The Fed continues to be “highly attentive to inflation risks” and determined to take the measures needed to bring down inflation to 2 percent goal
Fed would reiterate its hawkish stance in the coming meetings as well. While a 75-basis-point hike is widely expected in the July meet, another 75-bps hike during the September meet cannot be ruled out
As per FOMC projections, the Federal Funds rate can reach 3.4 percent by the end of this calendar year. This is significantly higher than the March projection of 1.9 percent and implies about 50 bps rate hike each in the remaining four meetings this year
Earnings downgrades in the last two quarters have been a function of margin compression. In the next few quarters, there is a potential risk of earnings downgrades due to demand destruction
The logistics player needs to keep on churning strong growth metrics as the current valuation is expensive, both on relative and absolute basis, and leaves no scope for error, in case growth starts to falter or even taper
The macro as well as the technical picture suggest that a breakdown in copper prices is likely in the coming months, which implies a worsening of financial conditions globally
In our view, both the Fed and the RBI are making a policy error as tightening is only going to make things worse as the effect of the ongoing liquidity squeeze will only be felt with a lag of 6-9 months
Long-term investors should have a staggered approach to invest in this market
The Fed’s balance sheet is likely to reduce by about $1 trillion in a year
The stock of Ambuja has surged 20 percent in the last one month in anticipation of the stake sale
Investors should be prepared for extreme volatility, if the central banks are unable to engineer a so-called "soft landing" for the global economy
In the absence of any major cement price hikes, persistent raw material inflation and supply-chain constraints will drag the company's margins over the next 2-3 quarters
Underlying weakness in Chinese data, irrespective of COVID/lockdown is a key watch
A significant risk is that elevated inflation expectations could become entrenched if the public starts to question the committee’s resolve to achieve the 2 percent long-run target for inflation.
Rather than equities, investors should look to increase their allocations towards safe haven physical assets such as gold and silver, which have historically outperformed equities during periods of uncertainties as well as elevated inflation.
Savvy investors should look out for the lows and add systemically and not fret and panic. Similarly, it makes immense sense to take profits at the upper end of the range in these highly volatile markets.
The hawkish stance on inflation reminds one of the early 80s, when Fed chair Paul Volcker clamped down on double-digit inflation
In India, stagflationary trends due to the supply shock will unfold in the coming months. Persistent inflation would also lead to demand destruction and downtrading.
Shortage of graphite electrodes is likely in the global markets, which puts the spotlight on HEG
De-globalization theme is firmly on display
War presents a unique opportunity to buy quality cheap and smart investors got to be greedy when others are fearful
Fed Funds futures are pricing in about five rate hikes of 25 basis points each in 2022 and a few FOMC members are getting vocal about the need for a 50 bps rate hike in the 15-16th March meet, to start with
Manufacturing is one of the sectors that will be in the limelight in the finance minister's speech. It has been a key sector for the government over the last couple of years
Budget 2022 | "We expect the Centre to keep the fiscal deficit target around 6.4 percent of the GDP in FY23. This will have two major implications – the Centre's debt-GDP ratio, which increased by 1,000 bps to 64 percent in FY21, would reduce to 60 percent by the end of FY23."
Centre's capex spend is expected to focus on strengthening the core infrastructure viz. roads, railways and ports, green energy, and defense, according to the experts.