Reserve Bank of India Milind Muchhala, Executive Director, Julius Baer India, says the RBI seems to be behind the curve, especially in the current environment of rising inflationary pressures and various global central banks adopting a tightening stance. Julius Baer expects the RBI's stance to turn hawkish in the upcoming policy meet (February 8-10). On investments, he said: “We think it is a good time to focus on the infrastructure, construction, capital goods, banks and realty sectors. We have been positive on domestic cyclicals and the plays on revival of the domestic investment cycle for some time now.” Muchhala has over 20 years of experience in the industry, including in equity research, advisory and wealth management. We are nearing the end of December quarter earnings season . How do you read quarterly earnings announced so far? The Q3FY22 earnings season, at least until now, has been quite in line with expectations. While the season began on a decent note … [Read more...] about Daily Voice | RBI seems behind the curve, expect monetary policy to turn hawkish, says Milind Muchhala of Julius Baer India
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Explained | How does RBI intervene in the bond market? 5 key points
Representative image. Indian government bond yields have risen steadily in recent days, with the benchmark 10-year yield spiking to a three-year high of 7.47 percent on May 9. Record debt supply, reversal of easy money policies both in India and the United States, coupled with elevated oil prices have exerted pressure on bond yields, which move in the opposite direction to prices. Bond yields are an indicator of where interest rates are headed in the economy and represent the cost of borrowing funds for the government. While announcing the federal budget for this financial year, the government in February, had pegged gross market borrowings at a record Rs 14.95 lakh crore, 44.2 percent higher than the preceding financial year. Since then, the Russian invasion of Ukraine, persistently high domestic inflation, the US Federal Reserve’s aggressive policy tightening, foreign debt flows and the recent out-of-turn rate hike by India’s Monetary Policy Committee … [Read more...] about Explained | How does RBI intervene in the bond market? 5 key points
Mercedes-Benz tackles tough market with wide portfolio, transparent pricing
New C-Class Mercedes-Benz, the country’s largest maker of luxury cars by volume, recently launched its entry-level premium sedan the C-class at a price that’s higher than ever before, but the Stuttgart-based auto major doesn’t see that as a barrier to pushing sales and driving volumes. Instead, its executives say that its product portfolio, which it claims is the widest in the category, combined with its transparent pricing mechanism, is future-proofing its business model, and prepping it for even higher sales. Mercedes-Benz India reported sales of 11,242 cars and SUVs in 2021, cementing it at the top of the luxury segment for the seventh year running and giving it a market share of around 41 percent. For Q1 this year, the company says it has already sold around 4,022 units. In terms of its range of products, Mercedes claims the largest selection in the Indian market. “We have the broadest portfolio of any manufacturer in India,” Martin Schwenk, Mercedes-Benz India’s CEO, … [Read more...] about Mercedes-Benz tackles tough market with wide portfolio, transparent pricing
Dalal Street Week Ahead | LIC listing, earnings among 10 key factors that will keep traders busy
Indian markets remained bearish for the the second consecutive week ended May 13 as the benchmark share indices lost nearly 4 percent. Persistent worries over rising inflation, possibility of further rate hikes by global central bank, China lockdown and weakening rupee kept the investors on the edge. During the last week, BSE Sensex declined 2,041.96 points (3.72 percent) to close at 52,793.62, while the Nifty50 shed 629.05 points (3.83 percent) to end at 15,782.20 levels. However, in the month of May Sensex and Nifty have lost more than 7 percent each. During the week gone by, all the sectoral indices were in the red with BSE Metal and Power indices falling 13 percent each. BSE Telecom index shed 6.7 percent and Realty index declined 5.8 percent. In broader market, the BSE Mid-cap index lost 5.6 percent, Small-cap index shed 6.5 percent and Large-cap Index declined 4.4 percent. In absence of any major event, market participants will be closely eyeing the performance of … [Read more...] about Dalal Street Week Ahead | LIC listing, earnings among 10 key factors that will keep traders busy
More than 250 smallcaps witness double digit fall as market tanks nearly 4%
Indian stocks remained under selling pressure for the second consecutive week and lost nearly 4 percent amid high volatility. Weak global markets, continued FIIs selling, soaring inflation, rising bond yields and expectations of further monetary tightening by the global Central Banks remained big concerns for investors. For the week, BSE Sensex declined 2,041.96 points (3.72 percent) to close at 52,793.62, while the Nifty50 shed 629.05 points (3.83 percent) to end at 15,782.20 levels. In the month of May so far, Sensex and Nifty have lost more than 7 percent each. During the week gone by, all the sectoral indices ended in the red with BSE Metal and Power indices falling 13 percent each. BSE Telecom index shed 6.7 percent and Realty index declined 5.8 percent. In broader market, the BSE Mid-cap index lost 5.6 percent, Small-cap index shed 6.5 percent and Large-cap Index declined 4.4 percent. “Monday’s session started on a nervous note as global sentiments remained nervous … [Read more...] about More than 250 smallcaps witness double digit fall as market tanks nearly 4%
Keeping it Real with Real Vision’s Raoul Pal
A super slide for stocks, bonds, and cryptocurrencies rolled all the way into last week, right up until Friday, when the Nasdaq posted its strongest one-day gain since November of 2020. Despite Friday's gains, the major averages posted losses for the week, with the Dow closing down more than 2% and posting its first seven-week losing streak since 2001. The S&P 500 fell 2.5% and hit its longest weekly losing streak since 2011, while the Nasdaq fell 2.8%. It's been a rough, rough year across capital markets. A full $35 trillion in global market value has been erased since the beginning of the year. That's 14% of all global wealth, including a trillion dollars of losses in cryptocurrencies. To put those losses in perspective, 2008 saw a 19% decline in global market value, and that doesn't include non-financial assets such as housing. Still, perspective is everything, especially for investors who have been invested in the U.S. stock market for at least five years. Believe it or not, … [Read more...] about Keeping it Real with Real Vision’s Raoul Pal