Annual Survey of Industries – Government Report (Part I)

The annual survey of industries covering total of 1.91 lakh factories shows an impressive increase of 10% in net profits for year 2015-16, latest available. The factories have total invested capital of over Rs 38.5 lakh crore as per the report released by Ministry of Statistics, Planning and Implementation (MOSPI) some time back. The survey is the … Continue reading Annual Survey of Industries – Government Report (Part I)
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Money Supply – Understanding the Different Forms..

RBI’s monetary policy is dictated towards achieving a level of money supply which keeps inflation in check and still, leaves sufficient money to help economy grow. But there are different forms of money such as narrow money, broad money and reserve money. So, which form of money does the monetary policy control? And does that … Continue reading Money Supply – Understanding the Different Forms..
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Understanding the Dynamics of “Money Market”

Money market is witnessing lot of turmoil after the default by IL&FS with increased nervousness among the participants. This has resulted in higher redemption, even distress sales and so on leading to liquidity crisis further aggravating the situation. With average turnover of over Rs 6 Lakh crore daily, any uncertainly in the market is a … Continue reading Understanding the Dynamics of “Money Market”
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Inflation – Analyzing its Constituents and Drivers

The word “inflation” came into limelight again last week with monetary policy announcement amidst the surge in crude prices. But to what extent crude affect domestic prices? Does it impact both WPI and CPI equally? What are the other drivers of prices? An attempt to understand inflation, its constituents and its drivers… There are two … Continue reading Inflation – Analyzing its Constituents and Drivers
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Monetary Policy – Beginning of Another Rate Cycle..

The decision of Monetary Policy Committee to hold back rates while changing stance from “Neutral” to “Calibrated Tightening” looks a little complex. However, more complex and interesting is the reaction of the market which was expecting a rate hike. Instead of welcoming the pause decision, Sensex went down by almost 800 points! So, what explains this? How would markets have reacted if the policy rate was hiked? A bigger fall or could it have been a thumbs up?! A brief attempt to read today’s monetary policy..

Continue reading “Monetary Policy – Beginning of Another Rate Cycle..”