Last week’s tax cut will result in a widening of India’s public deficit. The resulting increase in security issuance will put upward pressure on local bond yields. The central government’s overall fiscal…
The Indian government resorted to an unexpected large corporate income tax cut last week. The government reduced the effective corporate tax rate from 35% to around 25%. If domestic bond yields rise materially in response to…
Highlights We are upgrading Indian stocks from underweight to neutral within an EM equity portfolio. Nevertheless, the outlook for the absolute performance of Indian share prices remains downbeat. Odds are that local bond yields will…
Highlights We are upgrading Indian stocks from underweight to neutral within an EM equity portfolio. Nevertheless, the outlook for the absolute performance of Indian share prices remains downbeat. Odds are that local bond yields will…
Banks have been the star performers within the Indian bourse with non-financials generating underwhelming returns. This warrants particular attention to bank stocks’ fundamentals and valuations. Recent media reports have…
Analysis on India is available below. Highlights Moderate RMB depreciation is consistent with the economic as well as political objectives of Chinese authorities. Yet, this is bad news for EM currencies and risk assets. As EM…
Chart II-1Indian Stocks Failed To Break Major Resistance Levels Indian stocks have failed to break out above their highs, in both local currency and U.S. dollar terms, and have rolled over decisively (Chart II-1, top panel).…
While the media has zeroed in on the newly announced tariffs on Mexico late last week, tariffs on Indian imports and the narrowly avoided Australia trade war front barely made the news. This heightened policy uncertainty has…
Please note that analysis on India is published below. Highlights This report reviews several financial market-based indicators and price signals from various corners of global markets that are pertinent to the global business cycle,…
India: How Sustainable Is A 2.0 Modi Rally? Prime Minister Narendra Modi, and his party – the Bharatiya Janata Party – have won a strong majority in the Indian general election this month. Indian stocks surged in the past…