First steps to being a financial hub

By – Mr. Jayant Manglik, President of Retail Distribution at Religare Securities Limited 

FDI in commodity exchanges was allowed a few years ago. Now India is set to permit 100% FDI in commodity broking under the automatic route. This highlights the growth potential and the resultant importance being given to this sector. It will ensure that the latest technology and global management best practices are fast-forwarded into the industry. Commodities being international by their very nature, such a step will help in faster integration with global markets. I think it is also another step towards becoming a South Asian financial hub. Club this step with the opening of cross-currency futures & options trading, the Gift City benefits etc and you have a clearer picture. Continue reading

Should investors look at multi-asset class funds?

Mutual funds have offered investors a variety of alternatives to participate in asset classes. We have had pure equity funds and we have had debt funds in their most basic form. Then we have had balanced funds and MIPs which have relied on a mix of equity and debt in differing proportions. There are arbitrage funds which leverage on the spread between equities and futures. There is “Fund of Funds” (FOFs), which enable the Indian investor to participate in global markets. Finally, there are passive funds like index funds and ETFs which allow investors to participate in indices as well as other asset classes like gold. In the last few years, a new class of funds has emerged which are known as Multi Asset Class Funds (MACF). While there are not too many options in the market, they offer a different perspective wherein equity, debt and even other commodities like gold become part of the fund. Here are some interesting perspectives on these funds… Continue reading

Cement Stocks

Why are the markets celebrating them in March…?

For years, these cement stocks have been the stars of a bygone era. After peaking out in 2007, the cement industry has been plagued with excess capacity and weak pricing power. The budget seems to have changed that sentiment to a large extent. Stocks like ACC, Gujarat Ambuja and Ultratech have shown smart gains since the budget. In fact, there are three distinct factors that are responsible for this revival in interest in cement stocks. Continue reading

Fed Holds Rates

But, it may be just too premature for markets to celebrate…

Global markets heaved a sigh of relief when the Fed decided to hold rates. The decision to reduce the number of rate hikes from 4 to 2 in this calendar year has also gone down well with the markets. But scratch the surface and there may not be too much to rejoice about. There are 4 key things that global investors must be cautious about. Continue reading

Pharma Woes

What exactly is wrong with the pharmaceutical stocks in India?

The sector that has corrected sharply in the last few weeks is the pharma sector. At a time when the Nifty has bounced nearly 750 points from its budget-day low, the pharma sector has largely underperformed. This is ironic because over the last 5 years, these pharma stocks have been the best performers in the market overall. So what exactly has spooked these pharma companies? Continue reading

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