With political uncertainty out of way, market’s focus is back to monetary policy. Federal Reserve’s Nov meeting brings in improving context for a Dec rate hike and so not surprisingly USD and yield are strengthening again.
Consistent positive macro data from the US and Federal Reserve’s hawkish stance has been instrumental in reversal of portfolio flows from China and other emerging markets to the US
So far, more than 10 percent of S&P 500 companies mostly from the financials, technology, consumption and industrial sectors have reported earnings.
While various nations have indicated their intention to increase production, how much of it would flow back and what would be the timeline is something to watch out for. This would define the contours of crude oil prices in coming months
The buyback route is being seen as a tool to meet the year’s divestment target by the government.
Upcoming US midterm election could potentially halt the rally in USD and reverse the flows from US markets to relatively better-placed EMs like India
We believe the approaching November deadline for Iranian sanctions could provide some clarity over the global geopolitical moves and would be one point in the timeline to watch out for. Till then prices are expected to remain volatile and news flows could have significant impact on the prices in both directions
While demand slowdown is the pivotal factor to track, trade slowdown in the immediate future is also guided by remapping of supply chain.
We expect erratic monsoon to have an impact on the Kharif output in Western and Southern states. However, with good reservoir levels we expect a healthy Rabi sowing in months to come.
For Indian equity markets, the macro landscape is getting murkier with each passing day.
A plethora of factors like trade wars, weather anomalies in the US, inability of nations to boost production have inundated a negative sentiment, leading to the firing up of oil prices
One wonders what level of REER would give comfort to the central bank.
Given the worrisome state of health insurance in India, the move is a bold one and must be lauded. The current state of infrastructure and government finances seem distant from what a smooth implementation of the policy might warrant
While markets have welcomed the neutral stance, a glass half full could equally be seen as one half empty
The volatility in the crude prices has been immense and is expected to continue.
Even if one expects Trump to succeed, prolonging of political manoeuvres, could make the global supply chain more susceptible to disruption
The current monsoon strength seems to be covering up for the scanty and scattered pattern till now and a lag effect might be observed in Q2 FY19
This is a war without a cease-fire in sight. This is a fact global markets will have to digest.
For every additional Rs 100 of deposits in the banking system, Rs 55 is attracted by the 15 private banks and Rs 45 goes to the 21 public sector banks
Sweden, Finland and Ireland have all used bad banks to help end financial crises. In Asia, South Korea and China had resorted to creation of bad banks as well
The rate hike removes a key event risk from the market and the front-loading of the action should help rein in inflationary expectations without upsetting the green shoots of recovery.
While inflationary pressure beckons attention, our fragile economic growth warrants nurturing.
In India, an increase in crude oil prices brings with it higher inflows from the Middle East.
Reliance Nippon Life Asset Management (RNAM), the third largest asset management company (AMC) in India, is one of the key beneficiaries of the trend towards financialisation of savings with 11 percent market share (March 2018) in the mutual fund industry.
While providing electricity would increase the demand for power, the government is still struggling to get the demand-supply side equation right.