Govt's share in economy now highest in 60 years, RBI to cut rates this week; 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. The government’s share in the economy is now the highest in sixty years Yesterday, we had pointed out how government spending propped up the GDP numbers for the September quarter. On deeper digging, we found that the government’s share in the economy is the highest in 60 years now – much higher than the 10-11 percent in the 1970s, during the heydays of India’s so-called socialism. Is that good or bad? Read more. [caption id=“attachment_6847201” align=“alignleft” width=“380”] Representational image[/caption] RBI will cut rates this week. But how much will it help? Given the September quarter GDP numbers and a slew of negative high-frequency data, it is logical that the RBI’s rate setting committee will cut rates when it meets later this week. But a rate cut will be akin to a reflex action. Whether it will be useful to kick start demand under current conditions is open for debate. Read more. A tightrope walk for states If a slowing economy and burgeoning fiscal deficit are turning out to be a big headache for the NDA government at the Centre, states are not in a very happy situation either. Ratings agency Moody’s has forecast that the combined gross fiscal deficit of states will go up to 3 percent by the end of March next year. What does this mean? Read more. The implications of the mobile tariff hikes All it took was a fortnight for the BSE Telecom index to move from a one-year low level to one year high. Stocks jumped as the three main players in the mobile telephony segment raised tariffs by up to 50 percent. Is this enough to revive the fortunes of ailing players? Read more. Ideas for Profit | SH Kelkar SH Kelkar is a leading maker of fragrance and flavours. It posted a weak set of numbers in the September 2019 quarter. Demand conditions are weak. Its ongoing restructuring has dented operating margins. Yet, our independent research team is constructive on the stock. Don’t you want to know why? Read more. New government in Maharashtra: What investors should note Will the change in government in Maharashtra also change the fortunes of companies that are putting up infrastructure projects in the state? New chief minister Uddhav Thackeray has already said that he will review the proposed bullet train project. Investors are aware that when it comes to construction companies, politics is an added risk they have to keep an eye on. Read more. Somany Ceramics: Are concerns baked into its price? The ceramic tile company Somany Ceramics is facing challenging times. Its performance continues to be weak and the stock has been hammered by negative news flows pertaining to sector and the company. Higher input prices and a competitive market environment have dragged its performance last year. What should investors do? Read more. Picks from our technical analysts (Please click on security name to access recos) Kotak Mahindra Bank Aurobindo Pharma Prestige Estates Just Dial