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Bollywood Stars, Advertising Cryptocurrencies, On The Back Of A Bull-Run In Virtual Currencies, Are Of Little Help

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Manisha Kapoor, CEO and Secretary General, ASCI, tells, since last year when many such advertisements proliferated, ASCI became more vigilant about celebrities endorsing cryptocurrencies. The crypto products do not have underlying tangible value, and they are highly volatile. 

With ASCI’s detailed guidelines on celebrity endorsements and the SEBI and RBI sharpening their focus on cryptocurrencies (pending full legislation), hopefully, advertisements like Ayushmann Khurrana’s CoinDCX’s ‘Future Yahi Hai’ (This is the future) or Ranveer Singh’s ad films for CoinSwitch Kuber’s ‘Kuch Toh Badlega’ campaign, would be a thing of the past.

Future Yahi Hai’ sees Khurrana educating young Indians about the simplicity and safety of cryptocurrency

Through this association, CoinSwitch Kuber aims to leverage Ranveer Singh’s mass appeal and his popularity among Gen Z and millennial customers.

Bitbns launches new campaign featuring Alok Nath, Sreesanth, Archana Puran Singh

RBI Repo Rate Hike Takes Market By Surprise, Investors Get Poorer By ₹6.27 Lakh Cr

A rate hike was a much-needed case for taming the mounting inflation and maintaining liquidity stability! 

Last Wednesday, the Reserve Bank of India (RBI) sprang a surprise. Nay, two. And they both have big implications. Markets have snapped as RBI surprised by hiking the repo rate by 40 basis points sending shockwaves among investors. The second surprise was the retainment of the accommodative stance.

RBI is tilting towards a hawkish stance amidst inflationary pressure. They have been expected to hike repo rates to tackle soaring inflation, which has reached well above the central bank’s comfort zone. With this, RBI continues to ensure liquidity. A broad-based sell-off was witnessed across sectoral indices. Consumer durables, metals, banking, auto, and pharma stocks were the worst hit.

RBI’s decision is intending to achieve a medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2% while supporting growth.

Banks have already started to increase the MCLR benchmark way ahead of the RBI’s sudden rate hike. The RBI repo rate hike will impact banks’ lending and deposit rates. The interest rate change in home loans, car loans, and personal loans will be keenly watched ahead.

How Do Changes In Repo Rates Affect Stock Markets?

The stock market and the interest rates have an inverse relationship. Every time the central bank increases the repo rate, its immediate impact is seen on the stock markets. 

This means that increase in interest rates leads to an increase in savings and a reduction in the flow of capital to the economy, which results in a slump in stock markets. Further, the impact of the change in repo rate down does not have the same effect on all sectors. 

As an aftermath, the SEBI proposal to ban celebrity endorsement for cryptocurrencies is needed. Most advertisements featuring these influencers are misleading and get lay investors to believe their money would multiply quickly without any risk. Hopefully, with the new guidelines, there will be a standardisation of information.

Our word of advice for those who wish to continue their crypto journeys, despite the risks and lack of regulation: Do asset allocation, but be disciplined. 

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