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Discussion topics
Macro Economics An Investor's Perspective
What is Macroeconomics?
Wealth & Income
Gross Domestic Product
Anatomy of GDP
Splitting the GDP
Consumption Key Indicators
Investments Corporate Sector
Government Expenditure
External Trade
Sector wise Contribution
Macro-Economics Management
Household
Corporation
Government
Central Bank
Inflation
Exchange Rate
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Macroeconomics What is it?
Macro Economics An Investor's Perspective
Can an artist create a piece of art without making the right canvas?
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End of the session summary
Macro Economics An Investor's Perspective
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Wealth Vs Income
Macro Economics An Investor's Perspective
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Macro Economics An Investor's Perspective
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Gross Domestic Product (GDP)
Macro Economics An Investor's Perspective
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Points to Ponder
Macro Economics An Investor's Perspective
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The rich and the poor!!
Macro Economics An Investor's Perspective
Source : Wikipedia.org
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The anatomy of GDP
Macro Economics An Investor's Perspective
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Is the world rebalancing?
Macro Economics An Investor's Perspective
GDP growth rate spread world-over will tell the basic fact that it is the poorer nations that
are growing fastest, trying to catch up with the developed world.
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Splitting the GDP (Y)
Macro Economics An Investor's Perspective
Y = C + I + G + (X M)
C stands for Private Consumption
Implies the private consumption of households, central concern of welfare economics
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Consumption Key Indicators
Macro Economics An Investor's Perspective
Automobile Sales
A comparison across China, India & US. A case study.
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Investments Corporate sector
Macro Economics An Investor's Perspective
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Government Expenditure
Macro Economics An Investor's Perspective
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External Trade
Macro Economics An Investor's Perspective
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An armchair view of the big five
Macro Economics An Investor's Perspective
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Sector wise contributions
Macro Economics An Investor's Perspective
Agriculture
Low growth sector
High contribution implies underdeveloped nature
Manufacturing
Employment creating,
High growth, consumption-linked
Services
Extremely employment intensive
High contribution implies well developed nature
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Dissecting the GDP sectorwise
Macro Economics An Investor's Perspective
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Macro Economics An Investor's Perspective
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Private and Confidential Not for Circulation
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Circulation in Macroeconomics
Macro Economics An Investor's Perspective
Source: www.wikipedia.org
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Households The consumers
Macro Economics An Investor's Perspective
Household sector
Savings rate
Household debt
Average Household income
Consumption patterns
Tax rates
Socio Economic Characteristics (SEC)
Middle Class
Poor households
The aspiring and the rich class
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Corporations Capital seekers
Macro Economics An Investor's Perspective
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Government The stimulator
Macro Economics An Investor's Perspective
Social infrastructure
Law enforcement
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The central bank
Macro Economics An Investor's Perspective
Strategic objective
Financial sector development to accommodate growth
Banker to the government
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Inflation managing the devil
Macro Economics An Investor's Perspective
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Exchange rate management
Macro Economics An Investor's Perspective
Finance linkages
Capital flows into and from (FDI & FII)
Borrowings and various instruments (ECB, FCCB)
Invisibles
Monetary movements (IMF, WB etc)
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Determinants of Exchange rates
Macro Economics An Investor's Perspective
Interest rates
Price levels (and Inflation)
Growth rates
Other economic fundamentals
Fiscal deficit
Export competitiveness
Trade balance
Current a/c balance
Capital a/c balance
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Macro Economics An Investor's Perspective
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The key influencers
Macro Economics An Investor's Perspective
Inflation
Interest rates
Exchange rates
Commodity prices
Economic growth
Foreign capital flow
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What affects what?
Macro Economics An Investor's Perspective
Commodity Economic
Inflation Interest Rates Exchange Rates Prices Growth Capital Flows
Consumer - FMCG
Automobiles
Auto Ancilliaries
Banking
NBFC
Energy - E&P
Energy - Utilities
Energy - Refinery
Metals
Real Estate
Media - Electronic
Media - Print
Telecom
IT - ITeS
Logistics
Cement
Fertilizers
Retailing
Capital Goods
Infrastructure
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The nature of influence
Macro Economics An Investor's Perspective
Top line
Volumes
Realizations
Operating performance
Raw material costs without pricing power
Capital Structure
Accounting impact?
Change in valuation multiple?
Case Study.
Which of the sectoral indices were the most volatile during the recent fall?
Why?
Which were the best performing indices. Why?
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Macro Economics An Investor's Perspective
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Q&As
Thank You!
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