Volatility is poised to increase in the markets in the coming weeks. Equity indices have rallied sharply across the board month to date and at higher levels markets will have to stRead More
Tight liquidity conditions lead to a distortion of returns in the fixed income market. Investors will face a scenario where their investments in short maturity fixed income securitRead More
Debt crisis is not over but broad equity uptrend will continue  The markets seem to believe that the debt crisis in the Eurozone, which rocked financial markets in 2011, is over. SRead More
Liquidity tightness is becoming alarming Liquidity conditions are alarming. The system liquidity as measured by bids for repo in the RBI LAF (Liquidity Adjustment Facility) auctionRead More
The equity market rally over the last thirty days have been led by speculative stocks rather than fundamentally sound stocks. The performance of indices given in Table 1 shows the Read More
Understand fixed income investing  December 2011 inflation has fallen to 7.47% from levels of 9.11% seen in November 2011. The fall in inflation levels coincide with a downward revRead More
Easing inflation, tight liquidity and slowing growth should prompt rate cuts RBI will have to have a very strong reason to tread cautiously on rate cuts. The economy is looking to Read More
The inflation numbers for December 2011 to be released on the 16th of January 2012 will help sustain the bond rally that has take place over the last one and half months. InflationRead More
Indian equity markets closed last week on a bullish note with mid cap indices outperforming large cap indices. Open interest on Nifty index futures moved up while futures to spot cRead More
There is a surfeit of infra bonds in the tax season. Infra bonds qualify for tax under 80CCF and investments of up to Rs 20,000 in infra bonds qualify for tax breaks in the year ofRead More
India economic data is looking brighter but it is not being reflected in government and corporate confidence. IIP (Index of Industrial Production) growth for the month of November Read More
Action Portfolio diversification should not be carried out for the sake of diversification. In fact diversification can add volatility to the portfolio if some asset classes are asRead More
Ten stocks in the Nifty index that will give you Nifty index beating returns in the next couple of years are selected. Table 1 lists the ten Nifty stocks that should be in your porRead More
Investors have to feel protected by regulators  Indian markets have the best in class technology and the worst regulatory laws. The technology used by the country’s top equity, curRead More
The Euro is exhibiting signs of becoming a carry trade currency. Carry trade is when markets borrow in one currency to fund the purchase of assets in another currency. The end resuRead More