Do it yourself

Thought for the day “The person who doesn't scatter the morning dew will not comb gray hairs.” -           Hunter S. Thompson (American, 1937-2005) Word of the day C repuscule (n) Twilight, Dusk (Source: Dictionary.com) Shri Nārada Uvāca Ain’t “Legacy” a dynastic word? Would Congress also claim the legacy of Subhash Chandra Bose, B. R. Ambedkar, Acharya Kriplani, Purushottam Das Tandon, Jai Prakash, Ram Manohar Lohia, Morarjj Desai, Jagjiwan Ram, V. P. Singh, and P. V. Narasimha Rao among others. What about Pheroz Gandhi and Sanjay Gandhi? Some said, some unsaid - II …continuing from Yesterday ( see here ) Said: “it is important to break the spiral of rising price pressures in order to curb the erosion of financial saving and strengthen the foundations of growth. It is in this context that the LAF repo rate has been increased by 25 basis points.” Unsai...

Thought for the day “If you ask me anything I don't know, I'm not going to answer.” -           Yogi Berra(American, 1925 - ) Word of the day S omnambulism (n) Sleepwalking (Source: Dictionary.com) Shri Nārada Uvāca Should the election commission direct that during coming election: (a)    All lotus ponds should be covered. (b)    All people should keep their hands covered at all times. (c)    All bicycles should be kept under cover. (d)    All elephants should be kept under cover. (e)    All brooms be kept under cover and Delhi roads may not be swept. Some said, some unsaid RBI governor released the second quarterly review of monetary policy for FY14. Apparently there were no surprises in the statement made by the governor and the changes in monetary policy stance. We highlight some key points that...

The RBI’s macroeconomic review released yesterday has unleashed a debate over how much the Governor will tighten today.   In our view, the debate over 25bps vs 50bps is futile.   The concoction of 10yr yields 8.25-8.50%, WPI inflation 6.5-7%, CPI inflation at 8-9%; at a time when GDP growth below 5% is intoxicating enough to stop any major advances in the economy. It would not matter much even if Rajan maintains status quo today, or cuts MSF 25-50bps without touching the rates.   Prima facie it appears that RBI is fuelling fears of larger rate hike to deliver 25bps hike and still make the markets happy. Welcome Fed style policy making to RBI.   Syndicate Bank yesterday highlighted what to expect from most PSUs on asset quality in coming days.

Thought for the day “October. This is one of the peculiarly dangerous months to speculate in stocks in. The others are July, January, September, April, November, May, March, June, December, August, and February.” -           Mark Twain (American, 1835-1910) Word of the day Dither (v) To act irresolutely; vacillate. (Source: Dictionary.com) Shri Nārada Uvāca Why Rahul Gandhi is helping Narendra Modi’s cause? Reality check @Nifty 6200 - V Market internals In past five years the capital market in India has mostly failed in its primary function, viz., facilitating entrepreneurs in raising risk capital from investors. The character of the market has thus got constricted to a trading platform. In that also, the liquidity has remained extremely thin. Over 95% of daily volume has got concentrated in top 50 stocks. The average daily cash turnover is almost half of 2007. ...

Thought for the day “Every choice you make has an end result.” -           Zig Ziglar (American, 1926) Word of the day Mishpocha (n) An entire family network comprising relatives by blood and marriage and sometimes including close friends; clan. (Source: Dictionary.com) Shri Nārada Uvāca If “Dynasty” is   good for Doctors, Lawyers, CAs, Civil Servants, Actors, Singers, Musicians, Painters, Authors, Soldiers, Farmers, Goldsmiths, Business Owners and Managers, et. al. – then why not for politicians? Fathoming the unfathomable Earlier this month, we expressed our view that the latest debt deal by US politicians has created a breeding ground for black swans. We shall see them flocking the horizon in next 12-15months. We received tremendous response to our view. While most readers focused on next couple of years, some of them provoked us to think little longer. Bas...

Thought for the day “I'm a true believer in karma. You get what you give, whether it's bad or good.” -           Sandra Bullock (American, 1964 - ) Word of the day Falderal (n) Mere nonsense; foolish talk or ideas. (Source: Dictionary.com) Shri Nārada Uvāca What led to brutal assassination of Rahul Gandhi’s father and grandmother? Reality check @Nifty 6200 - IV Valuations We recognize that in past couple of years, Indian equity markets have seen extreme polarization in terms of level of activity and valuations. Most of the activity is now concentrated in a handful of stocks. In fact the National Stock Exchange (NSE) has recognized the phenomenon and launched LIX 15, an index based on top 15 liquid stocks, which as per NSE tracks close to 95% of the prime 50 stock index CNX NIFTY. Accordingly, valuations of these top stocks have diverged substantially from the broader market. ...

Thought for the day “Legend remains victorious in spite of history.” -           Sarah Bernhardt (French, 1845-1923 ) Word of the day C hattel (n) A movable article of personal property. (Source: Dictionary.com) Shri Nārada Uvāca Wonder why have we not heard the name of Guru Ji Shibu Soren in connection with Coalgate? Reality check @Nifty 6200 - III Corporate profitability The corporate profitability in India is at decade low. As per a recent report by brokerage firm Jefferies “return on equity (RoE) for Nifty (ex. financials) has declined from its peak of 26% in FY05 to near its decade lows at 14.8% in FY13. The decline has been led by a fall in asset utilization, lower margins and higher tax rate, in that order. While the decline has been mostly due to a cyclical downturn in economy, some sectors have seen structural decline on various parameters.” The report highl...

Thought for the day “Stand upright, speak thy thoughts, declare The truth thou hast, that all may share;” -           Voltaire (French, 1694-1778 ) Word of the day A nalysand (n) A person undergoing psychoanalysis. (Source: Dictionary.com) Shri Nārada Uvāca Could we draw some parallel between Malala and Modi or the thought is completely blasphemous? Reality check @Nifty 6200 - II Rates In September RBI began to unwind the exceptional liquidity tightening measures announced in June-August period to stem the slid in INR. It was maintained that the difference between the MSF and repo rate will be brought down to 100 basis points. Since then MSF rates have been reduced by 125bps and Repo rates have hiked by 25bps. Currently the difference between short term MSF (9%) and Repo rates (7.5%) stands at 150bps. RBI also announced an intention to return to normal monetary ope...