Gali Sarish

Over the past week, the Indian stock market and economy have shown mixed signals. Key updates include: 1. Stock Market Movements: The Sensex and Nifty witnessed fluctuations, with both indices hitting record highs before experiencing some declines. The Sensex reached an all-time peak of 81,587 while Nifty topped at 24,854 but later faced a drop resulting in an overall market cap loss. 2. Corporate Developments: Paytm's shares surged following government approval for a ₹50 crore investment in its payments arm, which positively impacted its stock performance. Other companies like Godrej Properties and Vedanta also made headlines with significant financial moves and dividends. 3. Sectoral Performance: Banking and PSU stocks were notable for their strong performance. The Bank Nifty index provided positive signals, suggesting potential further gains, while stocks in sectors like oil & gas and finance also saw robust activity following quarterly results and other corporate news...

Introduction While salary hikes are intended to keep pace with rising living costs, many employees find that their real purchasing power does not improve significantly. This paradox is particularly relevant in India, where recent salary hike percentages often surpass inflation rates but still fail to deliver tangible benefits. This article explores why a seemingly adequate salary increase might still leave employees feeling financially squeezed, using recent data for context. 1. Salary Hikes vs. Inflation Rates Recent data shows that salary hikes in India have generally exceeded inflation rates: 2023: Average salary increase was approximately 8.5%, while CPI inflation was around 6.2%. 2022: Average salary increase was about 8.2%, compared to CPI inflation of 6.7%. 2021: Average salary increase was 7.5%, while CPI inflation stood at 5.1%. At first glance, these figures suggest that salary hikes are sufficient to cover inflation. However, the reality of financial pressure often tells ...

  As of July 19, 2024, the Indian economy continues to exhibit robust growth, maintaining its position as one of the fastest-growing major economies globally. Here are some key highlights: GDP Growth : India's GDP growth rate for the fiscal year 2023-24 reached 8.2%, driven by strong performance in the manufacturing and construction sectors, which grew by 9.9% and 8.4%, respectively​​. The Reserve Bank of India (RBI) has projected the economy to grow by 7.6% for the fiscal year 2024-25​​. Inflation : Headline retail inflation in India has been moderating, remaining stable at around 4.83% as of April 2024. This trend is expected to continue, contributing to economic stability​​. Monetary Policy : The RBI has maintained the repo rate at 6.5% since February 2023, reflecting a cautious approach to balancing growth and inflation. The central bank's focus remains on ensuring price stability while supporting economic expansion​​. Fiscal Deficit : The fiscal deficit for FY24 improved t...

Raj, a savvy investor, decided to invest INR 50 lakhs in a mutual fund. He chose this path because he wanted to secure his future and benefit from the potential growth in the market. Raj was particularly interested in setting up a Systematic Withdrawal Plan (SWP), which would allow him to withdraw a fixed amount from his investment regularly, ensuring a steady stream of income. One day, Raj came across an exciting business opportunity that required immediate funding. Not wanting to sell his mutual fund investment prematurely, Raj decided to take a loan by pledging his mutual fund units as collateral. Raj approached a bank, and after evaluating his investment, the bank agreed to provide a loan against his mutual fund holdings. Here’s how the journey unfolded: The Setup Investing in Mutual Funds : Raj invested INR 50 lakhs in a well-performing mutual fund. He set up an SWP to withdraw INR 50,000 per month to cover his monthly expenses. The Opportunity : A lucrative business deal presente...

The time it takes to see a return on investment (ROI) in mutual funds can vary significantly based on the type of mutual fund, market conditions, and the investment strategy. Here’s a detailed overview with relevant data to support the suggestions: Types of Mutual Funds and Their ROI Timeframes Equity Mutual Funds Average ROI Timeframe : 5 to 7 years Data Support : Historically, equity mutual funds have shown that long-term investments (5-7 years) tend to mitigate the volatility and result in positive returns. For instance, the average annual return for large-cap equity funds over the last 10 years (as of 2023) has been approximately 12%. Debt Mutual Funds Average ROI Timeframe : 1 to 3 years Data Support : Debt mutual funds are generally less volatile than equity funds and offer more stable returns. Short-term debt funds have an average annual return of around 6-8% over a 3-year period. Hybrid Mutual Funds Average ROI Timeframe : 3 to 5 years Data Support : These funds invest in both ...

Once upon a time in the bustling city of Cryptoville, there lived a young and ambitious investor named Alex. Enthralled by the promises of digital gold, Alex dove headfirst into the world of cryptocurrency. With dreams of financial freedom, Alex invested in various coins and tokens, watching their value soar and sometimes plummet. One fateful day, Alex received a message that seemed too good to be true. It was an invitation to invest in a revolutionary new cryptocurrency platform promising astronomical returns. Eager and hopeful, Alex transferred a substantial amount of Bitcoin to this new platform, anticipating a windfall. But days turned into weeks, and Alex's account remained empty. The realization hit hard: Alex had been scammed. Devastated but determined, Alex knew that giving up wasn’t an option. The quest to recover the lost funds began. The Search for Experts Alex started by seeking out the best minds in Cryptoville. The first stop was a meeting with Dr. Ledger, a renowned ...

Ravi, a 30-year-old marketing professional from Hyderabad, always felt overwhelmed by the complexities of financial planning. Balancing his work, family, and social life left him with little time to focus on managing his investments. He had a decent salary and some savings but wasn't sure how to make the most of his money. The financial jargon and market fluctuations were daunting, and the idea of hiring a traditional financial advisor seemed both costly and intimidating. One evening, while scrolling through his social media feed, Ravi stumbled upon an article about robo-advisors and AI in financial planning. Intrigued by the concept of automated, personalized investment advice, he decided to explore further. The article explained how robo-advisors use algorithms and AI to manage investment portfolios, offering a cost-effective and convenient solution for people like him. Discovering Robo-Advisors Ravi researched and found a highly-rated robo-advisor platform that seemed user-frien...

 A CIBIL score is a three-digit numeric summary of a consumer’s credit history, derived using details found in the Credit Information Report (CIR). This score ranges from 300 to 900, with higher scores indicating better credit health. Key Factors Influencing CIBIL Score Payment History (35%) Timely repayment of loans and credit card bills positively impacts the score. Late payments, defaults, and settlements can significantly lower the score. Credit Utilization Ratio (30%) This is the ratio of credit used to the total credit limit available. Maintaining a low credit utilization ratio (ideally below 30%) is beneficial. Length of Credit History (15%) The longer the credit history, the better it is for the score. Having a well-maintained long-term credit account contributes positively. Credit Mix and Types (10%) A balanced mix of secured (e.g., home loans) and unsecured loans (e.g., credit cards) is ideal. Too many unsecured loans can negatively affect the score. New Credit Inquiries ...

  1. Understanding Inflation: Inflation Rate: Inflation erodes the purchasing power of money over time. For example, if the inflation rate is 6% per annum, what costs ₹1 lakh today will cost significantly more in the future. Future Value Calculation: Using the formula for future value considering inflation,  F V = P V × ( 1 + r )^ n where  P V is the present value,  r is the inflation rate, and  n is the number of years.   Assuming an inflation rate of 6%, the future value of ₹1 lakh today after 20 years would be approximately ₹3.21 lakh. Impact on Expenses: This means that the monthly expenses that are ₹1 lakh today will rise to ₹3.21 lakh in 20 years to maintain the same lifestyle. Living Expenses: After retirement, the individual will still need to cover daily living expenses such as food, utilities, transportation, and healthcare. These expenses are likely to increase due to inflation. Healthcare Costs: Healthcare tends to become a signific...

The air hung heavy with the promise of a better life. The salesman's smile, brighter than the Diwali lights I yearned for, touted the credit card as a key to my dreams. A new fridge, a trip to see Amma, a chance to finally break free from the shackles of just getting by. Blinded by the allure, I swiped the card, the plastic feeling cold against my calloused fingers. Little did I know, that convenience would soon morph into a monster. The minimum payments, a seemingly manageable bite at first, grew with every swipe. Each purchase, a silent scream buried under the weight of growing debt. The festive season, once a time of joy, became a stark reminder of what I couldn't afford. Sleep, once a refuge, became a luxury I could barely afford. The worry lines etched on my forehead became a permanent fixture, a constant reminder of the foolish bargain I'd made. The calls started politely, a nudge to settle the dues. But with each passing month, the tone morphed into something menacin...

Introduction Managing debt can be challenging, especially when faced with multiple loans and significant monthly EMIs. For individuals earning a monthly salary of ₹85,000 and shouldering a debt burden of ₹3,00,000 in personal loans, ₹4,50,000 in car loans, and ₹35,00,000 in home loans, the financial pressure can be overwhelming. With a collective EMI of ₹42,000, it may seem difficult to make ends meet while also striving to pay down debt. However, with a structured and disciplined approach, it is possible to systematically reduce debt and achieve financial freedom. This comprehensive debt reduction plan provides a step-by-step strategy to help you prioritize your payments, increase your income, and manage your expenses effectively. By following this plan, you can take control of your finances, eliminate high-interest debt first, and work towards a debt-free future. Whether you are looking to create an emergency fund, pay off high-interest loans, or simply gain better control over your ...

The Equity Valuation Index (EVI) for the date July 12, 2024, is 115.5. It is calculated by assigning equal weights to various financial ratios and factors, including Price-to-Earnings (PE), Price-to-Book (PB), G-Sec*PE, and Market Cap to GDP ratio. Interpretation of EVI Value 115.5 indicates that the market is moderately valued. Investors should consider this value while making investment decisions, keeping in mind the current market conditions and economic outlook 50 - 80: Aggressively Invest in Equities  80 - 100: Invest in Equities  100 - 120: Neutral  120 - 130: Incremental Money to Debt  130 - 180: Book Partial Profits  The bands represent different investment recommendations based on the EVI value:

  Market Performance and Trends: Nifty and Sensex: The Nifty index is experiencing a bullish trend, forming a bullish candle with support at 24,000 and resistance at 24,600. The Sensex has also shown positive performance, with gains driven by strong corporate earnings and favorable macroeconomic data​ ( SAMCO ) ​​ ( Private Banking | Barclays Private Bank ) ​. Sector Performance: The market has seen a healthy sector rotation, with various sectors leading the rally at different times. Notable performers include IT, metals, chemicals, and manufacturing sectors. The real estate, small, and mid-cap sectors are currently leading the rally​ ( Lion Global Investors ) ​. Valuations: Market valuations remain fair, with a forward PE ratio of about 18.5X. Large-cap stocks are relatively more attractive compared to mid and small-cap stocks​ ( Private Banking | Barclays Private Bank ) ​. Economic Factors Influencing the Market: GDP Growth: India's GDP growth for Q3 FY24 stands at 8.4%, ...

 As of July 2024, the Indian economy exhibits strong growth and resilience despite global economic challenges. The GDP growth rate for the third quarter of fiscal year 2024 stands at 8.4%, marking robust economic performance. India is projected to maintain a GDP growth rate between 6% and 7.8% annually over the next few years​ ( PwC ) ​​ ( Deloitte United States ) ​​ ( Forbes India ) ​. Private consumption has shown improvement, with a year-over-year growth of 3.5% in the third quarter, aided by increased industrial production and sales in the consumer durables sector. However, government consumption contracted by 3.2% year-over-year during the same period​ ( Deloitte United States ) ​. Inflation remains a critical factor, with retail inflation easing to 4.83% in April 2024. However, the Wholesale Price Index (WPI) has fluctuated, reflecting ongoing volatility in commodity prices​ ( Forbes India ) ​. The Reserve Bank of India continues to navigate these inflationary pressures ...