New RBI Governor

What will be the key challenges for Dr. Urjit Patel? The suspense over the next RBI governor is finally over and Dr. Urjit Patel will be taking over from Rajan on September 04. While Dr. Rajan leaves behind a robust and stable economy, the new governor will have 3 key challenges to contend with. Inflation…

Big Diesel Shift

For Diesel engines, this may be the beginning of the end… The problems at Volkswagen last year and Indian states trying to ban diesel cars this year seem to be largely unrelated. But there is a common link between the two. Both are indicative of a larger shift that the world automobile industry is making…

Jackson Hole Hint

What Janet Yellen is indicating to the world on rates? In the aftermath of the Jackson Hole Symposium of central bankers, Janet Yellen was hawkish along expected lines. Janet Yellen has admitted that the macros make a very strong case for a rate hike as early as September. So what are the key influencing factors…

Algorithm Trading

Why not just leave it alone; as it is… SEBI has recently brought out a discussion paper on algorithmic trading and has sought feedback from market participants. The idea is to provide a level-playing field to small and medium investors; which is definitely laudable. The problem is that controls on algorithmic trading may not be…

WPI Inflation

Why it could be a bigger worry for policymakers… The WPI inflation for July 2016 doubled to 3.55% on a month-on-month basis. Combined with CPI inflation coming in at 6.07%, there is a real concern that food inflation may be driving overall inflation higher. Consensus estimates had placed WPI inflation at 2.50% and the actual…

SBI Mega Merger

How SBI will actually benefit from the mega merger… The merger of 6 subsidiaries into SBI has finally been given formal shape. The merger ratio is likely to be as follows: SBI/SBBJ 28:10, SBI/SBM 22:10, SBI/SBT 22:10 and SBI/BMB 4.42:100. Since SBH and SBP are wholly owned subsidiaries of SBI, there will be no swap…

GST & Inflation

Is GST likely to be inflationary in India?     There has been a general belief that GST will add to inflation in the initial years. While the quantum of the impact of inflation cannot be predicted, the global experience is that the inflation rate does creep up by 0.5% to 1% annually in the…

Birla Restructuring

Need to simplify the business and unlock value…     The much awaited restructuring of the Birla Group came in this week. As part of the merger, Aditya Birla Nuovo Ltd (ABNL) will be merging into Grasim in the ratio of 10:3. Shareholders of ABNL will get 3 shares of Grasim for every 10 shares…