Expert Zone

India-Pakistan border flare-up a zero-sum game

By S K Chatterji
October 30, 2013

(Any opinions expressed here are those of the author, and not necessarily of Thomson Reuters)

Need to rebalance RBI’s interest structure

October 23, 2013

(Any opinions expressed here are those of the author and not of Thomson Reuters)

In its mid-quarterly monetary policy review last month, the Reserve Bank of India (RBI) made some hasty changes in the interest structure. The repo rate was raised possibly because of the rise in inflation and the marginal standing facility (MSF) rate was cut after the rupee recovered against the dollar. The interest structure is still lopsided with short rates exceeding long rates. This anomaly needs to be corrected.

Invisible hand of market at work

By Apurva Shah
October 21, 2013

(Any opinions expressed here are those of the author and not of Thomson Reuters)

Rupee should not harden further

October 14, 2013

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The rupee has recovered over the past few weeks after falling to a record low of 68.85 per dollar in August. After a period of unease, the finance ministry and the Reserve Bank of India can now take it a little easy. But care needs to be taken that the rupee is not driven up further.

India Markets Weekahead: Investors should wait for a correction to buy

By Ambareesh Baliga
October 13, 2013

(Any opinions expressed here are those of the author and not of Thomson Reuters)

Markets continued a strong rally to close the week around 3 percent higher. After the partial U.S. shutdown was confirmed and triggered speculation over the postponement of QE tapering, a weakening dollar and the rupee’s subsequent appreciation also helped lift the mood.

SEBI tries to get it REIT again

By Anshuman Magazine
October 7, 2013

(Any opinions expressed here are those of the author and not of Thomson Reuters)

Ease of funding is a key recommendation for the growth and development of the Indian realty sector in the coming decade. New instruments of funding should be allowed into the sector, especially real estate investment trusts (REITs) — an investment mechanism that buys income-generating real estate assets and passes on the yield to investors.

Terrano might just be the ace up Nissan’s sleeve

By Ashish Jha
October 3, 2013

(Any opinions expressed here are those of the author and not of Thomson Reuters)

I could have said the Terrano — Nissan’s compact SUV — is a glorified and beautified Renault Duster, but Nissan isn’t silly to invest money and effort to market a product already in the market.

Rajan panel proposals not a cure for disparity among states

October 3, 2013

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The report of a committee headed by Raghuram Rajan on backward states has drawn attention to development disparities among states in India. Not that these were not known or assessed before. The report offers an index for identification of states according to the degree of backwardness and their share of financial assistance from the central government.

India Markets Weekahead: Lack of positive triggers in the near term

By Ambareesh Baliga
September 29, 2013

(Any opinions expressed here are those of the author and not of Thomson Reuters)

Indian markets are in a corrective phase after RBI Governor Raghuram Rajan’s monetary policy review on Sept. 20 put a damper on investor expectations. If Rajan had played to the galleries, we would have seen a stock market bubble. The move from pessimism to euphoria — a rally of nearly 20 percent in less than three weeks — without any perceptible change in ground realities, would have led to a bull trap. Though participation levels were not high, FIIs had turned buyers and it would have been a matter of time before dormant market participants jumped into the fray.

Was the repo rate hike necessary?

September 21, 2013

The decision of the U.S. Federal Reserve to delay tapering its bond purchases cheered markets, and more so in India because they were convinced of a second bonanza from the RBI. But new Governor Raghuram Rajan gave the markets a jolt by turning hawkish and increasing the repo rate.