BUSINESS
Does commodity crash signal FII comeback?
A concerted effort to stamp out inflation by central banks has raised the risk of a recession. If this risk plays out, FIIs may return to their favourite hunting grounds in India
BUSINESS
Higher GST rates pose headwinds for consumption stocks
Proposed increase in GST rates will add to revenue but higher consumer prices could strain already constrained budgets of low and middle income households
BUSINESS
RBI’s take on capital flows, and what it means for stock markets
Volatility (US CBOE VIX) and term premia have been found to be correlated with portfolio flows into India. This makes the case for investors to track US growth, the US yield curve, and the US CBOE VIX
BUSINESS
The Fed rate hike and its far-reaching consequences
Inflation has become a global concern while global consumption demand is not as widespread and resilient as it has proved to be in the US. So, the situation is grimmer for countries outside the US
BUSINESS
The market see-sawed after MPC announcement. Why?
Will the RBI successfully maintain the precarious balance between controlling inflation and supporting growth?
BUSINESS
As the MPC meet looms, what will be the impact on stock markets?
As geopolitical tensions between Russia and Ukraine and Covid cases in China show no sign of retreating, the outlook on input costs remains pessimistic. The situation is expected to be aggravated as rising interest costs push up financing costs on the supply side, while disincentivising consumption on the demand side
BUSINESS
With retail investors at the vanguard, how long will the defence hold?
It’s important to understand the factors driving the FII selloff in order to try and form expectations around when we may expect it to reverse
BUSINESS
Time to take stock after this week’s market volatility
In such a tumultuous market environment, it becomes necessary to find one’s bearings by taking stock of the drivers behind the volatility
BUSINESS
How have markets performed during times of unforgiving inflation?
In two of the last four instances of correction in the Nifty, inflation was on a downtrend. On the other hand, inflation was also on a downtrend in two of the last three instances of upswings in the Nifty
BUSINESS
How SUVs are riding the K-shaped path to recovery
Until employment and growth catch up with the rising costs of vehicle ownership, demand from rural and lower-income households would continue to remain muted, affecting demand for two wheelers, 3-wheelers and low end passenger vehicles.
BUSINESS
This is a make or break moment for Indian equities
The next couple of months will play a significant role in determining whether we are on the cusp of the next leg of a rally, or in the middle of a long-term correction
BUSINESS
Is Indian Auto stuck in the slow lane?
Higher interest rates would effectively increase the capex costs for automakers, as well as financing costs for vehicle buyers. The only sustainable way out of this double whammy would be a pick-up in employment and growth and consequently, demand
BUSINESS
As inflation strikes back, what should investors do?
This is not good inflation—the demand pull kind, but is instead supply-push inflation. The upshot—higher inflation coupled with lower growth
BUSINESS
Watch out! Tech-tonic shifts are taking hold in India
In the current geopolitical environment, it becomes critical to keep track of major geographical revenue contributors
BUSINESS
With FIIs back, their darlings beckon
The phase of FII inflow is still nascent. So, investors who have missed out on the recent rally, still have an opportunity to get on board
BUSINESS
A crude shock and how investors should reset their portfolios
In recent times, whenever crude has spiked above $100 a barrel, Nifty has corrected downwards immediately
BUSINESS
LIC IPO: Looking under the hood
Despite the catch in its recent numbers, LIC has undeniable strengths – an industry with significant scope for an increase in penetration as the country grapples with an enormous protection gap, government-backing, trust in the brand, higher operating efficiency as a result of being a large and mature business, and its large base of agents which compensates the absence of a banking partner
BUSINESS
The cautionary tale of Paytm
The Paytm issue had several red flags that should have warned investors
BUSINESS
Russia-Ukraine war | Looking past the market volatility
When FIIs find their way back to Indian equities, conventional FII favorites which have fallen out of favour, can be expected to pick up momentum again
BUSINESS
Rising costs of India’s growth
To contain inflation, retain foreign investments, arrest the depreciation of rupee, and protect India’s BOP position, the RBI needs to adopt a tighter stance and raise policy rates. But that will have an effect on growth
BUSINESS
Ukraine crisis | How long will it take for stocks to bounce back?
If we look at previous such geopolitical shocks, we would find that the impact usually fades away in a week. There have been exceptions, of course, such as the attack on the US twin towers and the bombing in Madrid when the recovery took relatively longer
BUSINESS
A simplified capital gains tax regime is fine, but don’t kill the golden goose
A capital gains tax overhaul, with fewer tax rates and holding period requirements, is sensible, but it should not pinch investors so much that it hurts the nascent revival in equity market participation
BUSINESS
What to do when the market is going everywhere, but heading nowhere?
The current period of monetary tightening and FII flows is different from similar historical periods. Not only did the market hold up better to tapering and outflows, but we also see a reversal in relative returns of large and mid-caps
BUSINESS
Budget 2022: It’ll be a tough balancing act
The Budget should be cautious in not overspending on populist measures such as direct transfers, subsidies, and other sops ahead of the elections.
