Finance Articles

Finance articles section focuses on various concepts of finance like budget, stock market and economics of various products & services. Apart from these articles on global financial institutions, different banking systems and topics of international importance in the field of finance are present.



Decreasing Crude Oil Prices- Does it really Benefit India? April 02, 2015

With the oil crashing to the new lows, not considering the negative impacts on India might just delay the bursting of the bubble of hope


On 12th Jan 2015, RBI Deputy Governor Urjit Patil while addressing an event said that the dramatic fall in oil prices is a boon for the Indian economy. The drop in the prices of crude oil by almost 60% since June will act in favour for the country by improving the macro-economic factors. India, the world’s fourth largest consumer of oil gets around 70% of its energy needs met by the imports from the oil exporting countries which on the other hand because of the free fall of the prices are spending sleepless nights. In simple economics terms the fall is the result of a mismatch of supply and demand of oil throughout the globe. On the supply side, United States, which was the biggest oil importer has doubled oil production creating a big gap between the supply and consumption of oil.

 

The Oil And The Economy - Impact on India March 31, 2015

In a year filled with geopolitical and economic instability crude oil prices were by far the story of the year. Falling to record lows in the past year, crossing the $50 mark and breaking the traditional business cycle. With a constant production and stagnant demand the low price regime looks to be set for the near future. Thus, world economies are faced with different challenges and opportunities to act on the sliding prices. It remains to be seen how the Indian economy will react to the window of depressed crude oil prices.

 

GOI's 10 Year Trend & the RBI Rate Cut March 25, 2015

The recent trend in the 10-year GoI and a basic understanding of how it convinced the RBI to implement the long-awaited rate-cut


The rate cut by the RBI made the headlines and was touted by many as a “surprise”. What caused the RBI to act prior to the date expected by the market participants? This article tries to answer this and a few other related questions.

 

Analysing the Evolution of Cinema via an Economic Lens March 20, 2015

India has taken leaps and bounds in various sectors contributing to economy but has always seen a rapid growth in the field of entertainment, especially in the field of cinema. In a country where public craze is all about three names, cinema takes third place following gold and cricket. With Indian population constituting nearly 50% as youth and a steep increase in the disposable income levels there has been observed a high propensity to spend on leisure which includes majority spending on cinema and entertainment, over the past few years.

 

US Federal Rate Hike and its Implications on the USD-INR Exchange Rate March 18, 2015

Recently, an issue of the Economic Times (original source: Bloomberg), carried an article (source [1]) predicting the probabilities of the Fed hiking interest rate by 50, 75 and 100 basis points in certain months in 2015 (a basis point is equal to 0.01 %).

 

International Crude Oil Prices and its implications for Indian Economy March 14, 2015

The fall in crude oil price in the international market is because of both weak demand by China, Europe and Japan and excess supply by U.S. and OPEC (Organisation of Petroleum Exporting Countries). For huge oil importing countries particularly India, this windfall gain will help to reduce Current Account deficit (CAD), to contain Fiscal budget deficit within 4.1% of GDP, to lower the cost of living and to revive dwindling sectors like airlines. However, in longer time frame, weakening global demand and reduction in excess cash abroad will reduce India’s exports and capital inflows in stock markets.

 

Greece Financial Crisis and Breakout Conundrum March 11, 2015

Eurozone and Greece seem to be in a particular tussle. The election of Alexis Tsipras as the new Prime Minister gives a new turn to the ongoing story. He seems to be in a mood to put an end to the tough austerity measures that Greece has had to face in the recent past. He also has plans to break free from the bailout programs. With cash-strapped Greece in a real dire position, what remains to be seen is whether Greece’s debt write-off will be accepted by its debtors or will Greece finally have to breakout from the Eurozone as is being predicted by the likes of Alan Greenspan (former Chairman of the US Federal Reserve). To understand what options Greece has, it is indeed worthwhile to understand what actually led to this conundrum.