IIM Bangalore Investment Fund

Insight: One effect of a cheaper currency is that a country’s exports appear cheaper – and therefore more attractive – to foreign buyers. That may boost demand for that country’s products and help economic growth. But as with ride-hailing services, several countries effectively cutting their prices at the same time can cause a price war. The US, eurozone, China – and potentially the UK – would all benefit from cheaper currencies boosting international demand for their products, but that benefit could be limited if other currencies got cheaper too...

Q: What lies beneath rates? Currencies.

Insight: Lower interest rates typically bring down the value of a country’s currency: lower returns from low-risk investments can prompt investors to pull their money out of a country and seek better rates elsewhere. And if lower interest rates are accompanying a weakening economy, investors may want to move money into areas where better growth should mean higher returns from their investments. When peripatetic investors sell one currency to buy another, it can push down the value of the one being sold.

The correction was indeed expected.

http://economictimes.indiatimes.com/markets/stocks/news/economic-survey-stock-market-valuations-outpacing-average/articleshow/60028144.cms

Economic Survey: Stock market valuations outpacing average The Sensex gained 16.9% and the Nifty rose 18.6% in the financial year ending March 31, as against losses in 2015-16.

https://lm.facebook.com/l.php?u=https%3A%2F%2Fqz.com%2F1047500%2Fhalf-way-into-2017-private-equity-investments-are-already-at-a-record-high-in-india%2F&h=ATMeZAsP1HAUzEGflH6oR1qWS5hsh9OE1qJigOdWhkfX4sVhP_foiFqegz9GAcOCQwvAFlDugHpkZZyCyEFtE-88Ffn5D7TIuxc8d53dlcOYMn1vwgAIuf9IlHiS-z-7H9Jh1Wx0EA&s=1

It’s raining private equity investments in India Big deals in the April-June quarter turned around a sluggish ecosystem.

RBI slashed repo rate by 25 bps!!

RBI obliges with a small cut but can’t hide a residual hawkishness Markets may be staring at a scenario of no further rate cuts in the remaining part of calendar 2017 unless GST adjustment pangs turn out to be worse than apprehended.