larger structural reality. Here are the key takeaways from the Monetary Policy announcement… Continue reading →

From the time FIIs were permitted into the Indian markets, they have continued to influence the direction of the Nifty and the Sensex in a meaningful way. In fact, FII buying and selling has almost become like a veritable barometer to judge the direction and trajectory of the equity markets. Intuitively, if you were to look at the rallies and market crashes in the last 15 years, they are typically accompanied by aggressive FII buying and selling respectively. Even over a much shorter period, that situation continues to hold. Let us understand this FII phenomenon by focusing on the last 1 year of FII data and correlate with the market movements. Continue reading →

Earlier in the week, rating agency Moody’s downgraded China’s sovereign rating by one notch from “AA3 to A1”. This is the first time that the sovereign rating of China has been downgraded in the last 3 decades. The last time the rating of China was downgraded was back in 1989 in the immediate aftermath of the Tiananmen Square massacre. The Chinese government back then had rolled heavy tanks over a student protest in Tiananmen Square in Beijing leading to the death of over 10,000 students. However, things changed drastically after that! Continue reading →

In May 2017, the GST Council announced rates for most of the goods and services. There are a handful of goods like gold, bidis and cigarettes where the final rates of GST will be announced during the June meeting of the GST Council. Broadly, the impact of GST on various sectors must be analysed along four broad lines. Remember, it is not just about rates… Continue reading →