The second wave of the pandemic has left us dealing with healthcare emergencies of a monumental scale. The number of new cases erupting every day is increasing. Increasing infection severity…
After the Global Financial Crisis in 2008, regulators have become swift in responding to a crisis. At the first indication of macro-economic variables turning unfavorable, monetary & fiscal stimulus is…
The digital currency (more popularly known as “Crypto-Currency”) push appears to be the next big thing as the world transacts more online. While online payments and payment applications are just…
Around January 2020, the Indian stock market which had been scaling lifetime highs in the run-up to the Union Budget started to sense something ominous. Across the world, countries started…
When important government institutions announce critical decisions, one has to go beyond the obvious implications of those decisions. This is clearly evident in financial markets. When central bankers worldwide almost unanimously cut policy interest rates and infused liquidity in financial markets to revive economic growth, there was a critical outcome which prudent investors and observers had to bear in mind: Inflation. The resultant impact simply can’t be ignored. Increasing supply of liquidity and loose monetary policies globally ensured rapid resumption of asset prices and economic activity. But the increase in money supply also creates a real inflation challenge.
(more…)
One of the recurring arguments that we hear whenever the country launches a new project or buys an expensive piece of essential equipment is that the money could have been better utilised for feeding quite a few less fortunate people. Capital, especially in a developing country like India, is somewhat scarce and there are several competing uses for the available capital. As a society, there is no doubt that we should endeavour to use the capital resources to create a just and fair system where economic opportunities are available to all but at the same time generate the best possible returns on the capital employed. While it cannot be anyone’s argument that the destitute amongst us should be left to fend for themselves, the effort should be to support them till they become self-reliant. The Government should take the responsibility of skilling the needy and create the required growth momentum in the economy such that the newly skilled find gainful opportunities to earn a decent living. It is important to recognise that beyond a point, doles offer a perverse incentive to remain unskilled and push the lazy and unambitious to remain a drag on society. Such instances among some of the idle and able-bodied menfolk are well-known even as political parties compete with each other in doling out freebies indiscriminately out of tax-payers’ money. Governments would do well to strictly direct doles to the really needy and keep it at a level where the recipients do not feel comfortable enough to avoid exploring opportunities for earning a decent livelihood. This is an ongoing process and if anything, has gained significant momentum in recent times.
(more…)
Led by the US, most global markets started to get the early quiver as Bond Yields rose to lead to the strengthening of the Dollar and as the commodity cycle continues to put pressure on the upside. With US Bond yields breaching the crucial 1.6% mark, Equities got into a Risk-off as global allocations became less attractive. Rising bond yields is inversely correlated to its prices impacting the risk premium enjoyed by Equities during these cycles
(more…)
Over the past year, most global markets have continued to delight investors with their uni-directional and upward trend. The stellar budget has not only reassured the markets but has also nudged fence sitters to finally overcome their reluctance and enter the stock markets! The progression of India to a 5 trillion dollar economy would provide massive wealth creation opportunity for various businesses, sectors, households, market participants as well as the new age investors, over the next decade.
(more…)
Over the course of the last one week, GameStop – a US based omni-channel retail company that offers gaming and entertainment products across 5000 stores over 10 countries became the cynosure of Investor attention and wild frenzy as a previously unthinkable saga started unfolding at break neck speed.
(more…)
In the wake of a bold & modern India, the FM announced the six significant areas of growth in the Union Budget for FY 2021-22 namely – Health and wellbeing, infrastructure, inclusive growth, human capital, R&D and minimum government and maximum governance.
(more…)