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Expert Insight: Long-term picture bright for Gold

Kotak Editorial Team

The US Fed Chairman Jerome Powell in February indicated that despite a slump in inflation, the central bank will increase benchmark rates at least a “couple more times,” as it aims to rein in inflation even more. This would mean that gold prices will remain volatile until the Fed is done raising the rates. Ravindra Rao, VP-Head Commodity Research, Kotak Securities, believes, “Though some short-term uncertainties persist for the yellow metal, the long-term picture is getting brighter.”

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Expert Insight: The road ahead for Rupee

Kotak Editorial Team

The Indian currency is nearly 10 percent down against the US dollar in the last year. From 75 per dollar on February 25, 2022, the rupee has fallen to 83.00 levels by March 2023. The INR witnessed high volatility against the Dollar on Wednesday. Anindya Banerjee, Vice-President, Currency Derivatives and Interest Rate Derivatives, Kotak Securities, says “over the next couple of quarters, till the US FED acknowledges that it’s time for the rates to go lower, emerging market currencies may see high volatility.”

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Exploring the ragas of Hindi film music

Kotak Editorial Team

Raga Rang sponsored by Kotak  at Jamshed Bhabha theatre, NCPA, Mumbai on February 25, 2023, is an attempt to celebrate the rich legacy of raga-based, yesteryear Hindi music and reinforce its commitment to strengthening the cultural heritage of the country.

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‘The higher the FED rates, the more negative impact on global growth’

Kotak Editorial Team

The Indian rupee declined to more than a one-month low on February 15  after the U.S. inflation print cemented expectations of more Federal Reserve rate hikes. The rupee was at 82.8550 per dollar on Wednesday trading at its lowest level since January 4.

Anindya Banerjee, Vice-President, Currency Derivatives and Interest Rate Derivatives, Kotak Securities answers key questions related to the Rupee’s performance and its impact on growth.

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In sync with the changing silhouettes of Indian classical music

Kotak Editorial Team

Classical music has been at the centre of India’s pure-form artistic evolution. Conceptualised 6,000 years ago as a form of expression to chant Vedas, seek solace, and feel at one with nature, Indian classical music now has an international appeal.

Kotak’s Morning Ragas series in Bengaluru featuring various classical musicians is an attempt to pay tribute to and celebrate the rich heritage of the art form.

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A raag for the soul

Kotak Editorial Team

On August 11, 2022, curtains were drawn on Kotak Morning Ragas Concert Series, a bi-monthly offering intended to preserve and reinforce the legacy of Indian classical music.

As we wait for the next offering of the concert series on February 12, we hope the raags of Indian classical music untangle the complexities of our emotions and make us more open to the beauties of life.

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February Monetary Policy: RBI maintains accommodative stance with cautious rate hike

By Kotak Editorial Team

For a second straight meeting in February, the Reserve Bank of India's rate-setting panel slowed interest rate increases while allowing itself more room to tighten borrowing costs moving forward. Four of the six members of the Monetary Policy Committee voted to maintain the withdrawal of the accommodative stance by raising the benchmark repo rate 25 basis points to 6.5%. The rate hike of 25 basis points is considered appropriate at this time, so that monetary policy can remain flexible and respond to inflation as needed.

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Union Budget 2023: Precious metals witness structural duty changes

Ravindra V.Rao, VP-Head Commodity Research, Kotak Securities

Union Budget 2023 held very few surprises for the commodity industry. Precious metals witnessed some structural duty changes as import duty on silver Dore, bars, and articles were increased to align them with that on gold and platinum.

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Union Budget 2023: ‘Adequate focus on holistic development of economy’

Kotak Editorial Team

The Union Budget for fiscal 2024 which will set the foundation for taking India’s economic growth to the forecast rate of 6.8 percent was presented at a time of headwinds and the pre-election phase. The focus of this Budget is on “green growth, youth power, farmers and women,” the finance minister said in her speech.

The leaders of Kotak Mahindra Group decode the budget.

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Budget 2023: What is it going to bring to India's middle class?

Srikanth Subramanian, CEO, Kotak Cherry

In an exclusive article in The Financial Express, Srikanth Subramanian, CEO, Kotak Cherry shares his expectations from Budget. He suggests that the upcoming Union Budget will have to balance middle-class expectations with macro events while considering factors such as expected lower tax revenue growth, committed high expenditure, high inflation, high government borrowing, and a focus on fiscal consolidation. Moreover, the goal of Budget will be to leave more savings in the hands of the middle class for consumption-driven growth and to attract more investors. The budget is expected to make things easier for the middle class, such as addressing the concern of home loan buyers, increasing spending power, streamlining capital gains and investments, and raising basic exemptions.

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Budget 2023: Key Expectations for Boosting India's Electric Vehicle Industry

By Kotak Editorial Team

The electric vehicle industry is on the rise in India, but widespread adoption is still a challenge. Despite the Indian government's attempts to encourage EV adoption with financial incentives like subsidies and reduced GST rates, consumers are sceptical. As Budget 2023 draws near, we spoke with Arun Agarwal, Vice President - Fundamental Research, Kotak Securities to shed light on the developments shaping the future of transportation in India. In this Q&A, we delve into the potential for government incentives for EV manufacturers, the impact of local lithium battery production, and the key expectations for the upcoming budget to drive growth in the passenger and commercial EV markets.

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Budget 2023 Expectations: Focus on job creation, increased infra spending and economic growth

Nilesh Shah, MD, Kotak Mutual Fund

It is most likely that the finance minister will balance skillful financial management with efforts to promote growth and support those in need. In cricket terminology, I can say, the finance minister will bat with the precision and skills of Suryakumar Yadav while still ensuring fiscal prudence. For infrastructure spending, the minister will aim for quick and efficient results, similar to the bowling style of Umran Malik. In terms of providing support to the most vulnerable, the minister will approach it with agility and the ability to catch even the toughest catches, just like Ravindra Jadeja in the field.

Expectations are high for this budget, and the Minister will have to think creatively and out of the box to strike a balance between investing in infrastructure, providing assistance to the most vulnerable, and maintaining fiscal responsibility.

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Union Budget 2023: Reduction of Gold import duty recommended

Ravindra V.Rao, VP, Head Commodity Research, Kotak Securities

The gems and jewellery industry has been recommending a cut in import duty every year. This time again the industry has recommended a cut in import duty on gold in the forthcoming Union budget. The industry is of the view that a cut in import duty would push exports and manufacturing of the gems and jewellery sector.

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Union budget 2023: No major pension reforms required, sector already on right path

Shyamsundar Baliga, CEO, Kotak Pension Fund

India’s pension penetration is low compared to international standards, with pension assets of Rs 36 trillion (est.) which is less than 15% of GDP compared with OECD average of approx. 67%. However, the pension sector has already been set on the right path in the past few years with the increasing thrust on National Pension System (NPS) and Atal Pension Yojana (APY).

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Budget 2023: Multiple reliefs expected for the FMCG sector

By Kotak Editorial Team

India’s Fast Moving Consumer Goods (FMCG) makers faced twin challenges in 2022: subdued rural demand and inflationary woes. Due to these obstacles, FMCG companies have suffered a fall in volume over the last three to four quarters. In FY24, therefore, the FMCG industry is hoping to regain ground lost in 2023, with a recovery in margins and volumes, especially in distressed rural areas amid softening commodity prices. With the Budget session right around the corner, we spoke to Amit Agarwal, Vice President at Kotak Securities to find out what the FMCG industry expects from Budget. A major expectation from the government is that it will offer incentives to stimulate FMCG consumption and accelerate consumer spending across the country.

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Budget 2023: Incentives to promote R&D, private sector investments in pharma sector essential

Kotak Editorial Team

Outlining her expectations from a budget that comes at a crucial time of 2024 elections and global headwinds, Purvi Shah of Kotak Securities says the Government should “offer tax incentives and benefits to platforms that invest in advanced technologies and innovative healthcare delivery and help boost private sector investments.”

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Silver gearing for outperformance in 2023

Ravindra V.Rao, VP, Head Commodity Research, Kotak Securities

Silver had a rollercoaster ride in 2022. Silver is a precious metal with the most usage in the industrial sector; hence, it gets affected by trends in both, gold and industrial metals. In 2022, silver hit a high of nearly $27.5/oz in early March as a reaction to the onset of the Russia-Ukraine war but failed to hold on to the gains and corrected to a two-year low of $17.4/oz in September. The sharp correction was amid Fed's pledge to curb inflation which encouraged investors to favour dollars over non-interest-bearing bullion. It was also impacted due to concerns about the health of the Chinese economy as virus-related restrictions hampered economic activities. Furthermore, a decrease in net outflows in silver ETFs and a deteriorating global economic outlook roiled investor sentiments.

What’s next for silver? Emerging trends point to a positive future for silver.

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