POST THE RBI CREDIT POLICY REVIEW & ITS IMPACT
Credit policy is out the way Sentiments have gone negative & frequent utterances by RBI officials on giving priority to tackling inflation first and accordingly ensuring that liquidity does not come back into the system in a hurry has also not helped matters RBIs clear intention is to tackle inflation first & hence some more [...]
ON THE EVE OF THE CREDIT POLICY REVIEW-AN AGGRESSIVE CALL FOR INVESTMENT IN LONG END OF THE CURVE
Kindly refer to my blog note dated July 12’2010 “GREAT OPPORTUNITY AT LONG END OF THE CURVE”. I had given various reasons for my belief of investing at the long end and had suggested a staggered investment from then to run upto the Credit Policy Review on July 27’2010. As suggested in that note, 10 [...]
How Does One Read the Credit Policy Review
Whew, RBI Policy Review is behind us. Though there was an unpleasant surprise of 75 bps CRR hike (against market expectation of 50 bps) & there was knee jerk reaction in the equity markets (corrected by more than 300 points post the announcement before settling down & currently (2:20 PM) only 13 points down on [...]
SHIFT TO INCOME FUNDS ONLY ON FURTHER CORRECTIONS
TREAD CAUTIOUSLY & SHIFT TO INCOME FUNDS ONLY ON FURTHER CORRECTIONS: In the past couple of months we had given the following calls of Investments & Disinvestments from Income/G Sec Funds to Short Term Funds & vice versa: Call for switching from G Sec Funds/Income Funds to Short Term Funds when 10 year touched 5.22% [...]
INCOME FUNDS
Kindly refer to our letters dated August 28’2003 & September 01’2003 , wherein we had mentioned the following reasons for switching from G Sec MFs to Short Term Mutual Funds: Advance tax outflows in the second half of the month. Half year end profit booking by corporates & institutions. Building up of cash for likely [...]