The Indian financial sector i.e. Banks and Financial Institutions that weather the financial crisis very well in the year 2008 are today facing multiple headwinds which are likely to lead to an increase in NPA’s going forward. First is the traditional risk in lending during times of easy liquidity and lower interest rates which all […]
Read MoreThe markets over the last few days have been jittery because of concerns regarding Ireland and whether that country will be given a free lunch and bailed out by the Euro zone rescue fund. The key aspect to consider however is whether a bailout is the best option or lenders should be forced to take […]
Read MoreBefore coming back to issues on the economy or the markets I just thought that I would write on an exciting tour I did over four days of the last weekendwhere we spent this time in doing a Tiger Safari in two of India’s national parts, namely Kanha and Pench. We stayed in the safari […]
Read MoreNearly half of the results season is now through and in general results have turned out to be quite strong. Most of the Banks and NBFC’s have reported strong numbers and have been able to maintain asset quality as well as Net Interest Margins. The key going forward will be to look at margins in […]
Read MoreI was thing on this subject and just thought that I will pen down my thinking on the same. The returns in the stock markets vary from year to year and time to time. The returns in any given year depend on lot of factors like economic growth, interest rates, market sentiments, global factors, liquidity […]
Read MoreNearly half of the results season is now through and in general results have turned out to be quite strong. Most of the Banks and NBFC’s have reported strong numbers and have been able to maintain asset quality as well as Net Interest Margins. The key going forward will be to look at margins in […]
Read MoreAs the news flow on further asset purchases and money printing by the US Fed leads to a further rally in risky assets this policy now runs the risk of promoting a significant misallocation of capital by its own citizens who, given their severe indebtedness can ill afford to make more losses after a lost […]
Read MoreAs the news of the Bank of Japan cutting short term rates to zero (again) trickled in yesterday it created lot of headlines. Along with it was a pledge to buy some billions of dollars of bonds. This is very similar to what the US Fed has been trying to do over the last two […]
Read MoreTotal inflows into Indian Equities by foreign investors in calendar year 2010 = USD 18 billionTotal outflow from domestic mutual funds in the same time = Approx USD 4-5 billion As a follow up of my article on the rising current account deficit, the recent spike of FII inflows into the Indian equity markets creates […]
Read MoreMost people have consistently blamed me for being excessively bullish. As things turn out I guess I was not wrong. However after the steep and virtually straight line rally of the last one month I have now started becoming wary of the markets, specially the Index and large cap stocks where the move has been […]
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