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Cheer up: We need not be gloomier than the FIIs this time
There are two ways to look at India at present. One is the gloom, doom way that says India is finished and it’s status as one of the most vibrant economies is over. The other is the beginning of a new chapter in India where the country will work towards #Economic Outlook #Market Outlook #What's Ahead
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SLR cut will not ease liquidity; it will only up bond yields
The Reserve Bank of India’s first quarter review of its policy statement for 2012-13 has cast more doubts on the trajectory of both growth and inflation. The central bank has lowered growth forecast for the full year to 6.5 percent from 7.3 percent while it has upped inflation estimates to 7 #Bond yields #MonetaryPolicy #PolicyWatch #Rate Cuts #RBI #SLR
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Watch out: Any firm blaming policy paralysis for its woes is a Sell
The most abused term in the current economic environment is “policy paralysis”. Widely used by corporates to give a reason for their below par results, the term has become an excuse for non-performance. Corporates that depend on government policies for their profits are the heaviest users of the word policy paralysis. Policy #policy paralysis #TheLongView
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RBI take note: US ‘fiscal cliff’ will affect India too, especially bonds
The Reserve Bank of India (RBI) should factor in a potential Fiscal Cliff event in the US in its policy review on 31 July. Global bond markets are factoring in the worst for economic growth, while domestic bond markets are testing the RBI’s resolve in holding on to rates in #"Fiscal Cliff" #HowThisWorks #RBI #US
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How to avoid stocks with hidden traps
A long bear market helps separate the ugly from the bad. Over the last four to five years, investors have seen many of their investments decline by 70-90 percent and above. Many of the stocks that have fallen sharply are likely to have fallen due to over valuations at peaks #bear market #HowThisWorks #Investing
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Hands off: OnMobile is Sebi’s turf, not government’s
The ministry of corporate affairs is seeking a report from the Registrar of Companies (ROC) on the ongoing controversy in a Rs 425 crores market capitalisation company, OnMobile Global. It makes one wonder if India does not have a regulatory system to take care of such affairs. OnMobile Global has been #OnMobile #RegulatorWatch #SEBI
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Tainted stocks: Which one will tumble in the next scam?
The fallout of a long bear market is that skeletons tumble out of cupboards. India has had more than its fair share of stocks that have been dumped due to issues of corruption, false accounting, corporate governance, price rigging, insider trading, regulatory breaches and other such misdemeanors. India is in #Dud Stocks #Dumb Money #Risky Stocks
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Banks need to be more transparent about loan restructuring
Restructuring is a polite form of default. The only difference between restructured loans and default is that the lender has to write off or make provisions for the latter while the former stays on books as assets. The borrower going in for restructuring does not have money to repay loans #Banking #financial assets #Mortgage #Spain #WhyNow
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Sebi’s job is to regulate not micro manage mutual funds
The markets and investor watchdog, Sebi, is planning to question fund houses on the underperformance of some of their schemes. Many mutual fund schemes have underperformed benchmarks for a period of time and the regulator is unhappy about it and is going to investigate the reasons for #AMCs #Mutual Funds #Regulator Raj #SEBI
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Mr PM, do you have accountability to investors?
The Big bang announcements announced before Pranab Mukerjee vacated the FM’s seat included increasing foreign institutional investor (FII) limits in Indian government bonds by $5 billion and increasing the overall ECB limits for Indian corporates by $10 billion. The headlines on Manmohan Singh as FM meeting finmin officials say the idea #Bonds #ECBs #FII inflows #SmartMoney