Japan adopted Negative Interest Rate Policy (NIRP) earlier this year after other monetary tools failed to spur economy and bring it out of deflation. Rather than having the desired effect, NIRP has actually had an opposite impact on some of the economic variables so far. Yet, Japan’s Central Bank has expressed its commitment to the policy to be … Continue reading Explaining Negative Interest Rate – Japan's case..
The approval of merger proposal by the shareholders of Vedanta ltd yesterday, brings it closer to an important deal to de-risk businesses and simplify business structure. The deal, first proposed in June’15, attempts to get the best of both worlds for the two entities which would diversify source of earnings for Cairn. Vedanta, in turn, would get access … Continue reading Cairn – Vedanta Merger. Deal Explained..
Honorable Supreme Court’s directive on Monday to Karnataka to release water from River Cauvery brings back the focus on the long drawn dispute between Karnataka and Tamil Nadu. The more than 100 years old dispute relates to sharing of water from River Cauvery mainly between Karnataka and Tamil Nadu although Puducherry and Kerala are also … Continue reading Cauvery River Dispute – A Brief History..
Corporate India has recorded significant improvement in its financial performance during 2015-16 with profits growth of almost 10% as per an RBI report released last Friday. The report is a comprehensive document covering almost 3,000 listed companies excluding financial sector and accounts for nearly 22% of country’s GDP. It also gives better picture of broad … Continue reading Corporate Performance – RBI Report..
Dr Raghuram Rajan, who demitted office on Saturday leaves behind a rich legacy apart from the huge popularity he enjoyed. Even though he may be remembered as an inflation fighter – something for which he also received maximum flak – his contribution lies equally in financial sector reforms that he pushed through in most of the areas. … Continue reading The Legacy of Raghuram Rajan..
Declaration of results for June’16 quarter by Indian Oil (IOC) and Bharat Petroleum (BPCL) earlier this week completed the results season for the sector. The sector had a good run with 21% increase in profits even though sales came down marginally by 2% as per the standalone financials of listed companies. Aggregate revenue for the … Continue reading Results Analysis – Petroleum Refining sector..
The GDP for Q1’17 has recorded growth of 7.1%, sharply lower than 7.9% recorded in Q4’16, as per the data released by Central Statistics Office (CSO) on Wednesday. However, in terms of Gross value added (GVA), growth rate at 7.3% is only marginally lower than 7.4% of Q4’16. Further, GVA for manufacturing, financial services group & public … Continue reading Demystifying GDP Growth..