SENSEX and Indian rupee has witnessed a dramatic turnaround since Wednesday, when Raghuram Rajan took over as the new governor of the Reserve Bank. Sensex yesterday closed above the psychological level of 20000, Nifty rallied 555 points in 4 days and Indian Rupee retraced back to 64 from life lows of 69 again of almost … Read more Why Rupee and Sensex are rallying?
Thought Provoking article India further eased rules on foreign direct investment in a range of industries in an attempt to boost the economy which grew at its slowest pace in a decade during the 2012-13 financial year. Economic analyst Paranjoy Guha Thakurta explains what ails Asia’s third-largest economy. For Prime Minister Manmohan Singh, the irony … Read more What is wrong with India’s economy?
Here’s what RBI has done. 1) The RBI has increased banks’ cost of borrowing short term money through the Marginal Standing Facility (MSF) rate and Bank Rate each by 200 basis points ( 2 per cent) to 10.25 per cent. The measure will make it unattractive for banks to borrow rupee (at cheap rates) and … Read more RBI jump in to save Rupee,Hikes Intrest Rate
Question: How do you make stocks and bonds rise in price at the same time and increase the wealth of the investor class? Answer: You declare your intent to buy $85 billion of and mortgages every month for a considerably extended period as a way to maintain the lowest rates of interest in recent history. … Read more How Bernanke Manipulates the Markets
The rupee crossed 63 to a dollar again as discussed in our USD INR Forecast. This should not be surprising given that the demand for dollars is much more than their supply. So now question lies Can Rupee touch 65 in medium term. Let me answer the question for you talking on both Fundamental and … Read more Can rupee touch 65 to a dollar ?
While Fed officials are at pains to point out that their two policy tools (asset purchases and rates) the markets continue to link them and the latest increase in Taper chatter has dragged expectations for the first rate hike dramatically forward. Just a month ago, expectations were as late as Jan 2016 but Fed Funds … Read more Financial Market reaction to various FOMC scenarios
Rupee breached the sacrosanct 57 mark in today’s trade which was last seen on 28 June 2012 plunged almost 5% for the month of May. Rupee is very near to its all time low of 57.32 Reason for Rupee Hitting 52 Week Low 1.Dollar trading at 3 year High As discussed US Dollar at 3-Year … Read more INR hits 57, Reason for Rupee Weakness
It is clear that Western capital markets no longer generally regard gold as money. It has been relegated to the status of a risk asset, useful collateral, or simply a commodity with a history of being used as money. This is a mistake. The great Austrian economist, von Mises, wrote that true money had to … Read more Why Gold Is Money
The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, has released the provisional estimates of national income for the financial year 2012-13 and the quarterly estimates of Gross Domestic Product (GDP) for the fourth quarter (January-March) of 2012-13, both at constant (2004-05) and current prices. 2. The CSO has also released the corresponding … Read more India’s Q4 GDP at 4.8% at decade low
Interesting Observation From Historical Stock Market Moves What happened in Japan last week (a 14% decline after a 85% rally since last fall) is an example of markets getting ahead of the facts on the ground. But what happens next? After a 70% run-up over 6 months, how have stocks performed? The … Read more Japan Stock Market Rallied 70% in 6 Month Whats next ?