Borrowing numbers for second half just don’t seem to add up When the government announced the Rs.145,000 crore tax break for Indian companies, the immediate impact was on the bond yields. The argument was that the government would be resorting to more borrowings and a higher fiscal deficit. But, the government has held its second…
Why the NBFC squeeze matters to real estate developers Source: Ambit / Knight Frank When the NBFCs started feeling the squeeze, the first sector to take a hit was the realty sector. Most realty stocks have seen violent correction. What is this correlation all about? Why realty got hit? If you look at the chart…
What Indian aviation companies need to do from here on? Indian aviation has a real problem and that became apparent when the quarterly results were announced by Indigo Airlines. Despite a 42% market share, Indigo had to take a huge loss in the quarter. According to CRISIL, the total combined losses of the aviation sector…
Will 8% be the new normal for the Indian bond markets? During the last one week, the 10-year bond yields decisively settled above the 8% mark. After touching a high of 8.06%, the bond yields settled around the 8.03% mark. What is material is that 8% is not the psychological barrier anymore and now appears…
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…
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…
Exports flatter but trade deficit remains a major worry… After a disappointing first 6 months of the current fiscal, the trade data for November finally showed a semblance of recovery. Of course, imports were higher but exports grew much faster. However, the trade deficit continues to be at elevated levels and that remains a major…
The challenge will be in handling the softer aspects… The cabinet finally approved the plan to merge PSU banks. With gross NPAs of the PSU banks at over 12.5%, there was little else that could have been done. However, there are a few key things to know about the next steps in the PSU bank…
