We credit the Telecom reforms to Mr. Sam Pitroda erstwhile adviser to the Prime Minister of India Shri Rajiv Gandhi. During the UPA 1.0 headed by Dr Manmohan Singh, the Economist PM invited Infosys Co-founder Mr. Nandan Nilekani to Lead and Architect the Unique Identity Project – Aadhar. On the basis of UIDAI, Indian Financial ecosystem has witnessed massive disruptive transformations. The first wave of disruption in financial services was led by digital payment startups, followed by digital lending, wealth management, and Insurance technology startups. As we enter the second wave of disruption in FinTech 2.0, it is led by Neobanks ( Digital Only, over-the-top banks without actual RBI Banking License leveraging on the license of a Traditional Bank) that aim to redefine customer-centric consumer and (more…)
Category: Economy, Markets and Macro Views
Research on Indian Economy, Markets and Macro Indicators
Where is the Bottom for Market Sell Off ? Is it a Buying Opportunity ?
News that Indian army conducted strikes across the Line of Control (LOC) between India and Pakistan, is on wires. This has pushed USD-INR higher by ~0.6%, equities lower by about 2% from intraday highs. While cross-border firing isn’t rare, attacks across the LOC are. Diplomatic tensions between the two countries have already been high following the attack on an Indian army camp in Uri on 18th September in which 18 Indian soldiers lost their lives and the exchange of words between India and Pakistan in the UN General Assembly recently. In fact, India (more…)
Will GST become a Reality in India ? Implications
The Goods and Services Tax (GST) aims to simplify and unify India’s current indirect tax regime (by removing the complexity of multiple state/central taxes and a multitude of exemptions, and ensuring a seamless flow of input tax credit in the value chain), thus we believe that its implementation will be a game-changer for India. Apart from simplifying the indirect tax structure, the GST should help to create “One” India by eliminating geographical fragmentation. While the government has been trying to implement a GST for the past five-six years, it has never been so close. The constitutional (more…)
What are Various FIIs Views of Indian Equity in 2015-16 ?
There is no doubt that India is in a Structural Multi Year Bull Run. One should not be too much worried about Bull Market Corrections as we have seen it happen 22 times at 10% in the last 10 years. In this backdrop, we’d like to summarize the views of various Foreign Investors who now own 25% of Indian Equity Market while Indians poured all their money in non-productive assets such as Gold & Real Estate.
BOFA Merrill remain positive on the Indian markets over next 6 to 9 months and expect an up-turn in consumption over the next 6 months on (more…)
RBI Begins to Cut Interest Rate, How Much More ?
In an out of monetary policy review decision, the RBI today lowered the key benchmark repo rate by 25bps to 7.75% with immediate effect. Consequently, the reverse repo rate and marginal standing facility rate are also lowered by 25bps to 6.75% and 8.75% respectively. The cash reserve ratio (CRR) stands unchanged at 4%.
In the statement issued (more…)
Niti Aayog – India’s Planning Commission 2.0
The government of India has revealed the structure of a new think-tank called NITI (National Institution for Transforming India) Aayog (Niti Aayog means Policy Commission in Hindi), which will replace the now dismantled Planning Commission (PC). The key objectives of the new body are as follows,
- Unlike the PC, which focused on five-year plans, NITI Aayog will undertake more ad hoc and long-term policy advisory for the central and state governments.
- The body will foster (more…)