Do it yourself

The Monetary Policy Committee (MPC) of the Reserve Bank of India concluded its three-day meeting on Wednesday. The committee voted unanimously to keep the policy repo rate unchanged at 5.50 per cent. The MPC also decided to continue with the neutral monetary policy stance. The MPC noted the favorable domestic conditions like (i) inflation lower than estimates and closer to the lower bound of the policy tolerance limits; (ii) Robust growth, though below aspiration; (iii) transmission of the 100bps policy rate cuts continuing and its impact on the economy unfolding. Urban consumer demand tepid, investment demand remains supported by govt capex The MPC also noted that on the demand side: “Rural consumption remains resilient, while urban consumption revival, especially discretionary spending, is tepid.” However, “Fixed investment supported by buoyant government capex continues to support economic activity”. Farm sector buoyant, services steady, industrial growth subdued On the su...

Recently, the Ministry of Statistics and Programme Implementation (MoSPI) released its Quarterly Project Implementation Status Report (QPISR) for Q1 FY 2025-26. This report provides a detailed overview of the key high impact infrastructure projects which represent the backbone of India’s infrastructure push. The report offers insights into projects’ progress, challenges, and sectoral distribution. The report classifies the high impact projects into ‘mega projects’, costing ₹ 1,000 crore or more, and ‘major projects’, costing between ₹ 150 crore and ₹ 1,000 crore. The following are some of the key highlights of the reports: Total projects under implementation ·          At the end of 1QFY26, India had 1,734 (vs 789 in Q1FY25) central sector infrastructure projects (≥ ₹ 150 crore) under execution. Out of this, 619 are mega projects and 1115 are major projects, entailing a total outlay of Rs28.42trn (Rs10.97trn at end of 1QFY25). Out of these...

“Life is about the journey, not the destination” . This is a popular quote (often attributed to Ralph Waldo Emerson) amongst motivational speakers, self-help and mindfulness coaches, therapists, and teachers. I have spent a good part of my life aimlessly wandering in the hinterlands of India. During these journeys I have learned a lot not only about my country, people, culture, traditions, treasures, and problems; but have also explored my inner self. I can therefore relate deeply with this saying. However, a grave situation could arise when governments, businesses and other institutions begin to take this saying seriously; not realizing that it is about self-help and mindfulness at an individual level. Policy makers and institutions focusing on journeys rather than destinations may frustrate millions, depending on them for governance and livelihood, by causing avoidable agony and making their lives miserable. Unfortunately, prima facie , our governments have been taking this saying to...

  The Federal Open Market Committee (FOMC) of the US Federal Reserve (Fed) maintained its policy rates at 4.25% to 4.5% range, by a majority vote. It was the first occasion since 1993 when two Fed governors voted against the majority decision. Fed governors, Michelle Bowman and Christopher Waller, wanted a 25bps rate cut at the meeting, concluded on Wednesday. The majority decision of the Fed to not cut rates is apparently against the wishes and open demand for a rather drastic cut in the Fed policy rates by the US administration, especially President Trump. Strong April-June quarter GDP data and July private payroll data perhaps weighed on the Fed decision. The Commerce Department’s advance gross domestic product (GDP) report on Wednesday showed growth of 3.0% for the April to June period, above the 2.5% growth expected. US GDP shrank by 0.5% in the January-March 2025 quarter. U.S. private payrolls also increased more than expected July, rising by 104,000 jobs in July 2025 af...

The current results season (1QFY26) has been rather underwhelming so far. The market expectations for this quarter were already muted. The consensus estimates projected 1QFY26e Nifty50 revenue and profits to grow around 5% yoy, while the broader market earnings were expected to grow at a better 11-12% yoy rate. However, the results declared so far indicate an aggregate revenue growth less than even the nominal GDP growth of ~10%. Besides, the 1QFY26 season reflects a patchy recovery. Select large-cap and government-driven sectors (infrastructure, defense and PLI beneficiaries) have reported decent numbers and growth, while several small and midcap, IT, consumer and media companies have reported below expectation results. In their post results commentary, the management of IT and consumer companies in particular, have highlighted global and macro challenges they are facing, sounding cautious about near-term growth. Banking & Financial Services and IT Services are the most crit...

Antimicrobial resistance becoming ominous Antimicrobial resistance (AMR) is fast emerging as one of the most ominous health concerns at global level. As per the  World Health Organization  (WHO), “Antimicrobials – including antibiotics, antivirals, antifungals, and antiparasitic – are medicines used to prevent and treat infectious diseases in humans, animals and plants. Antimicrobial Resistance (AMR) occurs when bacteria, viruses, fungi and parasites no longer respond to antimicrobial medicines. As a result of drug resistance, antibiotics and other antimicrobial medicines become ineffective and infections become difficult or impossible to treat, increasing the risk of disease spread, severe illness, disability and death. AMR is a natural process that happens over time through genetic changes in pathogens. Its emergence and spread are accelerated by human activity, mainly the misuse and overuse of antimicrobials to treat, prevent or control infections in humans, animals and pla...

For decades, the United States has held a unique place in the global imagination — as the land of opportunity. Its greatest strength may not lie in military might, financial depth, or diplomatic reach, but in its remarkable ability to attract and absorb the best minds from across the world — including from adversarial or war-torn nations. The most striking evidence of this is visible in America’s talent pool. Professionals of foreign origin — Indian, Chinese, Iranian, German, and more — dominate leadership roles across top corporations, academic institutions, legal systems, research labs, and even sensitive government-linked establishments like NASA. Many of these individuals come from countries that have historically suffered at the hands of U.S. military or economic policy — yet they thrive in the American ecosystem, contributing to its innovation, productivity, and geopolitical leverage. This magnetic pull continues despite periodic political rhetoric against immigration, restrictio...

In my middle school Hindi book, there was a thought-provoking story titled Haar Ki Jeet (Victory in Defeat) written by Sudarshan. The story was about a compassionate priest, Baba Bharti , living in a village temple. Baba’s only worldly possession was his horse, named Sultan . A notorious dacoit, Khadag Singh , took fancy for Sultan and vowed to take it from Baba . He offered to buy Sultan from Baba . But Baba refused to part with Sultan , whom he had raised like his son. Overcome by desire, Khadag Singh deceitfully stole Sultan from Baba . Kind Baba , did not resist the treachery of Khadag Singh , letting him take Sultan. He, however, requested him not to reveal this incident to anyone. Khadag Singh was baffled by this unusual request of Baba. He asked Baba , “why would you request so?” Baba politely said, “if people come to know about this incident, they may hesitate in helping people in distress”. Moved by Baba’s words and overwhelmed by guilt, Khadag Singh quietly left ...

Continuing from yesterday…(see   In search of Leadership ) As I see it, the current settings of the Indian economy and market are as follows: Macroeconomic conditions are stable  – inflation is under control, fiscal balance is improving, primary deficit is improving faster leaving room for further fiscal stimulus (may be GST rationalization on the top of income tax concessions already announced); terms of trade may improve as more bilateral trade agreements and free trade agreements begin to yield results; monetary policy is growth supportive – liquidity conditions are comfortable, rates cuts have been frontloaded, and current account position is stable. Financial stability  – The health of the financial system is very good. Bank’s balance sheets are stronger than ever with adequate capital and excellent asset quality. Corporates balance sheets are also stronger with accelerated deleveraging in the past 3 years. The government balance sheet is also improving, against the ...

The benchmark indices in India have been directionless for almost two months now. In fact, Nifty50 has yielded a return of less than 2% in the past one year. Broader market indices have also not done any better. However, there has been a significant divergence in the sectoral performances. Some sectors like financials (+13%) and pharma (+8%) have outperformed the benchmark indices in the past one year, sectors like Media (-17%), Energy (-16%), Realty (-13%), FMCG (-7.5%), and Auto (-7.5%) have materially underperformed. In my view, this market performance implies— ·          Fatigue has set in the leaders of the bull market since 2021, especially PSEs, Infrastructure, commodities, and auto. These sectors look tired and unable to lead the market any further. ·          In the past one year, the market has digested (consolidated) the gains of the post Covid-19 rally in the past one year very well. It has...