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Rates Unchanged, but gradual liquidity withdrawal

Oct 11, 2021

11:34 am

The RBI monetary policy committee (MPC) met in the backdrop of global central banks indicating taper. While the rates were expected to remain unchanged, which they did, eyes were on RBI’s liquidity stance. The RBI reaffirmed its commitment towards a gradual, calibrated withdrawal of excess liquidity by increasing the variable rate reserve repo VRRR auction…

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No Tantrum Just Taper

Oct 6, 2021

9:28 am

The first half of this fiscal year is now behind us. Indian equities are up about 20% over the last 6 months, despite the second wave. Economic activity has rebounded sharply, the same is reflected in resilient earnings as well. Market participants, including us, will be watching the trajectory of both the macro data and…

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All for Nothing

Oct 5, 2021

8:20 am

• Both equities and bonds end almost flat for the third quarter • EM equities the standout; China down 18%, India up 12% • Equities need some better news, and a potentially significant reduction in COVID restrictions would help • Japanese equities still have a lot of potential • Energy prices have further upside Although…

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The Fed’s Dots Go for Lift-off

Sep 28, 2021

6:55 am

• The Fed’s policy stance has undergone a subtle but significant hawkish shift • Bond markets noticed, and yields rose • The start of higher rates may now be in 2022, and not 2023 • US government shutdown talks gain momentum • Evergrande, no news is not good news Last Wednesday’s Fed meeting brought a…

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