Do it yourself

Thought for the day "Opposition brings concord. Out of discord comes the fairest harmony." —Heraclitus (Greek, 544-483BC) Word for the day Wayworn (adj) Worn or wearied by travel. (Source: Dictionary.com) Malice towards none The common man is certainly not interested. Who are the people, Mr. Anand Sharma is addressing with so much passion? Are you surprised? Governor Rajan surprised the market yet again front loading the monetary easing by cutting key policy repo rate by 50% to 6.75%, lowest since March 2011. The market could have celebrated the occasion more enthusiastically but for the chilly winds blowing from Pacific that kept many participant indoors. I have been maintaining that RBI monetary policy may not have much impact on Indian equities in near term. I see no reason to change this view. Nonetheless, I find it pertinent to highlight key points in the much awaited policy statement of...

Thought for the day "Corpses are more fit to be thrown out than is dung." —Heraclitus (Greek, 544-483BC) Word for the day Minimax (n) A strategy of game theory employed to minimize a player's maximum possible loss. (Source: Dictionary.com) Malice towards none PM Modi is able to inspire all but Congress and her associates! Mind your expectations If one were to go by media reports - (a) all the market participants are keenly waiting to hear RBI governor this morning; (b) a large majority has already assumed and assimilated a 25bps cut in policy repo rate; (c) a more aggressive easing will catalyze a sharp rally in Indian equities led by rate sensitive financials, realty, auto and infra sectors; and (d) a 25bps cut with no clear promise for more cuts will disappoint the markets and a sell off will follow almost immediately. All seems so simple and well settled. Life cannot be easier than that! Wit...

Thought for the day " No man ever steps in the same river twice, for it's not the same river and he's not the same man. " —Heraclitus (Greek, 544-483BC)) Word for the day Donnybrook (n) An inordinately wild fight or contentious dispute; brawl; free-for-all (Source: Dictionary.com) Malice towards none What would change if India gets a permanent seat in UNSC? Bank Nifty: Treading dangerous waters Bank Nifty has is trading 70% higher than the peak registered in January 2008. It has gained more than 90% since the bottom of 2013. Fundamentally the returns given by banking stocks could be matter of interesting debate. Since 2013 the banking sector has seen consistent decline in credit growth. A large part of this decline could be structural as (a) the fuel price subsidy reforms and deregulation of petrol and diesel prices has drastically reduced the funding requirements; (b) the change in ...

Thought for the day "Youth is easily deceived because it is quick to hope." —Aristotle (Greek, 384-322BC) Word for the day Penitent (adj) Feeling or expressing sorrow for sin or wrongdoing and disposed to atonement and amendment; repentant; contrite (Source: Dictionary.com) Malice towards none Well done Mr. Fadnavis! Now please also tell us whatever the previous government did to suppress the freedom of expression and appease religious minorities was right and you see nothing wrong in continuing with those practices. Sitting tight and liquid, and praying Past few months have been tough on both investors and investment experts. The rise in uncertainty and consequent rise in volatility in asset prices and returns has made the task of asset allocation tougher. Traders appear even more exasperated. Under the circumstances you cannot find fault with me, if I pray, totally with selfish motive and all my...

Thought for the day "What it lies in our power to do, it lies in our power not to do." —Aristotle (Greek, 384-322BC) Word for the day Enervate (v) To deprive of force or strength; destroy the vigor of; weaken; enfeeble, debilitate, Sap. (Source: Dictionary.com) Malice towards none Congress and Apple Inc. ......hmm........hmmm........hmmmmmm. Clear majority for NDA in Bihar! Somehow the Bihar election has become a major event for the markets. Many financials experts have reported on the probable outcome of the elections and subsequent impact on the Indian politics and economy. Reading many of these lengthy report, I am reminded of the song Eer Bir Phatte made popular by Amitabh Bachchan in 1996 ( see here ). The song depicts a poor guy who always tries to imitate his smarter friends but never succeeds. Regardless, I am also trying to present my report on the Bihar elections. Speaking to many ...

Thought for the day "All paid jobs absorb and degrade the mind." —Aristotle (Greek, 384-322BC) Word for the day Timocracy (n) A form of government in which love of honor is the dominant motive of the rulers. (Source: Dictionary.com) Malice towards none RSS chief is addressing investors' conferences in Mumbai, calling for end to redundant traditions and religious practices, wants review of reservation practices - change is in the air!  or is it? Staying put for good times The narrative of Bihar election makes one thing clear — "Dynasty" as an electoral plank has been rendered completely redundant. No one has ever uttered this word in the campaign so far. Though Mulayam Singh Yadav has entered the fray with much fanfare, Mayawati is conspicuous by her complete absence in a rather prominent dalit battle. Is she strategically saving her resources for UP battle due in March 2017, or ....? A...

Thought for the day " It is the mark of an educated mind to be able to entertain a thought without accepting it. " —Aristotle (Greek, 384-322BC) Word for the day Too-too (adj) Excessively and tastelessly affected (Source: Dictionary.com) Malice towards none Common youth of India who had zestfully come out of their comfort zones and took on streets just a couple of years ago - is again disenchanted by politics and politicians. Who is to blame for this antipathy? Nifty: Breakdown prevented but internals weaken further As expected ( see here ) last week NIFTY mostly oscillated within the 7560-7940 range and successfully prevented a break down. Nifty also managed to close the week near 8000 mark, thus leaving chance of the pull back rally extended to 8240 this week. The internals for the market though continue to weaken. Despite an eventful week the market completely lacked momentum. Institutional activity remained low. Market breadth re...

Thought for the day "Whatever the tortures of hell, I think the boredom of heaven would be even worse." - Isaac Asimov (American, 1920-1992) Word for the day Tommyrot (n) Nonsense; utter foolishness. (Source: Dictionary.com) Malice towards none Who has inched closer to UNSC permanent seat: India Germany Japan All of the above None of the above It's not about monetary policy alone I am not sure how many people will agree with me on this. Regardless, I have an opinion - the autonomy and objectivity of central bankers is highly overrated. I find a variety of events (including politics and geo-politics) reflecting on the monetary policies of central bankers across the world - Our RBI and US Federal Reserve being no exception. With this premise, I believe that the FOMC decision on reversing the rate cycle needs to be anticipated in the following light. Post Lehman collaps...