The RBI's financial stability report has on Wednesday highlighted the disconnect between the real economy and equity market yet again. The central bank observed that Indian equities were trading at rich valuations, with several metrics such as price to earnings multiples, price to book ratio, market cap to GDP and the cyclically adjusted P/E ratio, or Shiller P/E, at above historical averages. For instance, as on December 13, the one-year forward P/E ratio for India was 35.1 per cent, above its 10-year average, and one of the highest in the world.
Experts expect a net loss of Rs 26.7 billion for IndiGo and Rs 10.1 billion for SpiceJet in Q1FY21 driven by low traffic volume, low fleet utilisation and poor coverage of fixed costs.
How long will the RBI allow the government to borrow cheaply? A change in policy direction will see rates climb and bond values fall. Investors in debt funds are therefore at risk, as are people invested in the heated stock market, warns T N Ninan.
The benchmark Indian crude oil basket is now estimated to average $77.88 a barrel for FY19, compared to the government's earlier estimate of $65 a barrel for the year and $56.39 for FY18
A leave vote means the future of Britain's financial services industry is now hanging in the balance.
'This prime minister thinks he knows everything.' 'He has to consult, he has to talk and he has to mobilise the best people, but having seen him function, I have no expectations from him.'
The principal challenge for Rajan's successor is to work with the Bank Board Bureau and the finance ministry to complete these processes of banking reform.
Gautam Adani was the world's third and Asia's richest man a month back but a damning report by a US firm triggered a massive sell-off in shares of his apples-to-airport group, plunging his own wealth by $80 billion and the tycoon slipping to No.30 on the world billionaire index. Adani's sprawling conglomerate, which spans from sea ports to airports, edible oil and commodities, energy, cement and data centres, is under attack by US short-seller Hindenburg Research, which successfully deflated electric-vehicle maker Nikola Motors in 2020. Hindenburg, which held short positions in unidentified shares of Adani Group firms through its US-traded debt and offshore derivatives, on January 24 accused the conglomerate of "brazen stock manipulation and accounting fraud" and using a number of offshore shell companies to inflate stock prices.
Young investors could allocate in the proportion of 70:20:10 to equity, debt and gold.
'This is not without risk because extraordinary steps taken in exceptional times have the habit of becoming habits until the next crisis intervenes,' warns T N Ninan.
The Reserve Bank of India (RBI) will have to take far more pro-active steps to rebuild forex reserves, because if the status quo remains, rupee could touch 75 per US dollar by the end of 2014, Bank of America Merrill Lynch said in a report.
Since most Indian firms have kept their forex exposure unhedged, credit profile of companies in the highly sensitive sectors such as oil & gas, metal & mining, airlines could weaken substantially, says Anup Roy.
The Britain's ruling party is suffering a leadership challenge with Brexit Secretary David Davis and Foreign Secretary Boris Johnson dramatically resigning over their inability to support the terms and conditions drawn up to exit the European Union.
Secretary of State Mike Pompeo said he was taking action against an unspecified number of Chinese officials, including from the ruling Communist Party, under a US law that calls on China to let Americans visit Tibet.
Govt wants domestic production so as to save foreign currency.
Moily walked from his residence at 3, Tughlak Lane, to the Race Course Metro Station, where he boarded a Yellow Line train and alighted two stops later at the Central Secretariat station, a short walk from Shastri Bhawan, the seat of the Oil Ministry.
Also says PSU banks divestment to be considered after improvement in governance
Financial numbers can sometimes paint a rosy picture because of changes in the accounting policy or a one-time income.
SBI was the top gainer in the Sensex pack, rallying over 10 per cent, followed by Kotak Bank, Dr Reddy's, UltraTech Cement, ITC and HDFC Bank. On the other hand, Axis Bank, Bharti Airtel, ICICI Bank, Maruti and HCL Tech were among the laggards.
In his opening remarks at a ministerial meeting in Tokyo of the Quadrilateral coalition, also known as 'Quad', External Affairs Minister S Jaishankar said India remained committed to a rules-based world order, respect for territorial integrity and sovereignty, and peaceful resolution of disputes.
Economist Dr Subramanian Swamy, whose Janata Party merged with the Bharatiya Janata Party in August, has issued the following press statement on the Indian economy and demanded the implementation of a four-point agenda to save it.
Domestic fund houses forge pacts with foreign peers to mop up $7 billion.
Specially designated global terrorist Sirajuddin Haqqani, who carries a reward of $10 million US bounty on his head, is the acting interior minister while his uncle -- Khalil Haqqani -- has been named as acting minister for refugees.
Fed is still concerned about weak export growth.
With the frontline Indian benchmark indices trading near all-time highs ahead of the general elections that begin later this week, Marc Faber, Editor and Publisher of "The Gloom, Boom & Doom Report" tells Puneet Wadhwa that the Indian stock market is relatively expensive, especially the index (large-cap) stocks.
Modi credited the soldiers for maintenance of peace and security in the country and called upon everyone to remember their gallantry while celebrating Diwali.
'There is lack of demand because people have no jobs, and no income.' 'Lakhs of people have lost their jobs and they have no income which has led to no demand in the market.'
On Monday, John Ellis Bush announced he was entering the US presidential race. Here are eight things to know about him.
The Taliban will view India through the eyes of the ISI and can be relied upon to undertake hostile actions against this country, warns Virendra Kapoor.
This visit has ended on a vastly different note in comparison with Modi's previous visits. Call it a rebuke, call it a censure, call it a distancing from Modi, the sharp message would have gone home, observes Ambassador M K Bhadrakumar.
'Imran Khan hopes to fulfill the dreams of the founders of of Pakistan in establishing an Islamic Welfare State.' 'The grave situation of the economy makes realisation of this dream very difficult,' points out Colonel R N Ghosh Dastidar (retd).
Experts point to the bitter experience of countries including Mexico, Thailand, South Korea and Russia and desist from going forward with plans of issuance of such securities. They say rather than going abroad, the country should increase participation of foreign investor in the government securities which does not have any forex risk.
The 2012 Republican presidential nominee and one of Trump's most vocal Republican Party critics during this year's election campaign, met privately with the President-elect for about an hour.
'We feel there is definitely something murky in the system.' 'Will anyone believe that Nirav Modi will go to a branch and bribe a low-level officer?' 'Just look at the people with whom he had moved around.'
The whole project smacks of cronyism and corruption
'It could tempt investors to pick stocks that are not fundamentally sound.'
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India's economic growth slipped to decade low of 5 per cent in 2012-13 and in the current fiscal it estimated to be around the same level.
'The attacks made clear to all the Gulf States that Pakistan was the nursery and sanctuary of extremist violence and that this violence threatened all the countries in the region.'
It is important to understand that debt investors are a conservative lot and, in general, most such investments are hedged out of foreign exchange risk to simply earn an arbitrage profit, rather than carry the risk to possibly increase their yield.
Johnson becomes the 14th Prime Minister to be appointed by Queen Elizabeth II, the 55th to hold the post of British PM and the third in fairly quick succession since Britain voted to leave the EU in June 2016 - following on from David Cameron and Theresa May.
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