Key-takeaways from Trump Press Conference

The much-touted Trump press conference was a classic case of “much ado about nothing”. There were expectations on some announcements pertaining to taxes and infrastructure spending. The speech dwelt a lot more on Russia, the media and said very little about the reformist noises that markets actually wanted to hear. On the other hand, Trump disappointed by being harsh on the pharma sector and on US companies outsourcing their activities to lesser-cost destinations in emerging markets. Here are the take-aways… Continue reading

Four equity themes that will drive markets in 2017

Year 2017 promises to be a challenging year for equities. Firstly, India’s GDP growth may struggle to reach the 7% mark for the full year. That will bring a lot of old-economy company valuations into question. Secondly, US-oriented businesses will be trying to absorb the signals coming from Donald Trump on outsourcing, pharma audits and border tax. Thirdly, oil prices could finally show strength during the year and that will determine the fortunes of many Indian companies in the year. Lastly, two critical trends will drive Indian markets in the year 2017. Demonetization has set in motion the process of digitization and we will see greater convergence of payments banks, telecom companies and NBFCs. This process of digitization will be a key theme to play on in the coming year. Additionally, the passage of GST will be a major push for the coming year. Although the implementation will happen in July 2017, the impact will be felt in the coming year for sure… Continue reading

Strong Dollar – Why global markets need to be cautious

Global bond guru, Mohammed El Erian, has warned the world markets about the perils of a strong dollar. As the world is coming to believe that a strong dollar could be a big benefit, Erian’s views are of tremendous value. Here are the 3 reasons why Mohammed El Erian is extremely wary of a strong US Dollar… Continue reading

Big Shift at TCS

On a day when TCS announced a stable growth of 1.5% in revenues and 2.9% in profits, the attention was occupied by a different subject altogether. On the same day, the company made two major changes. The current TCS CEO moves on to take charges as the Chairman Tata Sons. Chandra will be replaced by CFO, Rajesh Gopinathan, who takes over as the next CEO of TCS. What are the big challenges for Rajesh as he steps into Chandra’s shoes? Continue reading

What is the outlook for gold in 2017?

Gold had a virtual rollercoaster ride in 2016. From the lows of January 2016, gold rallied nearly 30% before giving up a chunk of the gains in the light of Trump’s aggressive growth pitch. Economic growth and gold prices rarely go hand in hand. Gold is a parasitic asset class that typically thrives when there are question marks over other asset classes. So what does gold hold for the year 2017? Continue reading

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