Blog for Stock tips, Equity tips, Commodity tips, Forex tips: Sharetipsinfo.com

Want to beat the stock market volatility? Just keep on reading this exclusive blog by Sharetipsinfo which will cover topics related to stock market, share trading, Indian stock market, commodity trading, equity trading, future and options trading, options trading, nse, bse, mcx, forex and stock tips. Indian stock market traders can get share tips covering cash tips, future tips, commodity tips, nifty tips and option trading tips and forex international traders can get forex signals covering currency signals, shares signals, indices signals and commodity signals.

  UseFul Links:: Stock Market Tips Home | Services | Free Stock / Commodity Trial | Contact Us

WPI inflation rate in November spikes to 14.23%

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

www.ShareTipsInfo.com

The high rate of inflation in November 2021 is primarily due to the rise in prices of mineral oils, basic metals, crude petroleum, natural gas, chemical, and food products, the government said.Inflation in November 2021 was highest in the past 12 years (Representative image)

The rate of wholesale inflation spiked to 14.23 percent in November 2021, as per the data released by Department for Promotion of Industry and Internal Trade (DPIIT) on December 14.

Measured by the Wholesale Price Index (WPI), the wholesale inflation rate in India has strengthened for the second consecutive month. In October, a spike of 12.5 percent was recorded by the government.

On a year-on-year basis, the WPI inflation has massively surged in November. In the same month in 2020, the wholesale inflation rate stood at 2.29 percent.

"The high rate of inflation in November 2021 is primarily due to rise in prices of mineral oils, basic metals, crude petroleum & natural gas, chemicals and chemical products, food products, etc. as compared to the corresponding month of the previous year," the Ministry of Commerce & Industry said in an official release.

While the WPI inflation rate for all commodities spiked by 14.23 percent, it soared by 39.81 percent for fuel and power specifically, the government data showed. In October 2021, the wholesale inflation rate for fuel and power came in at 37.18 percent.

Also Read:- COVID-19 Omicron variant | Tamil Nadu district closes public places for the unvaccinated

For food products, the wholesale inflation spiked by 6.70 percent in November, as compared to 3.06 percent in the preceding month.

The data on WPI inflation was released a day after the Ministry of Statistics and Programme Implementation announced that the retail inflation rate marginally increased to 4.91 percent in November 2021.

While the wholesale inflation has raised concerns in October and November, the retail inflation rate has remained within the Reserve Bank of India-set target of six percent since July this year.


Nifty Opening Note | Indian Stock Market Trading View - Sharetipsinfo

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

www.ShareTipsInfo.com

 Nifty Opening Note

Indian Stock Market Trading View For 13 Dec 2021:

Sensex, Nifty likely to open on a flat note amid mixed global cues -  BusinessToday

Rangebound movement is expected in the market. All lowa should be used as an opportunity to go long in market and quality stocks.


Nifty spot if manages to trade and sustain above 17540 level then expect some pullback in the market and if it breaks and trades below 17480 level then some decline can be seen in the Nifty. 

Please note this is just an opening view and should not be considered as the view for the whole day.

Stop Thinking Let Profit Count. Click here for an Expert Advice


COVID-19 Omicron variant | Tamil Nadu district closes public places for the unvaccinated

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

www.ShareTipsInfo.com

Similar restrictions have been implemented in Maharashtra and Karnataka also, where only vaccinated people would be allowed in public places.

Representative image

The unvaccinated will be barred from public places including fair price shops, business establishments, supermarkets, theaters, wedding halls, shopping malls, garment shops, banks, and liquor stores in Tamil Nadu’s Madurai district, news agency ANI reported on December 11. The new guidelines come amid the growing threat of the new variant of a novel coronavirus, Omicron.

Quoting district collector Aneesh Sekhar, the report said, “Measures have been taken to send those who have not been vaccinated to nearby centers.”

Sekhar, on December 4, gave a week’s time to the residents of southern Tamil Nadu district to get at least one dose of COVID-19 vaccine. Those who are still not vaccinated won’t be allowed in public places.

Reportedly, similar restrictions have been implemented in Maharashtra and Karnataka also, where only vaccinated people would be allowed in public places.

As per the new guidelines, all domestic travelers entering the state should either be fully vaccinated or carry an RT-PCR test report.

As per the latest health ministry update, 7,992 new cases of COVID-19 were recorded in the last 24 hours with 9,265 recoveries. India's Active caseload currently stands at 93,277; lowest in 559 days.

India to recover faster than other BRICS nations, says economic bulletin

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

www.ShareTipsInfo.com

Both South Africa and India also implemented sizeable expansionary fiscal responses, BRICS Economic Bulletin 2021 said

Representational Image

(Pixabay)

India’s recovery from the slowdown inflicted by the coronavirus pandemic is projected to be higher than other member nations, according to the BRICS Economic Bulletin 2021 released by the Reserve Bank of India (RBI) on December 10.

"Charting the expected growth recovery for 2021, India’s recovery is projected to be higher than other BRICS nations," the bulletin said.

Among the BRICS nations, Brazil’s response has been the largest of the most emerging market economies (EMEs), including the other BRICS countries, the bulletin said citing the IMF’s data on countries fiscal measures in response to the COVID-19 pandemic.

Both South Africa and India also implemented sizeable expansionary fiscal responses, the bulletin said.

The second wave of infection in India since March 2021 has led to regional lockdowns, stringent restrictions, and halting of activity in many sectors which could affect the pace of its recovery.

"Similarly, Russia and South Africa have entered into the third wave of infection, posing threats to their economic recovery. China has also suffered a recent flare-up of COVID-19, since the initial outbreak, leading to restrictions on activity. However, the local transmissions appear to be in a waning mode," the Bulletin said.

The BRICS Economic Bulletin 2021 is prepared by the BRICS Contingent Reserve Arrangement (CRA) Research Group with members from BRICS central banks. The CRA Research Group was set up to enhance the research, economic analysis, and surveillance capacity of the BRICS.

The BRICS Economic Bulletin 2021 addresses the theme of ‘Navigating the Ongoing Pandemic: The BRICS Experience of Resilience and Recovery’, covering the economic recovery and its divergences, inflation risks, external sector performances, financial sector vulnerabilities, and other macroeconomic risks.

Indian response

To counter the impact of Covid in the Indian economy, the Reserve Bank of India (RBI) had announced a series of expansionary policy measures including providing special liquidity windows and offering loan restructuring facilities to stressed borrowers.

Indian economy is slowly recovering from the two successive waves of Covid 19. The RBI has projected real GDP growth at 9.5 percent for the fiscal year 2022. Along with growth worries, inflation management too has emerged as a major worry for the Indian central bank.

Also Read:- How Do Employee Stock Options Work?

Inflation shot up in India during June-November 2020 and moved beyond 6 percent, which is the upper limit of the inflation target, due to supply disruptions and inflation emanating from food items, the Bulletin noted.

How Do Employee Stock Options Work?

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

www.ShareTipsInfo.com

ESOPs have long been utilized to reward and honor senior employees who have made substantial contributions to the company. ESOPs are now employed as a compensation and incentive tool because businesses can't afford to pay high salaries in the early stages. Employee stock options have been increasingly popular in India in recent years, partly to the country's burgeoning startup culture.


As a result of their contributions, employees at Infosys, one of the first companies to provide ESOPs, have become billionaires. Google recently employed an Indian with a 1.2 crore annual compensation, half of which was in the form of an ESOP.


What are ESOPs (Employee Stock Option Plans)?

Employee Stock Option Schemes (ESOPs) are plans in which employees are given the option to purchase a fixed number of shares in the company at a discounted price instead of receiving a wage (less than the market price). The employee has the choice to exercise the scheme's option, but he or she is not obligated to do so.


Before exercising their right to purchase a specific number of shares, employees must wait a certain amount of time, known as the vesting period. Employees can pay the pre-determined exercise price to exercise their options to get shares after they have vested.


Employee stock ownership plans (ESOPs) are usually awarded to employees based on their performance or length of service with the company. As a result, it fulfills a dual purpose for both the company and its employees.


Employee Stock Option Plan Procedures

Compilation of a List of Employees Eligible for ESOP

This is the most crucial and initial phase in the ESOP system. Employees for the ESOP plan should be carefully selected based on their skills, positions, and responsibilities, among other considerations.


Policy development for the ESOP

For enterprises, this is the most critical stage. Important things to make while drafting an ESOP policy include:

Quantum of the ESOP pool.

Employees' selection and assessment criteria in the plan

Tag along, drag along, and pre-emption rights are examples of shareholder rights.

Rights of option holders

The Board of Directors must approve it.

After preparing a list of qualified employees, calculating the number of options, and developing an ESOP plan, the next step is to schedule a Board Meeting for final board approval. The list of plan participants, the draught ESOP plan, and the notice of general meeting for shareholder approval must all be approved by the board.

The General Assembly is meeting.

At a General Meeting of the Company's Members, the ESOP scheme will be authorised by Special Resolution. An ESOP can be issued by a private limited business with just an ordinary resolution.

submitting E-form MGT-14 with the Special Resolution for Scheme Approval, Explanatory Statement, Notice of General Meeting, and approved ESOP policy All companies (excluding private limited enterprises) must submit E-form MGT-14 with the Special Resolution for Scheme Approval, Explanatory Statement, Notice of General Meeting, and approved ESOP policy.

Grant letters are written and distributed.

Following shareholder approval, the company must issue a Grant Letter to all qualifying shareholders stating their entitlement, vesting schedule, vesting date, the final date for exercising options, exercise price, manner of executing options, and other terms and conditions.

Vesting of Employee Stock Ownership Plans (ESOPs)

There must be a minimum of one year between the time of option award and the time of option vesting. If you issue the option on April 1, 2019, it will not be able to be exercised until April 1, 2020.

Stock Ownership Plans for Employees (ESOPs)

Employees can apply for shares after the vesting period has been completed, or they can wait until the last day of the vesting term to exercise or not exercise their option. Employees have the option, but not the obligation, to buy stock through an ESOP.

Issuance of Stock Certificates

If shareholders apply for shares, corporations must allot the shares and file an e-form PAS-3 for share allotment that includes a Special or Ordinary Resolution for ESOP approval, a Resolution for share allocation, a list of allottees, and other documents.

Obtain a certificate of ownership and pay stamp duty

The corporation must give share certificates to the shareholders within 30 days following allotment. Companies must pay stamp duty on the issue of shares based on the state's existing stamp rates.


Conclusion

Employee stock ownership plans (ESOPs) are a terrific tool for firms to attract and retain talent, but they can be hazardous for employees. Employees must believe in the company's long-term success, and appropriate paperwork must be in place. Sign up now to receive stock market trade recommendations based on research.

Good luck with your investments!


Growth remains inequitable, needs nurturing before it once again realises full potential'

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

www.ShareTipsInfo.com

Growth does not yet seem to be broad-based and possibly continues to mask the deep pains of certain segments of the population that come under the unorganized sector.

A lot has been written about the second-quarter GDP that came in at 8.4 percent year-on-year after a 20.1 percent spurt in the first quarter of FY22.

In Q2FY22, the absolute real GDP of Rs 3,57,300 crore is also larger than the absolute real GDP reported for Q2FY20, at Rs 3,56,100 crore, thus making it appear that the catch-up for the economy to the pre-COVID era is now complete.

This is great news. However, growth does not yet seem to be broad-based and possibly continues to mask the deep pains of certain segments of the population that come under the unorganized sector. Importantly, the crucial understanding that policymakers should now have is the extent of durable damage that has been inflicted by the COVID-19 crisis, and, thus hone up the policy framework in a way to mitigate or at least reduce its impact.

So far as the organized and listed entities are concerned, they are back on their feet and are doing relatively well, and are profitable. Business confidence surveys conducted by the RBI indicate that the mood is relatively buoyant. But these entities are likely to have gained market share vis-à-vis the smaller ones who may have by now gone out of business.

Conditions for a pick-up in private investments are also clearly in place as most companies had chosen to de-leverage during the peak of the pandemic. Negative real interest rates, as well as the government’s Productivity Linked Incentive (PLI) scheme, are the likely enablers. For the private sector, capacity underutilization continues to be large (save a few sectors) and hence they would not immediately push for increasing capacity.

Note that Private Final Consumption Expenditure (PFCE) remains the most crucial contributor to the economy (50 percent plus share in the GDP) and PFCE is yet to regain the pre-COVID phase, even as it shows a 9 percent on-quarter growth in Q2FY22.

Consumer confidence surveys by the RBI indicated a recovery that is still short of levels seen in the pre-COVID period.

The stress in the rural sector is likely large as the demand for jobs under MNREGA has continued to stay higher than jobs generated by the scheme. The government has had to increase the allocation for this program by Rs 25,000 crore for FY22 to enable a larger number of people to be accommodated. Rural wage growth has also been poor, especially for non-agricultural jobs.

Also Read:-  

Let’s now focus on another area – generally not an area that economists might have looked at in the GDP. This is the item classified as ‘valuables’ that has jumped by 603 percent on a QoQ basis in Q2FY22 and is also up 183 percent, compared to the same quarter last year. As a proportion of GDP, valuables in Q2FY22 were at 3.3 percent in real terms, up from a meager 0.5 percent in the previous quarter.

Also read - 10 Short Term Investments Ideas For Young Investors

And what exactly are these valuables? These are nothing but expensive durable goods that do not deteriorate over time and are not used in consumption or even production and are acquired primarily as a store of value. Examples of valuables are works of art, precious stones, metals, and so on. This indicates that the excess savings that had probably been piled up by the upper strata of the society during COVID-19 is now being spent for these purposes.

This indicates that growth remains inequitable and needs nurturing before it once again realises its full potential. The reforms measure of the government to kick-start investments will take time to work itself through.

In the meantime, the government needs to ensure that livelihood requirements are taken care of. To this end, the government has again extended its free food programme till March 2022. The RBI is also expected to keep the monetary policy accommodative, yet flexible and attempt at nurturing the nascent recovery while maintaining a hawk eye on the inflation dynamics.



10 Short Term Investments Ideas For Young Investors

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

www.ShareTipsInfo.com

The accumulation stage and the distribution stage are the two stages of a person's economic lifespan, respectively.


When a person earns money and has an active income, they are in the accumulation stage. This stage normally begins with a person's first work and continues until retirement, at which point the distribution stage begins.person satisfies his desires and gives himself a lifestyle based on the wealth accumulated during the accumulation stage. Millennials frequently like to live a lavish lifestyle in order to satisfy their ambitions, such as purchasing expensive automobiles or arranging international travels. However, such costs are rarely incurred all at once.


If you are in the accumulation period of your life and live a luxury lifestyle that includes such extravagances, you may need to set aside money from your paychecks to realize your aspirations.

A good and effective investment plan can go a long way toward realizing these objectives, as it can provide your savings an extra boost of interest and prospective returns, allowing you to easily meet your short-term financial goals.


The financial investing field has evolved to the point that short-term investments may now be made by anyone in a very short amount of time and with just a few phone taps.


Let's have a look at several short-term investing ideas for young people that can help them attain their financial goals quickly.


1. Investing in Money Market Funds or Liquid Funds

Liquid funds are debt mutual funds that invest in debt schemes for a limited length of time, typically up to 91 days. Investors that do not want to put their money in long-term funds prefer liquid funds because they do not have a lock-in period.


2. Fixed-income investments in banks

If you want to earn 7-9 percent interest on your short-term investments in India, this is the safest option. Bank FDs are available with terms ranging from seven days to ten years. After an initial lock-in period, these short-term instruments can be liquidated at any moment and extended for reinvestment at maturity.

3. Deposits made on a regular basis

These are another well-known short-term investment product in which a set amount is withdrawn from your account each month and placed in your RD account, as well as providing liquidity. Ca an RD for the smallest period of time is 6 months, followed by 9 months, 12 months, and so on up to 10 years.


4. The Post Office Savings Plan

Post offices, like banks, offer fixed deposits where investors can keep their money for a period of one to five years and earn a fair return. Similarly, post-office-issued National Savings Certificates can be acquired.


5. Peer-to-Peer Lending 

Because the money you invest is simply rented to other players through P2P lending platforms and owes a default risk, this is one of the less popular ways of short-term investment. However, if done with reliable partners, it can yield excellent results in a shorter period of time.

6. Certificates of Deposit 

Companies in the money market issue these forms of deposits to obtain cash for their day-to-day needs. These are very liquid and offer set interest rates as part of the unorganized sector, therefore they can be useful for earning a nominal interest on money stored.

7. Investments based on Index Futures

If direct stock trading seems hazardous to you and you'd rather put your money in index funds, Prime Nifty Bank, a quantitative analysis-based short-term investment strategy, maybe the ideal fit for you. Prime Nifty Bank is a quantitative analysis driving method that might be effective for short-term traders that are only interested in trading Nifty Bank futures. Every month, 1-2 recommendations with a stop-loss are supplied.

8. Investing in the stock market using a technical strategy

The technical analysis and machine learning-based stock market trading method – Infinity – can assist young investors to achieve short-term investment goals by passively investing their money in the stock market for a holding duration of more than a week. This approach invests in cash sector stocks, which is ideal for passive investors who want to keep the stocks for more than a week.

9. A Short-Term Investment Strategy based on Gold

If you are dubious about equities markets in general and want to invest in a safe haven of goals while earning better returns than buying gold directly, Shartipsinfo Prime Gold approach is the ideal option for you. This quantitative analysis-backed method for Gold commodity futures delivers 1-2 recommendations every month and is best suited for swing traders.

10. Short-term stock market investing based on events

If you prefer fundamental analysis to technical analysis and believe in investing for longer periods of time than a week or a month, a thematic investment strategy based on a specific event affecting the stock markets, such as a short term strategy taking advantage of the impact of the monsoons on stock markets or the impact of the union budget on the markets, can pay off handsomely.


Last Thoughts

Some of these methods are part of the structured finance markets, such as the stock market, currency market, and commodity market, while others, such as treasury bills and deposits certificates markets, are part of the less organized sector. The RBI regulates bank FDs, RDs, post office schemes, and other financial instruments. As a young investor, you should consider all aspects of an investment, including the period, the risk involved, the rewards, and the issuing company's historical performance, before deciding to invest your money in short-term investment alternatives.

RBI Monetary Policy: Economy not yet strong enough for self-sustaining, needs policy support, says Shaktikanta Das

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

www.ShareTipsInfo.com

Speaking after the MPC meeting, Das said that the private consumption is still below pre-pandemic levels

RBI Governor Shaktikanta Das (File image)

The Indian economy is not yet strong enough for self-sustaining amid the ongoing COVID-19 pandemic and therefore, it needs policy support, said Reserve Bank of India (RBI) Governor Shaktikanta Das on December 8.

Speaking after the MPC meeting, Das said that the government consumption has picked from October 2021. The private consumption is still below pre-pandemic levels, he said.

RBI kept the benchmark lending rate unchanged for the ninth time in a row at 4 percent, Das informed on the day. The bank also continued with an accommodative stance to revive and sustain growth on a durable basis, he said.

“Indian economy hauled itself out of its deepest contraction; we are better prepared to deal with COVID-19,” Das said.

The RBI also retained the GDP growth target at 9.5 percent in FY22, Das added.

Diffrence between Penny Stocks vs. Small-Cap Stocks

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

www.ShareTipsInfo.com

Shares of a corporation with a modest market capitalization are referred to as penny stocks or small-cap stocks. That is, firms with little market capitalization. A penny stock, on the other hand, is a stock that trades at a cheap price and has little market capitalization, and it is typically sold over the counter (OTC) rather than on a stock exchange.



A small-cap stock, on the other hand, is decided solely by the market capitalization of the company, not the stock price or the location of its listing. Small-cap stocks do trade on stock exchanges and are included in indices for small-cap equities.

Investing in Penny Stocks

Microcaps, small caps, stocks under $5, and other terms are used to describe penny stocks. However, some of them may not be traded on a major stock market and all of them demand a more nuanced approach than regular equities. NASDAQ, the New York Stock Exchange, and other major stock exchanges trade the bulk of equities. Penny stocks, on the other hand, are frequently traded on over-the-counter (OTC) exchanges. This is not a factor in the transaction, and most online brokers serve this market.

When it comes to penny stock trading, the over-the-counter (OTC) markets are utilized. All enterprises must meet the minimal standards of keeping up-to-date financial accounts, according to the OTC Bulletin Board, an electronic trading facility managed by the Financial Industry Regulatory Authority.


Penny stocks are a type of marketable security that has a very low market value. Companies with lower market capitalization rates are more likely to offer these products. Depending on the market capitalization of the company, these are also known as nano-cap stocks, micro-cap stocks, and small-cap stocks.


The market capitalization rate is derived by multiplying the current price of a company's shares or stocks by the number of outstanding shares, i.e. NAV of shares x number of outstanding stocks, or NAV of shares x number of outstanding stocks.

Companies are indexed on recognized stock exchanges such as the National Stock Exchange and the Bombay Stock Exchange based on this attribute. Penny stock lists are frequently available.

Stocks with a Small Market Capitalization

Small-cap stocks or small-cap equity are equities of small-cap companies that are publicly traded on a stock exchange. Small-cap stocks are a fantastic choice for investors seeking a higher return on their investment. This investment option may appeal to those with a high-risk tolerance and a willingness to tolerate market risks.


Because these stocks are extremely volatile, they are subject to market risks when the market is at a low point. By diversifying their portfolio with market-friendly alternatives, investors can reduce the risk associated with small-cap equities. Microcaps, small caps, stocks under $5, and other terms are used to describe penny stocks. However, some of them may not be traded on a major stock market and all of them demand a more nuanced approach than regular equities.



MPC Meet Preview | Omicron uncertainty reaffirms underwhelming policy normalisation

http://sharetipsinfo.comJust get registered at Sharetipsinfo and earn positive returns

www.ShareTipsInfo.com

Going forward, prudent policy making dictates that in order to minimize policy related volatility in markets, Central Banks should consistently under-deliver on tightening compared to market expectations.

Reserve Bank of India (File image)


“If there’s one thing the history of evolution has taught us, it’s that life will not be contained. Life breaks free, it expands to new territories, and crashes through barriers painfully, maybe even dangerously… [in simple words] Life finds a way.” – Ian Malcolm, Jurassic Park

The Omicron – the latest WHO variant of concern, is déjà vu all over again in the ongoing evolutionary battle between humanity and the virus. After multiple COVID waves across countries, we can now safely conclude that COVID is more likely to co-exist with humanity than just pass away. Consequently, policymakers and financial markets must take into account this ‘co-existence’ as part of their decision framework.

Along with the virus, it is the nature of inflation that has undergone multiple mutations in the COVID-era. Over the last few months, there has been an endless debate on ‘transitory’ inflation. There are three parties to this conundrum – those who believe inflation is transitory, those who believe it’s ‘time to retire’ the word ‘transitory’ and those who are paying high prices while the debate rages on. In fact, everything that can be said about inflation has already been said, while little has been done to address it yet. And just when the world is beginning to expect the possibility of a measured policy response to manage inflation, as if on cue, arrives the Omicron.

But, as always, this time it’s different. Unlike in the first half of 2021, inflation has now started to hit the common man through high energy and consumer prices. The recent US CPI inflation of 6.2 percent is the highest in 30 years. Eurozone inflation too hit a record high in November. In India, inflation is visibly on the uptrend amid higher vegetable prices, revision in GST rates and most recently due to price hikes by FMCG and Telecom companies. This puts at risk RBI’s headline CPI tolerance level of 6 percent, despite the recent excise duty cuts on fuel.

Furthermore, any COVID-related slowdown may have additional adverse consequences for the already high inflation, complicating the policy response.

Prior to Omicron, India’s Interest Rates Swaps market were expecting a swift pace of normalisation by the RBI over the next few quarters. The government securities market was pricing the same, albeit to a lesser extent, possibly due to expectation of favourable demand dynamics from the Global Bond Index inclusion and continuing RBI support. Since then, financial markets have substantially watered down their expectations of central bank normalisation across the board, given the Omicron uncertainty.

In a few weeks, as we get better, data-driven understanding of the threat posed by the Omicron, financial markets may again realign to the new realities. The only market certainty during times of high uncertainty is high volatility amid reduced participation. Going forward, prudent policy making dictates that in order to minimise policy-related volatility in markets, the central banks should consistently under-deliver on tightening compared to market expectations. That way, the element of positive surprise is maintained even during policy normalisation, thereby keeping undue volatility in check.

In India, this should begin from the December policy. The MPC is likely to keep all interest rates unchanged and continue with its accommodative policy stance. We also expect the RBI to continue to extend the tenors and quantum of existing VRRR (variable rate reverse repo) operations, thereby continuing to nudge the overnight rates higher.

Rate action, if any, will be accompanied by sufficiently dovish commentary, building a case for modest future actions compared to markets’ expectations. Over time, we expect orderly evolution of Yield Curve – an acknowledged “public good”, to continue as this cycle of dovish policy normalization begins.

Albeit, a noticeably slower than expected pace of policy normalization coupled with the reduced Central Bank purchases amidst high government borrowing could threaten yet another consensus trade of Yield Curve flattening.

Click Here:- Are You Interested in Stock  Exchange


  UseFul Links:: Stock Market Tips Home | Services | Free Stock / Commodity Trial | Contact Us