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Event Update

Mar 9, 2020

4:08 am

Global equity markets including India, have taken further deep cuts today as a confluence of factors play out – Crude oil price war, spread of coronavirus and domestically the Yes Bank cookie crumbling. As we write this note, US S&P 500 is cooling at a circuit breaker down 7% today and down 17% from its…

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The Great Leveller

Mar 2, 2020

10:33 am

“The oldest and strongest emotion of mankind is fear, and the oldest and strongest kind of fear is the fear of the unkown”Not ironically, the quote is by a horror fiction writer. And the past week of equity markets may well have been scripted by someone like that. The newly identified coronavirus Covid19, that Bill…

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Monetary Policy Review

Feb 7, 2020

10:07 am

Credit Push to Stressed Sectors, Repo Rate Unchanged The Reserve Bank of India (RBI) today decided to maintain the policy repo rate at 5.15% amid elevated inflation. The MPC decided to keep the monetary policy stance unchanged as “accommodative” with an objective of achieving a medium-term target for CPI of 4% within a band of…

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Will Risk Aversion Go Viral?

Feb 4, 2020

11:39 am

• Markets hoping coronavirus is SARS-like. • Bonds have discounted a more marked slowdown in global growth than equities. • Central bankers back in action but policy tools are quite blunt • Gold approaching $1600 remains an asset of choice The coronavirus continues to dominate the headlines and as yet still does not appear to…

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