Market Medley

  1. Challenges and Opportunities for India: Trump's electoral victory introduces a mixed bag of challenges and opportunities for India. Potential policies such as increased tariffs, restrictions on H-1B visas, and a stronger U.S. dollar could result in short-term market volatility. However, these challenges may also drive India to explore diversified trade partnerships and innovate domestically.

 The Reserve Bank of India (RBI) has introduced an operational framework under the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 (NDI Rules), effective November 11, 2024. This framework provides guidelines for reclassifying Foreign Portfolio Investments (FPIs) as Foreign Direct Investments (FDIs) when FPIs exceed the prescribed 10% investment threshold in listed or to-be-listed companies.

 As people age, planning for the future becomes increasingly important. Two critical documents that safeguard a senior's financial and healthcare wishes are wills and powers of attorney (POA) . These tools ensure that their preferences are respected and provide peace of mind for both seniors and their families. Here's why these documents are vital and how they can help.

 Global Macro The International Monetary Fund (IMF) has held its 2024 and 2025 global growth forecasts at 3.2%, yet regional differences persist. Growth projections for the United States have improved, while expectations for China and Europe continue to trend downwards. The moderation in labor demand, evidenced by a deceleration in wage growth and reduced job vacancies, particularly in the U.S., signals that economic pressures are mounting. Globally, monetary tightening has largely been the norm, though fiscal policies in the U.S., U.K., France, Germany, and Japan are leaning toward expansion to address local challenges

October 2024 CPI Inflation Trends Higher India’s Consumer Price Index (CPI) inflation for October 2024 continued its upward trend, registering a 6.21% increase, exceeding market estimates of 5.9%. This rise was primarily driven by escalating food prices, with food inflation hitting 9.7%. Among major contributors, vegetable prices surged by 42% year-over-year (YoY), while fruit inflation stood at 8.4% and edible oils increased by 9.5%. Core inflation also moved higher, reaching a 10-month peak at 3.7%, compared to 3.5% in the previous month. This core increase was notably influenced by a sharp rise in personal care and effects, which rose to a 46-month high of 11.0%. Excluding food and beverages, CPI rose to 3.0% from September’s 2.3%, indicating that inflation pressures are broad-based and persistent.

 As most market leaders have released their financial results, we provide a sectoral analysis to assess whether there are definitive signs of an economic slowdown.

 Donald Trump’s victory in the 2024 U.S. Presidential Election has sparked curiosity and debate over how his anticipated policies could impact the U.S. economy and global markets. Scheduled to take office on January 20, 2025, Trump is expected to focus on his "America First" policy, influencing sectors like trade, taxation, immigration, and fiscal management.

Key Highlights Impact of Monetary and Fiscal Stimulus : The post-COVID global monetary stimulus, aimed at stabilizing economies, led to low-interest rates, high asset valuations, and strong equity returns. However, this stimulus is reversing, and markets face potential slowdowns as high-interest rates impact growth prospects globally. The report warns of a "gravy train" that could be derailed by unexpected economic or credit events.

  Introduction November 2024 has been a pivotal month in global financial markets, with significant developments shaping investment strategies and economic forecasts. From fluctuating U.S. yields influenced by robust macroeconomic indicators to sectoral shifts in the Indian equity markets, investors face both opportunities and risks. Here’s an in-depth look at key global and Indian financial trends based on the latest insights from Sundaram Asset Management.

In recent times, U.S. government bond yields have been climbing, reflecting the complex economic dynamics in the United States. But why does this matter to India, and how does it impact the Indian economy and markets? To understand this, let’s break down the role of government bonds, the concept of budget deficits, and how changes in U.S. bond yields can ripple across to India.