Defensive investing will be a bad bet The rush to defensives is deafening. Equity investors are flocking to defensives such as consumer goods and pharmaceutical stocks. Companies tRead More
Preamble It is not often that one can go back and prove that one’s predictions have come true. In the aftermath of the 2008 crisis when governments and central banks let loose a moRead More
Coal India overtook Reliance as the most valuable company by market capitalization in India this week.  Last week Apple briefly took over the most valuable company by market capitaRead More
RBI need not hike rates now  The RBI can use the LAF (Liquidity Adjustment Facility) for policy transmission rather than tweaking policy rates. The RBI has been raising the repo anRead More
The domestic economy is showing signs of moderation in growth. Key indicators including industrial production and credit growth are growing at a slower pace than the pace at which Read More
The brief rally in bond yields fizzled out on the back of fresh worries on inflation, government finances and rate hikes. The ten year benchmark bond the 7.80% 2021 bond saw yieldsRead More
The Nifty and Sensex will trend up from the lowest closing levels seen in over a year. The positive market close in US and Europe on Friday the 12th of August coupled with fewer shRead More
S&P downgrade of US credit rating has benefitted US treasury yields the most. In one stroke S&P has brought down yields on the ten year treasury by 60bps. The ten year yielRead More
Look ahead rather than looking behind Portfolio positioning should always be forward looking. Your portfolio should reflect your expectations of the future. Unfortunately all portfRead More
Rate cut will send wrong signals The worst possible confidence booster is a rate cut now. RBI should hold on to its stance of managing rising inflation expectations despite a sharpRead More
Industry wants quick fixes that do not work  The clamor has started. Rate cuts, stimulus package, government intervention in markets etc. Global financial market volatility, which Read More
In the last edition we made a comparison between Nifty and S&P 500 in terms on constituents. The weight of the banking sector in the Nifty is 25% while financials weight in theRead More
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