India is no different from the rest of the globe when it comes to the economy. One should not buy India because of its population or consumption story. One should buy India becauseRead More
Equities can outperform while bonds will also do well US credit rating downgrade will not hugely affect the INR, while the Nifty can catch up on its underperformance to the Dow. BoRead More
Policy maker’s hands are tied and that’s the best part  This time around, policy makers cannot do much. There are talks about a global coordinated action to bring about order in fiRead More
Bond markets will start taking out any rate hike bets placed on bond yields. The higher than expected 50bps rate hike in the 26th July policy review coupled with global economic tuRead More
Market positioning is on the short side, and that will bring about covering at lower levels. It is unlikely that equity indices will fall much further than current levels of 17,300Read More
Private sector will lead the way forward The past returns do not support the headline at all and today is the worst day to make the above statement. Equities the world over are tanRead More
Dow outperformance over Nifty is accounted for by yield curves The last one year has seen the US markets handsomely outperform the Indian markets. Dow Jones Industrial Average (DJIRead More
Let us take an example of a three year SBI (State Bank of India) bond. The bond is rated AAA, which is the highest safety rating given by rating agencies. The terms of the bond areRead More
Growth is one primary factor that influences the price of stock. There are four growth factors to consider in order to judge the return potential of a stock. Sales growth Profit grRead More
Yield curves are not toeing RBI’s line Yield curves are not toeing RBI’s line of inflation rising and growth remaining steady. The current flat to inverted shape of the yield curveRead More
The US debt ceiling increase of USD 2.1 trillion came with a proposed spending cut of USD 2.4 trillion. The spending cuts will happen over a period of time, but the congress is worRead More
Debt is no longer in fashion – buy bonds The US debt ceiling has been increased with much drama. The fact that the debt ceiling would be increased before a bond maturity pay out inRead More
The flat to inverted shape of the yield curves can change quickly if RBI signals a softening of its stance on inflation. The market at this juncture does not expect a softening of Read More
Will the flight to safety reverse? Flight to safe haven assets characterized July trading. Gold and US treasuries performed while equity markets fell. In the currency markets the JRead More
Capital protected plans of mutual funds. Capital protected plans offer you capital protection plus some upside returns if equity markets perform well. Such plans typically have matRead More