Strong refining and petrochemical margins seen boosting consolidated net by up to 6%
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The newly-appointed Governor Raghuram Rajan said on Wednesday Reserve Bank of India will offer a window to banks to swap the fresh FCNR-B dollar funds, mobilised for a minimum tenor of three years and over, at a fixed rate of 3.5 per cent per annum. According to Bank of America Merrill Lynch, "the move should fetch $8-10 billion", adding that the move would help in shifting rupee risks away from NRIs at a time of extreme volatility.
Growth remains weak, inflation is within 2-6% range, rate cut would help recoup forex reserves
Rally restricted to big stocks; FIIs have hit investment caps in many large companies.
According to the foreign brokerage major, after two quarters of 'near-zero' growth aggregate headline profit for Sensex companies, it is expected to show a weak recovery.
The year 2015 is likely to see lower rates to support growth and the Reserve Bank is expected to cut key policy rates by 0.25 per cent in February's monetary policy review meet, says a Bank of America Merrill Lynch report.
The MPC headed by RBI Governor Shaktikanta Das will announce the resolution of the meeting at around noon on Thursday.
Ma is also exploring strategic play in one of the largest media houses in India.
Raghuram Rajan on February 2 left the key interest rate unchanged.
The hardening of the Wholesale Price Index follows an uptick in retail inflation.
Bank of America Securities-Merrill Lynch raised its growth forecast to 6.3 per cent from 5.3 per cent for the current fiscal. BAS-ML has also revised the country's growth projection to 7.3 per cent for the next fiscal from 7.1 per cent earlier.
Finance -- the most battered sector by the global meltdown -- is making a strong comeback.
He may go through bankruptcies, but he couldn't be a savvier self-marketer.
While Gupta, 60, can rightfully bask in the glory he has achieved for his bank in the subcontinent, his peers in foreign banks will have to revisit their India play, especially the local incorporation model, says Raghu Mohan.
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In the global market, the dollar was quoted lower in the early trade with investors looking ahead to the following day's European Central Bank policy decision.
Broking firm Jefferies says Indian financial system is now flooded with the kind of liquidity witnessed in 2005-07 and 2009-10
Though Indian banks don't have large exposure to subprime mortgages, analysts are worried at the rise in their restructured loan portfolios and deterioration in credit quality.
A below-normal monsoon can bring down India's GDP growth by 0.50-0.75 per cent this financial year, forcing the Reserve Bank to delay rate cuts to 2015, Bank of America-Merrill Lynch (BofA-ML) said.
The unearthing of capital flight of "black" money Indians have allegedly stashed away in Swiss banks could add $30 billion to the country's forex reserves, says a Bank of America Merrill Lynch report.
The BSE Realty index slumped 7.7% at 4,335. The IT index dropped 5.5% to 3,597, and the Metal index shed 4.5% at 10,391. The market breadth was extremely negative - out of 2,662 stocks traded, 2,263 declined, 359 advanced and 40 were unchanged on Monday.
India may adopt norms similar to the US Federal Reserve model, which regulates conglomerate-led banks in the country.
Ambani has unveiled an over Rs 1.8 trillion capex plan for the next three years.
The Reserve Bank of India (RBI) is likely to take a "more dovish" stance in its upcoming monetary policy review on December 2 and may go in for a cut repo rate in February, according to a British brokerage house report.
The global brokerage firm further said that BoP would be INR-supportive.
Economic growth has slipped to a six-year low of 5 per cent for the June quarter and is expected to turn in lower than that in the September quarter. Lack of consumption is seen as one of the key factors pulling down growth.
While rate cuts may increase churn between banks, these may not boost credit offtake meaningfully.
The government on May 17 formed a five-member committee.
A year after Bharti Airtel launched 4G services, there are only 6.5 mn users in the country
Rosier year-end seen for Indian pharma thanks to faster US approvals.
El Nino, which refers to warmer-than-average sea surface temperatures in the central and eastern tropical Pacific Ocean, will likely to keep CPI inflation up at 8-10 per cent in the second half of 2014 and will pose a 50-70 basis point risk to this fiscal's growth expectation, the report by financial services major Bank of America Merrill Lynch said.
Steps to improve governance, instill confidence in the government machinery and streamlining function across the different ministries are also important to feed the positive mood, the DBS report added.
Rajan had overturned the majority opinion of the members and chose to hold the rates at the last monetary policy review in October.
Brokerage firm Bank of America Merrill Lynch (BofA-ML) on Monday said the ongoing US government shutdown is positive for the country, as it gives additional time to recoup the forex reserves.
Chances of a rate cut in April improve if core inflation continues to ease, growth falling below the projected 7.2% for FY19 and if the global trade slowdown exacerbates.
Bank of America Merrill Lynch and JP Morgan are bankers for the bonds
According to the global financial services major, the Consumer Price Index based inflation is peaking off and is expected to be around 7.5-8 per cent in September.
Analysts say RBI will cut rates because the liquidity crunch that began this time last year is still hurting the economy and also with an eye on the August industrial production numbers, which showed a contraction by 1.1 per cent -- the steepest in seven long years.
Pulses cropping has jumped to 39.4 per cent above 2015 levels.
2nd time within a few days RIL has hit the forex debt market.
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