Brent Slips to the Floor

Brent has come down below the US$ 70 mark after a long while. The main reason that has caused this fall is the emerging demand conditions which may not be favourable as China faces one of the worst outbreaks of the pandemic since the first wave in late 2019. Transport services and movement of people […]

Gold Remains Subdued, Trending Lower

In the absence of any fresh positive triggers gold price remains subdued. There was some uptick in prices when the Fed stated that they may continue the accommodative stance till growth re appears. The resurgence of the pandemic also helped gold move up but that was short lived. The fall came after very strong US […]

Currency Levels Awaiting Macro Numbers

The latest jobs report presents a stronger US economy, and the number of jobs added is 943,000 as against the market expectations of 870,000. This has lent good amount of support to the Dollar as the Fed had indicated earlier that it would be monitoring the improvements in the job market for possible direction to […]

Equities – It Pays to be Conscious of the Immediate Choices

The Pandemic & After The equity markets have rallied beyond expectations with higher levels being attained with each passing trading day. And quite in step with that some questions on the expensiveness of valuation too. The liquidity conditions and the low interest rates formed the basis for P/E expansion to a significant extent. The pandemic […]

Long End Yields Rise Gradually

First, the factor that has always been the friend of the markets, the ample liquidity, is still available to the markets. The average liquidity has been to the tune of about Rs.5.50 Lakh Crs for almost a year now. The stance of the RBI that the growth factor precedes the inflation factor at this juncture […]

Two Giants and Global Growth

Is Retail Inflation Transient? The inflation in the US has been edging higher during the last few months, and the latest data indicates that it is stable at higher levels. The US CPI registered a rise in July to the tune of 0.50 % on a month-on-month basis, the annual inflation rate at 5.40 %, […]

Monetary Policy: Market sniffs an approaching normalization

In the monetary policy review by the RBI, all the key rates have been left unchanged. This is on expected lines, and RBI continues to lay accent on the need to sustain growth in preference to price stability, and therefore, an accommodative policy. Inflation is still very close to the RBI’s target range, though a […]

2021 – A New Era for Rental Real Estate in India

In the context of housing policies in India, the need for a uniform rental housing law in the country was felt despite some states already having different versions of the Rent Control Act. r, there are many states where the Rent Control Act continues to be in force with some amendments. The Rent Control Act […]

OPEC+ Discussions Spill Over to Conditionalities

Oil prices have sustained above the US$ 75 per barrel mark and it seems to be poised to touch the US$ 80 level at this juncture. While the view that it may moderate is based on two factors, that there will be an Iran nuclear deal between the US and Iran, and that may bring […]

Currency Yields Matter, Dollar Rules

The US Dollar has been strengthening over the last two months and the main reason behind this strength is the performance of the US economy. After the pandemic, the recovery of the US economy has been faster that expected. This invested the economy with two extremely fast paced variables, a high rate of economic growth, […]

Gold Tossed Around Like a Light Cork

Gold is like a light cork tossed up and down by the waves of news emanating from the US on the shape of the economy and the prospects of the interest rates. The fierce rise in economic growth and the resultant prospects for a rise in interest rates pushed gold prices down back to the […]

Normalization of Liquidity May Be Gradualistic

The level of inflation has gone beyond the threshold set by the RBI, CPI is above 6%, and that is a reason for concern. The moderation in the price level is dependent on various endogenous and exogenous factors, and prominent among these factors are the price of Brent in the international markets, and the level […]

Equities Have Priced-in All the Known Factors

The focus of the equity markets is singularly on one thing at this point in time – when are we going to be fully open both in India as also elsewhere. A very pertinent question, as that alone would determine the extent to which economic growth can rise and inflation could also. There is another […]

Europe and Asia: Convergence in Growth-Inflation Dynamics

UK has delayed the withdrawal of the final phase of easing of restrictions on account of the pandemic raising its head again. The May inflation rose to 2.10 % as against the Bank of England’s threshold of 2 % creating talks of policy modifications by the Old Lady of the Threadneedle Street. But the Bank […]

Is the Fed and the Markets on Parallel Tracks?

Time and gain, with a greater amount of accuracy and consistency, the data flows from the US presents the picture of an economy that is in rapid transformation after the pandemic, both in terms of the prospects of growth and the pace of inflation. While the Fed is quite happy about the explosion of growth, […]

Brent

One major factor that dominated oil markets is the possibility of a nuclear deal between the US and Iran, and also better relations between the two countries, based on the reported talks between the two parties. This would mean that the supply from Iran will be in the markets as soon as such a pact […]

US Dollar Continues To Retain Its Stronger Undertone…

The US Dollar remained range-bound against major currencies, as it came out of a stark weakening phase, though the unit remained weak against the Euro and the Pound Sterling. The Euro and the Yuan gained over the last couple of months against the Dollar, to the extent to 3 % to 4 %. The likelihood […]

Inflationary Concerns Supportive For Gold

Gold is trading at 1885 against the dollar, though it attempted breaking the resistance level 1910 unsuccessfully. What has been giving life to gold is the concerns on recovery after the second and third wave of the pandemic, inflation concerns, and also falling yields in the very recent past. Global gold ETFs lost US$1.10 billion […]

Global Growth Stabilising Faster Than Expected

The focus of attention is gradually shifting again to the US recovery, away from the impact of the second and third wave of the pandemic. While growth is happening in the US, and the improvements in employment are good, the job gains are not entirely matching up to the estimates or expectations. With major spends […]

Equities – Plateauing Earnings Growth In The Near Term

The GDP numbers present a picture of revival in economic activity from the depths to which it had fallen during the first wave of the pandemic. GDP growth Q4 FY 21 is at 1.60%, compared to just 0.50% in Q3. For the whole year the GDP growth is at -7.3%, which amply reflects the stress […]

Reiteration Of An Accommodative Stance May Keep Yields Range-Bound

The fixed income markets continue to remain more or less range-bound, eagerly waiting to factor in the probability of any future rise in interest rates. There is more or less agreement among the market participants that rates should rise at some point in time during the course of this year, but the question is when? […]

GDP Update – Q4FY21

The GDP growth number for Q4FY21 was reported at 1.6% as compared to 0.5% in the preceding quarter. The GDP for FY21 was reported at -7.3%, largely reflecting the pandemic driven impact to the economy. The GVA number for Q4FY21 came in at 3.7% as compared to 1% in the preceding quarter. The yearly growth […]

Monetary Policy Accommodative At The Core, Policy Turns To Equitable

The policy announcement from the RBI, after the MPC meeting, has left all the key policy rates unchanged. It has reaffirmed the commitment to continue with the accommodative stance. It was expected that the RBI may not bring about any changes in the policy as such due to two factors, (i) there was an interim […]

Planning For Your Minor Children And Appointing A Guardian

Succession planning for minor children is a must. In an unfortunate event of demise of both the parents, a properly drafted Will would ensure that the parents appoint a guardian of their choice for the minor children. In absence of a will or if the will is silent with respect to guardianship, the court will […]

Equities trying to maintain the altitude….

The equity markets have been volatile with movements on both sides, mainly occasioned by developments abroad. The prospects of the US recovery, the rise in inflationary expectations, the rise in bond yields, have all been factors that influenced the markets in the last two months. One factor which has attracted attention of the markets has […]

Brent stays high, buying in futures rises…

Brent is perched on the US$ 68 level per barrel for a long time now, and it has been unusually range-bound. But its ability to rise cannot be easily ignored. This is because, if you go by the indications from the market, buying of petroleum futures contracts has accelerated in the last three weeks, and […]

US Dollar gives up much of the gains….

The US Dollar has given up much of the gains after it rose against all the majors in the last three months. The rise in the Dollar was facilitated to a large extent by the expectations of high inflation and the consequent rise in interest rates especially the bond yields. The bond yields shot up […]

India Macro Update

Consumer Price Index for the month of April, came at 4.29 % quite on the lines expected by many market participants mainly due to the fall in the food inflation and the favourable base effect. This is quite a bit of a pull back from the 5.52% level seen in March. Last year, for the […]

The Yellow Metal bounces back as US Dollar weakens

Apart from all the other factors that affect gold price movements in international markets, there is one factor that has a certain impact, and it is the weakness or strength of the US Dollar. The US Dollar after a bout of strengthening against currency majors is now gradually giving up the ground that it gained […]

Economic growth surges in the US and China…

The US first quarter GDP growth was at 6.40 % as against the expectations of 6.50 %, but a major surge in the economic activity after the pandemic battered the economy. It was Q2 of 2020 which saw the biggest fall in US growth, as it plunged by 31.40%, and it left 22 million Americans […]

Fixed Income: Relative Calm Amidst New RBI Measures

The fixed income market remained calm with a stable profile for most part of the last one month. The accommodative policy of the RBI has been instrumental in keeping the yields stable to lower. Yet another reason is the interbank liquidity which has been on an average upwards of Rs.5 Lakh Crs. The G-SAP 1 […]

Brent

Oil prices too have been range-bound without any major surge in prices as expected earlier. This is due to the fact that the OPEC + had decided that they may increase production gradually by about 2 million barrels per day. The prices have found a base at the US$ 60-63 levels. What is likely to […]

US Dollar continues to retain its stronger undertone…

The US Dollar has risen against all currency majors except the GBP, thus consolidating its position of power in the recent past. This has been the result of robust economic and employment numbers in the US promoting the belief in a speedy revival of the economy. That there is bound to be revival in Europe […]

Yields May Be Stable To Range-bound….

There are five major influences on the fixed income market, which are marked clearly as of now. These are the liquidity conditions, the government borrowing program, the trajectory of bond yields in the developed markets, the inflationary expectations and finally, the RBI policy. In the last one year the RBI has been extremely supportive of […]

Equities – Need To Moderate Return Expectations

The surge in the pandemic and the rise in the number of cases is not a good signal for the equity markets. This has resulted in limited lockdowns in many parts of the country, and some are more stringent than the rest. If such conditions persist it is bound to impact growth adversely and we […]

Government Borrowing Program: Some Interesting Features

The curiosity about the government borrowing program is much less compared to the other developments around the fisc. This is because the quantum of borrowing is clearly laid down in the budget a couple of months ahead of the new financial year. But things like the maturity profile of the borrowing, the composition in terms […]

Fiscal Stimulus And Vaccinations Dominate The Global Discussions…

One way of looking at the major economies and the progress they have made towards normalization is to look at three things. One, the quality of the economic recovery in these territories, two, the persistence or otherwise of the expansionary policies, and three, the current efforts at containing the recent wave of infections The first […]

Monetary Policy: Nurturing The Recovery

1. POLICY RATES UNCHANGED On expected lines, the RBI has kept the policy rates unchanged, the repo rate stays at 4%. The accommodative stance has been reaffirmed. The soft stance with adequate liquidity support will continue till sustainable growth emerges, and more so in the light of the resurgence in the second wave of the […]

US Dollar maintains a stronger undertone…

The US Dollar continued to maintain a stronger undertone against all the currency majors as is evident from the currency movements for more than a month now. One of the major factors that contributed to the Dollar strength is the sell off in the bond markets across many developed markets. The rise in bond yields […]

Brent

Brent has shot up, through the US$ 70 per barrel, and it looks set to rise more. The recent rise in the prices, in the last few days, has more to do with the attack on the oil facilities of Saudi Arabia by some terrorist groups. The damages caused to the Saudi facilities is quite […]

Gold May Test Lower Levels… But The Intensity Of The Fall May Slow Down

Gold prices moved up from mid-2019 onwards to 2020 end, mainly due to two or three crucial factors. Broadly the range was from 1430 to 2067. The first and most important, fundamental, cause was purchases by central banks and the large inflows into gold exchange traded funds. The lower interest rates in many of the […]

Equities More Often Affected By Developments Abroad

The domestic equity markets have been hovering around the peaks, which the indexes have formed in the last couple of months. The domestic macro numbers have been on expected lines, and it gave comfort to the markets about the sustainability of the rebound in economic activity. But it is mostly the events from overseas markets […]

Q3FY21 GDP: Momentum needs to be sustained

The GDP growth number for the last quarter, Q3FY21, at 0.40% corresponds to more or less what most of the market participants and analysts had expected. The GDP has reported positive growth after two consecutive quarters of contraction (-24.4% for Q1FY21 and -7.3% for Q2FY21). That should bring in some amount of relief. The reason […]

US and UK Soft Measures From the Fisc Leading to Stronger Potential Recovery

One of the most impressive fiscal exercises in the recent past was the UK budget, presented on March 3, 2021. This is the first budget post the Brexit departure event, which was marked by lot many uncertainties. The corporate tax rate has been hiked to 25 % from the current 19 % while leaving majority […]

Brent

Brent has moved up quite in line with expectations towards US$ 60 from a level US$ 53 about a month back. The rise in oil prices has been supported by several factors in the last three months. The most prominent factor is the output restrictions by OPEC + and more conspicuously by Saudi Arabia. The […]

Currency Markets

The currency markets, which witnessed a fall in the US Dollar, against the currency majors has reversed the trend for the time being. The gains made by the US Dollar is more pronounced against the Euro and Japanese Yen. Against Yuan, it has held its position well at stable levels, whereas against the Pound Sterling […]

Not Able To Break Through Resistance Levels, Gold Tests Supports…

Gold after making an all-time high of US$ 2067 in August 2020, corrected down to the 1890 and 1860 levels. Currently, gold is trading at around the 1840 level. The pull back in gold prices is probably a prelude to testing lower levels, and as indicated in our last update, technically, the resistance levels will […]

Fixed Income: Perils of Selective Tightening May Gradually Emerge…

The two recent events of consequence to fixed income have been the budget and the monetary policy announcement. The budget has announced an additional borrowing of Rs.80,000 Crs for Feb and March, the original borrowing plan was getting over by Jan 21, end. While this additional borrowing is not that much unexpected, that there is […]

Equities Propelled By A Well-Received Budget…

The equity markets started the rise with the accommodative policy of the central bank which provided ample liquidity as well as targeted support for select sectors. The expansionary fiscal policy also provided the much-needed support at a time when economic growth was not happening and there was general economic distress. This paved the way for […]

Monetary Policy: Accommodative, But Shadows Of Selective Tightening Emerge…

The RBI released its own budget-like document, wherein it reiterated its commitment towards an accommodative policy to support growth and also came out with supportive measures to ensure flow of liquidity to segments of the economy immediately in need of it. In this context, while on the one hand RBI announced phased restoration of CRR […]

Lack Of Control Over Pandemic Spread Threatens Rebound In Global Growth…

The US economy is going to benefit from the fiscal spending that the government has already initiated, and more is expected from the new dispensation which assumed power last month. The tough line against China, Russia and Iran is going to be in place but the approach to the specific issues may be different from […]

Budget FY22: Anchored to Growth

The budget announcement for FY22 was keenly awaited as it was declared against the backdrop of a global pandemic. The economic activity across the globe came to a virtual standstill owing to the lockdowns imposed to control its spread. On the one hand budget was expected to be growth supportive, but there were cautions being […]

US Dollar Weakness Prevails…

The slide of the US Dollar against all the currency majors continued to be the event that is most talked about in currency markets. There is no single major currency against which the Dollar has held well. This is despite any number of regional issues which have been there. This gives rise to the inference […]

Brent May Trade in Higher Ranges With a Weak Dollar

Oil prices continue to stay above the US$ 50 level, and it seems to be wanting to base itself at these levels for a potential upward movement. This trend in prices is despite the fact that the economic realities prevailing globally do not permit any surge in oil prices. The Asia-Pacific Region is dominated by […]

Gold Likely to Test Higher Levels Aided By a Weakening Dollar

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 at […]

Equities : The Market Prevails…

All the indexes have moved up, benefitting mainly from the accommodative fiscal and monetary policy, which facilitated an unprecedented liquidity expansion. It is the low interest rates and the ample liquidity that have helped rebound in the economy to some extent and spurred the markets to move up. These favourable conditions also helped the overall […]

Fixed Income: Continue to Stay at the Short End & Mid Segment

The yields at the short end as well as the long end remained more or less stable in the last two months. The market has been supported by the surplus liquidity conditions all this while and this may continue to be the singular factor deciding the course of the markets in the future too. While […]

Economic Rebound is Happening, But it Needs to Sustain…

There are sure signs of economic recovery in the US, EU, China, and India as well. But it may be too early to call it a full-fledged recovery. The macro variables reflect a rebound in economic activity, but the level of economic activity is still not at the pre-pandemic levels as yet. This is mainly […]

Some Useful Financial Resolutions for the New Year

The economy and the markets have gone through conditions that we have not witnessed in a lifetime. But things have started improving gradually. The markets have moved up. The economy is rebounding. But the experiences during the year that has just gone by leaves us with a lot of lessons as far as our financial […]

Q2 GDP: What Do We Read Into It?

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% […]

Brent: Charting its Own Course

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 may test support levels….

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 […]

Rise in Equities: Attempting to be Logical…

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 […]

Fixed Income: Market Remains Stable and Calm…

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 […]

Currency Markets: Year-end Weariness Sets In

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 […]

Oil Prices May Be Range Bound

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 […]

Asset Movements Decide Currency Movements

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 Well Supported at Current Levels

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 […]

Fixed Income: Stay at the Short End..

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; US, Europe Lagging

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. […]

Equities Rise & Rise

There is a disproportionate spotlight on developments overseas in the recent past, mainly in the light of the US elections. While we acknowledge some linkages, the primacy of local fundamentals in determining the direction of the markets cannot be stated enough. The most reasonable thing for investors to do is to focus on the good […]

Gold Uptrend Intact But Likely To Test Support Levels…

The peak in gold prices at US$ 2067 coincided with the weakness in the US Dollar against the currency majors. But there has been some revival, though not significant, in the Dollar exchange rates, in the last one month. The correction in the gold prices to US$ 1850 levels too was in alignment with the […]

Equities Broadly Range-Bound, Tech And Banking In Focus…

The domestic economy has now come to the fag end of the lockdown era with more concessions granted to business entities to open their gates and start work. But the actual implementation of the liberalized scheme of things would depend very much on the state governments, as the intensity of the controls required from state […]

Long End, Market Willing To Buy But At Its Own Price….

The recent events point towards a gradual build-up of pressure at the long end of the curve. The devolvement at the government securities’ auctions is a clear indication of the markets’ fatigue in absorbing long dated papers at sub-6 % yields. It also means that across investor spectrum the feelings towards auctions is more or […]

Pandemic And Election Reign The Stage…

The pandemic and the ensuing presidential elections dominate the scene in the US, and Brexit is also gradually coming back as an issue in the UK and Europe. The second wave of the pandemic has hit a number of countries in Europe which is likely to disrupt their economies further whereas there are no signs […]

Product Note: NFO – Invesco India Focused 20 Equity Fund

Focused Equity Fund – An open-ended equity scheme predominantly investing in equity and equity related instruments. These schemes are mandated to invest in maximum 30 stocks and mention where the scheme intends to focus, viz., multi-cap, large-cap, mid-cap, small-cap. Invesco India Focused 20 Equity Fund Fund Details: Fund Manager – Mr Taher Badshah; he has […]

Product Note: NFO – Mirae Asset Equity Allocator Fund of Fund

Mirae Asset Equity Allocator Fund of Fund – It is an open-ended fund of fund scheme predominantly investing in units of domestic equity ETFs. It seeks to provide investors with a broad exposure to large and mid cap equity segments by investing in the units of large cap and mid cap  equity ETFs. Investment Framework […]

Weaker Dollar could be the start of a new trend.

After a prolonged period of strength, the US Dollar lost some ground against all major currencies in the recent weeks, a phenomenon witnessed after a long time. The weakness was more marked against the Euro, Pound Sterling, and the Japanese Yen. While the pandemic worsens in the US with no relief seen in the near […]

Gold surges amid gathering clouds

Gold price surged past the US$1900 level continuing its trend which has been intact since September 2019. While in the initial phases of the rally it was strengthened by the uncertainties around the global economy mainly emanating from the trade war between the US and China, and the reduction in the base rate in the […]

RBI Policy Update

STATUS QUO ON RATES Monetary Policy Committee of the RBI has left the base rates unchanged in the announcement today. This is on expected lines as the RBI was expected to maintain status quo and stress more on the accommodative stance, liquidity enhancement measures and restructuring of the loan portfolios. The cumulative reduction of policy […]

Equities reclaim much of the lost pre-pandemic ground…

The equity indexes have reclaimed, in the last two months, most of the losses from the pre-pandemic period. The rally has just happened close on the heels of a drastic fall, and therefore, it is only natural that the question of whether the rally is sustainable or not may come up from time to time. […]

Pandemic takes its toll, policy-orientation anchored to liquidity…

The FOMC meeting which concluded on July 29, kept the Fed Funds Rate, the key policy rate, anchored in the range of 0 to 0.25%. This was on expected lines. The FOMC statement clearly said, “The path of the economy will depend significantly on the course of the virus”. Apart from keeping the rates unchanged, […]

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 […]

India: Equity markets buoyant on lockdown reversal

GDP AND CORE SECTOR GROWTH NUMBERS The sluggishness in economic growth was a feature of the Q2 and Q3 numbers, and it was accentuated in Q4. So, the number was more or less expected to indicate a decline from 4.00% and 4.50% levels; the GDP growth has been reported at 3.10%. This number fully reflects […]

Global challenges remain unchallenged as yet.

CHALLENGES REMAIN MORE OR LESS THE SAME The challenges which the global economy has been facing since the outbreak of the pandemic continues to be unchanged and unresolved to a large extent. The pandemic itself has spread to new regions and has spread havoc in the US, and has affected India too, a major contributor […]

Pandemic crushes economic growth like an empty tin can…

The data from the US reveals severe economic stress with 26 million people applying for unemployment benefits. This is about 15% of the US workforce. All the major indicators from retail sales to mortgages and industrial production, all point towards rapidly deteriorating economic conditions. This is the reality for the month of March, and April […]

Gold set to have a good day….

Gold has benefitted from the uncertainties in the global economy resulting from the spread of the pandemic. Uncertainties always give a push to gold prices as investors who flee excessive volatility take refuge in safe-haven assets like gold and dollar. Even otherwise, gold had a relatively good runduring course of the last one year mainly […]

Emerging Stars

The economic cycle follows a pattern of boom and bust; every boom period lays the foundation of down cycle and vice versa. A look at the economic history indicates that every single time the trigger points of a down trend have been fairly diverse, whether it be tech bubble, excesses or leverage of the financial […]

Government Borrowing Program

The GOI has revised the borrowing program for the current financial year from the original estimated gross market borrowing of Rs.7.80 lakh crore to Rs.12 lakh crore. The press release states that this revision is due to the COVID-19 pandemic. The pandemic has two-pronged impact on government finances. The first is the revenue impact. The […]

Here’s why succession planning is taking the center stage

In the wake of coronavirus, here’s why succession planning is taking the centre stage As the fear of Coronavirus sweeps the globe there is a rising fear among people to safeguard their family; and with a fierce financial panic, to preserve their wealth.  This is a temporary phenomenon, but people have become more wary of […]

Laziness and Laxity in making Wills

Contemporary human being works 24*7*365 days for some or the other activity. The major part of one’s life is spent earning a livelihood and improving one’s lifestyle. The journey of growing old is a process whereby one amasses experience, knowledge and wealth. The sour truth of growing old and dying one day can be made […]

Modi 2.0: Major challenges ahead for the new government

Currently, the markets are going through major issues in the context of liquidity and credit risk. The inter-bank market is experiencing chronic liquidity deficit. The markets and investors would expect the new government to retain and enhance its hallmark – decisiveness in many key issues that came up, during the last term. Decisiveness infuses greater […]

How to transfer assets to NRI children after your lifetime?

The main concern of parents having wealth in India with their children living abroad is, “How to transfer their wealth to them after their lifetime, especially when they won’t have the time to come to India for taking control over these assets and manage it after the lifetime of their parents.” The children prefer inheriting […]

How does one plan for succession of assets located in different countries?

How does one plan for succession of assets located in different countries? With globalisation, Indians have acquired assets in India and other countries. One can either prepare a single multi-jurisdictional will or separate situs wills for its succession. Both are valid. What is a separate situs Will? It is a Will that covers the assets […]