Politics of Minimum Support Price & Inflation in India

June 27, 2014 · Filed Under market · Comment 

Minimum Support Prices (MSPs) of Agricultural commodities (summer crop) has been raised by a weighted average1 of 2.1% y-o-y, from 5.6% in FY14 and 24% in FY13. This is in line with the Commission for Agricultural Costs and Prices (CACP)’s recommendations. Specifically, the key MSP changes are as follows – a 4% rise for rice, 1.6% for coarse cereals, 1-2% for pulses and 0-2% for oilseeds.

A lower rise in MSP, if implemented, would be a medium-term positive for lowering the inflationary impulses in the economy, as MSPs Read more

Will Lok Sabha Exit Polls on 13th May set Direction for Stock Market ?

May 8, 2014 · Filed Under market · Comment 

Indian Stock markets are more favourably disposed towards a Modi-led BJP/NDA Government and that his victory is now being assigned increasingly higher probability. Opinion poll forecasts for NDA have moved up from 165-190 in Jul-13 to 240- 265 in Apr-14, vs. 272+ required for a majority. Markets may react quite differently to actual outcome scenarios, in the short-term. Our discussions with investors suggest that a number closer to the 272 mark or more would be taken very positively, possibly euphorically near-term. A number below 220-230 for NDA may be taken negatively short-term. An in-between Read more

Indian Equities Discounting NaMo as Prime Minister of India

March 10, 2014 · Filed Under market · Comment 

India’s outperformance over EM is only 3% over last month and c10% over three months. A few investors believe that this could be a rally driven by the optimism for a decisive verdict in the upcoming general election results.

It may be tempting to attribute the rise in the index to increasing investor expectations of a strong NDA win in the upcoming general elections; however, fact is that within the index, external-focused sectors (IT and Pharma) and stocks (Tata Motors, Tata Steel, Hindalco) Read more

Battle of Indian Economy – Oligarchy Vs Democracy and Transparency for 2022

June 26, 2012 · Filed Under market · Comment 

When we look at the Past decade of Economic Reforms in India, we see two camps – One has politicians with a controlling and arguably, authoritarian mindset. They are backed by a growing number of promoters who cannot come to terms with the fact that the under-the-table model of doing business has become dysfunctional in India. These promoters lobby that the Comptroller Auditor General and the Competition Commission of India are neutralized as quickly as possible so that business-as-usual can resume.

On the other end of the Spectrum are a disparate group of determined individuals Read more

Budget 2011 Live – Highlights

February 28, 2011 · Filed Under market · Comment 

Excerpts from Pranab Mukherjee’s Speech Live – Continuous Update.

Indian economy at pre-crisis growth trajectory. Food Inflation still remains a concern. FY11 Fiscal consolidation impressive. Service Sector continues to grow in double digit. Stronger fiscal consolidation needed. Need to ensure sustained private investment.

FM says corruption is a problem; must fight it collectively. Need to improve the supply of agriculture to meet demand. Current account deficit poses some concern. Economic growth seen at 8.75%-9.25% in FY12. GST rollout preparation in final stages, will be tabled in the current session. Sees FY11 industrial growth at 8.1% and services growth at 9.6%.

FIIs allowed to invest in MF schemes. Divestment target at Read more

FIIs were net sellers of Rs 1,589.90 cr in cash on Monday

May 11, 2010 · Filed Under market · Comment 

Foreign Institutional Investors (FIIs) were net sellers of Rs 1,589.90 crore (provisional) in the cash segment on Monday, according to the information posted on the SEBI website. While FIIs made gross purchases of Rs 2,856.30 crore, their gross sales amounted to Rs 4,446.20 crore.

As per the data posted on the BSE website, Domestic Institutional Investors (DIIs) were net buyers of Rs 30.25 crore (provisional) on the same day. While DIIs made gross purchases of Rs 1,405.92 crore, their gross sales aggregated Rs 1,375.67 crore. Read more

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