MARKETS
The world is selling US treasuries and that is bad for the RBI
The RBI is exposed to the double whammy of valuation risk due to the dollar's rise, as well as interest rate risk from the rise in bond yields
BUSINESS
NBFC Q2 Preview: Loan growth a bright spot, margins may bother
NBFCs may report double-digit loan growth with housing finance companies and consumer finance firms such as Bajaj Finance showing more than 20 percent growth. Net profit growth may decelerate owing to a high base for most finance firms.
BUSINESS
Banking Q2 Preview | All-round profit growth likely; deposits to be the differentiator
As credit growth surges, banks that have a larger portion of low-cost current and savings accounts would be clear winners amid tightening liquidity.
BUSINESS
RBI takes its first steps on digital currency, but is it really a giant leap for finance?
The RBI has addressed most of the misgivings about the Central bank Digital Currency (CBDC) in its concept note, but it doesn’t make a compelling case why it’s needed
BUSINESS
SEBI’s axe on Brickwork should keep rating companies in line
The regulator’s unprecedented action of shutting down Brickwork suggests sharper oversight and may help the debt market trust rating companies a little more than before.
BUSINESS
As bank stocks steal the show, NBFCs must offer more
Cost of borrowing and asset quality have been the checks on the NBFC rally fuelled by growth prospects of the lenders. The second quarter performance will determine whether the rally in NBFCs has more legs to it.
BUSINESS
India’s bonds will have to wait longer for global index inclusion
Both JP Morgan and FTSE Russell have retained Indian bonds under their watchlist for potential index inclusion.
BUSINESS
Does IndusInd Bank deserve its valuation boost? Yes, but conditions apply
While loan growth may have been impressive, investors should also look at asset quality when the bank details its quarterly performance this month.
BUSINESS
MC Explains | Credit Suisse and the darkening spectre of instability
Swaps on Credit Suisse bonds have surged to 14-year highs, cementing fears. While comparison with Lehman Brothers may seem overdramatic, the bank’s troubles surely go deeper than they appear. Given its "too big to fail" tag, markets are in for a tumultuous period.
BUSINESS
A financial stability storm could upset RBI’s optimism
The central bank's optimism on domestic growth could get tested by transmission risks posed by global events on the trade and financial market fronts
BUSINESS
Sebi chief shows displeasure on Algo trading
Algo trading is defined as the execution of trades by feeding an pre-defined set of instructions to a computer. Such trading uses historical information and data to execute trades.
BUSINESS
RBI rate hike leaves bond street with a lot of comfort but little direction
The 50 bps hike in the repo rate came as anticipated and the accompanying commentary didn’t veer from the expected script. But the RBI governor didn’t offer clear guidance for the coming months either.
BUSINESS
The decoupling theory isn’t cutting ice with the Indian bond market yet
While domestic liquidity and interest rate outlook would be the driver for Indian bonds, global events will continue to have an overarching effect
ECONOMY
RBI’s endgame for rupee must be a win for credibility
Managing the incidental outcomes of exchange rate policy on its interest rate policy and the economy will help the Reserve Bank of India maintain its credibility.
BUSINESS
MC Explains: Why is the British pound getting pounded? Blame it on Liz Truss's tax largesse
The UK government has announced a $45 billion package of sweeping tax cuts, the biggest since 1972, even as the Bank of England is shying away from emergency rate hikes, putting pressure on the British currency.
BUSINESS
RBI’s ban bares risks for Mahindra Finance investors
The ban on hiring third-party entities for repossession of loan assets for recovery would reduce Mahindra Finance's repossession activity by as much as 75-80 percent. Analysts see a significant increase in stress as well as credit costs for the company in the coming quarters
BUSINESS
RBI will have to consider not just inflation, but also exchange rate and liquidity
Thanks to the RBI’s defence of the rupee, liquidity is now in deficit and short-term rates have inched up so that the effective policy rate hike is more than the actual 140 basis points hike in the repo rate this year
BUSINESS
Why the RBI’s forex umbrella is getting buffeted by dollar winds
Despite most Asian units weakening sharply in July and August, the rupee showed resilience, even appreciating briefly in August, However, the US Fed’s latest rate hike, which was more hawkish than anticipated, has turned the tide decisively against the Indian unit
BUSINESS
Fed action to hit flows to India but long-term allocations bullish, says Sharma of Edelweiss Wealth
With Europe and China allocations being relooked at, India can stand to gain as fund managers are bullish on the medium-to-long term prospects of the country.
BUSINESS
Interview: With banking aspiration intact, Piramal Capital aims to double its book in 4-5 years, says MD Sridharan
The company has started getting some recoveries from the retail book of DHFL and has written back Rs 430 crore into P&L so far.
BUSINESS
Bank Nifty outperforms with 25% gain. Investors should watch out for deposit trends
Banking shares have outperformed the broad market and most sector indices in the past three months on the back of growing optimism over balance sheet growth
BUSINESS
India’s small firms will remain a thorn in bank balance sheets
Over the years, the government has helped small businesses, but they remain at the mercy of any adverse turn in the economy. The next challenge they will face is elevated input costs and high interest rates
BUSINESS
Decadal low forward dollar premiums could be slow to rise back
Expectations that the RBI won’t need to match up the intensity of the US Fed in rate hikes have strengthened the view that the interest rate differential is set to narrow further in the coming months. A narrowing interest rate differential reduces the benefit of buying dollars in the future.
BUSINESS
Investors hoard dollars on a bleak outlook, shows Bank of America survey
More than half the fund managers surveyed said they were underweight on equities and overweight on cash in the latest survey
