Pause the Party: Uncertainties Ahead

Posted by: Deepa Vasudevan on Wed, Jun 13th, 2012

RBI is expected to cut rates and/or reduce CRR soon in order to spur economic growth.  Monetary easing tends to improve investment and consumption. But presently India faces external and domestic risks that may negate the beneficial impact of a rate cut. Read more

Entry of QFIs Finally Enabled

Posted by: Girija Gadre on Sat, Jun 9th, 2012

The Government has been acting with mixed speed in implementing the decision to allow foreign retail investors (christened qualified foreign investors).  In the meanwhile, the rupee has depreciated steeply, global institutional capital flows have dried up and the investor interest in Indian capital markets has dwindled.  Will the SEBI Circular of June 7, 2012 make a difference? Read more

The Risk-Averse Indian Investor

Posted by: Deepa Vasudevan on Tue, May 29th, 2012

Indian households tend to hold most of their financial savings in safe low-return avenues such as bank deposits, insurance and small savings. This is largely due to inadequate information and fear of capital safety. Educating households could change their preferences and unlock significant savings for our capital markets.Indian households tend to hold most of their financial savings in safe low-return avenues such as bank deposits, insurance and small savings. This is largely due to inadequate information and fear of capital safety. Educating households could change their preferences and unlock significant savings for our capital markets. Read more