India- The 4th largest economy of the world, which has $1.94 Trillion of Gross Domestic Product according to data released by IMF in 2012, has always been agriculture based country where the crops have a large dependability on Monsoon. The prices of agriculture commodities have largely been a function of demand, supply, inflation rate etc. along with the rainfall which is basically a product of monsoon period. Small variation in the availability of water due to this monsoon can significantly…    Read More >>

Financial administration Financial Administration consists of two words Finance and administration. The word finance means monetary resource and administration means to organize and manage human efforts for greater objective. Thus, Financial Administration refers to making money available to multitude branches of an organization, entity, office etc. Thus, activity like Transport-roadways, railways, airways etc; PSU- SAIL, BHEL, NTPC, ONGC, IOCL etc.; Health Centers, Panchayats, Municipalities, Administration etc. Day-to-day activity of these organizations depends on availability of funds, Hence, We say financial…    Read More >>

The word black associated with economy is cajoling me to define what does black signifies and its relevance to economy. Speaking scientifically, black is an absence of colour. It absorbs and conceals all aspect of life. During bad times it contains forewarning of impending unknown. Hence it has come to mean deadly, sinful, ugly, hidden, unknown, unseen, and mysterious at all. So, when black gets associated with economy. It begin to signifies huge impending danger to nation’s economy and well…    Read More >>

The equity market has rallied partly on domestic hope of policy action and additional liquidity from Fed/ECB. With the Q1 earnings growth quite soft the rally has been largely a PE expansion rally and may not sustain itself in the immediate future. While the next 5% move could be on the downside I find infrastructure sector and public sector banks valued at significant discount relative to the market. These segment may not grow significantly in the near term however they…    Read More >>

An investment is a sacrifice of current money or other resources for future benefits. The sacrifice takes place now and is certain. The benefit is expected in the future and tends to be uncertain. The investment process consists of two tasks. The first task is security analysis which focuses on assessing the risk and return characteristics of the available stocks. The second task is portfolio selection which involves choosing the best possible portfolio from the set of feasible portfolios or…    Read More >>

On August 10th 2011, the third trading day after the S&P downgrade of the US credit rating, the treasury yields sank to record lows. The 2 year yield hit 16 bps, the lowest ever, 3 year quoted at 31 bps, 5 year yields traded at 92 bps and the 10 year yields dropped to 213 bps, finally breaking below 200 bps 2 weeks later. The treasuries rallied and the stocks crashed after the U.S rating downgrade. The markets experienced crazy…    Read More >>

UBS’s trading woes came true at the worst possible time. As if the global financial turmoil 2.0 was not enough, UBS gave markets a hint that it will be reporting a unprofitable third quarter after a $2 billion loss from unauthorized trading. The man behind the scenes is 31 year old Kweku Adoboli, Director ETF and Delta1 Trading at UBS Investment Bank. UBS shares tanked 10%+ and the scandal wiped £4 billion off the value of shares in UBS affecting…    Read More >>

With the double dip recession in sight and the worst of the first decade of the 21st Century, we have seen the resilience and robustness of the Indian Financial System. We have also seen a spree of activities at an unprecedented pace in India. Policy makers are thinking of reforms day and night and many of these are getting implemented to change the face of India. Though India has gracefully steered clear of the global slowdown, the task ahead is…    Read More >>

In India, trading in the stock markets is often treated as the gambling. To say the truth it is to some extent, just with a certain risk-reward ratio attached to it which is up to the trader to decide. I have often been asked about the one “holy grail trading strategy” which will always get you the winning trades. There got to be one right with mathematics and algorithmic trading advancing so much. I hate to break the news and…    Read More >>

India has aggressive targets for GDP growth rate at 8 percent to 10 percent per annum and would require USD 1 trillion to fund infrastructure requirements during the Twelfth Five Year Plan period. In order to achieve this target, it requires a massive capital for which debt market can contribute significantly. Although the corporate debt market is an alternative source of funding, it is still at its nascent stage in India. The corporate debt market in India is merely 6.5%…    Read More >>