Arjun Parthasarathy has spent 20 years in the financial markets, having worked with Indian and multinational organisations. His last job was as head of fixed income at a mutual fund. An MBA from the University of Hull, he has managed portfolios independently and is currently the editor of www.investorsareidiots.com . The website is for investors who want to invest in the right financial products at the right time.
Any amount of crusades against corruption without a fundamentally strong economic policy will not help bring down the root cause of corruption. Fighting the symptoms rather than the cause usually leads to a haphazard cure, which may not work in the long run.
A strong rupee coupled with falling forward premium rates will make bonds attractive to FIIs leading to strong inflows into the debt market. FIIs have invested close to $1 billion in bonds in December 2013 and this trend is likely to continue in 2014. #Bonds#CurrencyWatch#Indian rupee#Rupee#rupee bonds
The markets were well prepared for a rate increase and would have preferred one with a guidance. However, a no-rate hike with an uncertain guidance that it may take action on non-policy dates if the inflation moves higher will keep the markets edgy. #BSE Sensex#nifty#RBI#Repo rate#Stock Markets#tapering#US Fed
RBI while raising the repo rate by 25bps in its December 2013 policy review may put on hold further rate increases until a new government unveils its budget. In the meanwhile, further economic slowdown coupled with vegetable prices easing (vegetable price rise of 60% has contributed much to high CPI inflation) could bring down inflation expectations. #CAD#CPI#IIP#Inflation#Interest rates#PolicyWatch#Raghuram Rajan#RBI