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Moody’s Rating Upgrade

Moody’s in a surprise move today upgraded India’s domestic and foreign currency ratings to Baa3 from Baa2 and also changed the outlook from positive to stable. The market thinks that the biggest game changer for Moody’s was the GST, NPA resolution efforts and other institutional reforms that are expected to improve productivity and tax base and enable India to achieve its high growth potential. In effect, this should also enable capping India’s debt/GDP ratio and bring it down over the longer term. The upgrade comes as a welcome relief especially for Indian asset markets – especially the bond market. However, the upgrade may not change RBI’s reaction function immediately.

Understanding the outcomes of RBI's Monetary Policy

A lot is being discussed about the latest RBI Monetary Policy. Let's try to understand the outcomes of the Monetary Policy though this blog post.

Why is everyone clearing the stock before GST?

The MRP of most of the products like clothing and many other articles is governed by the Legal Metrology Act, 2009. Under this act,

Why would Gold prices go up in 2016/17?

Gold: To trade with a bullish bias post Brexit
UK’s surprise decision to leave the European Union has sent investors flocking to the safety of assets such as gold. The bullion rose ~9% in June'16 as the outcome of the British referendum became clear. Markets expect the precious metal to continue seeing strong and sustained demand amid uncertainty surrounding the exact nature of Brexit consequences on the global economy.

Why We Need GST?

Let’s begin by elaborating on the important concept of – cascading effect of taxes. It is also, logically, referred to as “taxes on taxes”. It is simple to illustrate – say A sells goods to B after charging sales tax, and then B re-sells those goods to C after charging sales tax. While B was computing his sales tax liability, he also included the sales tax paid on previous purchase, which is how it becomes a tax on tax.

“Brexit” what next for the World & its impact in India

Although polls suggested a tight referendum, financial markets underestimated the risk of a ‘leave’ vote. The direct impact of the ‘leave’ vote will apply mostly to the UK, as it begins long negotiations to exit the European Union.

Understanding “Brexit” in a nut-shell

What is happening?
A referendum was held on Thursday, 23 June, 2016 to decide whether Britain should leave or remain in the European Union. A referendum is basically a vote in which everyone (or nearly everyone) of voting age can take part, normally giving a "Yes" or "No" answer to a question. Whichever side gets more than half of all votes cast is considered to have won.

Clarifying ‘Put Options’, What You Need To Know?

Apart from mutual funds, stocks and bonds, there is another kind of investment, called options, which offer a gamut of opportunities to seasoned investors. The best thing about options is that you can make money even when the stock prices are going down. Options are versatile investment tools that can be used to micromanage an investor’s portfolio. There are two types of options – Put and Call. A put option is the right to sell a stock at a specific price before a certain date. A call option gives the investor the right to buy on the stock at a strike price.

The Need for A Novel Solution in Infrastructure Finance (Part 2)

Benefits of public private partnerships (PPPs) over traditional procurement process arise from (potential) efficiency gains associated with the private sector managing the construction and operation of the infrastructure asset. The main issue concerning the PPP model relates to its inflexibility. This lack of flexibility is necessary in order to mitigate the time-inconsistency problem, but can be a constraint, especially when projects involve very uncertain prospects over the long term.

Ponzi Schemes: How Not To Fall Prey

There is nothing worse than losing all your hard earned money in search of some ‘investment opportunity’ that you are not entirely sure about. Ponzi schemes are a huge fraud built around the idea that you could get something for nothing. In this blog we are going to talk about recognizing such schemes that are too good to be true and seeing them for what they actually are.