Expert Zone

‎India Markets Weekahead: Correction could follow budget week

By Ambareesh Baliga
July 6, 2014

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

Last week’s robust pre-budget rally belied expectations, with the Nifty closing up more than 3 percent at a record high of 7,751‎. Automobile sales, manufacturing PMI as well as services PMI showed an uptick. The Iraq turmoil seems to have taken a back seat with oil prices receding from a nine-month peak. A rally in world markets, with life highs for the DJIA and S&P 500, also aided sentiment.

The crisis in Iraq and an Afghanistan prognosis

By S K Chatterji
June 30, 2014

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

The Islamic State of Iraq and the Levant (ISIL) has rampaged through western Iraq. A few thousand kilometres away in Afghanistan, the International Security Assistance Force (ISAF) is withdrawing, with Americans contemplating less than 10,000 troops on ground.

India Markets Weekahead: Wait for post-budget opportunities

By Ambareesh Baliga
June 29, 2014

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

Markets were fairly volatile last week, reacting to tough measures taken by the Narendra Modi government to get India’s economy back on track amid worries over monsoon rains and the situation in Iraq.
cfcd208495d565ef66e7dff9f98764da.jpgLong-term investors hailed the hike in railway freight and passenger fares as a step in the right direction to bring down indirect subsidies. However, the government rolled back the hikes on suburban fares to a large extent due to political considerations.

Higher tax revenue from higher growth

June 24, 2014

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

The 2013-14 budget got completely out of hand because of a whopping shortfall in tax revenue. Development outlays had to be drastically cut to manage the fiscal deficit.

Currencies and the collapse of globalisation

By Paul Donovan
June 17, 2014

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

We live in stirring times. The president of the European Central Bank, Mario Draghi, crossed the monetary policy Rubicon and cut one of the euro area’s key interest rates into negative territory. This is dramatic stuff, as even the most economically oblivious are likely to recognise that negative interest rates are a radical policy.A picture illustration of Euro banknotes and coins taken in central Bosnian town of Zenica

Nehru’s last stand?

By Shashi Tharoor
June 17, 2014

(This piece comes from Project Syndicate. The opinions expressed are the author’s own)

India Markets Weekahead: Pre-budget rally may be muted

By Ambareesh Baliga
June 15, 2014

A man looks at a screen across the road displaying the election results on the facade of the Bombay Stock Exchange (BSE) building in Mumbai May 16, 2014. REUTERS/Danish Siddiqui/Files(Any opinions expressed here are those of the author and not of Thomson Reuters)

The Nifty touched a new high of 7,700 before cracking on Friday to slip about 0.5 percent for the week. This was primarily triggered by the unrest in Iraq and the subsequent rise in crude prices.

Election 2014: Imbalanced participation of women

By Praveen Rai
June 13, 2014

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

The marginalization of women in electoral politics is deeply embedded in the party system and the imbalanced gender power relations in the main political dispensations in India. They continue to be discriminated against not only in terms of seat allotments to contest elections but also within the rank and file of major political parties.

How to get India on the highway to high growth

June 11, 2014

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

The president’s address to parliament this week lays out the new government’s roadmap to get India’s economy back to high growth. That will take time and is not easy either.

Indian markets: Earnings in focus, better to stick to fundamentals

By Mukesh Agarwal
June 2, 2014

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

It’s reasonable to ask whether the Indian stock market has lost steam after the blistering run-up seen over the past couple of months. Since August, the markets have rallied about 40 percent, with many stocks in high-beta sectors such as infrastructure generating a return of more than 100 percent. At a one-year forward price-to-earnings (P/E) multiple of 15x, the Nifty isn’t exactly cheap for retail investors right now.