Gold experienced a decline of approximately $63 over the course of this week, breaching the psychologically significant support level of $1900 in the COMEX Spot market. The next support level is expected to emerge around $1850-$1835. It is our belief that gold is nearing its support zone due to the recent decline in the value of the US dollar.
The rally in the US dollar began after the Federal Reserve adopted a hawkish tone and the dot plot indicated the expectation of two rate cuts next year, as opposed to the market’s anticipation of four cuts.
The Federal Reserve’s commitment to maintaining higher interest rates for the majority of the next year caught the market by surprise, leading to a rally in bonds and the US dollar. This had a dampening effect on precious metals. The recent strength of the US dollar this week can be attributed to reports from Capitol Hill indicating that there is no resolution in sight, making a US government shutdown appear increasingly likely. Additionally, US Durable Goods Orders exceeded expectations, contributing to the downward pressure on gold, which breached the $1900 mark, as did silver, which fell below $23.
While silver witnessed some short covering, gold has not yet seen any significant short covering. It appears that when gold breached the $1900 level on the downside, long positions were unwound, and short positions were added. This explains why gold experienced a decline despite the weakening of the Dollar index. Therefore, it is clear that yesterday’s weakness in gold cannot be solely attributed to the US dollar.
Considering the risk/reward ratio, taking a long position seems more favorable at this point, especially after witnessing four consecutive negative trading sessions for gold. The momentum oscillator RSI_14 indicates that gold is in the oversold region, with RSI_14 near the 30 level. Historically, gold has rebounded whenever RSI_14 approached this level. Consequently, we anticipate a rebound from the current range.
Regarding potential price levels, the immediate target on the upside is in the range of 58300-58500, with support expected at 57300 on the downside. Therefore, one may consider entering a long position at the current market price, targeting 58500, with a stop loss at 57300.
Investing plays a crucial role in optimizing returns and combating inflation, aligning with our financial goals as they evolve through life stages. Investment strategies are tailored to factors like financial objectives, income levels, and age. For risk-averse Indian investors, Fixed Deposits (FDs) have traditionally been a preferred choice. However, navigating the FD landscape, with its varying tenures and interest rates, can be complex. This is where the concept of FD laddering comes into play.
FD laddering represents a strategic approach to managing fixed deposits for maximizing returns while maintaining liquidity. In this article, we delve into the concept of FD laddering, how it operates, and its benefits in helping Indian investors optimize returns.
Understanding FD Laddering FD laddering is a financial strategy involving the distribution of fixed deposits across multiple accounts, each with different maturity dates. Instead of investing a lump sum in a single FD, funds are diversified into several FDs with varying tenures. Each FD matures at different intervals, forming a ladder of investments. The primary advantages of FD laddering include achieving a balance between accessibility, liquidity, and higher returns.
How It Functions Imagine you have Rs 1,00,000 to invest. Instead of depositing the entire amount in a single 5-year FD, you opt to split it into five separate FDs, each with tenures of 1, 2, 3, 4, and 5 years. As each FD matures, you have the flexibility to reinvest it at the prevailing interest rate or utilize the funds as needed. This approach ensures ongoing access to a portion of your savings while potentially benefiting from higher interest rates on longer-term deposits.
Maximizing Returns The FD laddering strategy allows you to capitalize on fluctuations in interest rates. If interest rates increase, you can reinvest your maturing FDs at these higher rates. In simpler terms, if rates decline, you won’t be locked into lower rates for an extended period. This flexibility enables you to achieve a more favorable overall average rate of return compared to locking in a single FD at a fixed rate for an extended duration. Additionally, FD laddering offers periodic liquidity, making it suitable for both short-term and long-term financial goals.
Mitigating Reinvestment Risk Reinvestment risk pertains to the possibility that when your FD matures, prevailing interest rates may be lower than the rate on your maturing FD. FD laddering effectively mitigates this risk by distributing investments across multiple tenures. Even if one FD matures in a low-rate environment, its impact on your overall portfolio is minimized since other FDs continue to earn interest at their respective rates. This diversification serves as a safeguard for your returns.
Enhancing Financial Flexibility One of the primary advantages of FD laddering is its ability to provide a steady stream of liquidity. As each FD matures, you have the choice to reinvest it or employ the funds as required for financial goals, emergencies, or opportunities. This flexibility ensures that your funds are not tied up in long-term investments, allowing you to adapt to changing financial circumstances.
Balancing Investments By dispersing investments across different maturity periods, you can align your financial objectives with your FDs. Short-term FDs offer easy access to funds for immediate needs, while longer-term FDs provide the potential for higher returns. This diversification enables effective risk management.
In conclusion, FD laddering stands as an efficient strategy for optimizing fixed deposits. It combines consistent access to funds with the potential for higher returns, offering a practical approach to achieving improved financial security while maximizing returns.
Taking a joint home loan with your loved ones constitutes a significant financial commitment. While there are advantages to jointly applying for a home loan, it’s essential to weigh the potential risks and complexities before making such a decision.
Financial Risks Atul Monga, CEO and Co-Founder of Basic Home Loan identifies two primary financial risks associated with joint home loans:
Default Risk: If one of the borrowers becomes unable to make their portion of the mortgage payments, it could negatively impact the credit scores and financial stability of all co-borrowers. This scenario might ultimately lead to foreclosure and the loss of the property.
Liability for the Full Debt: Typically, each co-borrower is jointly and severally liable for the entire loan amount. This means that if one borrower defaults, the others are collectively responsible for the remaining loan balance.
Impact of Financial Difficulties Monga points out that if one borrower faces financial difficulties, it can result in missed payments, late fees, or even foreclosure. This can strain relationships and erode trust among co-borrowers.
Conflicts and Disagreements Moreover, co-borrowers may encounter conflicts and disagreements on various aspects, including:
Property Usage: Disputes may arise concerning how the property is utilized, whether it serves as a primary residence, a rental property, etc.
Maintenance and Upkeep: Disagreements might surface regarding maintenance responsibilities, repairs, and related expenses.
Selling the Property: Determining when and under what conditions to sell the property can become a contentious issue.
Differing Opinions about Property-related Decisions: Varying ideas about renovations, improvements, or day-to-day property management among co-borrowers can lead to tension and disputes.
Legal Complexities Several legal complexities may also arise, including:
Property Ownership Structure: Clearly defining the legal framework for joint ownership (e.g., tenants in common, joint tenants) is crucial to prevent potential disputes over ownership shares.
Exit Strategies: Establishing a well-defined exit plan for situations where one co-borrower intends to sell their share or exit the arrangement can be legally intricate, especially if disagreements arise among co-borrowers.
Exiting the Joint Home Loan: If one co-borrower wishes to exit the joint home loan before it’s fully repaid, there may be legal implications. This could involve selling the property, finding a replacement co-borrower, or refinancing the loan.
To mitigate these risks, Monga strongly advises individuals considering a joint home loan with loved ones to seek legal and financial counsel beforehand. Crafting a well-structured agreement and fostering open communication about financial expectations and responsibilities can help address some of these risks. Additionally, having contingency plans for various scenarios can provide a framework for managing potential conflicts or disputes in the future.
In today’s modern world, healthcare costs are continuously on the rise, which can pose significant financial challenges for individuals and families. Navigating the complex healthcare system can be particularly daunting for those who lack in-depth financial or insurance knowledge. However, the digital age has ushered in a plethora of opportunities for consumers to leverage technology and online resources to make well-informed decisions and effectively manage their healthcare expenses. People can harness the power of health-related apps and online tools to seek medical advice, compare prices, minimize out-of-pocket costs, and make informed choices regarding their healthcare needs.
Accessing Medical Consultations through Telemedicine
One of the most notable advancements in healthcare technology is the emergence of telemedicine. Telemedicine enables individuals to consult with healthcare professionals remotely, eliminating the need for expensive in-person doctor visits. This can be especially advantageous for routine check-ups, minor health issues, or follow-up appointments. Through telemedicine apps and platforms, consumers gain access to expert medical guidance without the time and financial constraints associated with traveling to a physical medical facility.
Comparing Costs for Medical Services
Understanding the costs associated with medical services is crucial for making informed decisions about where to seek healthcare. Fortunately, numerous online resources and apps provide price transparency for medical procedures, treatments, and prescription medications. These platforms empower consumers to compare prices across different healthcare providers and pharmacies, enabling them to choose cost-effective options that align with their budget.
Preventing Surprise Medical Bills
Unexpected medical bills can wreak havoc on one’s finances. These surprise bills often arise when patients inadvertently receive care from out-of-network healthcare providers during a medical procedure. To prevent such financial shocks, consumers can utilize online tools that help verify whether all healthcare providers involved in their treatment are in-network. These resources empower individuals to make informed choices that minimize unexpected expenses.
Utilizing Prescription Savings Apps
Prescription medications can represent a substantial portion of healthcare expenses for many individuals. Prescription savings apps and websites offer valuable information about drug prices and discounts available at various pharmacies. Some apps even provide coupons and manufacturer discounts, allowing consumers to access their necessary medications at a fraction of the cost. This is particularly beneficial for those who lack prescription drug coverage.
Managing Health Records Electronically
Online platforms designed for electronic health records (EHR) enable individuals to securely manage their medical information. These platforms facilitate communication between patients and healthcare providers, granting patients easy access to their records, test results, and treatment plans. Having readily available health records empowers consumers to make informed decisions regarding their healthcare and avoids unnecessary duplication of tests and procedures.
Staying Informed about Preventive Care
Prevention often proves to be more cost-effective than treatment. Numerous health-related apps and websites equip users with information on healthy lifestyle choices, recommended screenings, and preventive measures. By staying informed about preventive care, individuals can take proactive steps to maintain their health, reducing the need for costly medical interventions.
Understanding Insurance Options
Online resources also play a crucial role in helping individuals comprehend their insurance choices. Educational websites and apps can clarify various types of insurance plans, coverage details, and eligibility criteria. Armed with this knowledge, consumers can select insurance plans that align with their needs and financial constraints, thereby avoiding overpayment or inadequate coverage.
Conclusion
In today’s digital era, healthcare consumers have an array of tools at their disposal to make informed decisions and effectively manage their healthcare costs. By leveraging telemedicine, price comparison tools, prescription savings apps, and electronic health records, individuals can take charge of their healthcare journey. Furthermore, staying informed about preventive care and understanding insurance options can further empower consumers to make choices that safeguard both their health and financial well-being.
While technology and online resources have the potential to revolutionize the healthcare experience, it is essential for consumers to exercise caution and ensure the credibility and security of the platforms they use. By using these tools wisely, individuals can confidently navigate the healthcare landscape, making decisions that are financially prudent and conducive to their overall well-being.
L&T Construction has announced that its Heavy Civil Infrastructure business vertical has secured a substantial contract valued at over Rs 7,000 crore from the Mumbai Metropolitan Region Development Authority (MMRDA).
This contract pertains to the design and construction of an Underground Road tunnel Project connecting Orange Gate on the Eastern Freeway to the Marine Drive Coastal Road in Mumbai. The project encompasses the design and construction of twin road tunnels using Tunnel Boring Machines (TBMs). These tunnels will connect to the existing elevated Eastern Freeway at Orange Gate and to the Marine Drive in Mumbai through transition ramps.
The project is expected to be completed within 54 months and will primarily run beneath the Sardar Vallabhbhai Patel Road. L&T views this project as a significant step in its commitment to building efficient and rapid mass transit systems. The value of the contract falls into the category of “mega orders,” which are worth over Rs 7,000 crore, according to L&T’s classification of contract values.
L&T is a multinational company operating in the fields of EPC projects, high-tech manufacturing, and services, with a presence in over 50 countries worldwide.
Aakash Moondhra, the global Chief Financial Officer (CFO) of PayU, a fintech company owned by Prosus, has announced his resignation from the company. Moondhra, who has over three decades of experience in the finance industry, revealed his decision in a post, stating that he will remain with PayU until September 30.
This development comes amid changes within PayU’s leadership, including the departure of its global CEO and CFO, which was reported a month ago. These changes are occurring following the sale of PayU’s global operations.
Aakash Moondhra had joined PayU in 2015, following a 13-year tenure leading the finance function at V-Mart. His departure marks the end of an era, and it remains to be seen who will succeed him as the CFO of PayU.
Moondhra’s resignation is a significant development in the financial sector, as PayU is a prominent player in the fintech industry, offering payment solutions and financial services globally. The company’s future leadership decisions and strategies will be closely watched by the industry and investors alike.
As Moondhra’s tenure at PayU comes to a close, his contributions to the company’s financial operations and strategies will be remembered as part of his legacy in the fintech sector.
Legal experts gathered at the Singapore International Arbitration Centre (SIAC) Annual India Conference 2023 in Delhi engaged in a spirited Oxford-style debate on whether India should have two distinct statutes for domestic and international arbitration. Advocates presented their perspectives on this topic.
Advocating for Two Separate Acts
Senior Advocate Pinky Anand and Advocate Vijayendra Pratap Singh argued in favor of having two separate arbitration acts. Anand noted that while there is a de facto split between domestic and international arbitration in the Arbitration and Conciliation Act, 1996, it is not effective. She emphasized that countries like Singapore and Canada have more effective dual regimes, making them international arbitration hubs.
Anand highlighted the need for different enforceability standards for international and domestic awards, expressing concerns about the concept of public policy being applied broadly to both. She argued that separate parameters can be established through two acts.
Opposing the Motion
Senior Advocate Darius J Khambata and Advocate Anuradha Dutt opposed the motion. Khambata asserted that the 2015 amendment to the Indian Act has already introduced a limited binary regime aimed at attracting foreign investment. He suggested that improving the quality of arbitration, similar to the transformation seen in cricket with the Indian Premier League (IPL), is key to becoming a global arbitration hub.
Dutt contended that the issue with arbitration in India lies not in the law but in its implementation and the ecosystem. She called for better training for lawyers and arbitrators and a specialized approach to arbitration.
Verdict and Differing Opinions
After deliberation, the two judges, former Chief Justice of India UU Lalit and former Supreme Court judge Justice AK Sikri, delivered a split verdict. Lalit expressed a conservative view against any change, while Sikri ruled in favor of two separate regimes, highlighting the weight of arguments presented by both sides.
The debate underscores the complex and contentious nature of the issue, with experts divided on whether India should maintain a unitary arbitration law or opt for a binary regime with separate statutes for domestic and international arbitration.
President Droupadi Murmu of India has emphasized the crucial role of women in the judiciary and called for increased participation. She noted that women’s representation in the Supreme Court stood at approximately 9 percent, with High Courts at about 14 percent, underlining the need for greater inclusion.
Empowering Women: A Key to Inclusive India
Addressing the foundation stone ceremony for the Annexe building of the Madhya Pradesh High Court, President Murmu stressed the significance of women’s empowerment in building an inclusive India. She celebrated the recent passage of the Women’s Reservation Bill in Parliament, which reserves 33 percent of seats for women in Central and State Parliaments.
President Murmu highlighted the unique qualities women bring, emphasizing their innate sense of innovation. She stated that increasing the number of women judges would enhance the effectiveness of the justice delivery system.
Historical Legal Milestones
In her speech, President Murmu recalled the ADM Jabalpur case, where the Jabalpur High Court initially ruled in favor of safeguarding the right to life and personal liberty. The Supreme Court later overruled this decision in 1976 but reinstated the fundamental rights principles in 2017.
Call for Accessible and Speedy Justice
President Murmu acknowledged the challenges faced by the judiciary, including a large number of pending cases and undertrial prisoners. She urged all involved in the judiciary to strive for providing simple, accessible, and prompt justice to the public, emphasizing the need for judicial reforms to address these issues.
Despite the traditionally slow monsoon quarter, the Indian residential property market demonstrated remarkable resilience in Q3 2023. According to ANAROCK Research data, housing sales in the top 7 cities reached a historic high, with approximately 1,20,280 units sold during this period. This marked a substantial 36% year-on-year increase from around 88,230 units in Q3 2022.
City-wise Highlights
MMR Leads Sales: Among the top 7 cities, Mumbai Metropolitan Region (MMR) recorded the highest housing sales with approximately 38,500 units, followed closely by Pune with about 22,880 units. Collectively, these two western cities accounted for 51% of total sales in Q3 2023.
Supply Surge: The top 7 cities also witnessed a substantial increase in new housing supply, with over 1,16,220 units added in the quarter, marking a 24% annual supply growth. MMR topped in new supply with approximately 36,250 units added, while Hyderabad saw an impressive 60% yearly rise.
Segment-wise Trends
Budget Segments: The mid-range segment (homes priced between INR 40–80 lakh) continued to dominate, comprising 28% of the total new supply in Q3 2023. The luxury and premium segments closely followed, each accounting for 27% of the new supply.
Inventory Decline: Despite increased new supply, existing housing inventory saw a 3% yearly decline across the top 7 cities, falling from approximately 6.30 lakh units in Q3 2022 to around 6.10 lakh units in Q3 2023.
Price Growth and Factors
Price Surge: Average residential prices collectively grew by 11% in Q3 2023 compared to Q3 2022. Hyderabad witnessed the highest yearly average residential price growth at 18%, followed by Bengaluru with a 14% annual rise.
Stable Interest Rates: The consistent momentum in housing sales is attributed in part to the stable repo rate maintained by the Reserve Bank of India, which has kept home loan interest rates steady, supporting strong housing purchase sentiment.
Future Outlook
ANAROCK Research predicts continued momentum in housing sales and new launches during the October-December quarter, driven by branded developers’ healthy pipeline of new projects across the top 7 cities. This trend reflects the ongoing preference for projects offered by well-established developers. In Q3 2023, the top 7 cities witnessed approximately 1,16,220 new units launched, indicating a 24% increase over the previous year. Major cities contributing to new supply include MMR, Hyderabad, Pune, and Bengaluru, which collectively accounted for 87% of the total additions.
During the July-September period, demand for RuPay credit cards experienced a significant 37% quarter-on-quarter (Q-o-Q) increase, primarily driven by rising demand in tier 2, tier 3, and tier 4 towns and cities, according to a recent study conducted by the financial technology platform Zet. The study covered 706 small towns and cities.
RuPay Leads the Way
The study revealed that nearly 37% of the credit cards issued through the Zet platform in small towns and cities during this period were RuPay cards. Mastercard followed at 32%, and Visa at 31%, showcasing RuPay’s dominant position in this segment.
Top Cities for RuPay Card Demand
The top 10 cities with the highest demand for RuPay cards included Jaipur, Meerut, Surat, Nagpur, Ranchi, Raipur, Varanasi, Indore, Kanpur, and Jhansi. This surge in demand reflects the increasing acceptance and adoption of RuPay cards in non-metro areas.
Linking Credit Cards to UPI
In 2022, the Reserve Bank of India (RBI) introduced the option for individuals to link their credit cards to the Unified Payments Interface (UPI). This move allows customers to use their credit cards for making UPI payments, contributing to the growing popularity of digital payment methods.
Preferred Banks for RuPay Cards
Among the banks distributing RuPay cards, the most favored institutions are Axis Bank, HDFC Bank, and the State Bank of India (SBI). This underscores the trust and preference customers have for these banks when obtaining RuPay credit cards.
