RBI Policy Meet: What to Expect from RBI Policy Meet on October 4?

As the RBI goes into another monetary review on October 04th, there are some key things to be watched for. It will be the first policy presented by the new RBI governor, Dr. Urjit Patel. It will also be the first monetary policy that will be announced under the aegis of the Monetary Policy Committee (MPC). More importantly, the monetary policy will be announced at a time when the US will be doing 2 additional Fed meets this year as well as the crucial presidential vote in November. It is in this light that the forthcoming RBI policy on October 04th assumes importance. Continue reading “RBI Policy Meet: What to Expect from RBI Policy Meet on October 4?”

ICICI Pru Life IPO: Why is it important for the Indian Market?

The Rs.6057 crore IPO from ICICI Pru has been oversubscribed by over 10 times. The institutional and the HNI portion were oversubscribed 11.8 times and 28.5 times respectively. The retail portion was just about subscribed but that was to be expected considering the size of the issue. But then, ICICI Pru Life is not just another issue. It is important because it is the first major IPO by an Indian insurance JV and will set the benchmark and a precedent for future issues. More importantly, this issue will be one of those veritable bets on the expanding Indian middle-class. So what exactly are the factors that make the ICICI Pru Life so uniquely special in the Indian context? Continue reading “ICICI Pru Life IPO: Why is it important for the Indian Market?”

Bank of Japan: Key Takeaways from New Japanese Monetary Policy

The two major announcements during the week were the monetary policy announcement by the Bank of Japan as well as the outcome of the US Fed meeting. While there is a consensus that the Fed will choose to maintain status quo on rates, the Bank of Japan’s stance on interest rates and liquidity was of greater interest to most analysts.… Continue reading “Bank of Japan: Key Takeaways from New Japanese Monetary Policy”

RBI: Good News for the Indian Import Trade in August 2016

The Ministry of Commerce announced the merchandise trade data for the month of August 2016 and the services trade data for the month of July 2016. The pace of exports has been slackening for the past 18 months, although the export figure seems to have bottomed out. Imports continue to fall on the back of weak commodity prices, pressure on oil prices and falling gold imports. Here are some of the key takeaways from the trade numbers… Continue reading “RBI: Good News for the Indian Import Trade in August 2016”

Inflation heads lower but IIP continues to disappoint…

The consumer inflation (CPI) and the industrial growth (IIP) data announced by the Central Statistical Organization on 12th September brought in mixed indicators. While inflation was sharply lower for the month of August, the industrial production figure for July fell back into negative territory. The CPI and IIP data become critical as it is the last data announcement before the next RBI monetary policy on October 04th. Hence this data is likely to have a significant bearing on the RBI stance on repo rates. But first, an analysis of the economic reality behind the CPI and the IIP numbers… Continue reading “Inflation heads lower but IIP continues to disappoint…”