Skip to main content


Eleven reasons to be optimistic in 2014

Eleven Reasons To Be Optimistic In 201402 January 2014 Rejoice! Things are looking up this year!/Google ImagesALTHOUGH the news often focuses on doom and gloom, there is plenty of good news around the world: we are making tremendous advances in life expectancy, disease prevention, poverty, and hunger. As we head into 2014, here are 11 reasons to be optimistic. 1. People are Living Longer Happy seniors/ThinkstockThe good news: Every single country in the world has lower mortality rates overall than it had in 1950. Although there is still much work to be done, a lot of the progress has been due to caring for babies and young children: infant mortality is down in every developing country compared to 2009. (Go look at the little trend lines showing progress in each country.) There are 7,256 fewer infant deaths every day around the world compared to the year 2000. That is huge. This progress is largely thanks to preventing diseases like measles. The World Health Organization (WHO) estimates …
Recent posts

Open market operations

OMO is the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system. Purchases inject money into the banking system and stimulate growth while sales of securities do the opposite.
In India, the Reserve Bank of India considers Open Market Operation, as its principal tool to manage liquidity. But it uses the tool sparingly since it has inflationary implications. OMOs have been actively used by central banks across the globe since the 2008 credit crisis, which forced governments to pump in huge amounts of liquidity in the markets. In the US, OMO has acquired a new label under 'quantitative easing'.
An OMO serves two primary goals—it infuses liquidity in the banking system without requiring the central bank to change its monetary policy and it checks yields on government bonds. OMO becomes even more important in a country like India where the central bank is also the manager of government debt.


Gautam Adani: Meet the man who built Rs 47,000 crore infrastructure empire (ET- 5 Sep, 2013)

In just 15 years, Gautam Adani has built a Rs 47,000 crore infrastructure empire out of Gujarat, a period that coincides with Narendra Modi's stewardship of the state. Inevitably, parallels are being drawn with the late Dhirubhai Ambani.

It was Narendra Modi's moment of reckoning, and Gautam Adani made it count. In September 2003, about a year after Gujarat was ravaged by communal riots under Modi's watch, the chief minister was seeking approval from the business community. Thus was born the 'Vibrant Gujarat Summit', the investment jamboree that Modi has made a biennial political statement since.

Back then, though, it was a tentative idea, rising from the ashes of a polarised state and a leader seeking validation. Some leaders of the Confederation of Indian Industry (CII), the country's main industry grouping, had criticised Modi for the riots and told him that it would be hard for the state to pull in investments. "He needed to prove them wrong," sa…

Participatory Notes (P- NOTES)

Particpatory Notes (PNs), or P-notes as they are called in market parlance, are offshore derivative instruments issued by foreign broking houses to overseas investors who wish to invest in the Indian stock markets without registering themselves with the market regulator, SEBI. PNs are popular among foreign investors since they allow these investors to earn returns on investment in the Indian market without undergoing the significant cost and time implications of directly investing in India. These instruments are traded overseas outside the direct purview of SEBI surveillance thereby raising many apprehension about the beneficial ownership and the nature of fund invested in these instruments. Concern have been raised that some of teh money coming into the market via PNs could be the unaccounted wealth camouflaged under teh guise of FII investments. SEBI has been taking measures to ensure that PNs are not used as conduits for black money or terrorist funding.

Predatory Pricing

In business and economics, predatory pricing is the practice of selling a product or service at a very low price, intending to drive competitors out of the market, or create barriers to entry for potential new competitors. If competitors or potential competitors cannot sustain equal or lower prices without losing money, they go out of business or choose not to enter the business. The predatory merchant then has fewer competitors or is even a de facto monopoly.

In many countries predatory pricing is considered anti-competitive and is illegal under competition laws. It is usually difficult to prove that prices dropped because of deliberate predatory pricing rather than legitimate price competition. In any case, competitors may be driven out of the market before the case is ever heard.
In essence, the predator undergoes short-term pain for long-term gain. Therefore, for the predator to succeed, it must have sufficient strength (financial reserves, guaranteed backing or other sources of o…