Experts feel select companies in banking, automobiles, financial services & real estate will gain from lower interest rates
As with TCS, most companies put their money in mutual funds, corporate bonds and bank deposits, which are losing their appeal versus government bonds in terms of both returns and safety.
Two successive reports, one by Percy Mistry in 2007 and the other by Raghuram Rajan in 2008 had provided the RBI and the finance ministry with blueprints of what to do next. Both reports, unfortunately, was put on ice. The global meltdown saved the RBI. It also saved the finance ministry from having to work on the two reports.
'The one sector where there is still a sense of crisis is banking, but the government has regrettably set its face against privatising any of the government-owned banks,' says T N Ninan.
Of the 40 CEOs polled from across the country, 60 per cent identified a fractured electoral mandate as a bigger risk than trade wars, volatile oil prices, and inflation.
While PNB did not name the other lenders, Union Bank of India, Allahabad Bank and Axis Bank are said to have offered credit based on letters of undertaking (LOUs) issued by PNB. Foreign bank branches too are under investigation.
With a sole mandate of inflation targeting, RBI wears many hats.
The lockdown that crippled the entire logistics, delivery and supply chain network to near zero, was enough to deal a body blow to India's fastest growing unicorn whose very business model saw a severe disruption, like several other firms and sectors.
PE firm True North's investment model is to take 51% stake in mid-sized companies and make them large, says Niraj Bhatt.
Control over PSU banks is what is allowing the government to drive this scheme.
Tight liquidity will hit over-leveraged and cash-hungry companies, spare conservative ones
Unless Dr Urjit Patel starts clearing the balance sheets of banks, the investment cycle will not start. Unless the clog in the drain is cleared, further lending cannot happen. If further lending doesn't happen, the investment cycle also will not happen, writes M R Venkatesh.
If banks cannot charge interest from borrowers during the moratorium, who will bear that cost? Should the depositors subsidise the borrowers by foregoing interest on deposits? In that case, we will turn banking on its head! notes Tamal Bandyopadhyay.
The bank lost out on fairly meaningful quantum of fees from point of sale terminals and ATM usage during the demonetisation exercise.
Of the 700-odd Indians having foreign bank accounts, not all can be deemed to be operating these illegally.
Global disinflation has finally caught up with India's high-cost economy.
China's malfunctioning stock markets remained semi-frozen.
2018 has been a disappointing and highly volatile year for equity investors.
'As long as the government owns the banks, bankers will follow signals from politicians as to how to lend.' 'State-owned banks will remain State-owned banks as long as the current dispensation is in power -- and certainly there will be no change if the other chaps get in,' says Mihir S Sharma.
Valuation-wise, the markets look more attractive now
A K Bhattacharya digs into the yet-to-be-public report on ways to curb black money and finds out that Modi's next moves could include action on dabba trading, hawala, and education.
RBI has cut the rates thrice so far in 2015 by 25 bps each.
The company and its sister concern, Forever Precious, owe close to Rs 5,500 crore.
The Sensex ended 229 points down at 27,602 and the Nifty ended down 63 points at 8,293.
'LIC's proposed investment will come out of what is technically called the 'policyholders funds'.' 'As the name implies, these monies belong to policyholders; that is, you, me and 25 crore others who have taken a total of 30 crore policies from LIC.' 'It is not the government's or LIC's money to play poker with,' says S Muralidharan, former managing director, BNP Paribas.
Vishal Kampani has big shoes to fill as his father is close to the Ambanis, the Wadias and the Ruias, says Dev Chatterjee.
Don't get carried away by the current rally; be picky and take a stock-specific approach.
Over to the government how they manage the uncertainty of monsoon and revive spending in order to entice RBI for another round of rate cuts
RBI Governor Raghuram Rajan expressed anguish at the banks' reluctance to pass on benefits of the earlier rate cuts.
With strong long-term fundamentals, banking sector cannot be completely ignored
Starting as a maker of hydraulic pumps, the Bengaluru-based company graduated to components for automakers like BMW and Audi, and then Airbus and Boeing
Mistry's intention of selling ailing steel maker Corus, Tata's so-called feather in the cap, was one reason for his ouster
If your fund's expense ratio has risen dramatically after Sebi's recent changes, compare it with the category average before switching.
Jaitley said a 10 per cent tax long on capital gains exceeding Rs 1 lakh made from the sale of shares has been introduced but those made till Janaury 31 would be grandfathered. A 10 per cent tax on distributed income by equity oriented mutual funds has also been proposed in the budget.
Andhra Pradesh now comes third in ease of doing business.
Aditya Puri thinks the government is on track.
'Everyone is still trying to understand the quantum of impact demonetisation will have on the economy.'
Most expect these bubbles to break in short order and cause serious financial pain to anyone who's foolhardy enough to remain invested in financial assets.
Money is being released and the government knows it will have to front-run private investment.
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