Index of Industrial Production (IIP) has recorded an increase of 8.1% for the month of Oct’18 as per the data released by MOSPI yesterday. While monthly rate may show substantial fluctuation, average growth rate for first seven months of this financial year also shows a substantial improvement. Average growth rate, which was only 5.2% till sept’18, climbs to 5.6% after including the result for Oct’18. Other that, average rate over first seven months is better than growth rate recorded in all the years since FY13. While IIP growth is important in general, it is more important since industries account for maximum number of employment and therefore, its performance is critical in generation of more employment opportunities. Here is a look at its various components and a longer term trend analysis. Continue reading Index of Industrial Production – October ’18 Performance..
Farm loan waiver has again hit the headlines with recently elected chief ministers approving the scheme. The mainstream media, economists from all strata and also the RBI through its various reports seem to be severely critical of such moves which spoil the credit culture and lead to ‘crowding out’. So, are the farm loan waivers … Continue reading Farm Loan Waiver – Bad Politics or Good Economics..??
Cement Industry does not seem to be in the best of health recording a decline of 6% in profits for half year ending Sept 18 even though sales grew by as much as 17%. Sales growth is in line with the figures released by CSO which showed 15% increase in volume over last year. So, … Continue reading Industry Analysis – Cement Industry..
Global trade rebounded in 2017 growing at 4.5% in volume terms much better than 1.8% witnessed in 2016 and strongest in six years. That probably gives a reason to attempt this analysis even though it is almost the end of another year. Total trade rose to $17.3 trillion, sharp increase of 11% in value terms. The … Continue reading Global Trade – An Overview..
Amidst the reversal for the ruling party in state elections and the surprise resignation of RBI governor, it is difficult to focus on anything else! Yet, here is an attempt to analyze the crisis being faced by Jet Airways precipitated by loss of over Rs 1,000 crore in each of two quarters of this financial year. The crisis is a cause of concern not just for the company but also all followers of aviation sector. The sector, despite being a high profile one, hasn’t been able to establish itself financially and accounts for a number of failed businesses overlast decade or so. Here is a look at its performance and comparison with another airline which is profitable.
Unlike equity market where one can buy/sell even one stock, derivatives are traded on minimum lot size basis with Rs 5 lakh as the minimum notional value.For example, in case of NIFTY futures, the current index of about 10,500 represents the notional value of one unit. With one lot comprising of 75 units,minimum exposure in NIFTY futures works out to about Rs 7.9 lakh. However, thetrader only needs to put-in the margin money, roughly around Rs 90,000 and not the entire amount.
Tata Motors recorded consolidated revenue of Rs 2.96 lakh crore in FY18 placing it is the league of biggest company in the country. However, the profits are rather unimpressive at just about Rs 9,000 crore. Standalone domestic business is going through even tougher times with the company accumulating losses of over Rs 8,000 crore during FY15-18. … Continue reading Corporate Analysis – Tata Motors
Among the points of contention between RBI and the government is market liquidity condition. While RBI says that there is enough liquidity in the market, government is not sure of that. Both have a point there. The enormity of the issue is evident from the fact that during September month alone, RBI transacted close to … Continue reading Analysing RBI’s Instruments for “Liquidity Management”
The process of withdrawal of United Kingdom from European Union has gained momentum with release of draft agreement about a week back. As per the current legal statute, UK would be out of EU on 29th March 19 and both the parties have to enter into a deal before that to avoid disruption to businesses … Continue reading Operationalizing Brexit – What is at Stake??
The monetary policy committee’s decision today to keep the policy rate unchanged is not surprising. It could have done nothing else. However what is surprising and somewhat concerning is its comments on possibility of a rate cut. While the comment may look fair due to lower inflation, it is actually not so because the core … Continue reading Monetary Policy – Time to Remain Cautious…