The trio, 'twin shocks' of demonetisation and GST, 'twin balance sheet' problem that has been weakening India's banking system and the 'twin deficit' problem will continue to challenge economic management and performance in the year ahead, says Shankar Acharya.
Sensex sinks into red at close on growth concerns.
'Our prime minister has set a scorching pace. He's logged more airline miles than professional airline pilots... On his regular visits to Delhi, he has also signed files galore.' 'How much of this activity has translated into useful action on the ground,' asks Devangshu Datta.
The senior RBI official, who assumed office on July 31, a day before he was to retire from the state-run Bank of Baroda as its chairman, said developments in construction technologies should make it possible for developers to bring down home prices.
The gross bad debt of the Indian banking system as of March was at Rs 7.11 lakh crore
Broader markets underperformed the benchmark indices with BSE Midcap and Smallcap indces slipping 0.8%-1.1%
The Reserve Bank of India (RBI) has offered some leeway to banks for early detection and resolution of bad loans. Under the new regime kicking off from April 1, lenders can finance 50 per cent of the outstanding loan value, RBI said in Framework for Revitalising Distressed Assets in the Economy, released on Thursday.
The rally in most of these stocks is partly attributed to impressive financial performance.
Deutsche Bank in India has managed to avoid the bad-loan problems plaguing its rivals such as Standard Chartered Plc.
The index gained 572 points, or 2.4 per cent, this week while the Nifty added 164 points, or 2.3 per cent
Bold reforms and prudent monetary and fiscal policies by the incoming Narendra Modi government will help the economy to grow at 6.5-7 percent, says a report.
Till March 2011, things were manageable.
Credit rating agency Crisil observed in its report that some 'high frequency indicators go out of whack' as credit growth and service tax collections are not in tune with the CSO's growth projections.
Only three of India's 45 commercial banks have cut base lending rates since the Reserve Bank of India's surprise easing this month, hurting the government's drive to lift business investment.
Participants are keenly waiting for the January IIP.
The central bank has, so far, cut its repo rate by 125 bps.
RBI is expected to discuss about the impact of GST in its monetary policy.
Strategic sales are tricky and were last undertaken when the Vajpayee government was in power.
Brokerage CLSA has raised its "already substantial overweight in India", its chief strategist Christopher Wood wrote on Aug. 7.
On government's last week's announcement of revamping of PSU banks, Fitch Ratings said the move is "credit positive, but risks remain".
Because of India's weak fiscal position, the plethora of debt-burdened infrastructure companies and the poor asset quality of public sector banks, economic growth in 2015-16 may be limited to about six per cent, say Shankar Acharya.
The S&P BSE Sensex ended 190 points up at 23,382.
The rise in US interest rates and associated change in the direction of capital flows, the fall in oil prices and the slowdown in China will dominate the markets, say Abheek Barua and Bidisha Ganguly
Gold prices fell to a 5-year low of less than $1,100/ounce.
IT exporters were the top gainers amid a weak rupee along with select index heavyweights.
ICICI Bank extended yesterday gains, rising 10% in two trading sessions
'This year's Budget didn't give into populist measures everyone was expecting after demonetisation, so I think that was a positive step.' 'Hopefully the Budget will continue in the way it has been.'
Nifty 50 firms' net profit estimated to grow by a modest 3.1% in Q2, reports Krishna Kant.
After 2015, all re-structured assets will be treated on a par with non-performing assets, requiring the same level of provisioning.
Premium valuations and lack of big triggers will weigh on Indian equity markets in the near term, believes Mahesh Nandurkar, India Strategist, CLSA.
The Governor, who completes one year in RBI on Wednesday, has stabilised the rupee and is getting a fix on inflation.
The government has the power to allocate coal blocks to enterprises in specific sectors -- such as power, and iron and steel in particular.
A survey by industry body Ficci has lowered the country's economic growth forecast for 2013-14 fiscal to 5 per cent, from 6 per cent projected in July, indicating tough times ahead.
The 30-share Sensex ended down 224 points at 28,442 and the 50-share Nifty ended down 101 points at 8,606.
The Bank suggested reforms in infrastructure sector.
As many as 10 public sector banks could be out of the infusion plan because of Sebi's minimum public shareholding norms.
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.
'We are in the middle of an unprecedented SIP revolution.' 'Monthly inflow through SIPs will be Rs 15,000 crore to Rs 20,000 crore soon.' 'Traditional avenues of Indian savings like bank fixed deposits, gold or real estate are no longer attractive to invest.'
'The entire system acted as cheerleaders to Vijay Mallya. The RBI failed, the banks failed, the auditors of the banks and Mallya failed.'
