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In the article below we will study Investment Diversification with Commodity Mutual Funds

Do you know about investment diversification with commodity mutual funds? Well, this is a great topic to discuss!

We might all be familiar with the basic investment rule of never ever investing all our hard-earned money in a single product in the stock market - it would be utterly foolish to do so and risk the chance of losing it all on a bad day. Do not even consider putting all your money into the equal segment of stocks.  Asset allocation variation is an uncomplicated theory to comprehend. What is not effortless is making your mind up where to stretch your capital.  And for an assortment of rationales, a good number of citizens do not deem commodity mutual funds. This is quite natural human behavior.

Having a monetary analyst

For the most part the public tends to place every single one of their asset or retreat wealth in the stock market.  They may in one case put in money in the corporation they attend, or else pay money for stocks of businesses that they admire and have faith in (mostly large corporations), such as Microsoft, Toyota,  Sony, or else any corporation with the purpose of being well-liked.  Or else they are using an agency domicile for counsel and decide on and prefer from the agencies propositions.  Proviso they have a huge amount of cash in investments, they almost certainly have a monetary analyst. This consultant is supposed to encompass some of their cash in the bond market. This is all fine given that the investment is resonant in its diversification tactic. We can now safely say that the stock market is effortless to comprehend and for the most part people are contented with verifying their stock's feat at home on the internet. The bond market is a touch more hard-hitting to go behind everyday, and for the most part people simply pay money for the bond and hang around for their agent or counselor to suggest a transformation. 

About commodity mutual funds

It should be well-documented and remembered that the commodity and commodity mutual fund market is not exactly a cinch to start off with. The values of expensive items like fuel and bullion are easy to follow because they are a team of the for the most part all the rage commodities. At the same time, the prices of household items and food and cash crops are not that popular. Nevertheless commodity mutual funds are a big apparatus to put in speculation diversification to several assortments. They tender speculation guard from price rises, a scrawny currency and sways in the stock market. For a greater part of the most recent times, there has been a hefty augment of spending in commodity mutual funds accomplish to the terrible presentation of the stock market. So now it becomes anybody’s guess.

Stock dealers

By way of the bulky quantity of varieties in the share and mutual fund bazaar, stock dealers habitually do not delve into or propose commodity mutual funds. They almost certainly have durably adequate moments in time moving forward their stock selection picked up in any period of time, let alone trying to sell commodity products. For that reason, you need to do your own investigation into merchandise and commodity mutual funds.  They will be able to add significance to your withdrawal finance. It may be that you will have zeroed in on commencing to keep a quantity of spare currency away. The impetus is to set aside for your brood's institution finance, or else system a sequestration version, or possibly to salt away for an initial payment on a residence.  Every single one exceptionally first-class reason and you ought to be wished many happy returns to for your judgment in the share market. Furthermore you are accepting perception on the subject of investing in mutual funds. This is an additional first-rate pronouncement. But for the fact that you pursue the stock market or be familiar with a stockbroker who you rely on and who has an excellent reputation, the mutual fund bazaar is the top verdict. Thus we have known about investment diversification with commodity mutual funds.

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Private monopolies holding considerable sway over large swathes of infrastructure assets worth billions of dollars may result in inequitable consequences which will linger for many years

In ordinary parlance, for a private or a household, to ‘monetize’ something often refers to the method of earning revenues or income from a resource that will have remained idle. So, one can monetize a neighborhood of the house by letting it out and earning income from it.

There also are instances where people even let loose car parking spaces in multi-storied apartments. this is often an instance of monetizing an idle parking lot through rental or lease income while retaining ownership.

One often comes across innovative monetization samples of assets, particularly from the planet of media. as an example , one would often encounter advertisements before, during or after popular videos on YouTube. These are sometimes mentioned as ‘pre-rolls, ‘mid-rolls and ‘post-rolls’. These are samples of earning money from idle assets (in this instance time or seconds) by embedding advertisements within the videos.

From a public policy standpoint, asset monetization involves the creation of the latest sources of revenue by unlocking the worth of previously unutilized or underutilized public assets.

Internationally, it's recognized that public assets are a big resource for all economies. Monetizing these assets that the government’s control, including public corporations, is widely held to be a really important, but inadequately explored, public finance option for managing public resources.

Many public sector assets are sub-optimally utilised and will be appropriately monetized to make greater financial leverage and value for the businesses , and of the equity that the govt has invested in them.

The objective, in theory a minimum of , of the government’s asset monetization programme, is to unlock the worth of investment made publicly assets that haven't yielded appropriate or potential returns thus far , creating yet unexplored sources of income for the corporate and its shareholders.

This would, besides yielding revenues, also contribute to a more accurate estimation of public assets which might help within the better financial management of state and public resources over time.

The Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) government’s asset monetization plan, which seeks to get revenues worth quite Rs 6 lakh crore may be a jumbo version of such plans.

\On August 23, minister of finance Nirmala Sitharaman announced that the govt will monetize assets worth Rs 6 lakh-crore between 2021-22 and 2024-25 under the National Monetisation Pipeline (NMP) scheme. the govt will still own the assets being given out under the NMP and can be returned to the govt after a period of your time .

According to the NITI Aayog, the government’s premier policy think-tank, asset monetisation under this program will involve various brownfield infrastructure assets across roads, railways, shipping, aviation, power, telecom, oil, and gas, and warehousing sectors.

“Asset monetization, supported the philosophy of ‘Creation through Monetisation’, will tap institutional investment and long-term patient capital into stable mature assets, in turn, generating financial resources for brand spanking new infrastructure asset creation,” it said in its two-volume guidebook on the NMP.

The key phrases here are ‘institutional investment’ and ‘long-term patient capital, something that the minister also underlined when she said that the govt won't unload any assets, but only utilize them during a better manner to get greater value and unlock resources for the economy.

On the face of it, a minimum of in terms of theoretical intent, there aren’t too many gaps within the plan. Given the ambitious fundraising targets through the asset monetization plan, one would be tempted to assume that the govt and public sector undertakings will rest on Infrastructure Investment Trusts (InvITs) to get revenues from these assets.

There has been a fairly successful demonstration of the proof of concept recently. In April, State-owned PowerGrid Corp of India Ltd (PGCIL) launched the general public offer of the primary Infrastructure Investment Trusts (InvITs) ever by a PSU.

InvITs are collective investment vehicles like mutual funds that allow direct investment by individuals and institutions in infrastructure projects to earn a little portion of the income as a return. InvITs, which are governed by the Securities Exchange Board of India (Sebi) enable infrastructure developers to monetize assets by pooling multiple assets under one trust structure.

The mega asset monetization plan, if properly structured, can enable significant funds to be due to private equity players into India’s infrastructure space through InvITs.

The key aspect, however, is going to be the planning of those InvITs. Private monopolies holding considerable sway over large swathes of infrastructure assets worth billions of dollars may result in inequitable consequences which will linger for many years. the principles of handing out these assets will necessarily need to be founded on principles of fair play and transparency as non-negotiable doctrines.

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Paddy procurement within the ongoing KMS 2020-21 is constant smoothly within the procuring states. Kharif's marketing season runs from October to September.

The Centre has procured a record 873.68 lakh tonnes of paddy thus far within the 2020-21 marketing year ending September for nearly Rs 1.65 lakh crore.

Paddy procurement has reached at an all-time high level, surpassing the previous high of 773.45 lakh tonnes in KMS (Kharif Marketing Season) 2019-20, a politician statement said.

"About 129.03 lakh farmers have already been benefited from the continued KMS procurement operations with MSP value of Rs 1,64,951.77 crore," it said.

Paddy procurement within the ongoing KMS 2020-21 is constant smoothly within the procuring states. Kharif's marketing season runs from October to September.

The Centre has purchased 873.68 lakh tonnes of paddy (including Kharif crop 707.69 lakh tonnes and Rabi crop 165.99 lakh tonnes) till August 23 against 763.01 lakh tonnes within the corresponding period of the previous year.

The food ministry said that the rabi marketing season (RMS) 2021-22 has concluded in wheat procuring states.

Till August 18, a record quantity of 433.44 lakh tonnes of wheat has been procured as against 389.93 lakh tonnes within the year-ago period.

"About 49.20 lakh farmers have already been benefited from the continued RMS procurement operations with MSP value of Rs 85,603.57 crore," the statement said.

The Rabi Marketing Season runs from April to March. However, the majority of wheat procurement is completed during the April-June period.

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Benchmark indices ended higher with Nifty above 16,600 led by the metal, pharma, banks, and power stocks.

At close, the Sensex was up 403.19 points or 0.73% at 55,958.98, and the Nifty was up 128.10 points or 0.78% at 16,624.60. About 2067 shares have advanced, 969 shares declined, and 122 shares are unchanged.

Bajaj Finserv, Adani Ports, Bajaj Finance, Tata Steel, and Hindalco Industries were the top Nifty gainers. Britannia Industries, HDFC, Infosys, Asian Paints, and Nestle were among the top losers.

BSE midcap and smallcap indices gained over 1 percent each. Among sectors, except IT and FMCG, all other sectoral indices ended in the green.

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Topic :- Time:3.00 PM

Nifty spot if holds above 16600 on closing basis then expect some good sharp upmove in coming session and if it closes below above mentioned level then some sluggish movement can follow in the market. Avoid open position for tomorrow.

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Topic :- Time:2.30 PM

CRUDEOIL Trading View:

CRUDEOIL is trading at 4920. If it manages to trade and sustain above 4925 levels then expect some upmove in it and if it breaks and trade below 4900 level then some decline can follow in it.

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Topic :- Time:2.00 PM

Nifty is flying high and Reliance has also joined the race. Nifty spot if manages to trade and sustain above 16620 level then expect some quick upmove and if it breaks and trade below 16580 level then some decline can follow in the market.

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Topic :- Time:1.45 PM

Just In:

Home loans demand rise 26% in Jan-June.

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Topic :- Time:1.30 PM

GOLD Trading View:

GOLD is trading at 47493.If it breaks and trade below 47480 level then expect some further decline in GOLD and if it manages to trade and sustain above 47540 level then some upmove can be seen.

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Topic :- Time:1.20 PM

Bajaj Finserv gets SEBI approval for mutual fund business:

Financial services company Bajaj Finserv on Tuesday announced that the Indian market regulator Securities and Exchange Board of India (SEBI) has given its in-principal nod to the company for sponsoring a Mutual Fund. The company would also be setting an Asset Management Company (AMC).

Accordingly, the company would be setting up an Asset Management Company (AMC) and the Trustee Company, directly or indirectly i.e., itself or through its subsidiary in accordance with applicable SEBI Regulations and other applicable laws, Bajaj Finserv said in an exchange filing.

Shares of Bajaj Finserv were trading over 3% higher to ₹15,785 per share on the BSE in Tuesdays first half of the trading session. The stock has surged more than 75% this year (year-to-date) whereas its up over 140% in one year. Bajaj Finserv is focused on lending, asset management, wealth management and insurance services. 

The company was formed in 2007 as a result of its demerger from Bajaj Auto Limited to further the groups interest in financial services. Bajaj Finserv is the holding company for the businesses dealing with financial services of the Bajaj Group.

Rahul Sharma, Co-Founder, Equity99 said, The company plans to offer all financial services and deliver seamlessly through an app-based platform. The business would leverage the digital platform to provide low-cost, high-value services, and the company is expected to benefit from synergies & its customer database.

For the quarter ending June 2021, Bajaj Finserv reported an over 31% decline in consolidated net profit at ₹833 crore. The company had reported a net profit of ₹1,215 crore in the same quarter of the preceding fiscal. The consolidated total income also plunged to ₹13,949 crore in Q1FY22 as against ₹14,192 crore in the year-ago quarter. 

The SEBI approval for the mutual fund business for Bajaj Finserv comes at a time when MFs have become a popular mode of investment with the industrys assets under management (AUM) surging to an all-time high of ₹35 lakh crore in July-end.

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Topic :- Time:1.00 PM

Nifty is rising and is waiting for Reliance Industries to take market further up. Nifty spot if manages to trade and sustain above 16580 level then expect some quick upmove in it and if it breaks and trade below 16540 level then some decline can follow in it. Once Reliance stock begins its wild run then nifty is likely to test 16600-16700 levels soon.

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Topic :- Time:12.30 PM

COPPER Trading View:

COPPER is trading at 706.80.If it breaks and trade below 706.00 level then expect some decline in it and if it manages to trade and sustain above 707.20 level then some upmove can follow in COPPER.

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Topic :- Time:12.10 PM

Just In:

Chemplast Sanmar shares list at Rs 525, a 3% discount to issue price.

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Topic :- Time:12.00 PM

Nifty is trading in range. Nifty spot if manages to trade and sustain above 16560 level then expect some quick upmove in the market and if it breaks and trade below 16520 level then some decline can follow in the market. Use all lows as an opportunity to go long in the market.

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Topic :- Time:11.30 AM

News Wrap Up:

1. Sensex jumps 150 points; Metal, PSU Bank indices rally

2. Bajaj Finserv gets Sebi nod to set up mutual fund; stock hits new high

3. Tata Sons seeks shareholders nod to raise Rs 40,000 cr in debt

4. DLF 3.0: Realtor ventures into new territories after four decades

5. FM Sitharaman gives Infosys September 15 deadline to fix I-T portal snags

6. Skymet dilutes southwest monsoon forecast for 2021 to below-normal

7. US FDA grants full approval to Pfizer-BioNTech coronavirus vaccine

8. Zomato share price falls as lock-in period for anchor investors end

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Topic :- Time:11.00 AM

After positive start nifty is still going good. Nifty spot if manages to trade and sustain above 16560 level then expect it to rise further and if it breaks and trade below 16520 level then some decline can be seen in the market.

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Topic :- Stocks under F&O ban on NSE

1. Canara Bank

2. Vodafone Idea

3. NMDC

4. Sun TV Network

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Topic :- Stocks in News

Sical Logistics: The fifth meeting of the committee of creditors has been scheduled for August 25 through video conferencing.

Nandan Denim: Brickworks Ratings India has revised the outlook of the rating of long-term facilities of the company.

KPI Global: The company has successfully commissioned a new capacity of 5.44 MW (DC) in its existing solar power plant at Village-Sudi & Tancha, Ta-Amod, District- Bharuch.

Atul Auto: Credit rating agency CRISIL has assigned CRISIL A-/ Stable (downgraded from CRISIL A/Stable) to long-term bank facilities and CRISIL A2+ (downgraded from CRISIL Al) to short term bank facilities of the company.

Sanghvi Movers: ICRA upgraded the long-term rating to ICRA A from ICRA A- and also upgraded the short-term rating to ICRA A1 from ICRA A2-.

Eicher Motors: Siddhartha Lal has been reappointed as managing director of the company with effect from May 1, 2021.

NR Agarwal Industries: Production at Unit 2 (writing and printing) of the company has been temporarily shut down due to the lack of market orders.

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Topic :- Nifty Opening Note

Indian Stock Market Trading View For 24 Aug, 2021:

Stock specific action is expected in the market. Global cues will play critical role.

Nifty spot if manages to trade and sustain above 16560 level then expect some upmove in the market and if it breaks and trade below 16440 level then some decline can be seen in the market. Please note this is just opening view and should not be considered as the view for the whole day.

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The minutes of the August meeting was of particular interest due to Professor Varma's 'dissent', the second in one year. “We expect VRRRs to be gradually increased further, either on tenor or amounts, to normalise liquidity skewness,” says Madhavi Arora, Lead Economist, Emkay Global Institutional Equities desk.

The August minutes of the Federal Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) of the met on August 4, 5 and 6 were more hawkish than the policy itself. The MPC determines the policy rate of interest required to realize the inflation target.

The dissenters, Professor Varma and Dr Saggar and Dr Goyal, made a case for the co-existence of (liquidity/policy) normalisation and an accommodative stance.

The other takeaway was that the expansion narrative was largely similar across the board, with members agreeing on the necessity for durable growth, though some split emerged on the persistence of inflation risks. We see FY22 inflation 30-35bps less than what the RBI had projected.

Do not see reverse repo rate hike

The October MPC may even see more active debate on definition/pace/mode of accommodation. We expect variable reverse repo rates (VRRRs) to be gradually increased further, either on tenor or amounts. We don't see a reverse repo rate hike this year and see the RBI maintaining its preference for curve flattening.

The dissenters argued for a more judicious forward guidance.

The minutes of the August meeting was of particular interest due to Professor Varma's 'dissent', the second in one year. The unease of Professor Varma arose from his assessment that:

(1) COVID is pervasive and yet impacting only a pocket of the economy. But a generic accommodative monetary policy can’t be targeted (unlike fiscal) and thus it's largely fuelling asset inflation. Forward guidance and monetary stance are getting counter-productive and can only increase inflation risk premium also as term premium.

(2) MPC's inflation target is 4 per cent, not 5 per cent, not 6 per cent. The tolerance band is to permit for estimation errors and using this flexibility overly will only cause inflation-targeting failures later (reminds us of Dr Patra’s narrative during former Governor Urjit Patel's days).

(3) Disagreement with the extent of the reverse repo rate, though it doesn't fall into the MPC’s purview. He argued that a much-needed phased normalisation of the corridor would increase the MPC’s ability to stay the repo rate at 4 per cent for a extended period.

Interestingly, the opposite silent noises seen within the June minutes made their way again. Dr Saggar, while emphasising the necessity for durable growth and policy accommodation, admitted that the danger of policy errors on either side remains, given the massive uncertainty on growth and inflation also as policy trade-offs.

He thus made a case for policy agility, should the necessity arise. He later involved the necessity to avoid inflation risks when credit demand improves – swiftly making a case for non-disruptive gradual unwinding “when the time comes” – lest making markets complacent of flush liquidity.

We even had the standard dove, Dr Goyal, using the word ‘normalisation’, whenever it starts – extending the argument that other (liquidity) normalisation can start even in an accommodative stance.

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The inflation transience continues but risks remain

The overall inflation and growth narrative was largely an equivalent because the August policy. But there have been mentions about the risks of inflation (and inflationary expectations) becoming more persistent from the so-called transient supply shocks and margin increases.

Case against higher administered fuel prices

The case against higher administered fuel prices was again stressed by a couple of members. whilst growth remains sub-par, Dr Patra noted that core inflation may stay sticky, given the COVID-related margin increases and tax hikes, even when some supply-side mismatches were easing.

The growth narrative was largely similar across the board, stressing on need for durability of recovery. Even the dissenter, Prof. Varma, agreed for a repo rate at 4 per cent on the rear of sub-par growth, albeit arguing (along with Prof Goyal) that policy accommodation and liquidity normalisation can co-exist.

Governor Shaktikanta Das, on the opposite hand, argued that the risk- reward still favours maintaining congenial financial conditions and monetary boosters.

Emerging differences may have implications for the October MPC.

While the predominant view remains the necessity to support recovery, the (dis)comfort with inflation dynamics is certainly dividing the MPC members.

The overall tone of the minutes is slightly more hawkish than the policy itself, but we still think state-based actions and guidance will lead the show within the end. We see inflation to be lower in FY22 (Emkay: 5.35 per cent; RBI: 5.7 per cent), which could give the RBI more room to manage expectations.

Interestingly, the core RBI MPC on net seems more convinced that normalising policy early would be an error – as was also seen within the recent bulletin authored by Dr Patra. It also argued the limited role of monetary policy to influence supply-driven inflation and therefore the more involved role of economic policy within the same.

The August minutes do little to vary our view that the improved VRRRs to mop up liquidity aren't to be seen as a reversal of policy stance but simply the normalization of liquidity skewness. We expect VRRRs to be gradually increased further, either on tenor or amounts, to normalize liquidity skewness. We don't see a reverse repo hike this civil year . We reckon the RBI will still strive to repair the artificially skewed yield curve and maintain its preference for curve flattening.

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"India has received the very best ever FDI inflow in 2020-21. It surged by 10 per cent to USD 81.72 billion and FDI during May 2021 is USD 12.1 billion, i.e. 203 per cent above May 2020," he said while addressing a gathering of various industry associations on promoting exports

Foreign direct investments into the country is on the increase , jumping to USD 12.1 billion in May this year, Commerce and Industry Minister Piyush Goyal said.

He also said the govt is functioning on a mission mode to realize an exports target of USD 400 billion in 2021-22.

"India has received the very best ever FDI inflow in 2020-21. It surged by 10 per cent to USD 81.72 billion and FDI during May 2021 is USD 12.1 billion, i.e. 203 per cent above May 2020," he said while addressing a gathering of various industry associations on promoting exports.

He said that exports are recording healthy growth and through August 1-14, the outbound shipments grew 71 per cent over 2020-21 and 23 per cent over 2019-20.

According to the minister, India's average applied import tariff (duty) has dropped to fifteen percent in 2020 from 17.6 per cent in 2019, and therefore the country's applied tariffs are way below the bound rate of fifty .8 percent (permissible limit under the planet Trade Organization).

Talking about employment, he said quite 54,000 startups were providing about 5.5 lakh jobs and over 20 lakh jobs are going to be created by 50,000 new startups within the next five years.

"It is time for our industry to expand our capacity, capability and commitment to develop resilient global supply chains," he said, adding that the Centre expects that the Indian industry should suggest areas for intervention through research, handholding of exporters/ manufacturers, and deeper engagement with states and Missions.

During the meeting, industry suggested steps like increasing export competitiveness, addressing logistic problems, active role of states in building capacity of exporters and developing international markets for Indian products.

They also suggested the inclusion of pharma and chemicals under Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.

Industry body PHDCCI's President Sanjay Aggarwal said these sectors are essential to realize the target of USD 400 billion exports and "it is therefore requested to think about these sectors in RoDTEP scheme".

"The government has budgeted only Rs 17,000 crore for a scheme that's alleged to reimburse embedded levies paid on inputs consumed in exports in FY'22. it's far but the government's initial estimate of Rs 50,000 crore annually . The allow the RoDTEP scheme, including all tariff lines, got to be increased," he said.

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The MPC has been following a pattern, largely supporting growth (remaining on an accommodative stance), and ignoring near-term inflation spike. Jayanth Varma, one of the MPC members, has been the lone voice questioning this stance

The Monetary Policy Committee (MPC) retained the key rates within the August round of the review and continued with the so-called accommodative stance. An accommodative stance is interpreted as a policy stance that is essentially tilted towards a rate cut or a standing quo.

A rate hike is ruled out during this phase. The MPC has consistently maintained, since the beginning of the COVID-19 pandemic, that growth revival is of utmost priority and inflation spike is transitory. Hence, a majority of members have voted for the continuation of the accommodative stance.

Ever since the MPC came into existence in 2016, the interest rate-setting process has ceased to be a one-man show. Earlier, the Federal Reserve Bank of India (RBI) Governor had the last word on the policy decision. This changed significantly with the MPC formation including external experts.

In some sense, the RBI became only a celebration of the rate-setting panel of six members. The discussions during the policy meets became broader in nature. There has been some eye-opening questions and a few major dissent notes within the MPC over time about the very fundamental nature of the policy stance and forward guidance, etc.

In the August monetary policy review, too, there are important questions being raised by one among the members, Jayanth Varma, which is formed public through the policy minutes released on August 20 that require a better look.

Here are the main points raised by Varma, explained during a simpler language:

One, COVID is here to remain, despite the high level of vaccinations, a minimum of for subsequent 3-5 years because the experience in other countries indicate. and therefore the monetary policy's ability to deal with this pandemic is restricted . “The ability of the monetary policy to mitigate a person's tragedy of this nature is extremely limited as compared to its ability to contain a depression,” Varma said. He asks: how long can the monetary policy remain accommodative?

Two, the pandemic has impacted the economically weaker sections during a bigger way, compared to the affluent segments who have weathered it reasonably well. Here again, the power of the monetary policy to deal with this impact on the worst-affected segments is far less, compared with the economic policy .

Instead, a protracted accommodative stance could stimulate asset price inflation, Varma says. In other words, the MPC member asks if it's worth continuing the straightforward money stance for a extended period when there's no clarity of the character of this crisis and therefore the monetary policy ability is restricted to figure against COVID? What about the resultant high inflation?

Third, the particular inflation target of the MPC is 4 percent. After averaging above 6 percent in 2020-21, inflation is forecast to be above 5 percent in 2021-22, and it's not expected to drop below 5 percent even within the half-moon of 2022-23, consistent with RBI projections. Treating 5 percent because the target would significantly increase the danger of inflation-targeting failures. The question Varma asks here is what should be the particular target of the inflation, compared to the first mandate, considering the risks of high prices on economically weaker sections. 

Is MPC concerned about inflation?

Varma points out that the first aim of the MPC should be to take care of macroeconomic stability. By creating the erroneous perception that the MPC is not any longer concerned about inflation and it's focused exclusively on growth, the MPC could also be inadvertently aggravating the danger that inflationary expectations are going to be disanchored, he asks.

Varma argues that easy money today could lead on to high interest rates tomorrow. On the opposite hand, by demonstrating its commitment to the inflation target with tangible action, the MPC are going to be ready to anchor expectations, reduce risk premia, and sustain lower long-term interest rates for extended , thereby aiding the economic recovery. Citing this, Varma voted against the accommodative stance.

What are the key takeaways from these points from Varma's notes? the power of the monetary policy to counter the COVID impact on economically weaker sections is restricted, compared with a stronger fiscal response. Also, as long as COVID may still stay for a longer-than-expected timeframe, there's no clear logic in staying within the easy money stance. Not only may such a stance fail to possess the specified impact, but the shortage of attention to the inflation problem might also be risky within the long run.

Already, there are questions on the MPC’s consistent accommodative stance while simultaneously upping the retail inflation target (5.7 percent now in FY22 Vs 5.1 percent earlier). High prices are hurting the poorer sections most severely. Hence, the RBI can not ignore the inflation problem. during this backdrop, Varma has raised some pertinent questions which require to be deliberated well.

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India is the world’s biggest vegetable oil importer and spends an average of $8.5-$10 billion annually on edible oil imports.

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Currently estimated at USD 4 billion, the value e-commerce market -- is expected to see rapid growth and reach USD 20 billion by 2026, and USD 40 billion by 2030, it said.

The value e-commerce market in India is predicted to touch USD 40 billion by 2030, up from USD 4 billion in 2019, driven by a rapid increase in internet user base and as more people embrace online shopping, a report by Kearney said.

The expanding digital footprint in tier III and IV areas also as in rural India, alongside the aspirational needs of those consumers and their changing attitudes towards online buying present a huge opportunity, as per the report titled, ''Value e-commerce: a subsequent big leap in India''s retail market''.

Currently estimated at USD 4 billion, the worth e-commerce market -- is predicted to ascertain rapid climb and reach USD 20 billion by 2026, and USD 40 billion by 2030, it said.

Meanwhile, the worth lifestyle retail market is predicted to grow from USD 90 billion in 2019, to USD 156 billion by 2026, and touch USD 215 billion by 2030, it added.

This includes categories like apparel, footwear, fashion accessories, cosmetics, small appliances, and residential and living.

"As retail in India bounces back from COVID, the growing number of value-conscious internet buyers is reshaping India''s e-commerce landscape. This value segment is pegged to grow rapidly and emerge as a USD 215 billion-plus market by 2030," Kearney Partner Siddharth Jain said.

He added that while only 4 per cent of this demand is today served by online channels, this may rise to 19 per cent by 2030 creating a USD 40 billion marketplace for value e-commerce in India.

"We expect the amount of internet users in India to surpass 1,100 million people by 2026 - and a 3rd of those are going to be active online buyers. We believe that the requirements useful lifestyle consumers will increasingly be met by differentiated business models and online channels," it added.

Currently, about 70 per cent of lifestyle retail demand comes from the worth lifestyle segment. This segment is dominated by unorganised general trade (nearly 80 per cent share) and modern trade is at 16 per cent, while e-commerce features a low penetration at 4 per cent.

By 2030, unorganised general trade is forecast to account for about 57 per cent share, modern trade 24 per cent, and e-commerce at 19 per cent.

The report acknowledged that nearly all value lifestyle consumers spend tons of your time finding and evaluating products before they buy them due to their strict budgets.

Also, value lifestyle consumers scout for the simplest deals, often purchasing products with the most important discount or markdown, which may be an enormous factor once they do plan to make a sale , it said.

The report said value lifestyle consumers tend to possess less brand loyalty and are focused on getting the simplest quality in their preferred price range. they will be highly influenced by friends, family, and social media.

The report provided an summary of the efforts being made by various e-commerce companies in India like Snapdeal and Lenskart to align themselves to the requirements of the value-conscious segment.

In the case study on Snapdeal, the report highlighted how the corporate has reinvented its positioning within the e-commerce space by focusing entirely on value lifestyle e-commerce.

The report also noted the efforts of recent format value retailers like V-Mart to expand their e-commerce channels.

"Value lifestyle retail is pegged to grow to USD 215 billion markets, driven by India-2 (mainly mid to low income in tier II towns) – their online purchase behavior is about to extend the worth e-commerce market...

"Online players that craft a pointy value proposition around relevance, convenience, and trust, focused on needs of India-2 will emerge strong contenders to capture this USD 40 billion markets," Kearney Partner Karan Dhall said.

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Spot gold inched 0.1% lower to $1,749.62 per ounce by 0329 GMT, having recorded it biggest one-day percentage gain since May 6 on Wednesday. U.S. gold futures were down 0.1% at $1,751.00.

Gold prices steadied on Thursday after rising quite 1% within the previous session, as worries of an early tapering in economic support eased after data showed U.S. consumer price inflation cooled in July.

Spot gold inched 0.1% lower to $1,749.62 per ounce by 0329 GMT, having recorded its biggest one-day percentage gain since May 6 on Wednesday. U.S. gold futures were down 0.1% at $1,751.00.

U.S. consumer price increases slowed in July, data showed on Wednesday, although they remained at a 13-year high on a yearly basis, underpinning the Federal Reserve’s argument that inflationary pressures are likely to be transitory.

”There may be a slightly lower risk that the Fed will need to tighten policy aggressively to cap potentially runaway inflation,” said Kyle Rhoda, an analyst at IG Market.

However, the downward trend in gold is probably going to persist, Rhoda added.

Meanwhile, a growing number of U.S. financial institution officials are discussing how and once they should begin to trim the huge pandemic-era asset purchases.

The Fed has made labor market recovery a condition for phasing out its asset purchase program and raising interest rates.

While gold is viewed as a hedge against higher inflation, it's sensitive to rising U.S. interest rates, which increase the chance cost of holding non-yielding bullion while boosting the dollar.

”It is perfectly possible that gold has heavily factored in tapering as inevitable. What could also be a negative going forward could be a fast-paced tapering,” James Steel, chief precious metals analyst at HSBC wrote during a note.

”Gold is probably going to carry or build a base to travel modestly higher,” Steel added.

The dollar index, meanwhile, was flat and hovered below a quite four-month high hit on Wednesday.

Silver fell 0.5% to $23.40 per ounce. Platinum eased 0.2%, to $1,014.99 and palladium was down 0.1% to $2,633.19.

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