Debt Market Update

Debt Market Update

Bond yields remained steady as investors were cautious amid lack of fresh economic triggers. Yields fell following an escalation in US treasury prices but the scenario reversed on caution ahead of the weekly auction of government debt ƒ

Benchmark 10 year G-sec yields remained absolutely flat during April 2016 at around 7.45% ƒ

Liquidity continued to be in deficit but improved in April. It is expected to ease further in coming months as the RBI moves to improve the deficit situation. RBI has committed to progressively reduce liquidity deficit in system from 1% of NDTL to 'a position closer to neutrality.' RBI announced various liquidity easing measures including OMOs. Start of the new financial year also helped bring back the year end deficit ƒ

Improving liquidity helped reduce yields on short-term papers across instruments viz. CDs, CPs and the short-term corporate bond market ƒ

The structural improvement in the form of benign inflation and prospects of normal monsoons continue to lead to a positive outlook in the medium-term ƒ

Headline CPI for April 2016 came in much higher-than-expected at 5.39% vs. 4.83% in the previous month as food inflation climbed to 6.32% from 5.19% in the previous month on account of ongoing heat waves and acute water shortages in various parts of the country. In its initial forecast for 2016 south-west monsoon, the Indian Meteorological Department (IMD) predicts high probability of an above-normal monsoon. This will provide a much needed breather to the economy that has witnessed two consecutive years of poor monsoon. However, the actual impact would also depend on the spatial and inter-temporal distribution of monsoons and the sowing pattern.



Outlook

Overall liquidity measures announced are extremely positive for funds at the short to medium term maturity papers. Therefore, bulk of the debt investment should be in good quality short-term debt funds. Ultra short-term debt fund and liquid funds are likely to benefit from the fall in short-term yields ƒ

The Indian Meteorological Department’s (IMD) announcement of expectation of normal monsoons in its first forecast for the season cheered the markets. The IMD has predicted that rains in 2016 would be between 104 and 110% of the long-term average. Better monsoon would improve the inflation prospects and, therefore, would be medium term positive for the debt markets ƒ

Although the outlook on G-Sec yields remains positive, the duration strategy should be played through actively managed income or dynamic bond funds. They will be able to make swift duration change within G-secs or switch between corporate bonds and G-secs within specific duration

Happy investing

Source;Icicidirect.com

Equity Market Update June 2016

Equity Market Update June 2016

After recovering sharply in March and April from the fall witnessed at the start of the year, Indian equity markets consolidated in May 2016 ƒ

Overall, equity markets seem to be trading in a broad range with value buying emerging at lower levels and some profit booking being witnessed at higher levels ƒ

Inflation rose to 5.39% in April from a six-month low of 4.83% in March. The uptick was largely driven by soaring food price index (6.3% in April vs. 5.2% in March) in the month mainly led by a substantial increase in vegetables, fruits and sugar prices. The surprisingly sharp increase in food prices can be attributed to high temperatures and water shortages in various parts of the country, which could keep certain food prices elevated for a short period while a good monsoon can offset these negative developments ƒ

Beaten down sectors like banking, real estate, consumer goods and capital goods outperformed since Budget in the market recovery. Oil & gas and PSU sectors underperformed on account of negative outlook.



Market Outlook

Currently, Indian markets are being dominated by global factors. Therefore, any development in global capital markets is likely to have an impact on the Indian equity market ƒ

Domestic macroeconomic variables like benign inflation, increased expectations of normal monsoons, implementation of the Seventh Pay Commission along with increased government ordering in sectors like road, railways and power are set to provide the much needed fillip to economic activity ƒ

Indian markets after been in a declining trend from March 2015 to February 2016, recovering some their gains post Budget. Markets seem to have formed a near term bottom in February 2016. Indian markets may consolidate in the near term but the overall downward trend, which started last year, seems to have reversed ƒ

The majority of the Q4FY16 results, so far, have been in line or better than expectations. Sectorally, most companies among auto, private banks & NBFC, cement, telecom and FMCG sectors declared good results. Earnings growth is likely to pick up further in coming quarters. Earnings growth for FY17 and FY18 should be significantly better than that in the last few years ƒ

If global markets remain supportive, Indian markets are likely to perform well as the domestic economic outlook is improving on normal monsoon, government policy action and improved liquidity from RBI. Seventh Pay Commission and OROP remain a trigger for a consumption boost for the economy ƒ

Global markets also seem to have stabilised after a rebound in commodity prices, particularly crude oil. The continued easing of the monetary policy stance by European Central Bank (ECB), Bank of Japan and China along with the dovish stance of the US Federal Reserve while indicating a further rate hike provided the much needed sentiment boost to global investors. Importantly, emerging markets witnessed a return of foreign inflows with most emerging markets outperforming in the last few months. Stability in commodity and currency markets also bode well for global equity markets ƒ

We believe investors should be bullish on equity markets and accumulate on dips for the next two to three years.

Happy Investing

Source;Icicidirect.com

Monthly Income Plans (MIP)

Monthly Income Plans (MIP) ƒ 

An MIP offers investors an option to invest in debt with some participation in equity, ~10-25% of the portfolio. They are suitable for investors who seek higher return from a debt portfolio and are comfortable taking nominal risk. The debt corpus of the portfolio provides regular income while the equity portion of the fund provides alpha. However, returns can also get eroded by a fall in equities ƒ MIPs can be classified into aggressive MIP and conservative MIP based on its equity allocation. Risk averse investors should invest in MIPs with lower equity allocation to avoid capital erosion ƒ The change in taxation announced in the Union Budget 2014, shall be applicable to MIP funds.

Preferred Picks ƒ

Birla Sun Life MIP II - Savings 5 Plan ƒ

ICICI Prudential MIP 25 ƒ

DSPBR MIP Fund

Happy investing

Source:Icicidirect.com

Storage special: 5 tricks that will make your kid’s room less messy

Storage special: 5 tricks that will make your kid’s room less messy

Storage special: 5 tricks that will make your kid’s room less messy

Kids will be kids. Cleaning up after them is a full time job in most cases. Putting restrictions on the way they play and nagging them into cleaning their rooms might get you a neat house but will suck the fun of your kids’ lives. Here are a few things you can do to keep your child’s room neat and tidy which are kid friendly.

Baskets

Baskets in varying shapes and sizes should be present in your child’s room. They are one of the most kid friendly storage options available in the market. This is because kids find it easier to store things in baskets rather than put things away on shelves. It will be difficult to get them to arrange their toys in an orderly manner on a shelf but give them a basket where they can toss away their toys and see the difference.

Labelling

Labelling is everything. Seriously just do it and watch your world become more orderly. Whether it is clothes, toys, books or stationary items categorize and label them. Give your child a specific place to store a specific object. They will know exactly where to store their belongings and best of all they will know where exactly to find them as well. Trust us, they will save you a lot of time and energy which would otherwise be wasted on useless treasure hunts.

Storage on wheels

If you think that you are short on storage space then look no further than under your kid’s bed. You can store your child’s belonging under his/her bed but ensure that it remains accessible. You can do this by storing these belongings in bins that have wheels or you can opt for ones which have handles. If you use this space cleverly you need never worry about cleaning under the bed again as this space can be filled to the hilt.

Pegboards

Pegboards are traditionally used to hang tools like hammers, drills, screwdrivers etc in a garage. But they are slowing making their way into homes as a pretty cool mode of storage. You can get one of these fixed in your kid’s room and hang anything from their favourite toys to their stationary supplies. You can also have it painted to match your child’s room so that it does not stick out.

The wall



When we grumble about not having enough space, we tend to forget about one of the most important components of the house – its walls. The walls can hold more than your family photos. In the case of your child, you can place hooks on it and make them hang their clothes or bags on them. This is a very traditional storage route to take. You can take your storage game to a different level and have crates attached to the wall which can hold books/toys etc. This additional storage space can give you a lot of flexibility to put away things and have a less messy room.

5 Ways To Find A Truly Loving Partner

5 Ways To Find A
Truly Loving Partner

You meet so many loves in your life.

Each time, you think: this is IT. After this one, I won’t need to look elsewhere. And you start dreaming of building a life together, growing up and growing old together.

But something happens, and you discover that the lover you have is not right for you.

And so you look again.

Wouldn’t it be great to have a list of qualities that would help you know whether the person you are with is the one you will always be with?

Well, here’s your list of 5 qualities that a truly loving partner will have:

1 A truly loving partner will never want you to be different than you are – So if your lover wants you to lose 5 pounds or get that cosmetic procedure because you’ll ‘look better,’ you might have a wonderful lover and be in a great relationship, but you haven’t found your truly loving partner yet.

2 A truly loving partner will not try to control or influence your other relationships – If you’re being asked why you spend so much time with your friends or your siblings, or anyone at all, keep looking, because your truly loving partner will always give you the space to enjoy and grow all your relationships.

3 A truly loving partner won’t question your choices – If you’ve found your truly loving partner, you’ll never be asked to defend your choice of clothes or hobbies or profession or vacation destination, or anything else.

4 A truly loving partner will communicate even negative emotions to you – Love is larger than emotions, and the strains and stresses of living together can throw up some negativity. A truly loving partner will not try to hide negative emotions like anger, hurt, disappointment, pain, worry and so on.

5 A truly loving partner’s goals for you will be the same as your goals for yourself – maybe more, but never less. Your truly loving partner will support you, uplift you, and encourage you to be at least as good as you think you can be. Because they know that you can be even better than you think.

Now that you know how to identify a truly loving partner, comes the million-dollar question of…

How to FIND your truly loving partner

This is actually the simplest part, because it involves regulating yourself.

The easiest way to FIND your truly loving partner is to BE ONE YOURSELF.

When you are truly loving, all the people who need to play the games of power, manipulation, emotional blackmail, and so on will slowly disappear from your life, because they will not be able to handle being with you–simply because you refuse to be drawn into their games.

This will free you from the clutter of ‘wrong’ people surrounding you, and you will be able to attract and meet your truly loving partner, whose wavelength matches yours, who is looking for the same things in a relationship as you are.

It may sound idealistic, or too good to be true, but thousands of people have found their right partner in this manner.

Why don’t you try it out?

At the very least, you’ll enjoy a deeper relationship with your lover.

And once you find your truly loving partner, there won’t be room for any doubt.

How To Show Anger Without Endangering Your Relationship With Your Lover

How To Show Anger Without Endangering Your Relationship With Your Lover

It’s glorious to be in love and be loved in return, isn’t it? Everything is rosy and wonderful.

Slowly, reality intrudes.

Maybe your lover has an annoying habit or mannerism.

Or their spending habits are exactly the opposite of yours.

Or they made a thoughtless comment about you…

You’re afraid to let your lover know you’re angry, because you think it will threaten the love–maybe drive them away. So you stay silent.

But the pressure of all the unsaid grudges and resentments will build up till one fine day, for “no reason” at all, when the proverbial last straw has been reached, you have a colossal melt-down.

Your partner will wonder “what’s wrong,” which will make you even more furious.

You end up saying irretrievable things–stuff you mean at that moment–but not when you’ve had a moment to cool down.

Unfortunately, once you’ve said them, you can’t unsay them, and they vibrate forever, to be brought up between you and your beloved at every argument you have.

The same goes for your partner.

Eventually, you accuse each other of all kinds of things, and the relationship goes downhill.

What a waste!

But true love always offers the space to share anger.

Goddess Sati’s father Daksha was having a ritual sacrifice and feast, and had invited all the gods and sages from the three worlds. As they passed Mount Kailash, Sati and her husband Shiva’s abode, Sati wondered where they were headed.

On hearing that they were visiting her parental home for a feast to which she and her husband hadn’t even been invited (a great dishonor to them), she was furious at her father.

She confronted Shiva, accusing her father of unworthy paternal conduct in not issuing them an invitation. After a while, she announced that she would go to the feast nevertheless.

Shiva feared that she might feel insulted on his behalf or her own, and to protect her from being torn between her love for the father and himself, he forbade her to go.

Sati got into a towering rage, and declared that nothing and no one would prevent her visiting her father’s house when she chose to do so. Without taking her leave of Shiva, she left, with only a small group to see her off.

Little did she know that it was the last time she would see him. At her father’s home, she felt Daksha’s insult to Shiva so deeply that she chose to give up her life rather than continuing to live as the daughter of the man who so dishonored her husband.

True love always offers the space to share anger.

Despite being in the middle of a quarrel, neither Shiva nor Sati fell into the trap of thinking that she didn’t love him any longer.

She was angry – first at her father’s behavior, and then at Shiva’s.

That’s all.

The secret to showing your anger?

Be angry at the behavior, not at the person.

As you practice showing your anger–calmly, focusing on the objectionable behavior–you will be surprised to find that rather than risking your relationship with your lover, you are actually strengthening it.

To stronger and deeper love!

How To Live Your Dream Life

How To Live Your Dream Life

The most important part of living your dream life is to articulate it.

It needs to be YOUR dream life, built around the people, things and values that are important to you.

It needs to be sustainable. You may think you’d love to go out with a new person every day, but after a few months, you will tire of it and yearn for a deeper, more meaningful relationship.

The elemental energy of the Goddess Parvati is achievements and a higher sense of self.

Parvati epitomizes 10 qualities you need to emulate to harness the elemental energies that will bring you the achievements that will let you enjoy your dream life.

1. Family-oriented – Your dream life maybe about having unlimited money, sailing on your yacht, sipping pina coladas at the various ports you land at. But no dream can give you joy unless you factor in family and relationships. Create your dream consciously, keeping in mind what your dream life will look like with your relationships.

2. Nurturing – You will only enjoy your dream if it involves nurture. Humans are hard-wired to CARE. You may care about a person, or about a value. But your dream must revolve around who or what you will nurture. How will you make a difference?

3. Powerful – You are more powerful than you know. If you put all your will, might, skill and talent behind a single endeavour, you can move mountains. It won’t happen in a day, but then, almost nothing worth having happens in a day. Do not underestimate the power of effort. Give your dream life your ALL.

4. Discipline – No matter how much talent you have, you need discipline to make it big. Discipline to show up when the going is tough. Success comes to those who ignore how they feel, and show up – again and again.

5. Control – Of course you’ll do what you’re passionate about! But you need control to ensure that the passion doesn’t overwhelm all areas of your life. Building your business is fantastic, but if you ignore your health, you might end up too sick to even think about your business. You need to exercise control over your passions.

6. Detachment – You’ve figured out what you want, and you’re going after it. But sometimes, you can be your own worst enemy when it comes to achievement. Often, desperation drives away the result you’re working toward. Try to be detached from the outcome, so that if the success you expect comes late, you are not so disheartened that you sabotage your success by failing to put in the work.

7. Serenity – An inner serenity keeps you on an even keel, so that you persevere to achieve your dream. This is true before you experience success, but even more so afterword. Success should not turn your head so much that your ego starts adversely affecting your relationships.

8. Balance – Dreams are the stuff of the heart, but achieving them is about using your head and being practical. You need to balance the qualities of head and heart to start living your dream life.

9. Asceticism – No, this doesn’t mean you have to give up anything. It’s just a way of recognizing that there’s no end to “wanting.” So a part of your dream has to factor in the point at which you stop wanting more. Owning a Cadillac is good enough. Why make yourself miserable because you don’t have Elvis’ pink Cadillac?

10. Grounded – Especially after achieving success and living your dream life, you need to stay grounded. You need to recognize the important things that make up your dream life, and the relatively unimportant ones. This way, you can always make the right decision in future, so that you don’t endanger your dream life.

Don’t be disheartened if you think you do not possess all these qualities. Success comes to those who work on being a little bit better today than they were yesterday.

You know you can do that. So go on and do it.

YOUR DREAM LIFE is waiting for you to claim it.

INFLATION

Time to renew interest in Suzlon

Time to renew interest in Suzlon

At the start of FY16 Suzlon promised to close the financial year with profits While Suzlon did live up to its promise by posting a net profit of 482 crore in FY16 after three years of losses.

Though the Street isn t happy as it was helped by the reversal of goodwill impairment of 1039 crore But the results point to a turnaround.

First Suzlon turned profitable before accounting for taxes and extraordinary items in the March quarter Q4. This is after 12 quarters of operating losses. Kirti Vagadia financial chief says it could get better.

The wind market is expected to grow at 30 per cent in FY17 Our order flows and order book 7 989 crore or 1243 megawatts of projects indicates well continue to outpace the sector.

Second the criticism that Suzlon’s business is dependent on tax breaks is a thing of the past. Eighty- nine per cent of the order book is from independent power producers nine per cent from public- sector companies and two per cent is guided by accelerated depreciation policy of the Income- tax Act.

New products such as S97120 and S111- 90 which offer higher plant load factor PLF are gaining prominence in order book 69 per cent of total orders and they reiterate Suzlon s technological capabilities. In fact the prototype of S111- 120 its latest offering boasts of 40 per cent PLF and has been installed in FY16. According to Pawan Parakh analyst at HDFC Securities if Suzlon delivers the PLF that it promises with S111- 120 it would offset the impact of lower preferential tariff in wind power. About 10 states where Suzlon operates in mandate certain percentage of power demand to be met from wind energy. Of late the differential between thermal and wind power rates are narrowing. So a higher PLF could boost the viability of wind energy projects.



Last although most of the 14 per cent reduction in Suzlon’s debt to 9226 crore in FY16 compared to FY15 is due to conversion of fully convertible currency bonds. Interest costs are down 42 per cent year- on- year. If Suzlon is able to cut its debt further especially using operational cash flows it will boost sentiments. That might not be far given that HSBC analysts estimate a strong 40 per cent compounded annual growth in Suzlon’s earnings before interest taxes depreciation and amortisation over next two years and a 32 per cent fall in interest cost in FY17. While Suzlon’s valuations are far from comfortable after results two of two analysts polled on Bloomberg recommend buy Parakh feels since there are no earnings threat hereon Suzlon looks attractive given the government s focus on renewables.

Happy investing

Source:Moneycontrol.com