FINANCIAL MARKET INDIA

The present US Financial crisis was bound to happen. Only time will tell whether we have learnt something from it or not. Today, US president Obama blasted CEO’s who are still trying to get bonuses in this crisis time. I think (may be wrong) that the present system of bonuses for making short term profits is one of the major reason for so much greed in the executives across the globe. What we have observed that people get bonuses for their annual performance and then move on. The company is normally not able to assess the long term impact of the short term performance of its employees. It is high time that HR professionals look into the whole compensation process with a holistic attitude that can be beneficial for the organization in the long term. CEO’s and executives of large companies took their bonuses (some by cheating……Madoff.) and they are the people who are responsible for the current crisis. In the War situation also many people lose their job, companies shut down, economies d...

Last 6 months in the market is so turbulent that I had to unlearn whatever i have learnt from ny experince as an investment management professional as well as a student in the B-School. All the theories about risk free securities, equity risk premium, efficient market hypothesis, risk management systems have not worked in these turbulent times. Even the regulators are totally confused. Only in the second quarter of 2008-09, inflation was considered to be serious threat to the economy and crude oil pricees were soaring high and expert analysts were talking about crude going to USD 200. In a bid to save the Indian economy, RBI decided to solve the problem through monetary tigtening as the textbooks on economy suggests. Banks were worried about their profit margin due to treasury losses. I as a trader in bond market was also making losses on my trading positions. But came September 2008, that will be remembered by all the people who are not even directly interested in Financial markets.In...

The global financial situation continues to be uncertain. Since the official recognition of recession in the US, the UK, the Euro area and Japan, the downside risks to the global economy have increased. Concomitantly, the policy initiatives in the advanced economies are geared towards managing the recession and defusing potentially deflationary trends. The US has reduced the Federal Funds Rate to 0 - 0.25 per cent. Several other advanced and emerging economies such as Japan, Canada, Republic of Korea, Hong Kong and China too have reduced their policy rates. 2. India’s financial sector has remained resilient even in the face of global financial turmoil that is so deep and pervasive. Our financial markets continue to function in an orderly manner. India’s growth trajectory has, however, been impacted both by the financial crisis and the follow-on global economic downturn. This impact has turned out to be deeper and wider than earlier anticipated. Concurrently, because of global devel...