..... . VALI disclosures . .....: 26/03/26, Because of Modi leads BJP Government's failure in Foreign Policy

Thursday, March 26, 2026

26/03/26, Because of Modi leads BJP Government's failure in Foreign Policy

The central government has announced an all-party meeting on March 25, at 5 pm, to discuss the West Asia conflict's impact on India's energy security, trade routes, and overall preparedness.

An energy lockdown is likely to be announced in India. The energy lockdown or lockdown-like situation started to trend in India after Prime Minister Narendra Modi, in his speeches in the Lok Sabha and the Rajya Sabha on the Middle East conflict, recalled the COVID-19 pandemic and associated global supply chain disruptions. The energy lockdown might be announced today after the all-party meeting. In this energy lockdown, the government might announce fuel rationing measures that could include work-from-home and vehicular movement restrictions.

What will be the situation in India if an energy lockdown is announced?
Vehicular movement and transportation might be affected as the energy lockdown leads to fuel rationing.
The government might announce work-from-home guidelines for employees in the public and private sectors.
Schools and colleges might be asked to go back to teaching online and conducting online classes.
As the Indian Premier League (IPL) dates have been announced, the government might not allow spectators to visit the stadium for matches.
The government might advise people to avoid non-essential travel.

Current Situation in India:

People across several states are waiting in kilometers-long queues to fill gas in their vehicles at the gas stations.
LPG gas cylinder supply: In several cities, residents are facing delivery delays, long queues, and even a temporary halt on new LPG connections. In many areas, people are waiting for days to receive cylinders, while black-market prices have sharply increased.
Hotels and food joints are unable to run their businesses as they do not have cooking gas to prepare and serve meals to their customers.
To manage the situation, the government has prioritised domestic consumption over exports and reduced gas supply to industries to conserve fuel. It has also ramped up LPG production, redirected shipments, and urged citizens not to engage in panic buying.

Fuel Rationing Begins Globally

Governments across different countries are prioritising demand reduction, rationing, and some are exploring alternatives like biofuels. Here are key examples from recent reports (focusing on implemented actions; measures can evolve quickly):
South and Southeast Asia (heavily impacted as major importers)
Sri Lanka: Four-day workweek; mandatory public holidays for schools, universities, and non-essential government staff; weekly petrol limit of 15 litres per private vehicle via QR-code national fuel pass.
Bangladesh: All educational institutions shifted online; five-hour daily rotational power cuts for households (to protect export industries like textiles); strict fuel rationing (e.g., motorcycles limited to 2 litres/day, cars with daily quotas) and monitoring of pumps to stop hoarding.
Pakistan: Four-day workweek for government employees; 50% cut in departmental fuel allocations; temporary school closures and encouragement of remote work.
Philippines: Four-day workweek for civil servants (aiming to cut government energy use by ~20%); non-essential official travel banned; offices must switch off computers during lunch and keep AC no lower than 24°C (75°F).
Vietnam: Strong push for businesses to enable remote work and citizens to use public transport; special task force monitoring fuel; promotion of biofuels.
Thailand: Officials urged to take stairs instead of elevators; fuel exports halted to protect reserves; price supports for households.
Myanmar: Odd-even fuel rationing based on vehicle plates; many petrol pumps closed.
East Asia
Japan: Released ~45 days' worth of oil from strategic reserves to stabilise prices.
South Korea: Coordinated release of millions of barrels from reserves as part of IEA effort.
Middle East/Africa
Egypt: Malls and restaurants must close by 9 pm; government buildings by 6 pm; advertising billboards, lights switched off.
Bhutan: Sales of fuel in jerry cans are banned to prevent hoarding; prioritised rationing for emergency services.
Kenya: Fuel exports banned; direct rationing introduced.
South Africa: Industry-wide controlled diesel allocation to prevent panic buying.

In the United States, the focus has been on price increases (e.g., +80 cents/gallon in some areas) and potential strategic reserve releases, with less direct rationing so far.

Defence Minister Rajnath Singh is expected to chair today's all-party meeting, whereas External Affairs Minister S Jaishankar is likely to attend. The move comes a day after Prime Minister Narendra Modi addressed Parliament about the situation.

Report by Lokmat Times

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Trade Cycles

The four important features of Trade Cycle are (i) Recovery, (ii) Boom, (iii) Recession, and (iv) Depression!

The trades cycle or business cycle are cyclical fluctuations of an economy. A full trade cycle has got four phases: (i) Recovery, (ii) Boom, (iii) Recession, and (iv) depression. The upward phase of a trade cycle or prosperity is divided into two stages—recovery and boom, and the downward phase of a trade cycle is also divided into two stages—recession and depression.

Phases of Trade Cycle:

The phases of trade cycle are explained with a diagram:

(1) Recovery:

In the early period of recovery, entrepreneurs increase the level of investment which in turn increases employment and income. Employment increases purchasing power and this leads to an increase in demand for consumer goods.

As a result, demand for goods will press upon their supply and it shall, thereby, lead to a rise in prices. The demand for consumer’s goods shall encourage the demand for producer’s goods.

The rise in prices shall depend upon the gestation period of investment. The longer the period of investment, the higher shall be the price rise. The rise of prices shall bring about a change in the distribution of income. Rent, wages, interest do not rise in the same proportion as prices.

Consequently, the margin of profit improves. The wholesale prices rise more than retail prices. The prices of raw materials rise more than the prices of semi-finished goods and the prices of semi-finished goods use more than the prices of finished goods.

(2) Boom:

The rate of investment increases still further. Owing to the spread of a wave of optimism in business, the level of production increases and the boom gathers momentum. More investment is possible only through credit creation. During a period of boom, the economy surpasses the level of full employment and enters a stage of over full employment.

(3) Recession:

The orders for raw materials are reduced on the onset of a recession. The rate of investment in producers’ goods industries and housing construction declines. Liquidity preference rises in society and owing to a contraction of money supply, the prices falls. A wave of pessimism spreads in business and those markets which were sometime before sellers markets become buyer’s markets now.

(4) Depression:

The main feature of a depression is a general fall in economic activity. Production, employment and income decline. The prices fall and the main factor responsible for it is, a fall in the purchasing power.

The distribution of national income changes. As the costs are rigid in nature, the margin of profit declines. Machines are not used to their full capacity in factories, because effective demand is much less. The prices of finished goods fall less than the prices of raw materials.

✳Reality Tips to Traders

1)Trading in the stock market is a marathon. 2)Protecting your capital is key. (Learn to protect first) 3)Making 0 on the day is better than losing 50k 4)Losses happen; they are part of this business. 5)It’s not you vs. the market. It’s you VS you. 6)You are your biggest enemy; learn to be mentally disciplined. 7)Don’t follow the majority; follow the correct path. 8)Traders without a stop loss end up not being traders for long. 9)There is always another trade. 10)The big money is made waiting for the right set-ups. 11)Waiting for the right trade is the most powerful strategy. 12)It is better to cut a loss than to wait to be proven right. 13)Position sizing can make or break you. 14)Worry about the downside before you even think about the upside. 15)Don’t listen to headlines

..BANKING TERMINOLOGY

There are various types of Banks: PSU Banks, Private Banks, Co-operative/Regional Banks, Small Finance Banks and Foreign Banks. When you deposit money in a bank, let's say the bank gives you an interest rate of 4%. But when the bank lends out this money, they lend it out at say, 12%. The difference of 8% in the above scenario is effectively the profit of the bank! The loans that do not pay interest for 90 days are known as Non-performing Assets. Banks have to provide for such bad loans. Structure of a Bank Asset for a Bank: The asset portion of a bank's capital includes cash, government securities, and interest-earning loans (e.g., mortgages, letters of credit, and inter-bank loans). Liabilities for a Bank: The bank's main liabilities are its capital (including cash reserves and, often, subordinated debt) and deposits. The latter may be from domestic or foreign sources (corporations and firms, private individuals, other banks, and even governments). Banks are required to maintain Liquidity with the Reserve Bank of India: SLR (Statutory Liquidity Ratio): It is the money a bank needs to preserve in the form of cash, gold or government Bonds before providing credit customers. This limitation is added by RBI on banks to make funds available to customers on-demand at your earliest convenience. Banks are required to maintain SLR at 18%. CRR (Cash Reserve Ratio): Banks are required to hold a certain proportion of their deposits in the form of cash. Banks don’t hold these as cash with themselves, but deposit such amounts with RBI / currency chests. CRR rate is at 4.5% currently. Repo Rate: The rate at which the RBI lends short-term money to the banks. The RBI through its Monetary Policy committee changes the repo rate to balance growth and Inflation. Reverse Repo rate: The rate at which banks park their short-term excess liquidity with the RBI. Now let us understand various terminologies for Banks Net Interest Income (NII): This is the spread the bank makes on its lending. It is calculated as Interest Income – Interest Expended Net Interest Margin (NIM): This is the spread the bank makes on its lending. It is the earning which is left after deducting the cost paid to depositors from its yields on Loans. This is denoted in % terms. The formula is Yield on Loans – Cost of funds Capital Adequacy Ratio (CAR): The capital adequacy ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. Essentially, it is the Capital that is available to lend. Tier I Capital – In simple words this capital is freely available with the bank to lend out. Tier II Capital- This is the capital tied up somewhere and is less freely available to lend. In case of an adverse event, the bank can use this capital to lend. Under Basel III norms, a bank’s tier 1+tier 2 capital must be a minimum of 8% of its risk-weighted holdings. The minimum capital adequacy ratio, also including the capital conservation buffer, is 10.5%. Current Account Saving Account (CASA)- There is no interest paid on the Current Account and a small interest rate is paid on a savings account. The combination of both is called CASA which shows the liabilities of the bank on which it pays relatively less interest. Deposits: Bank deposits are a savings product that customers can use to hold an amount of money at a bank for a specified length of time. In return, the financial institution will pay the customer the relevant amount of interest, based on how much they choose to deposit and for how long. Now let us come to NPA. Gross NPA (GNPA): It is the total loans on which no payment has been paid for 90 days or more. GNPA % is usually shown in each Bank’s quarterly results. The percentage is basically the GNPA amount as a % of the total advances. Slippages: Slippages denote the fresh amount of loans that have turned bad in a year. The slippage ratio of a bank is calculated as Fresh accretion of NPAs during the year /Total standard assets at the beginning of the year multiplied by 100. Provisioning Coverage Ratio (PCR): This is the ratio of provisioning to GNPA and indicates the extent of funds a bank has kept aside to cover loan losses. For Instance, a company has GNPAs of Rs 100 and they have set aside 50 Rs, then the PCR is 50%. Net NPA (NNPA): The total figure left after deducting provisions made for bad loans from GNPA. (GNPA – Provisions+upgrades/writeoffs = NNPA) Special Mention Account (SMA) SMA-0 is a category in which stress with respect to the principal and interest has remained overdue for a period of 0 to 30 days. SMA-1 is a category in which stress with respect to the principal and interest has remained overdue for a period of 30-60 days. SMA-2 is a category in which stress with respect to the principal and interest has remained overdue for a period of 60-90 days

..... . VALI disclosures . .....

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Thursday, March 26, 2026

26/03/26, Because of Modi leads BJP Government's failure in Foreign Policy

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26/03/26, Precious Metals price fall

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