Despite the common belief, higher nominal GDP growth does not automatically translate into superior equity returns, particularly in emerging markets. History shows very little to no correlation. China’s rapid growth often delivered weak equity outcomes, while countries like Taiwan generated stellar returns on modest growth. The disconnect arises from factors like capital dilution, governance challenges, […]
The Indian bond market is presenting a compelling puzzle: an unusually high term spread between long-term yields and the repo rate. Our analysis suggests this disconnect is an anomaly poised to correct. This note details the key drivers – RBI’s pro-growth agenda, improved fiscal credibility, pending global tailwind and India’s sovereign credit rating upgrade that […]
India’s office market is poised for significant growth, driven by a strong talent pool and a sustained “Return to Office” (RTO) trend. The market’s future looks promising due to a diversified demand from sectors like Technology and BFSI, and a shift towards higher-value Global Capability Centers (GCCs). This positive outlook is further supported by projections […]
The Indian real estate industry has experienced a broad-based recovery across all segments since the pandemic, but the residential market has arguably seen the swiftest and steepest resurgence among all real estate segments. Sales volumes in the primary market grew at an annualized rate of 29% since 2020 and culminated a multi-year high in 2024. […]
Indian equities remain richly valued, with the mid and small-caps trading well above their respective historical averages. Large-caps, while also premium-priced, offer relatively better value and stability. Earnings growth has been underwhelming, with FY25 at just 3% for the Nifty50 and a tepid start expected for FY26. However, market optimism appears to be riding on […]
Understanding Bond Dynamics Investors often turn to bonds for their stability and capital protection, however, it’s worth noting that bonds prices can move sharply in response to interest rate changes. The relationship between bond price and its yield is crucial to understand this dynamic. When interest rate (or bond yield) falls, bond price rises and […]
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