BofA-ML

Broader markets represented by small and midcap stocks are trading at even higher valuations or close to two standard deviations over long-term averages, Shah said

Going long on the rupee with borrowed dollars offered the best returns in the past month in Asia

Eight months of import cover critical to rupee stability

Credit growth had slipped to lowest level since Independence in FY17, falling to paltry 5.1 per cent, RBI

The sharp inflow into equity mutual funds (MFs) isn't sufficient reason for investors to buy equities. For, the valuations remain elevated, says Bank of America Merrill Lynch (BoA-ML), advising investors to "stay cautious in the near term".In May, equity schemes got inflow exceeding Rs 10,000 crore for a second month. In general, since May 2014, inflow has consistently been strong."As the markets run out of bottom-up arguments (such as earnings, valuations), investors increasingly point to the strength of domestic equity flows as justification for further upside," say Sanjay Mookim and Nafeesa Gupta, analysts at BoA-ML. Their note says "flows are a weak argument". Very few stocks are cheap on an absolute basis and evaluations remain elevated, they add.According to BoA-ML, part of the reason for high investor flow is rising markets and relatively unattractive returns in debt and real estate. However, these arguments could be reversing. "Real rates have already turned positive with ...

The government has proposed a penal tax rate of 50% to incentivise black money hoarders to switch to formal economy

Given this backdrop, the cash holdings by investors in June in their portfolio rose to 5.7 per cent, highest since November 2001

A wave of caution swept over markets ahead of Britain's EU referendum

In India, disbursal of 7th Pay Commission hikes, softer lending rates and lower oil prices are expected to support discretionary spending