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.
While nominal bond yields of three percent raise concerns, the real interest rate (adjusted for Consumer Price Index) is not at alarming levels given economic conditions.
India's 10-year bond yield has been on a roller coaster ride, impacted more by supply pressure and inconsistent communication than by weakening macros
Robust economic growth expectations, lower real policy interest rate and relatively limited spread between US high bond yields and treasury temper any concern on inverted yield curve
Cumulative IIP growth for the period of April 2017-February 2018 over the corresponding period of the previous year stands at 4.3 percent
Although we have not accounted for luxury goods and other agriculture products here, the analysis suggests that reducing trade deficit by $50 billion is a tall ask.
The market appears to be drawing comfort from this realization, with leading equity indices bouncing back from their important support levels.
The “no action’ policy with a “neutral stance” was actually the RBI soothing frayed market nerves
Elevated volatility scenario (CBOE VIX: 25 and above) may not necessarily be unsuitable for investment. Historically, they have been amongst the best time to invest, particularly when the global growth indicators are robust.
In the words of Peter Navarro, director of the White House National Trade Council, the US can institute tariffs on foreign goods without starting a global trade war or violating WTO rules.
Latest data suggests that the Indian economy is showing clear signs of recover and is poised for a higher growth rate in Q4.
Maharashtra has a lopsided allocation of resources that favors certain crops and orphans others, which further aggravates the issue of farmers' incomes.
Iron & Steel and Aluminum exports to the US constitute only 0.29% of India’s total exports.
The real interest rate differential is shifting in favour of the US market, making the latter a relatively-attractive destination for the portfolio flows.
While the fiscal picture may not be as bleak so as to invite the ire of the rating agencies, the government will need an extremely supportive capital markets in FY19 to keep things under control.
While the organised sector is already covered by various social security laws like those governing provident funds, pension funds and insurance schemes, employees in the unorganised sector have to fend for themselves.
Market experts feel that it is only a matter of time before the stock market reacts to the surge in bond yields.
The notorious combination of falling growth and rising prices commonly referred to as a stagflation usually hamstrings central banks.
While re-rating of US equities in last one year partially reflects the execution of corporate reforms, significant improvement in US domestic companies' competitiveness, on account of fiscal incentive, is arguably underway.