April #CPI rose a more than expected .3%, with the core spiking .6%. Stocks and bonds are selling off as investors realize the #Fed must fight harder to defeat #inflation. What they don't realize is that inflation has already won and the Fed will soon stop pretending to fight it.
Government may infuse Rs 5,000 crore additional capital in the three public sector general insurance companies. The capital infusion would improve the financial health of the insurance firms-National Insurance Company Limited, Oriental Insurance and United India Insurance.
If you haven't watched @Abhishekkar_ and Abid Hassan's latest session, please do. As insightful as it is, it is a valuable session with many takeaways.
"It(rate hike) came as a surprise because it came between two monetary policy reviews." says the FM.
I wonder if the markets could have been prepared better for the rate hike.
@PRSundar64 what's your take?
In India if 10 year G-Sec yields go to 8% then the Bond PE will tumble down to 12.5x (from peak of 17.9x).
Historically, Equity/Nifty-50 has traded at 250-300 bps premium over Bond PE. Hence, if the Bond PE goes down to 12.5x then one cannot justify Nifty-50 trading at 19x.
Humans did not evolve, haven't gotten wiser; they carry the same mental biases, are as fooled by randomness & data as in ancient times. And, as we saw in 1944 & 2022, etc., just as savage.
What has evolved, gotten wiser is (some) institutions, legal mechanisms.
Protect these.
"Inflation is Transitory" to "Inflation may cross 10%". We have come a long way. Will we see more rate hikes by RBI and similar action across the world?
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