June 19th, 2013 was a special day. Gold hit a three-year low, the Indian Rupee hit another all-time low against the dollar and the yield on the U.S. 10-years’ Treasury note jumped as high as 2.46%. Well, is Fed’s statement to withdraw its quantitative easing programme by mid-2014 has got anything to do the way Sensex, Nifty and other Asian indices reacted? They should be! As the news about tapering of QE came out in open, equities all across the world started falling, with the Asian indices being hammered the most. Is this kind of market reaction justified? After all, the news wasn’t a surprise; in fact quite anticipated by the market participants. Since the announcement made in May 2013, by Bernanke, the Indian stock market has shown high volatility. It crashed 383 points on 23rd May, 2013 with the earlier announcement and has further slid 5% since then. The […]Read more
Over the last 2-3 years, we have seen the economy riding a roller coaster, offering less foresight, and more structural distortions. In such a scenario, are factors like rising inflation & mis-selling by financial institutions shaking the retail investors’ confidence? Are they being driven to gold and real estate as preferred investment avenues rather than to sensible equity investing which could manifold their existing returns?
The budget provides the government with an important platform to introduce constructive reforms. So, could the FM, through the forthcoming Union Budget 2013, have anything in store to bring investor confidence back to the Indian Stock Market? Let’s find out…Read more
In October 2012, foreign institutional investors crossed the $150 billion mark of net investments in India. This is despite the challenges the Indian economy is currently facing!
While this may sound surprising, this positive bias comes on the back of the recent reform initiatives taken by the Indian government. These have strengthened chances of better economic growth and thus, improved market sentiment.
But, we retail investors back home continue to stay away from the market! Let’s find out what’s stopping us from earning that extra return…Read more
With the Union Budget 2012-2013 around the corner, the common man and the industry alike, await its arrival. The Indian economy has seen a lot of turbulence in the year gone by, in the face of global macro-economic crisis, high inflation and interest rates, rupee devaluation, policy bottlenecks, etc.
But all this has soared expectations to a very high level.
Let’s take a sneak-peek.Read more
The Gross Domestic Product (GDP) in India expanded 7.7 percent in the second quarter of 2011 over the previous quarter – the slowest growth rate in six quarters. Rating agencies like CRISIL as well as the IMF have revised down their GDP forecast for 2012 to 7.6% and 7.5% respectively. So, what’s the cause of this slowdown? This has primarily been attributed to rising interest rates, high inflation and global unpredictability, created specifically by the economic woes of the developed world. Even as the Gross Domestic Product (GDP) of Asia’s second largest economy continues to hover below 8% for the second consecutive quarter, inflation and interest rates continue to rise. In fact The Reserve Bank of India (RBI) has raised rates a dozen times since March 2010, thereby making it amply clear that controlling prices remains its priority. In order to control inflation, the RBI is compelled to hike interest […]Read more