Expert Zone

India Markets Weekahead: Volatile days ahead

September 18, 2016

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

A volatile trading week left investors confused on the direction of markets, and the Nifty ended almost 1 percent lower at 8,780. FIIs were net sellers to the tune of $106 million during the week.

India Markets Weekahead: Parliament holds the key

July 17, 2016

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

The Indian parliament building is pictured behind marigold flowers in New DelhiThe Nifty rallied past the psychological mark of 8,500 for the first time in 11 months to close at 8,541. Global markets were buoyed by better-than-expected U.S. jobs data and cheered the victory of Japan’s ruling coalition in the upper house election. PM Shinzo Abe is expected to unveil a fresh stimulus package to help the country’s stagnant economy.

India Markets Weekahead: Time to cherry pick as markets react to Bihar

November 8, 2015

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

The election result in Bihar would influence investors in the coming week. Voters have given a clear mandate to the “Mahagathbandhan” partnership of the Janata Dal (United), Rashtriya Janata Dal and Congress against Prime Minister Narendra Modi’s National Democratic Alliance. Market expectations of Modi’s alliance winning in Bihar were tapering over the last few days and exit polls also pointed towards a tightly fought election — but a rout had not been expected. A gap down opening on Monday is foretold.

No economic case for another rate cut soon

July 30, 2015

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

There is no doubt that India’s growth has not picked up in line with expectations. In fact, most activity indicators — whether it’s manufacturing growth, corporate earnings, power generation, passenger vehicle sales, exports growth or non-food credit offtake of commercial banks — have shown increasing weakness in recent months.

India Markets Weekahead: Keep shopping list handy for panic days

June 14, 2015

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

The future of inflation

November 13, 2014

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

Targeting inflation at 4 percent

October 13, 2014

Finance Minister Arun Jaitley seems to have finally taken the responsibility of targeting inflation as it is a sensitive political issue and could not be left to the discretion of the Reserve Bank of India (RBI). With CPI as the anchor, the target will be 4 percent measured annually (+/-2 percent).

Why inflation is so persistent

August 25, 2014

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

Inflation has been high for nearly four years and has not responded to the policies of the Reserve Bank of India or the central government. This is because the kind of inflation that we have is of an unusual variety and cannot be checked by conventional means.

Why the RBI raised interest rates

January 29, 2014

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

The Reserve Bank of India (RBI) raised interest rates at its review on Jan 28. The justification usually given for doing so is inflation.

Which inflation should the RBI target?

November 25, 2013

The Reserve Bank of India (RBI) is entrusted with the responsibility of maintaining price and financial stability, and it has used interest rate and money supply to pursue this objective with unwavering determination. Yet, inflation has survived with matching persistence.