The Indian
rupee, which was at par with the American currency at the time of independence
in 1947, hit a record low of 63.30 against a dollar Monday. This means the
Indian currency has depreciated by more than 63 times against the greenback in
the past 66 years.
Managing
volatility in the currency markets has become a big challenge for the economic
policy makers in the country. The central bank as well as the government has
taken...
Our India, Our Finance, Our Deficit
Monday, 5 August 2013
A large fiscal deficit is an indication that the economy is in trouble and will have reasons to worry. A high fiscal deficit, amongst many, could pose an
inflation risk
minimize the growth of the economy
doubt the government’s abilities
it could affect the country’s sovereign rating, which in turn will limit foreign investors from looking at India as one of the investment hubs.
It is believed that high fiscal deficit...
External Sector Vulnerability - The Indian Economy
Wednesday, 31 July 2013
In the past few years, since the 2008 global financial crisis, India's external sector has become increasingly vulnerable. The plunge taken by the Indian rupee recently is an effect of this perception of an increase in vulnerability.
About External Debt
External debt is the portion of its debt borrowed from foreign institutions. India's external debt has seen a stark rise in the last six years. According to data by the Reserve...
The Myth Surrounding Safe Investments
Wednesday, 24 July 2013
Financial media tends to re-define 'safety' of asset classes every time there is a change in market sentiment. Prior to the financial crisis of 2008, even derivatives were sold as safe investments. Ironically the weapons of mass destruction have only made the case for so-called safe investments stronger. So much so, that post crisis, the adage of safety shifted from smallcap stocks to gold to finally debt funds. Many Indian...
Swinging Rupee – Enjoy the breeze or get blown!!
Tuesday, 25 June 2013
The Headline catches the meaning
of the content but a small difference lies. Unlike the swings, we are
witnessing only the fall and not only us but the whole world needs a push on
the ground to rise higher.
It’s important to understand that
the studies of Rupee vs Dollars or for that matter between any currencies would
give similar results. Focusing on tweaking the ways of analysis is not going to
work. Moving onto recent...
Morning Bell: May 29, 2013
Tuesday, 28 May 2013
Key Indian indices are set to open on a soft note today tracking volatile cues from other Asian markets. Back home, caution ahead of Q4 GDP data due on 31st May 2013 & derivative contract expiry may infuse volatility in the market.
Key Events For The Day:Quarterly Results: ONGC, Tata Motors, NMDC, Cipla.India M3 Money Supply.Canada BoC Interest Rate Decision.Derivative Strategy For The Day:Buy NIFTY (CMP: 6109) with a...
Morning Bell: May 28, 2013
Monday, 27 May 2013
Key Indian indices are set to open on a flat note today tracking volatile trading from other asian markets. Back home, the slightly higher than expected results from Coal India may bring optimism while the cautious sentiment due to Q4 GDP data to be released on 31st May 2013 & derivatives contract expiry due on thursday may keep the markets rangebound today.
Key Events For The Day:Quarterly Results: Gail India, Colgate...
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