Expert Zone

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.

NSEL crisis puts spotlight on conflict of interest

By Ameet Hariani
September 19, 2013

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

Indian markets at risk but elections could spell change

By R Rajagopal
September 17, 2013

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

It’s been an eventful September so far for India. The Indian parliament cleared key economic legislation in its extended session. The Reserve Bank of India saw a new governor taking charge. FII flows reversed trend to turn positive in equity and debt markets. Volatility in the currency market subsided and the rupee staged a recovery from historic lows. Near-term bond yields shrank and the August trade deficit came in lower as exports climbed. The Syrian crisis seems to have abated. Does this mean that the worst is behind us and things will start improving?

India Market Weekahead – Volatility expected ahead of RBI policy review

By Ambareesh Baliga
September 15, 2013

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

After a rally of 500 points on the Nifty, markets consolidated at slightly higher levels to close at 5850 this week. It’s evident that hope keeps the market ticking — this time it was various measures by the new RBI governor, Raghuram Rajan,that cheered the markets.

Raghuram Rajan and the rupee

September 12, 2013

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

With Raghuram Rajan taking over as the governor of the Reserve Bank of India (RBI), it’ll make for a change in the central bank’s policy perception.

Asian bonds: rising discrimination

By Dilip Parameswaran
September 10, 2013

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

Ever since reports emerged that the United States might taper off its bond-buying program, emerging markets have whipsawed: falling currencies, rising rates and fleeing funds. India and Indonesia have been two of the most affected countries in Asia.

Time to brace yourself for a hard landing

September 2, 2013

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

In his speech to parliament last week, Prime Minister Manmohan Singh said: “The depreciation of the rupee and rise in dollar prices of petroleum products will no doubt lead to some further upward pressure on prices. The Reserve Bank of India will therefore continue to focus on bringing down inflation.”