RBI monetary policy committee made some important announcements in its meeting held on 7th December 2022. As the global economy is experiencing turbulence, it has made it mandatory for central banks to play their part in bringing the situation under control. Owing to these current macroeconomic conditions, RBI has spoken about its plans for the Indian economy. We have elaborated on some of...
You can now invest in G-sec directly through RBI Retail Direct Scheme. The government launched a platform that will allow retail investors to buy and sell government securities on their own through – RBI Retail Direct Gilt Account. Under RBI Retail Direct Scheme, one can invest in RBI Bonds, Central Govt Bonds, State Govt Bonds, SGB and Treasury Bills. one can invest in primary as...
Mood turns cautious on global cues Markets turned cautious during the week as inflation fears persisted and expectations grew that the U.S. Federal Reserve would tighten policy in the coming months along with concerns about the prospect of higher borrowing costs, a possible US debt default. In China, worries about the potential impact of a widening power shortage and Chinese property...
Franklin Templeton AMC slapped with a fine of 5 crore; Banned from launching new debt mutual funds The SEBI has banned Franklin Templeton AMC from launching debt schemes for the next two years. Rs 5 crore penalty has been levied for “several irregularities” in the running of its six debt schemes that were wound up in April 2020. The irregularities extend to failures to exercise adequate...
India’s GDP grows 1.6% in fourth quarter, contracts 7.3% in FY 20-21 Amid the coronavirus pandemic, India’s gross domestic product (GDP) grew at 1.6% in the January-March quarter of fiscal year 2020-21, but witnessed a contraction of 7.3 per cent for the entire fiscal year. This is the first full-year contraction in the Indian economy in the last four decades since 1979-80,...
RBI surplus to Centre likely to impact economy markets and banks RBI’s decision to transfer ₹991 bn to the government, while higher than expected, is still within the realms of keeping the contingency risk buffer at 5.5% of the RBI’s Balance Sheet. RBI has ensured that the additional liquidity that it’s bringing into the system through the government’s balance sheet is coming at a time...
Inflation and its impact on an overall economy Retail Inflation in April is 4.3% which is well within the range of RBI. Inflation is measured by the CPI and the wholesale price index (WPI). The CPI measures changes in prices of essential commodities at the consumer level, while the WPI notes changes at the producer level.The commodities considered for measuring the WPI are manufactured...
Value Stocks vs Growth Stocks – US Markets Value stocks have beaten the growth stocks by about 13% in the latest data as per the Russell 1000 Value Index vs Russell 1000 Growth Index. The reason for the outperformance could be the lower valuation and lower PE that the value stocks were trading at. Alternatively, there exists a massive opportunity in the technology space and...
S&P 500 Index down 1% on 22nd April. The Dow Jones Industrial Average and NASDAQ Composite both moved backwards – Joe Biden is seeking to raise taxes on millionaire investors to fund education and another spending on welfare to recover the U.S. economy. Biden is proposing to increase the capital gains tax to 39.6% for those Americans earning more than $1 million. The...
The Monetary Policy Committee is entrusted with the responsibility of deciding the different policy rates including MSF, Repo Rate, Reverse Repo Rate, and Liquidity Adjustment Facility. Monetary Policy Committee (MPC) has six members and the main objective of this body is to maintain price stability and boost up the growth rate of the country’s economy.The MPC also maintained an accommodative...