Moneylife News Bites

India’s markets are stuck in an unusual bind. Even as the Reserve Bank of India cuts rates and injects massive liquidity, bond yields remain stubbornly high and equity markets refuse to rally. What’s going wrong?In this audio, Debashis Basu explains how a surge in state government borrowing is undermining the RBI’s easy-money policy. While the central bank is pumping liquidity through bond purchases and swaps, states are flooding the debt market with their own bond issuances—absorbing that liquidity and pushing yields higher. Weak state revenues, rigid spending commitments, and rising competitive populism through “freebie” schemes have worsened the fiscal strain.The video breaks down why strong headline GDP growth is failing to translate into healthier public finances, how rising state debt poses hidden risks to bond and equity markets, and why investors are becoming cautious despite supportive monetary policy. A clear-eyed look at the growing fiscal tug of war between the Centre, the states, and the RBI—and why it matters for markets.

As 2025 comes to a close, India stands at a crossroads between ambition and execution. Infrastructure expansion, aviation growth, labour reform, environmental protection, digital transformation and legal reform all promised progress—but delivery often faltered, and in many cases, was rolled back.In this audio, Sucheta Dalal examines how grand policy announcements collided with weak institutions, regulatory capture, political risk and poor implementation. From collapsing bridges and aviation disruptions to environmental reversals, labour unrest, power sector pushback, bankruptcy failures and rising digital fraud, the year exposed a recurring pattern: reforms announced at the Centre struggle when they meet ground reality.The judiciary, often seen as the final arbiter, also saw an unusual number of reversals, raising concerns about legal certainty and finality. As India moves into 2026, the central question remains—can the country build the institutional capacity and political will needed to convert aspiration into durable outcomes?

SEBI’s new chairman has signalled a major shift: making corporate disclosures simpler, clearer, and easier for ordinary investors to understand. The goal is ambitious—countering the growing influence of unregulated finfluencers who now shape the investment decisions of a majority of retail participants. In this audio, Sucheta Dalal examines whether Securities and Exchange Board of India can reclaim investor trust through transparency, concise disclosures, and possibly AI-driven information tools—at a time when social media hype often carries more weight than official filings. The audio explores why timing matters, how India’s fragmented filing system compares with the US EDGAR model, and whether SEBI can truly deliver investor-friendly transparency without political pressure, regulatory capture, or dilution of sensitive disclosures.

The government is quietly moving to give SEBI sweeping new powers through the proposed Securities Markets Code—but crucial details remain hidden from the public. There is no draft Bill, no white paper, and no clarity on how expanded authority will be balanced with accountability.In this audio, Sucheta Dalal examines why consolidating India’s securities laws may be necessary—but dangerous—if governance failures remain unaddressed. From decades-old regulatory fragmentation and the unchecked expansion of depositories like NSDL, to unresolved conflicts of interest and weak oversight within SEBI itself, the risks are systemic.The core question is simple but uncomfortable: can concentrated regulatory power work without equally strong checks and transparency? As Parliament prepares to consider the new Code, investors and citizens must ask—who will watch the watchdog?

India’s stock market is at record highs—but why do so many investors feel poorer? In this sharp, data-driven analysis, Debashis Basu dismantles three deeply held beliefs about Indian equities: that Nifty returns reflect investor portfolios, that economic growth automatically translates into corporate earnings, and that earnings growth guarantees strong market returns.In this audio Debashis Basu explains how government-led capex fuelled a small- and mid-cap boom that lifted retail portfolios while leaving Nifty heavyweights largely untouched—and why the slowdown in capex has reversed that trend. It also examines the long-term gap between India’s GDP growth and Nifty earnings, drawing comparisons with China, Japan, Taiwan, and South Korea to show why fast-growing economies don’t always deliver stock market wealth.Finally, it tackles the most dangerous myth of all: ignoring valuations. Using historical examples from India and global markets, he shows how high valuations can destroy returns even when growth looks strong. A must-watch for investors willing to question popular narratives and update their beliefs about India’s equity markets.

India’s aviation sector is facing one of its most alarming crises yet — and this time, the turbulence comes not from the skies, but from a single airline’s power over the system.In this hard-hitting analysis, Sucheta Dalal exposes how IndiGo, which controls nearly two-thirds of India’s domestic market, triggered unprecedented nationwide chaos by refusing to comply with long-pending pilot fatigue safety rules. As thousands of flights were cancelled, the DGCA and the Union government quietly bent safety regulations — for IndiGo alone.

India’s new labour codes were supposed to modernise the country’s workforce regulations by replacing 29 outdated laws with four streamlined codes. On paper, they promise simpler compliance, wider social security, and more flexibility for businesses. But as Debashis Basu explains, India has a long history of great policy design collapsing at the execution stage—whether it was GST, IBC, RERA, Swachh Bharat, or Smart Cities.

India’s GDP is soaring—but corporate revenues are barely crawling. In this audio, Debashis Basu breaks down the striking disconnect between headline GDP growth and muted corporate performance. Why are top-line numbers stagnating when the economy is supposedly booming? The answer lies in the composition of GDP itself: consumption-heavy growth, government-led capex, weak private investment, and stagnant real wages. Basu explains how PFCE, public expenditure, and sluggish private capex shape this paradox, why old rules linking GDP to corporate growth have collapsed, and what it will take for corporate India to feel the impact of high GDP figures. A sharp, insightful analysis you won’t hear anywhere else.