MUTUAL FUNDS INDUSTRY RISING DESPITE SLUMP

Despite decline in overall assets managed by Indian Mutual Fund Industry, it is growing. The loss of investor confidence is only a temporary phenomenon for mutual fund industry and it expects to win over its lost investors gradually with the recovery of Indian economy and equity markets.

Due to this confidence only mutual fund industry is launching new schemes, despite the fact that the existing and well established schemes are finding it difficult to sell.

Till now in this financial year 5 equity schemes have been launched which is almost double of what was launched in last year in this […] Read more

RUPEE HITS LOWEST POINT IN LIFETIME

Today rupee hits its lifetime low of Rs.56.53 per dollar. Its previous record was Rs 56.52 per dollar on 31 May,2012.
Today global markets are weakened after the Fed extended its current bond buying programme by less than some investors had hoped.

The rupee remain vulnerable to any flare-ups of global risk aversion along with domestic challenges.

The RBI disappointed domestic markets by keeping interest rates on hold on Monday. Fitch Ratings cut the country’s outlook to negative on Monday only. Earlier S&P also decreased the India’s investment grade rating.

[…] Read more

REASONS OF FALLING VALUE OF RUPEE

Yesterday Indian rupee fell to 56 per dollar, a day after the central bank disappointed domestic markets by keeping monetary policy unchanged. India is witnessing a fall all round, from stock market to currency value. Only inflation is increasing.

The crude oil has shown some weakness recently but the depreciating rupee has squared off the benefit of price easing.
Following are the few reasons why value of Rupee is Depreciating:

1. INFLATION: Generally, a country with consistently lower inflation rate exhibits rising currency value, but India is facing consistently higher inflation rate so is the lower currency value. Through higher inflation […] Read more

REASONS FOR FALLING BANKING STOCKS

1. New loans would have become cheaper had the RBI cut rates. That would have translated into higher credit off take and resulting more business for banks. But as rates are not lowered by RBI so loans will remain costly which leads to fall in banking stocks.

2. Rate of growth of bank deposits fall compared to last year. This has prevented banks to cut deposit rates remaining them at elevated levels. As cost of funds remain high so banking stocks fall.

3. Liquidity crunch has prevented banks from passing the benefits of previous rate cuts to customers. According to […] Read more

NCTC

You must be hearing about NCTC in news now a days. In my post I would be discussing what NCTC is and why chief ministers are opposing that.
NCTC stands for National Counter Terrorism Center. It would be located in IB (intelligence Bureau).
The Concept of NCTC is based on the need for integrating all the inputs pertaining to terrorism and analyzing them to understand the plans of terrorists , their precautions and find out the identities of terrorists to enable the security forces to prevent terrorist attacks and to respond to terrorist attacks as stated by Home Minister of India. According […] Read more

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