The fact that more and more banks in the West are reporting losses tells us that the sector is stressed and will demand cash infusions. In a phase when the cost of funds (interest ... Read more
The fact that more and more banks in the West are reporting losses tells us that the sector is stressed and will demand cash infusions. In a phase when the cost of funds (interest rates) is rising, it means the US Fed will focus on bailing out the big fish, whereas the small mom-and-pop businesses may struggle for liquidity. With rampant printing of unbacked currency during covid lockdowns triggering multi-decade high inflation, printing more cash is not a good option. Big money smells that dilemma and is deleveraging (cutting down on risky bets). This episode discusses the same in detail. Read more
Bulls need to push harder as the market sentiments are sagging on poor retail participation. Repeatedly warning the listeners about 2023 being a tough year for financial markets du ... Read more
Bulls need to push harder as the market sentiments are sagging on poor retail participation. Repeatedly warning the listeners about 2023 being a tough year for financial markets due to the rising cost of funds. As the rising inflation and cost of funds are the least understood and understated factors in the markets. Read more
Interest rate continue to grow higher. Bond yields remain firm and Non-banking financial companies can offer higher interest on fixed deposits. Adani Group attracted a global inves ... Read more
Interest rate continue to grow higher. Bond yields remain firm and Non-banking financial companies can offer higher interest on fixed deposits. Adani Group attracted a global investor and the Dollar index DXY fell. Energy prices threatened to rise further due to geo-political reasons. The LWTD line continue to slip for the third week in a row. Read more
The coming week is noteworthy as the RBI is expected to mop up over ₹50,000 crore in a variable rate reverse repo (VRRR) operation for 14 days. The VRRR will be reversed on 10 Marc ... Read more
The coming week is noteworthy as the RBI is expected to mop up over ₹50,000 crore in a variable rate reverse repo (VRRR) operation for 14 days. The VRRR will be reversed on 10 March, and the bidders can quote up to the repo rate of return. March is the final month of the Indian financial year. Banks routinely borrow from each other to balance their books in the inter-bank call money markets. Read more
The markets registered small gains in the broad-based Nifty-50, whereas Bank Nifty dragged sentiments lower. My readers need to delve deeper into why banking stocks are falling. Af ... Read more
The markets registered small gains in the broad-based Nifty-50, whereas Bank Nifty dragged sentiments lower. My readers need to delve deeper into why banking stocks are falling. After all, banking and financial services constitute 36.81% weightage in the Nifty-50. Read more
The budget may have provided a catalyst to the markets to trigger a re-jig in asset allocations. The finance minister expects to raise ₹15.43 trillion in FY24. Of this, ₹11.80 tril ... Read more
The budget may have provided a catalyst to the markets to trigger a re-jig in asset allocations. The finance minister expects to raise ₹15.43 trillion in FY24. Of this, ₹11.80 trillion is to be raised via dated government securities. The remaining are from small savings schemes. These include post office TDs (term deposits), MIS (monthly income scheme), RDs (recurring deposits) and SCSS (senior citizens savings scheme). Incidentally, the investment limits on these schemes were doubled in the budget and coupon (interest) rates were raised a few days prior. That makes these schemes more attractive Read more
The session on Wednesday was an intriguing one for any student of market statistics. The NSE futures and options segment logged a record turnover of ₹ 401.2 trillion. It should be ... Read more
The session on Wednesday was an intriguing one for any student of market statistics. The NSE futures and options segment logged a record turnover of ₹ 401.2 trillion. It should be noted that Hindenburg’s report was already out in the public domain. That implies higher trader participation on this day. Instead of being shell-shocked, traders grabbed shorting opportunities hand over fist. This displays maturity in the markets. The fact that traders rolled over trades from January to February series also played a part in logging higher turnover. Read more
Markets rose last week to clock weekly gains. The Nifty rose on two out of five sessions, but gains were substantial enough to log week-on-week advances. In my earlier piece, I wro ... Read more
Markets rose last week to clock weekly gains. The Nifty rose on two out of five sessions, but gains were substantial enough to log week-on-week advances. In my earlier piece, I wrote about pre-budget rallies. These are triggered by traders trying to second-guess budget announcements and placing their bets accordingly. It should be remembered that the 2023 budget is the last full budget before the general elections in 2024. So a lot of hope is riding on this budget. Read more
The last few months have seen our fixed income brokers calling us frequently with ‘limited time offers’ and ‘only for you’ special deals on corporate fixed deposits. These special ... Read more
The last few months have seen our fixed income brokers calling us frequently with ‘limited time offers’ and ‘only for you’ special deals on corporate fixed deposits. These special deals offer yields above the prevalent rack rate of interest. That itself tells me cash is in short supply and coupon rates are likely to rise higher before they ease again. Read more
This week I expect the mood to be lethargic, as institutional players usually return late to the markets as January kicks in. Technology stocks are usually the first to announce th ... Read more
This week I expect the mood to be lethargic, as institutional players usually return late to the markets as January kicks in. Technology stocks are usually the first to announce their quarterly earnings, and traded volumes pick up shortly thereafter. Read more
