The whole trade situation continues to suck. I mean big time.
India’s merchandise (physical goods) trade deficit narrowed to the lowest in nearly 5 years, at a tiny $5 billion for the month of March. However, this is largely because of the sudden drop in Gold imports, as Jewellers were on strike for most of March. The budget in 2016 introduced a clause requiring jewellers to pay 1% excise duty and […]
Since then things have seen sudden changes:
As markets go berserk again, our Momentum Outliers show two more encouraging entries.
In two posts earlier, our guest Ravi Duggirala has mentioned about the issues at Kaveri Seeds. This one is a follow up. Please read:
Ravi Duggirala is a budding value investor and an ardent admirer of Warren Buffet, Charlie Munger and Prof Sanjay Bakshi. (Full Bio Below)
Ministry of Agriculture has issued a notification last month fixing the maximum […]
Let’s take the Nifty.
Let’s assume you invested Rs. 10,000 in it in 2000. Now Rs. 10,000 could have bought a certain set of items then.
Then the Nifty grew, and grew, and grew. So did the cost of the items you could have bought with that Rs. 10,000.
So today that Rs. 10,000 is Rs. 62,428. If you reinvested all the dividends you received also.
But in terms of the same purchasing power, […]
In Macronomics today:
• Forex reserves rise to $360 billion, the highest ever, with over $13 billion added in March 2016 alone
• Rate of growth is however less than 5% year on year
The RBI, in it’s policy yesterday(April 06, 2016), reduced rates by 0.25%. The new rates are:
- The Repo rate is 6.5% (from 6.75%)
- The Reverse Repo rate is 6% ( up from 5.5%)
- The MSF drops from 7.75% to 7%.
The idea is both to reduce rates and the corridor of rates (which used to be 1% – Reverse repo was 1% below, MSF 1% above)
Things the RBI did today, in simple words:
Two more changes on the Momentum portfolio today, as RBI policy and global markets lead a 2% fall in the Nifty:
RBI comes out with the monetary policy at 11AM. Here’s a quick note on what we think will happen.
P.S. These notes reflect our views prior to the policy being revealed by the RBI on the 5th of April, 11 am. We also have a detailed explanation of what the actual April 5th policy updates mean for the economy in general. Click here for our detailed Policy Breakdown.