Several people have replied stating that AT1 bonds have loss absorption features. I have no issue with that. My point was related to RBI circular relating to seniority. Please read.

Prioritising Equity over AT1 bond holders in #YesBank draft resolution is a first in this country!
In all fairness ReserveBankOfIndia is setting up a bad precedent for the bond industry by subverting their rights. Critical takeaways:
1) Scares away a potential source of capital for all banks

This chart underscores the importance of remittances to india. Remittances continues to be higher than FDI flows in India.

After more than quadrupling from Aug'19 low Tesla is today worth more than any Indian company(165 bn$)!

Economic survey 2020 pitches for aggressive divestment of CPSEs. It clearly states the potential of all-round efficiency gains with timely strategic sale.

Tepid real estate market is an issue not just in India - longest period of decline in residential investment globally after 2008 as per Oxford Economics.

Research by Mr.Schmelzing of Yale shows real interest rates have been declining for last 700 years in developed countries. Hope direction is same in India.

Long term data on US market by GMO shows dropping any one sector would not have affected returns significantly.

Interesting chart splitting market by key driver. Penetration and market share driven companies (structural winners) have high share now versus macro driven (chart-CS).

What India needs- Labour intensive exports from small towns facilitated by dynamism of both Government and entrepreneurs.

Apple Airpods-launched 3 years back- $12bn revenue, 125% growth, gross margins estimated 30%+. If listed separately probably be worth more than any Indian company($130bn approx).

Why is the market doing better than the economy? This chart offers a partial explanation. IIP split shows larger companies have done better than smaller ones (chart-edelweiss).

Interestingly last 3 months Tesla has added more market cap than Maruti's entire mcap (30bn $ plus)

3 themes which are likely to dominate the next decade-climate change, automation of jobs and rise of China in hitech (charts by FT)

Starting point matters! As we enter the new year lets reflect on the record performance gap between largecaps versus mid/smallcaps. From an asset allocation perspective this is a good entry point for the broader market.
Best wishes for 2020s..

Nice visual summary of the markets for the year 2019 by Morgan Stanley.

The 2 phases when nominal GDP growth less 10yr Gsec yield in india has gone negative its been a great time to buy cyclicals(2001/2009). As this gap turned negative again in 2QFY20 looks like we are setting up for the third time!!

Economies with higher old-age dependency typically tend to have lower 10-yr bond yields. Emerging Asia is set to see significant ageing in the coming decade. Ceteris paribus, this should put downward pressure on yields & upward pressure on EM assets' valuations. Chart:BNP Paribas

Two emerging market currencies-Thai baht and Israel shekel- have done splendidly across timeframes. Why? - reasonable growth, low inflation and active central bank.

The rise and rise of tech titans - capex+research expenditure of FAANMG roughly same as US Govt defense spending and roughly 3 times of India's total defense spending!