BUSINESS
Amid recession gloom, fund managers hope for a China boost
Cash levels with fund managers have been above 5.0 percent for 17 consecutive months; this length of time is eclipsed only by the 32-month DotCom bear market.
BUSINESS
MC Long View: No triggers for HDFC Bank re-rating
The merger with HDFC will determine HDFC Bank stock’s performance over the next few months. Analysts worry that the costs associated with the merger would be significant, already visible in the high operating expenses in Q4FY23.
BUSINESS
Interest rate swaps are signalling a pivot in the making
Swap rates were right in predicting the RBI’s fast-paced rate hikes that began in May 2022. It is likely the current rate cut signals of swaps are right too
BUSINESS
MC Long View: Further de-rating seems to be on the cards for Bajaj Finance
One of the key factors behind Bajaj Finance’s stock-losing investor love is the re-emergence of banks as the go-to exposure to India’s financial sector. The verdict on the stock, however, is still optimistic as 23 brokerages have a buy rating though valuation remains a worry
BUSINESS
IMF sees real rates falling sharply, but don’t ignore the caveats
The IMF is projecting a significant fall in real interest rates in emerging economies in the long term with that of China to be near zero by 2050 led by demographics and productivity factors
BUSINESS
Moneycontrol Pro Panorama | The earnings juggernaut is about to roll: It's time to take stock
In today’s edition of Moneycontrol Pro Panorama: Can Congress recover from its woes, SEBI's responsible message push for advisors, global food inflation moderates further, double whammy for Mphasis, and more
BUSINESS
Out-of-syllabus pause gives RBI time to fret and freedom to markets
On the whole, the RBI’s decision of keeping policy rate unchanged and accompanying hawkish statement seem to be the best course of action for now. But will it have the desired effect on inflation is a critical question.
BUSINESS
RBI’s real interest rate goal just got higher with OPEC’s output cut
More than OPEC’s output cut, domestic inflation trajectory upsets the RBI’s inflation projection for the current and next years. The central bank may need to sacrifice more demand through higher real interest rates to control inflation
BUSINESS
Moneycontrol Pro Panorama | It all starts and ends in the bond market
In today’s edition of Moneycontrol Pro Panorama: India's growing gaming market needs better policies, the only solution to the bank crises, Finance bill amendments makes market jittery, fixing Punjab's ailing agriculture sector, and more
BUSINESS
Chart of the Day: A test for the insurance heft in bond market
India's insurers have been big buyers of long-term government bonds as they witnessed strong business growth. That could now be put to test.
BUSINESS
Booking a fraudster became a bit more onerous for bankers
The Supreme Court wants banks to hear borrowers accused of fraud and give a reasoned order when labelling them as fraud
BUSINESS
Moneycontrol Pro Panorama | Banking fragility and the heavy hand of the State
In today’s edition of Moneycontrol Pro Panorama: Fed's pause a clue to investors, layoffs a sign of structural slowdown in business, India's role crucial to avert global climate change, China partnering with Russia is bad news for India, and more
BUSINESS
Chart of the Day: India’s insured deposit pile isn’t high enough
In FY22, about 50 percent of the deposit pile of banks was insured under deposit insurance which is lower than 60 percent in the US
BUSINESS
India’s life insurers to get the last hurrah on growth before flatlining
The month of March could show sharp business growth for life insurers as Indians make their final dash to secure tax-free insurance policies before new rules kick in
BUSINESS
Fed swap lines don’t impress markets that crave end of hikes
More than rethinking its rate hiking spree, the Fed’s real challenge is to make investors believe that the financial system can be patched up quicker than inflation
BUSINESS
India valuations fair amid global turmoil, says Gohil of Credit Suisse wealth
The SVB crisis is unlikely to turn into a contagion in the US and the Federal Reserve will need to respond to inflation by hiking the policy rate by at least 25 basis points, said Jitendra Gohil of Credit Suisse Wealth
BUSINESS
Who will blink first? Moody markets or data driven central banks?
Powell’s dilemma is acute as the stability of banks depends on market sentiment even as the Fed’s credibility depends on inflation data
BUSINESS
Why the Fed had to step in to save Silicon Valley Bank depositors
The Fed’s timely action has calmed the markets for now, but the sharp rise in interest rates could mean trouble for other interest-rate sensitive businesses
BUSINESS
US Fed and China to give Asian currencies a tough time, says Law of Bank of America
Asian currencies won't show a unidirectional in 2023 like they did in 2022 because of the push and pull of US Federal Reserve's rate hikes and China's reopening, said Patrick Law, head of forex trading for Asian Pacific at Bank of America
BUSINESS
Aptus Value Housing Finance trades 30% below IPO price: Time for Ambit's contrarian call?
Brokerage firm Ambit Capital does not agree with many of its peers who have a buy recommendation on Aptus Value Housing Finance stock
BUSINESS
Yes Bank gets a big 'no' from investors as lock-in ends for bailout peers
Under the rescue plan, 8 financial entities, led by SBI, had infused Rs 10,000 crore in Yes Bank. They were mandated to hold the shares for three years. As that lock-in nears its end, Yes Bank faces selling pressure.
BUSINESS
Citibank’s exit: Not easy to do business in India?
The 2008 financial crisis prompted the RBI to turn up the regulation on banks. It also prompted multinational banks to turn down their enthusiasm in spreading their business across geographies and focus on healing the home business
BANKS
Where is that Rs 100 deposit going?
In Apr-Jan of FY2023, out of a Rs 100 deposit, Rs 37 went towards services, such as transport, trade, and so on. While Rs 14.07 went to agriculture, Rs 10.58 went to the industry. Since banks could not meet the growing demand for loans from deposits alone, they resorted to borrowings as well.
BUSINESS
Has India's GDP taken a turn for the better or worse? Depends on how you look at it
Growth in private consumption, the bedrock of India’s economic growth, dropped sharply to a mere 2.1 percent in the December quarter. Consumer sentiment indices may show that Indians are optimistic but they are clearly not putting their wallet where their mouth is
