-
Stop howling about rupee and accept its decline
The hue and cry over the rupee as it fell to record lows of 54 against the US dollar is even more than when India crashes out of a major cricket tournament. Calls for the Reserve Bank of India and the government to intervene to protect the rupee from falling #Foreign exchange reserves #HowThisWorks #Reserve Bank of India #Rupee
-
Tale of ant and grasshopper: Lessons for Europe, India
European nations, which have been playing while the world was working, are struggling to come to terms with the grave issues facing them. The normal way of life — generous state support, fewer working hours, extended summer holidays and assured jobs — is a thing of the past and the ordinary #Ant #EuropeCrisis #Eurozone #Indiagovernment #Inflation #TheLongView
-
Relax, things are not as bad as doomsdayers claim
Doomdayers are having a field day given our current market conditions. Calls range from the collapse of the eurozone to a fall in China’s economy. India is receiving its fair share of dark predictions ranging from runaway inflation expectations, a sharp rise in interest rates and below-par growth. If the predictions #BRIC #HowThisWorks #Inflation #RBI #Real estate bubble
-
Don’t expect RBI to ride to the rescue of rupee
Traders looking to go long on the rupee on hopes of central bank intervention will be disappointed and will be stopped out as the rupee weakens further. It is best to follow the rupee course and be short the currency until it stabilises at some level, possibly 54/55 level in #Business/Finance #Economy of India #OnOurMind #Reserve Bank of India
-
Why Indians will keep buying gold even at higher prices
Government or regulatory policies on gold will not help in curbing gold prices or gold demand. Policy makers should instead focus on bringing the macro economy back on track with respect to inflation, the fiscal deficit and current account deficit. Once that happens, the returns on financial assets will improve, leading to #Gold #HowThisWorks #Inflation #Muthoot Capital Services Ltd #Reserve Bank of India
-
Is being cash-rich a guarantee to good performance? Apparently not
The performance of cash-rich companies and high-debt companies over the past year has been similar, leading to questions about whether cash is really a safe haven in troubled times. The table below shows the performance of two of India’s richest companies in terms of their cash hoards, as well as that #BSE Sensex #Corporate finance #Debt #DLF #DLF Limited #HowTheyFare #Infosys #M&A #Reliance #TATA STEEL LIMITED
-
S&P hasn’t said anything new and markets agree
It is not cast in stone that the economy will continue to behave the way it did last year. The fact that the unthinkable happened when Chelsea beat Barcelona in the Champions League semi-final should make investors believe in the unthinkable. Rating agency actions make headline news — and that’s about #BBB #BSE Sensex #Gross Domestic Product #India #S&P #TheLongView
-
Will Hindalco and Tata Steel lead a revival of corp bond mkt?
The corporate bond market saw a spurt of activity on 23 April, with Hindalco and Tata Steel privately placing ten-year debt at 9.55 percent and 9.80 percent, respectively. The amount placed was Rs 3,000 crore for Hindalco and Rs 1,500 crore for Tata Steel. Both placements were taken up by #Business/Finance #Corporate bond #Debt #Government debt #HowThisWorks
-
Here’s how borrowers lose when govt orders banks to cut lending rates
A media story suggesting that the government has issued a directive to state-run banks to reduce lending rates has got several commentators bothered. The fact that the RBI cut the repo rate by 50 basis points in its annual policy for 2012-13 is seen as a signal for banks to lower #Arjun Parthasarathy #bank #Finance #HowThisWorks #Reserve Bank of India
-
Subbarao pleases all, including RBI
The higher than expected 50 basis points rate cut has pleased all concerned including the RBI. The government is happy as it believes a rate cut will help push up growth, markets are happy as the rate cut was higher than expected and the RBI is happy as it does #CreditPolicy #PolicyWatch #RBI Rreview #Subbarao