Reserve Bank to govt's rescue, stock picks from tech analysts; all this and more on Moneycontrol Pro

  • Shaktikanta Das-led RBI has just handed a bonanza to the government. The net fiscal benefit for 2019-20 is Rs 58,000 crore

  • Smaller companies are typically associated with higher risks. Their businesses are riskier – they are less diversified

  • NIFTY closed above a major trendline resistance after gaining more than 2 percent in a single session

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Das Capital | RBI rides to the rescue

The Shaktikanta Das-led Reserve Bank of India has just handed a bonanza to the government. The net fiscal benefit for 2019-20 is Rs 58,000 crore, or about 0.28 percent of GDP. Will the government use it to reduce the fiscal deficit or will it boost spending? The question becomes important because of weak revenue collections. Read here to know how the transaction will be done, how the government could use this extra fiscal space and the implications for bonds and liquidity.

This food colour company’s new business model presents an investment opportunity

Vidhi Specialty Food Ingredients has shifted from a trading-led business model to making products by itself, which means higher margins and makes for a more sustainable business model. It is also adding products that earn higher margins to its portfolio to build a profitable portfolio of products. While sales have declined because of the shift in its business model, margins have improved. Its shares have fallen sharply along with the fall in small caps. Click here to read what our analyst thinks about its prospects.

 Reserve Bank to govts rescue, stock picks from tech analysts; all this and more on Moneycontrol Pro

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Primer | Is it dangerous to fish in smallcap waters? Extra care helps

Smaller companies are typically associated with higher risks. Their businesses are riskier – they are less diversified, have limited access to capital markets and are burdened with a higher cost of capital. They also tend to be more sensitive to economic cycles. But there is a silver lining - smaller companies tend to exhibit exponential growth owing to smaller bases, and lower dividend payouts. How should investors navigate these waters? Click here to read.

Technical Analysis picks:

Maruti Suzuki: This stock’s uptrend is nearing its resistance. Read how to trade in this stock, click here.

Nifty: NIFTY closed above a major trendline resistance after gaining more than 2 percent in a single session. Click here to read what that means and how to trade this move.

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Updated Date: Aug 27, 2019 11:35:12 IST