Consumer confidence at lowest level in last nine years, don't tinker with the GST architecture; all this and more on Moneycontrol Pro

Finally, some great news! India’s fastest-growing financial subscriptions service, Moneycontrol Pro, is available both on the website and mobile apps. Moneycontrol Pro offers curated markets data, independent equity analysis, insights into investment styles and exclusive trading recommendations. In sum, all the information you need for wealth creation. Consumer confidence at its lowest in last nine years In Moneycontrol Pro, we have been arguing that a rate cut might not be the best solution to stoke demand at the current juncture. One reason for that is poor consumer confidence. Indeed, the Reserve Bank of India’s consumer confidence survey for November says that its current situation index is at its lowest since December 2010. But what do consumers feel about future prospects? Read more. [caption id=“attachment_6847201” align=“alignleft” width=“380”] Representational image[/caption] Investors should consider these two microfinance firms despite a sharp rally The microfinance sector has come a long way from just a “not-for-profit” endeavour to a business model of sustainable growth with good returns. Some of them are delivering earnings growth upwards of 20 percent which means a lot in a market struggling to deliver double-digit earnings growth. While this is reflected in a sharp rally in stock prices, our independent research team recommends two companies whose prospects continue to be good. Read more. Can its capital raise rerate RBL Bank? The stock of RBL Bank had a rough ride ever since the bank guided to impending stress in its corporate book post its Q1FY20 earnings report. The stock corrected by a whopping 46 percent in the last six months. The management tried to quantify the size of the asset quality problem and has recently raised large capital. So is it time to take a hard look at RBL Bank for a rewarding investment journey? Read more. Weekly Tactical Pick: Mahindra & Mahindra Our independent research team’s weekly tactical stock pick is Mahindra & Mahindra. Its shares have corrected by 46 percent since the highs of August 2018 due to concerns over weak domestic demand for automobiles. That makes valuations appear relatively attractive with a more favourable risk-reward trade-off. Read more for the rationale. Don’t tinker with the GST architecture The Centre has fallen behind in paying out compensation due to the states under the GST system. Through the GST council the centre has asked the states to come up with solutions and has listed the following areas for examination: items under exemption, GST and compensation cess rates on various items, rate calibration for inverted duty structure, compliance and revenue augmentation measures. But should these be tinkered with? Read more. A PMS manager shares details of his investment journey Arun Malhotra, the managing partner of CapGrow Capital, uses all styles of investing and has been doing a good job of it. A hedge fund manager in his earlier avatar, Malhotra had been taught by the best in distressed investing, which he continues to use as a strategy to picking stocks along with investing in growth and deep value stocks. For details of his journey in the market and secrets of his investment success, click here. Three charts that present you investment insights 1. RBI’s growth estimate for FY20 lowest since Lehman crisis 2. Food inflation may be a global problem 3. PMI nos show a slight uptick in global growth Picks from our technical analysts (Please click on security name to access recos) Tata Elxsi Jindal Steel Ceat Tyres Ujjivan