Tag Archives: interest rates
The latest Stock Market Rally – Sectoral analysis

The latest Stock Market Rally – Sectoral analysis

With the Nifty going higher every week, the markets have witnessed a sudden rally for the past few months. While there have been a few sectors which have done extremely well during this period, a few sectors have lagged behind!

Which are these sectors? And what are the reasons for this rally?

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Category:Economy
Q3 results analysis: Pass or Fail?

Q3 results analysis: Pass or Fail?

The first month of the new year 2012 has been very good for the stock markets. The month of January saw the Nifty go up by 12.4% – the best monthly returns over the last 30 months! This rise has been fueled to a large extent by FIIs who were net buyers of more than Rs. 26,000 Cr. The month also saw many companies announce their December i.e. 3rd quarter financial results. Out of the BSE 500 companies as many as 212 companies have announced their results so far. Let’s take a look at the report card for the December quarter and what it reveals: The 212 companies which have reported their results so far (till 1st Feb’12) have clocked a healthy growth of 26.8% in Net Sales as compared to December 2010 figures. However, this growth hasn’t resulted into increased profitability as higher inflation and high interest costs have […]

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Category:Economy

Inflation and the Common man

Inflation rates have been consistently over 9% for several months now. High prices of food and essential commodities have kept it at such high levels. Though the various measures by RBI have helped to moderate the inflation to a certain extent, it still hovers in an uncomfortable zone. Bringing down the inflation rate has been on top of the agenda for RBI, given that high inflation has severe effects on the common man.
Read on to find out how Inflation affects the common man.

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Why has India’s GDP growth slowed down?

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 […]

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Category:Economy