Investment Insights

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Leverage  Every company goes through a business cycle which is a reflection of the economy.       Business cycle can be characterized by different phases of economic cycle-expansion, recession recovery.       A company’s sale depends on demand and production of its products, which will have a direct impact on its profits. Rate […]

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Disinvestment  Disinvestment refers to sale of government assets or Public Sector Units (PSUs), partly or fully, by Government of India (GOI). Disinvestment policy was adopted by GOI in 1991. All matters relating to disinvestments of GOI shareholdings in Central Public Sector Enterprises (CPSEs) are handled by the Department of Disinvestment. Department of Disinvestment was set […]

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10 year Government Security  To fund its fiscal deficit, Government of India (GOI) issues securities-short and long term.   GOI funds around 90% of its fiscal deficit through dated securities. Among the different tenure dated securities issued, 10 year security represents where most of the borrowing takes place. India, following international standards, considers 10 year […]

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Gsec Issuance  Government of India issues short and long term securities mainly to fund its fiscal deficit. Long term securities are termed as dated securities which can be issued for tenure of 2 to 30 years. RBI auctions the securities on behalf of GOI and in consultation with GOI provides half yearly borrowing calendar. Mostly […]

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Cash Reserve Ratio  Banks1 need to maintain a certain percentage of their Net Demand and Time Liability (NDTL)2 as cash with the RBI which is known as cash reserve ratio (CRR). CRR for banks are prescribed and regulated by RBI. Banks are required to maintain CRR prescribed by the RBI on an average daily basis […]

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Banks are required to invest a certain percentage of their Net Demand and Time Liability (NDTL)1 in securities approved by the RBI. The percentage of investments to NDTL is known as statutory liquidity ratio (SLR).   Minimum SLR rate is prescribed and regulated by the RBI.   SLR is maintained daily on a fortnightly basis […]

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Credit Rating

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Credit Rating

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Equity Market

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Equity market, also known as stock market refers to a market where company shares are traded.   Equity market participants include individuals, mutual funds, FII etc.   Generally, shares are traded through a stock exchange.   Stock exchange is an organized market place where capital market products are traded   Its main purpose is to […]

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Fiscal Policy

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Government of India has many important roles to play for the overall economic development of the country.     To attain the above mentioned objectives, Government needs to generate revenue and incur expenditure in an efficient manner.   Government receipts and expenditure is broadly divided in two groups namely Revenue and Capital receipts and expenditure. […]

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Monetary Policy

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RBI commenced its operations in 1935 in accordance with the provision of RBI Act, 1934.     As banker to government, RBI performs merchant banking function and maintains account of central and state government.   RBI role as banker’s bank is to help maintain liquidity in the system and acts as lender of the last […]

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