Indian markets do better than global leaders despite interest rate hikes
If one looks at the performance of stock markets on a calendar basis since 2005, there have been eight instances when markets have gained between 0 and 25 per cent, six instances when they have gained between 26 per cent and 50 per cent, and just one instance when they gained more than 76 per cent.
Don't hike repo rate by more than 25-35 bps: Assocham's advice to RBI
Assocham has also requested the RBI to treat retail loans for purchase of electric vehicle (EV) as priority sector lending. According to Assocham, the interest rate hike should be moderate so that the rising cost of borrowing does not have an adverse and disproportionate impact on the nascent economic recovery post the pandemic.
Expert View: Economic growth driving bull market run despite high interest rates
The Reserve Bank of India (RBI) has raised repo rates four times since May and it is expected to hike the key lending rates again on December 7. Though high interest rates help in curbing liquidity to check inflation, it does not necessarily leave a good taste in the mouth for bourses. Higher interest rates translate into a decline in stock market's value.
Investors expecting a full Fed pivot may be putting the cart before the horse
But investors who are expecting a full pivot may be putting the cart before the horse, CNN reported. Powell's admission that "the path ahead for inflation remains highly uncertain" means that rate hikes could be here for a while. Investors have been closely watching for any clues that the Fed might slow or pause its painful path of rate hikes, intended to fight persistent inflation.
InvITs an invitation for long-term economic growth, say experts
In a short span of time, they have emerged as among the most preferred instruments of investment, offering high fixed returns. Experts, in fact, are of the view that InvITs are going to be crucial for long-term growth of the economy. InvITs consist of four elements, namely a trustee, sponsor(s), investment manager and a project manager.
Retail investors with portfolios focused on small caps aren't celebrating
This explains the absence of celebration among retail investors whose portfolios are oriented towards small caps, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services. The significant characteristic of the ongoing rally is that it is a mature rally driven by high quality stocks. The earlier rally which took the Nifty from the March 2020 low of 7,511 to 18,604 in October 2021 was a one-way rally driven by liquidity and retail exuberance.
See-saw battle between interest rate and market indices
Curiously, this time around there is a conundrum. When the interest rates are going up and also set to go up further, the stock market indices are touching new heights. "It is true that the biggest enemy of equity markets is rising interest rates. This is the normal relationship. Rising interest rates lead to higher cost of funds and that eats into profitability especially in medium and small enterprises," Dr. Joseph Thomas, Head of Research, Emkay Wealth Management told IANS.
Explaining the conundrum: It happens when GDP grows, corp earnings rise
There have been many periods when both interest rates and stock prices went up. If GDP growth and corporate earnings are good, stock prices can go up despite rate hikes, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Indian market never dipped into bear territory this year unlike in many other markets like the US. So, this cannot be termed as a bear market rally, he added.
Russia's Rosatom looking at India's irradiation segment
It is learnt Russia's integrated nuclear power corporation Rosatom is also looking at entering the Indian irradiation market. Officials, however have declined to comment much on that. It should be noted Rosatom is the supplier of six 1,000 MW atomic power units to India out of which two are functional and four are under construction.
Govt allows sale of electoral bonds through 29 SBI branches from Dec 5-12
A person being an individual can buy electoral bonds, either singly or jointly with other individuals. Only political parties registered under Section 29A of the Representation of the People Act, 1951 (43 of 1951) and which have secured not less than one per cent of the votes polled in the last general election to the Lok Sabha or state legislative assemblies are eligible to receive these bonds.