Below table may help you to understand dichotomy of economy and corporate performance compared to stock market valuations from India prospective.This dichotomy is also true for global stock markets, if I take example of the US stock market, it has given almost 450 percent returns since March 2009. However, the cost of borrowing for investor on cumulative basis may not be higher than 60 percent. … [Read more...] about Did market see US Fed’s liquidity-driven rally without any economic fundamentals post 2008?
Regulatory quality and economic growth
Various estimates suggest that 5G equipment from suppliers such as Ericsson and Nokia could raise costs by up to a third. That is significant, running into hundreds of millions of dollars, and will necessitate sharply higher telecom tariffs in the world’s cheapest market. India could adopt a secure cut cheaper option pursued by many other countries — eschewing Chinese technology in the sensitive ‘core’ of 5G networks, but allowing it elsewhere in their infrastructure. … [Read more...] about Ban on Chinese apps alone will not address long-term information threats
"It has been decided that, in respect of MSME borrowers facing stress on account of the economic fallout of the pandemic, lending institutions may restructure the debt under the existing framework, provided the borrower’s account was classified as standard with the lender as on March 1, 2020. This restructuring shall be implemented by March 31, 2021," said RBI. … [Read more...] about Here are 10 highlights of RBI monetary policy
5 percent gold (natural hedge against equity);15 percent in equity, to gain advantage of emerging themes and attractive valuations;20 percent in arbitrage Funds to provide for short term needs & hedge against the equity markets in volatile scenario;25 percent ESS Fund (33 percent in Equity, 33 percent in Debt, 33 percent in Arbitrage);35 percent in AAA-rated bonds or sovereign bonds or PSU bonds (average yield to maturity 7-8 percent). … [Read more...] about Want to build a pandemic proof portfolio? Follow these four principals with a disciplined approach
"Not surprisingly, the RBI's MPC unanimously held status quo on rates. The current level of rates in the system is benign enough to allow for a pause. Cumulative rate cuts since February 2019 were also accompanied by a sharper cut in reverse repo as well as the lowered level of CRR, in previous policy announcements. As the US Federal Reserve kept rates unchanged, it enabled us to retain our rates at current levels, which also helps lure foreign capital. The pause allowed RBI an opportunity to monitor upside risks to food inflation and cost-push pressures from the rise in fuel prices," Amar Ambani, Senior President and Head of Research – Institutional Equities, YES Securities said. … [Read more...] about RBI policy good for banks; one-time loan restructuring & increase in LTV for gold loans strong steps: Experts