On a risk-adjusted basis, the returns from the shorter maturity funds is far superior. The yields at the short end, as well as the long end, remained more or less stable in the last two months, but the short end rates have moved up a bit in the last two weeks. The change over to normal […]
Bhavesh Sanghvi, CEO of Emkay Wealth Management, who is an alumnus of Columbia Business School and NMIMS and has over 3 decades of experience, is of the view that we may see more companies beating the earnings estimates in FY22. A word of caution though – stick to your defined asset allocation. Sanghvi is of the view […]
India enters a technical recession with two consecutive quarters of economic growth contraction. The GDP contracted by 7.50% in Q2FY21, as against the 23.90% contraction seen in Q1. It is pertinent to note that the rate of GDP growth is at an 11-year low, as compared to 4.20% in 2019-20, and an expansion of 6.10% […]
Oil prices have moved up from its US$40-45 range to US$ 45-50 range. The uptick in prices has been caused by several factors. In the initial days after the US elections the news was that the new President was against fracking and that may affect oil supplies. But a study of the last three or […]
Gold- backed ETFs have seen major outflows in Nov 20., the first outflow in the last one year. This is also the second largest outflow ever since ETFs came into existence. Gold ETF holdings came down by 107 tons or US$ 6.80 billion, equivalent to about 3% of the assets under management. This movement happened […]
Like it has been in the last three months, the indexes have risen to the highest levels in the lifetime of the markets. This rise has been facilitated by ample liquidity, hope in a faster recovery from the pandemic related setbacks, and economic numbers which instilled greater hope for the future. Corporate profitability in India […]
The fixed income market has been extremely calm and traded within narrow ranges for more than two months now. This is the result of an accommodative policy and a liquidity glut occasioned by the expansionary policy. The rates on commercial papers and certificate of deposit has come down to low single digit levels, to levels […]
The currency markets witnessed a fall in the US Dollars against all the currency majors. This has happened mainly after the US presidential elections, and it is perceived as a trend that may endure for some more time. In terms of investments there has been a gradual rising preference for emerging markets assets as evidenced […]
The FOMC statement released yesterday maintains status quo on the base rate. The following were the main decisions at the FOMC meeting: To undertake open market operations to maintain the federal funds rate in a target range of 0 to 0.25%. Purchase of treasury securities will be US$ 80 billion per month and mortgage-backed securities […]
The CPI based inflation eased after the hardening trend of the preceding three months; headline CPI inflation was reported at 6.93% for the month of Nov’20 as compared to 7.61% for the preceding month and 5.54% during the year ago period. The inflation numbers remained outside the RBI’s target range but eased on the back […]
The IIP growth reverted to positive zone after a gap of six months in Sep’20 and maintained the momentum in the month of Oct’20. The IIP growth for the month of Oct’20 was reported at 3.6% as compared to upwardly revised growth of 0.5% in the preceding month and -6.6% in the year ago period. […]
The RBI policy announcement has left the repo rate unchanged at 4 percent, and it has decided to continue the accommodative stance of the policy “as long as it is needed”. This is quite in line with what market participants expected from the RBI. The potential for inflationary pressures has also received attention from the […]
Rates & Policy Stance Unchanged The RBI policy announcement has left the repo rate unchanged at 4%, and it has decided to continue with the accommodative stance of the policy as long as it is needed. This is quite in line with what market participants expected from the RBI. The potential for inflationary pressures has […]
The Indian economy contracted 7.50 percent in the second quarter of this financial year against a decline of 23.90 percent in the first quarter. Technically, the country is in a recession following two straight quarters of contraction but the slowdown is gradually easing. The gross domestic product (GDP) growth is at an 11-year low, compared […]
Oil prices are hovering around the US$ 38-42 levels with an obvious downward bias, at present. This downward bias is the result of the rising COVID-19 infections throughout the US and the major countries of Europe. Except for China, the prospects of any rise in oil demand is more or less ruled out due to […]
As far as the US dollar is concerned a lot would depend on the US policies in the coming months as we quickly move past the US elections and the installation of a new government. While basic policies may not find any major shifts, there may be some modifications in the details. The approach towards […]
Gold is currently trading at US$ 1880, and the price movements have been with a downward bias in the last one month or so. This fatigue after a move above the US$ 2000 mark is attributed to a number of factors. There has been selling by some central banks over the last two months. Central […]
What is interesting about the fixed income market is that there have not been any major changes as such in the markets in the past one or two months. This means that there is quite a bit of stability in the rates and the market levels, and this position may not change drastically for another […]
China is bouncing back with a vengeance, from the contraction of 6.80% seen in the first quarter of this year, at the peak time of the pandemic. Economic growth has picked up very fast. China reported a GDP growth of 4.90% on a Y-O-Y basis, up from 3.20 % clocked in Q2 of this year. […]
India enters a technical recession with two consecutive quarters of economic growth contraction. The GDP contracted by 7.50% in Q2FY21, as against the 23.90% contraction seen in Q1. It is pertinent to note that the rate of GDP growth is at an 11-year low, as compared to 4.20% in 2019-20, and an expansion of 6.10% […]
