COVID-19 has shaken up mankind in many ways, while on one hand there is actual loss of life, on the other is fear and avoidance, which will extract a huge economic toll. The obvious impact is on travel and tourism, entertainment, F&B, shopping malls, etc., the secondary impact would be on jobs and incomes. The […]
Month: July 2020
Equities racing ahead of economic realities
The equity indexes have moved up, covering a major part of the big fall, and this recovery is mainly facilitated by a sense of optimism about the impending economic recovery. The numbers that we have seen from the last couple of months including the index of industrial production, the purchasing managers index, and the employment […]
Gold gliding at high altitude, likely to stay elevated
Gold at US$1760, is at a striking distance from the crucial US$1800 level. Given the factors that have been driving the prices, the likelihood of gold getting closer to that mark seems to be almost certain. What gives gold strength is the uncertainties in the global economy, the pandemic and the lockdown and the fall […]
Global economies prepare to face severe contraction in growth
One of the unique features of the current order of things is the proactive central bank initiatives to mitigate the financial distress in the economy and the markets. Central banks across the world resorted to use of non-conventional methods to combat this invisible yet powerful enemy. The most common and distinguishable feature of central bank […]
US $ remains the preferred destination
The US Dollar is holding well due to its safe-haven status, and this is mainly occasioned by the spread of the corona infections throughout the world and it does not seem to be abating at this point of time. Therefore, there is a preference for investors to hold on to dollar assets and currency. But […]
The veil of inflation does not pale the soft money policy…
The uncertain trajectory: Three months back as we had gone into the shutdown it was very clear that the trajectory of both growth and inflation would be uncertain. This has found expression in the statements from the RBI too on more than one occasion. This uncertainty is due to two factors, one, that due to […]
IIP: Third Consecutive Month of Contraction
The nationwide lockdown situation led to a contraction in IIP’s year-on-year growth numbers for the third consecutive month. After Apr’20, the lockdown continued in the month of May’20 as well. As such, it was expected that IIP numbers may continue to contract. The partial relaxation of lockdown measures led to easing in the pace of […]
