Expert Zone

Sooner the better for RBI to unwind grip on liquidity

July 31, 2013

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

The Reserve Bank of India (RBI) wasn’t expected to do anything new at its policy review on Tuesday and it did exactly that. But the markets still reacted adversely. The stock market moved in consort with the rupee with the Sensex falling 245 points.

Why the rupee is linked to jobs in the U.S.

July 10, 2013

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

Will the rupee fall further?

June 3, 2013

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

On May 31, the rupee fell to an 11-month low of 56.51 to the dollar. It wasn’t the only currency to suffer a loss. Most currencies depreciated during the month; some more than the others.

The threat of a junk rating

May 20, 2013

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

Credit ratings by agencies are never very objective and their long-term outlook is also seldom accurate. Sovereign ratings, in particular those which are not solicited, are generally unreliable and often biased. But rating agencies do draw attention to critical issues that should not be ignored.

Why is RBI chief Subbarao so cynical?

May 6, 2013

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

In its policy review on May 3, the Reserve Bank of India (RBI) did bring down the repo rate by 25 basis points but it also presented a gloomy outlook on growth and inflation which left the stock markets cold. The Sensex, which had surged in anticipation, fell 160 points. What makes the RBI so negative when even rating agencies are inclined to accept the emergence of green shoots?

Need to bring repo rate in line with inflation

April 29, 2013

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

For nearly three years now, the Reserve Bank of India (RBI) monetary policy has had a single target. The presumption is that only when inflation is below the tolerance limit can the interest rate be made normal.

Gold not a good investment for now

April 22, 2013


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

Pitfalls of the food security bill

April 16, 2013

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

The food security bill will be introduced in the current budget session of parliament, more because of its populist appeal than any economic urgency. Even when the bill was discussed by the Cabinet, Finance Minister P. Chidambaram and Agriculture Minister Sharad Pawar reportedly had reservations. They had valid reasons.

The battle for patent protection

April 8, 2013

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

The stock market’s delayed response to Budget 2013

March 11, 2013

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

Finance Minister P. Chidambaram tried to humour the market in his budget by cutting the Securities Transaction Tax (STT) which had been one of its sore points. But the market was not amused. The Sensex continued to slide, indifferent to the budget which was presented with a lot of expectations.