Forex Reserves

The central bank has a real problem on hand… Source: Trading Economics For the first time during this year, the forex reserves of RBI fell below the $400 billion mark. This is a sharp fall from the levels of $427 billion at the beginning of this fiscal. So how did the dollars deplete so rapidly?…

L&T Buyback

What exactly could have driven the buyback by L&T? During the previous week, L&T announced its first ever buyback in history. The issue was also the third largest buyback in India, with the two largest tranches having been already completed by TCS. That raises a critical question. Buybacks are understandable for tech companies with mountains…

Fed Rates

Why Donald Trump will finally have his way on rates? It is by now a well known fact that Donald Trump has been a staunch critic of the rate hikes announced by the Fed. In the latest Fed testimony, Chairman Powell hinted at further rate hikes if the growth in GDP and the strong jobs…

Rupee at 70

Can it really get much worse from these levels? Source: Bloomberg After testing the 69/$ level consistently over the last few weeks, the INR finally breached the 70/$ level during the week. Whether it will be a new normal, will have to be seen in the next few weeks, but the pressure on the rupee…

Q1 Results

But for SBI, corporate India would have fared much better… An interesting study by Bloomberg Quint highlighted that the EPS for the Nifty 50 companies at the end of the first quarter stood at Rs.114. Ironically, this EPS would have been at a more impressive Rs.120.25 had it not for the Rs.4800 crore loss that…

RIP Atalji

Vajpayee’s big economic impact is rarely spoken about… When we talk of economic reforms in India, the focus is normally on Dr. Singh and Mr. Narasimha Rao. While they certainly pioneered the reforms process in India under pressure from the IMF, the practical thrust came from Mr. Vajpayee. In fact, had it not been for…

Turkish Lira

This could be the currency to watch out for Source: Bloomberg The last time that the Turkish Lira faced a crisis was in 2001 when many Turkish banks went bust. The Turkish Lira has plummeted more than 42% since the beginning of the 2018 with the currency losing nearly 16% on Friday itself. Where does…

Bonus Debentures

An innovative way to reward shareholders… The Board of Britannia recently approved the issue of bonus debentures to its shareholders in the ratio of 1:1. Like a true-blue bonus, the issue of bonus debentures will be free for shareholders. Instead of issuing bonus shares and reducing the market price, the bonus debenture is a better…

HDFC AMC

Valuations are factoring deep into the future When Reliance AMC announced its IPO last year, the big question was why does an AMC need an IPO and a listing? After all, an AMC is in the business of managing money on behalf of retail and institutional investors. Mutual fund inflows have been quite robust and…

Tata Motors

Chandra is confident of a TAMO turnaround by 2019… Source: Bloomberg Quint ON 31st July 2018, Tata Motors reported its worst quarterly loss in 9 years. The quarterly loss of Rs.1902 crore was largely driven by below par performance from JLR. Firstly, after the Volkswagen fiasco, the pressure on diesel cars in Europe is just…