Traditional Hindu scriptures imagine the existence as a series of repeating cycles. Modern science and economics also find evidence of cyclicality in many phenomena. In analysing the problem of investing in Indian equities, we examine two major cycles.
Markets were back on a selling spree after central banks across the globe hinted at reducing stimulus. U.S. markets were gripped by fears that upbeat wage growth in the United States may prompt the Federal Reserve to hike rates more aggressively in 2018. The Bank of England also warned of a sooner-than-expected rate hike.
India has put in place a national ID known as Aadhaar. The absence of an ID was used by bureaucracy to deny citizens access to what was rightfully theirs. The unique ID was also pushed as a measure to reduce corruption and waste in the country's welfare programmes, where 40 percent or more of payments enriched corrupt officials and contractors.
After rallying for eight consecutive weeks, India’s stock markets finally took a breather following the announcement of the Union Budget, with investors getting spooked by Finance Minister Arun Jaitley’s proposal to introduce long-term capital gains tax. The government tried to maintain a balancing act between growth and populism but tilted towards the latter.
The Nifty and Sensex scaled significant landmarks of 11,000 and 36,000 levels respectively during the week as unabated fund inflows continued amid robust corporate earnings and optimism over the upcoming Union Budget on February 1.
Markets continued their relentless march upward with the Nifty hitting the 10,900 mark and the Sensex surpassing 35,500 levels. Sentiment was aided by the government's decision to cut its additional borrowing requirement and a cut in GST rates of 29 goods and 54 services.
Markets hit a fresh record high again on hopes of better earnings performance as TCS and Infosys results met expectations. Optimism related to the upcoming annual budget also aided sentiment.
The new year began on a flattish note with the Nifty gaining a marginal 0.2 percent for the week. The broader markets outperformed, with the mid-cap and the small-cap indexes gaining 1.4 percent and 2.5 percent respectively.
India’s key indices posted their best annual gains in three years, with the Nifty up 29 percent to close 2017 at 10,531. The Nifty mid-cap outperformed with 47 percent gains, mostly driven by government reforms, the relentless flow of liquidity, positive outcome of the Gujarat election and optimism of growth going ahead.
Markets hit new record highs on domestic buying after the ruling BJP retained power in Gujarat and also won in Himachal Pradesh, while optimism over the U.S. tax reform bill added further momentum.
The best thing about “Padman” is the person the film is based on.