Recap 2013: How equities, commodities, currencies performed

Riken Mehta Follow me on Twitter @mehtariken  After nearly a six-year wait, Indian equity benchmarks, the BSE 30-share Sensex and the NSE 50-share Nifty broke their record highs this year.  But that’s not it; 2013 saw a number of fresh multi-year record lows/highs both on the macro and investment front. Despite FIIs investing USD 20 billion in 2013, the index returns for FIIs in dollar terms … Continue reading Recap 2013: How equities, commodities, currencies performed

How major stock markets react to news of Fed’s taper talk

Riken Mehta  moneycontrol.com  Follow me on Twitter @mehtariken    The US Federal Reserve has been the biggest spoilsport for bulls this calendar, repeatedly catching them off-guard with its comments on reducing the size of its monthly USD 85 billion bond purchases, also known as quantitative easing (QE). In theory, the bond purchases were meant to revive growth in the US economy by encouraging consumption and investment … Continue reading How major stock markets react to news of Fed’s taper talk

Weak rupee spells trouble for FCCB issuers; check them out

A falling rupee is bad news for companies that had raised capital through foreign currency convertible bonds, if the stock price is quoting at a steep discount to the conversion price. What this means is that the bond holders will ask for their money back, along with interest, instead of converting the loans into equities. It is a double whammy for the FCCB issuing companies … Continue reading Weak rupee spells trouble for FCCB issuers; check them out

Will rupee slide speed up FII selling of Indian shares?

Santosh Nair, Riken Mehta Moneycontrol.com Finance minister P Chidambaram Thursday tried to pacify jittery markets, saying foreign capital flows were strong enough to bridge the current account deficit. But will the flows sustain going forward? Theoretically, a weak rupee provokes foreign funds into selling Indian equities, as it would lower their portfolio value, if the stocks have not been performing. Assume a foreign fund buys … Continue reading Will rupee slide speed up FII selling of Indian shares?

FCCB: A saga of Fancy Companies Crazy Borrowing

The year 2010 saw the Indian currency get its very own symbol and in 2011, the rupee was the symbol of the countries ailing condition. The Indian rupee holds the dubious distinction of being Asia’s worst performing currency, depreciating close to 20% in last five months. Reactive rather than pro-active RBI policies have left people in dilemma with ample rate hikes and little intervention in … Continue reading FCCB: A saga of Fancy Companies Crazy Borrowing