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RGESS or regress? Tax breaks won’t help equity flows
The government is trying to push the Rajiv Gandhi Equity Savings Scheme (RGESS) by giving it extra tax sops. It is an equity scheme where an individual earning Rs 10 lakh or less per annum can save 50 percent in tax for investments up to a maximum of Rs 50,000. #equity markets #retail investors #RGESS #tax sops #WhyNow
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Land speculation is giving inflation and CAD a boost
Land that is not used for productive purposes but is treated as a speculative asset class has a direct impact on the economy. The impact of land speculation is clearly negative as it pushes up inflation and leads to a rising current account deficit. India has been suffering from high inflation #CAD #ConnectTheDots #Inflation #Land speculation
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Why RBI should go easy on bank licences
The RBI's data on non-performing assets (NPA) of banks shows that public sector banks (PSBs) have been the worst performers on the NPA front and their capital adequacy has actually gone down in the June to September 2012 period. PSBs have the highest ratio of restructured standard assets to gross advances with the ratio being #bank licences #PSB #RBI #WhyNow
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India dealing with Asian crisis its peers felt 15 years ago
The Asian crisis that hit the Tiger economies in the late 1990s missed India then. India was not exposed to international markets in the 1990s and the fast growing Tiger economies of Hong Kong, Thailand, Indonesia, Philippines, South Korea and Malaysia that were exposed to global markets suffered when the #Asian Crisis #ConnectTheDots #Current Account Deficit #fiscal deficit #India #Rupee
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Why a stable euro is good for Sensex, Nifty and rupee
The euro (EUR) is trading at 13-month highs against the US dollar (USD) as of 31 January 2013. The single currency shared by 17 nations in the eurozone has gained over 12 percent from lows seen in July 2012 and is up over 2 percent month on month as of #Euro-rupee #nifty #Sensex #Smart Money
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Markets should recognise RBI’s efforts on growth push
The RBI policy actions for fiscal 2012-13 include repo rate cut of 75 bps, CRR (Cash Reserve Ratio) cut of 75 bps and SLR (statutory liquidity ratio) cut of 100 bps. In addition to policy rate cuts, the central bank has added Rs 130,000 crore of liquidity into the system #PolicyWatch #RBI #stock maret
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Expectations from Budget soar post reform steps
Finance Minister P Chidambaram has started something that cannot be stopped, as any roadblocks to these will result in a economic catastrophe. There are high expectations from the government after the foreign direct investment (FDI) reforms in retail, diesel price decontrol and commitment to lower fiscal deficit. Indian equity, bond and #Budget Expectations #Budget2013 #nifty #P. Chidambaram #Sensex
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Position your portfolios based on changing market trends
Markets have changed course in just over a year. Equities from the S&P 500 to the Nifty that were being beaten down in 2011 are looking bullish in 2013. US treasuries that had a long bull run since 2008 are climbing up from the lows. Gold that was seen as a #Currency #Debt #equities #oil #PersonalFinance #Portfolio
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Sensex at 20000: Markets will give credit where it is due
The government has allowed oil companies to raise diesel prices after strangulating them for eight years. Oil companies can raise diesel prices by a small amount every month (Rs 0.45/litre to Rs 1/litre are estimates of raise every month) to bring down the under recoveries in the selling price of #Budget2013 #Diesel Price HIke #Fuel Subsidy #Sensex #Stock market
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Budget 2013 will be pragmatic, but not necessarily reformist
The events in the run-up to the Union Budget for 2013-14 to be tabled in Parliament in February are pointing towards a positive, pragmatic budget, and not a populist one. The government has realised that good economics is better for votes than bad economics. The government has had it rough in #Budget2013 #CAD #Chidambaram #GDP #Union Budget