Monetary policies reversing The recent convulsions in the equity market have resulted from global central banks altering their monetary policy stance. The Federal Reserve, the United States’ central bank, in its latest meeting, announced a faster tapering programme: It will scale back bond-buying at double its earlier pace (by $30 billion each month). The bond-buying programme will now end in March instead of mid-year. It appears that Fed officials expect three rate hikes of 25 basis points each in 2022.
The Bank of England recently became the first major central bank to hike its benchmark interest rate from 0.1 to 0.25 per cent.
Persistently high inflation across the globe has forced the hand of leading central banks and led them to alter the easy monetary stance they had adopted to promote economic growth and employment in the wake of the Covid-19 crisis.
A tighter monetary policy could lead to higher bond yields in the US and other developed nations. This could in turn lead to foreign institutional investors (FIIs) withdrawing money from developed markets. They have already pulled out Rs. 31,812 crore since the start of October (till December 17). India has witnessed strong outflows as its market is more expensive compared to most emerging market peers.
This story is from the January 2022 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the January 2022 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Learn the Magic of Self-Talk There is perpetual self-talk taking place inside all of us
We listen when our self-talk happens in our minds; we listen to whatever is imprinted in our memories and our past conditioning. Many a time we do not hear exactly what the other person is saying, and we form an opinion.
Bajaj Capital Redefines Prosperity: Unveiling the Next Era with the Grand Launch of Global Private Wealth
At the remarkable launch of Bajaj Capital's Global Private Wealth Channel in Goa, our team experienced Chairman Mr. Rajiv Bajaj sharing profound insights on the future and vision. He emphasized the transformative role the Private Wealth Team can play in clients' lives.
ELSS Mutual Funds: A Smart Choice for Long-Term Investing in India
The encouraging performance of the Indian economy, and the robust equity market returns for the year are among the top highlights for investors and observers of the Indian economy for 2023. This certainly makes investing in the Indian markets an attractive proposition for many people who are curious about investing and want to start their investment journey.
Strategic asset allocation will remain key to navigating market movements
India appears to be enjoying a Goldilocks moment with reasonable growth momentum, stable commodity prices especially crude oil, slowing inflation, and a weakening dollar bias.
Decoding the Essentials for Your Insurance Basket
Discover the keys to unlocking a robust and comprehensive insurance portfolio as we embark on an insightful journey into the realm of insurance essentials. In this discussion, we bring together the expertise of Mr. Sanjiv Bajaj, Jt. Chairman & MD of Bajaj Capital, and Mr. Vighnesh Shahane, CEO and Managing Director at Ageas Federal Life Insurance. These industry veterans decode the crucial elements that form the bedrock of your insurance basket, providing you with invaluable guidance for protecting your assets, health, and future.
INDIA MARKET OUTLOOK-2024
The investment landscape in the year ahead appears both promising and challenging, marked by a complex interplay of factors. India’s macroeconomic fundamentals, despite the inherent uncertainties of an election year, paint a positive picture.
An Hour Spent In Yoga Is Rewarded With 2 Hours Of Extra Life Span
There is no doubt that a robust and healthy body is more resistant to stress, both physical and emotional, than a weak and exhausted body.
How to deal with the bull run in equities
The Indian stock market has witnessed impressive gains this year with the Sensex crossing the 71,000 mark.
Unlock Tax Savings and Long-Term Growth Potential with ELSS Mutual Funds
In the dynamic and ever-evolving world of finance, Indian investors are constantly seeking investment avenues that offer a winning combination of tax benefits and long-term wealth creation potential.
Nifty 50 Equal Weight Index funds: How are they different from Nifty 50 and should you invest in them?
In a game of chess, every piece, from pawn to queen, has unique abilities and can move in a specific way.