Current market condition can be understood better if we analyse the following factors:

1. Improving Micros - Corporate earning is improving steadily over the last four quarters. It has improved by around 11% from the year-ago period. Most of the analysts expect this momentum to continue and earnings are projected to grow steadily over the next 2 to 3 years.
   
2. Worsening Macros -  There are some key macro factors that have …

Indian Equity markets have started witnessing the downward movement. Recently, the Sensex has dropped by almost 3000 points, which is an overall correction of around 10%. The correction is much deeper in mid and small caps. They are down 15% to 20% from their recent peaks. Recent correction may not be good for short term traders, but may turn out to be a boon for long term investors since the …

FinAtoZ View on Budget 2018 and The Road Ahead

As expected, the Union Budget 2018 had a clear focus on the rural theme. Government announced significant steps to put more money in the rural economy. There were many announcements on infra projects for rural India. Moreover, the move to increase MSP is likely to put more money in the hands of rural consumers. However, the budget had almost nothing for …

With the 2018 budget season around the corner, many expect a populist budget tone from the government. The reason for a populist budget are two-folds: Government is on a back-foot after their relatively narrow margin of victory in Gujarat. There is a clear indication of rural unrest post demonetisation and multiple years of poor monsoons. Added to this is the 2019 election which is just 18 months away. This means …

It’s the first time in 14 years that India’s credit rating has been upgraded by an international agency of repute. Moody’s upgraded India’s sovereign rating from the lowest investment grade of Baa3 to Baa2. It has also changed the outlook from stable to positive. It is on the expectation that continued progress on economic and institutional reforms will, over time, enhance India’s high growth potential. A rating upgrade for India …