BUSINESS
Microfinance mysteries – buy bare, sell slightly better
Shares of microfinance lenders in India have recently experienced significant declines amid rising levels of non-performing loans.
BUSINESS
Goliaths and Grassroots: Divergent Dynamics - US vs India
As of September 2024, FIIs held just under 18 percent of the overall Indian equity market, while retail investors (excluding mutual funds) held nearly 15 percent.
BUSINESS
Big bold numbers, but no big deal
While rising rates may reduce net worth, many Indian banks benefit from increased net interest income. This robust regulatory environment ensures that Indian banks remain insulated from the risks that led to Silicon Valley Bank's downfall.
BUSINESS
Recalibrating rates: RBI’s reaction and the ripple for banks
As the RBI responds to global rate changes, it faces the goalkeeper's dilemma: when to act and when to remain still. Its decisions will influence bank margins, though the overall impact may be less significant than anticipated.
BUSINESS
Steel storms: Wild cyclical whiplashes
While timing the exact bottom or top is of any sector is unrealistic, being part of the cycle can still generate substantial returns. The key is acknowledging the inherent cyclicality of businesses.
BUSINESS
Of Pepsodent & Portfolios: The habit loop in equity investing
Habits influence not only on our daily routines, but also extend to other activities, including the decision-making process for investments. The current market dynamics reinforce the habit loop, and a transformation in this pattern is foreseeable only when the rewards derived from the habit become unfavourable — i.e., we see negative returns
BUSINESS
Smallcap cycles: Simultaneously brilliant and vicious
Within the small-cap realm, relatively smaller market capitalisation companies have experienced higher average returns, along with a greater proportion of companies providing returns exceeding 100 percent
BUSINESS
Privileging the hypothesis: Are we staring at an extended phase of subdued market returns?
While India's long-term potential is undeniable, widespread bullishness suggests that once the current exuberance subsides, we may experience an extended phase of subdued overall market returns, despite the country's fundamental strength
BUSINESS
The dwindling relevance of the credit cards business model
In the medium term, the growth of the Unified Payment Interface (UPI) surpasses that of the credit card business in India.
BUSINESS
Network Effects: A double-edged sword in regulated markets
IEX not only risks losing its monopoly status but may also need to make compromises on the transaction fees it charges in order to retain customers
BUSINESS
Indian equity markets and the intersection of crude oil, forex and interest rates
While the domestic equity market is optimistic about the possibility of the Fed not raising rates again, India may have to follow a different rate cycle of its own
