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
BUSINESS
AT-1 bonds are back, but will they bring perpetual pain again?
The main risk in investing in such bonds is that only the issuer has the discretion to redeem them early.
BUSINESS
RBI’s moment of truth on exchange rate is upon it
The over $10 billion drop in the forex reserves in a single month shows that the central bank is doing whatever it takes to reduce the pressure on the rupee
BUSINESS
Interview: RBI needs to ease off forex intervention, says Standard Chartered’s Sahay
A weak currency could complicate the inflation outlook but the RBI is rightly focused on curbing inflation through rate hikes, says Anubhuti Sahay, who believes that the latest data on gross domestic product growth won’t sway the central bank towards a pause
BUSINESS
Zerodha reaches the cusp of moderation after 12 years of scorching growth
While founder Nithin Kamath supports the tightening of regulations, he says the short-term impact on business cannot be ruled out. Superior technology has been its distinguishing factor but Zerodha, too, has faced glitches. In July, some demat accounts were said to have been hacked
BUSINESS
RBI has a long drive ahead on path to 4% inflation target
While economists expect inflation to average about 5 percent in FY24, the RBI would consider it a win only when the coveted 4 percent medium-term target is achieved.
BUSINESS
Let the markets decide the need for bank privatisation
The debate about bank privatisation has at its core the difference between market expectations and social goals
BUSINESS
Home loan lenders must tread carefully in developer loans as they look for margin boost
Investors are taking an optimistic view on HFCs, both on the growth front due to a housing market revival and on asset quality, with troubled project loans getting resolved.
BUSINESS
RBI faces a core challenge in its journey to drive inflation below 6%
Core inflation has climbed and remained above 6 percent for over a year now and it could make the RBI work harder to bring headline retail inflation into the 2-6 percent band even if other factors such as base effect and easing commodity prices drag it down
