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Showing posts from December, 2019

“The last day is special – it ends significant confusion.”

“The last day is special – it ends significant confusion.” – Syed Mustafa Siraj v   Emerging markets geared up for another year of wealth creation. – Bloomberg v   Institutional fund inflows into stocks at a new high in 2019(INR 1.43 lakh crores) – foreign funds brought in two-thirds of the money, local funds accounted for the rest. v   India Inc. fundraising jumps 20% to INR 8.7lakh crores in 2019. v   Start-ups again beat Dalal Street in funding – second year in a row. – Times of India v   PE funds go talent shopping for portfolio companies. – Economic Times v   Broader markets outperform Sensex. – etmarkets.com v   IPOs worth Rs.50,000/- crores to light up street next year. – Economic Times v   Close to half of the claims under IBC were settled in FY19 – RBI v   SBI cuts lending rate. v   India’s wheat production may hit all-time high. – Directorate of wheat research v   Forest cover growing but tall targets ahead. – India state of the forest report 2019 v

Monetary Policy Expectation

 Monetary policy is a tool in the hands of the RBI to manage the policy interest rates which have a long bearing impact on the economy. Increase or decrease in policy rates depends on following : If the RBI wants to increase liquidity in the market or otherwise . If it wants to control inflation or wish an expansionary policy. If it wants to encourage savings or discourage it. If it wants to encourage borrowings by industrialists for capacity enhancements. If it wants to encourage individuals to borrow and spend more on consumption. Most analysts in market are expecting RBI to cut repo rate by 25 basis points. We at InvestmentMitra believe that market is yet to absorb the prevailing liquidity generated by rate cut of 135 basis points this year. Banks are yet to pass on the benefits of these cuts. Neither the industry is coming forward to take fresh loans as the current capacity utilization is below 73% with not so good growth in sales, nor the banks are willin