Expert Zone

Straight from the Specialists

Taking the Indian economy to a higher orbit

Photo

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

Space research in India has come of age in the last five decades and the country is now in the elite club of countries capable of launching satellites for commercial purposes. What made this possible? An environment made conducive by government policy, objectives clearly spelled out, availability of funds, a homegrown talent pool and international tech support. Can a similar strategy work to take the Indian economy and the capital market to stratospheric levels?

The stability of a satellite (read: economy) would depend on how the rocket or carrier (read: enabler, the government) places it in a pre-determined orbit. This would depend on the thrust or the impulse generated by the multi-stage rocket system. The first stage requires more power to push the payload out of the atmosphere against gravity. Successive stages need less power but may need a different design, fuel and technology for delivery and long-term sustenance of the payload.

The Indian economy and the capital market got its initial thrust back in 1992 with the first set of economic reforms following decades of the Nehruvian socialist model. The government (the Congress for the most part) opened up several sectors of the economy for foreign investment — and thus India embraced globalisation.

Parallel between cash transfer schemes and health insurance claims

Photo

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

The more I think about it, the more I am convinced that the direct cash transfer scheme is a money saver for the government and the taxpayer. A direct parallel is the way insurance companies handle claims in health insurance plans.

India Markets Weekahead – Still time to tank up for a pre-budget rally

Photo

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

The Nifty has crossed 6,000 levels while the Sensex breached the psychological barrier of 20,000 to touch a two-year high — triggered by an overdrive of government action, encouraging macro numbers, corporate results and no bad news internationally.

India Markets Weekahead – Company results key for market direction

Photo

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

Infosys stumped Indian markets again but for a change — positively. Recent management comments had built expectations of underperformance which led to cautious to negative views on the stock. Institutional investors were light on Infosys whereas the more adventurous speculators were short. And we were all caught on the wrong foot when the company declared a revenue growth as well as a net profit much better than consensus expectations.

Time to create a holistic mobile ecosystem

Photo

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

Mobile phones have transcended various phases of evolution since the time they began their journey. They have come a long way from being simple feature phones, which were meant for making calls and sending text messages.

Concerns about current account deficit

Photo

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

The current account deficit (CAD) which touched 5.4 percent of the GDP is a matter of deep concern. It is well beyond the 3 percent danger mark which was crossed more than 18 months back and caused the rupee to depreciate.

India Markets Weekahead – Set for new high with no roadblock in sight

A resolution for the U.S. “fiscal cliff” helped the markets cross the psychological Nifty benchmark of 6,000 to close the week up 1.82 percent at 6,016.

Though I expected a spirited rally, what we witnessed last week is a strong consolidation around 6,000 which could form a solid bottom for the next leg of the rally. This is also facilitating the entry of domestic retail investors which is visible in the mid-cap and small-cap volume and performance. The BSE small-cap index moved up 3.71 percent whereas the BSE mid-cap index gained 3.13 percent.

India Markets in 2013: ball is in government’s court

Photo

(The views expressed in this column are the author’s own and do not represent those of Reuters)

If calendar year 2012 was the year of scams in India which helped induce some much needed government reforms, the year 2013 is expected to be a year of hope and expectation for India and India Inc. There are expectations on better political governance, fall in inflation levels and hence interest rates, creation of an investment friendly business environment and lots more. It’s also the year with the last finance budget before the 2014 general elections.

The wait for the rate cut

Photo

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

At its mid-quarter review on Jan. 18, the Reserve Bank of India (RBI) did not cut the repo rate and also left the CRR unchanged. But it raised hopes that policy easing can follow in the fourth quarter.

Signs of recovery in real estate but challenges ahead

Photo

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

The year 2012 has been a rollercoaster of sorts. Inflation remained above comfort levels, the GDP growth rate slipped and so did the industrial output. The Reserve Bank of India doggedly kept the repo rate unchanged, barring once in April.

  • Editors & Key Contributors