Articles by Arjun Parthasarathy
Apr 09, 2014
100 cities: Is Modi planning to copy China? Here's why it is dangerousThe so-called ghost towns in China are such cities and towns that are state of the art, fully equipped but no one to occupy and live in them
Apr 08, 2014
Equity markets may cheer the BJP manifesto, but there is one big problemIts emphasis is on growth, manufacturing, real estate and infrastructure and does not address issues like govt debt, weak rupee and reforms
Apr 04, 2014
Tough luck: Here's why new govt won't be able to splurge with abandon to boost economyThe government that comes into power in the 2014 general elections will be staring at high cost of borrowing. Government bond yields are trading at its highest levels since August 2013, when the Indian Rupee (INR) touched record lows against the US Dollar. Ten year benchmark government bond yields are at levels of 8.95% up 100bps year on year.
Apr 01, 2014
RBI Policy: Banks will be thankful to Rajan for spoiling the partyIn the short term, RBI may have spoilt a bank stocks rally but in the long term if RBI is able to contain inflation, improve strength of the banking system, have a robust bank license policy and provide confidence to FIIs on the Rupee, banks stocks will gain.
Mar 31, 2014
Bond markets to Rajan: Rate cut not required but market needs liquidityEasing of CRR and removing restrictions on LAF is the most seamless option for the RBI to add system liquidity. USD purchases is not warranted given that the INR is still down over 30% against the USD over the last three years. OMO bond purchase is back door deficit financing that is inflationary in nature.
Mar 28, 2014
Rupee at 60 - RBI should stop buying dollars and find another way to shore up reservesIndia needs to shore up its reserves but the cost of shoring it up is high. The rupee is still down over 30% against the USD from levels seen a few years ago and the country is still not out of the woods in terms of inflation.
Mar 27, 2014
Sensex, Nifty and rupee surging. But here's why bonds are not joining Modi maniaThe bond market is not expecting any rate reversals next fiscal year given the RBI's focus on inflation. The market is also worried on supply with the first half borrowing for fiscal 2014-15 commencing in April. Hence at this point of time, the bond market is not echoing the drums of the Sensex, Nifty and the rupee.
Mar 25, 2014
Sensex and Nifty at record highs. Are you feeling left out of the rally?The Sensex and Nifty are at record highs as of 24 March, 2014 and have been touching record highs frequently this month. Are the markets too speculative given elections? What should you do if you have not invested in the market or have taken money out earlier? Should you invest or stay away?
Mar 20, 2014
Will India feel the pain of Fed rate hikes?What would a hike in US Central Bank policy rates mean for India and the rest of the world? Would money flow back into US treasuries causing capital outflows, taking down emerging market currencies?
Mar 18, 2014
PSU ETFs: Why would you want to own a basket of govt-owned stocks?To give a boost to its disinvestment programme, the Government of India has launched a Central Public Sector Enterprise Exchange Traded Fund ("CPSE ETF") constituting equity shares of Central Public Sector Enterprises, which is launched as a CPSE ETF Mutual Fund Scheme.