BUSINESS
Indian Public Equity Markets: When in doubt, stay away
The Nifty-50 Index's 1-year forward price-to-earnings ratio is nearly 2 standard deviations higher than the historical average. Fund managers are better off today, opting for the 'joy of missing out' (JOMO) than succumbing to the 'fear of missing out' (FOMO) while investing
BUSINESS
What BHP’s commodity outlook says about copper, iron ore
The near term outlook appears to be soft as China’s economic recovery is not helping, although the longer-term outlook may remain bright due to the green transition
BUSINESS
Phaseout of buyback tax will complicate matters for companies
The proposed changes to the buyback tax regime are poised to impact both resident and non-resident investors in India. Further, with companies being obligated to withhold tax on distributions made on account buy-back, the compliance burden of such companies would also increase significantly
BUSINESS
The Reading List: August 23, 2024
Here are some articles and social media gems from the world of economy, business and finance, curated by our research and opinion teams for your weekend read
BUSINESS
Chart of the Day: Market’s steadfast faith in RBI’s forex intervention
The RBI has been the Rock of Gibraltar in the forex market for the past four years
TRENDS
Kolkata rape-murder case: A wake-up call for women's safety and workforce participation in India
The Kolkata doctor’s rape case brings to the fore the impact of unsafe work environment and systemic failures on women. If we want to make more women a part of the country’s labour force, workplace safety has to be one of the core areas of concern
POLITICS
Rethinking Section 29A of IBC to get the best out of a resolution process
The challenge of business recovery lies in balancing regulatory protections with realistic opportunities for revival. It is important to recognise that not all distressed companies are beyond repair, and not all promoters are incapable of restoring their businesses to health. One potential solution is to implement a tiered system within IBC’s Section 29A that allows for exceptions based on the promoter's past performance/conduct in business and their proposed resolution plan
BUSINESS
Future of UPI: The transformative power of credit integration
Digital payments in India is set to revolutionize with the integration of credit into UPI. By enhancing financial flexibility and accessibility, this development promises to expand credit access, democratize financial services, and drive significant growth and innovation in the sector
BUSINESS
Growth takes priority for retail investors over quality
The smaller indices are hovering near their all-time high levels, while the benchmark Nifty 50 trades closer to its long-term average and significantly below its peak valuation. If earnings fail to improve, we could see frontline stocks begin to catch up, while smaller stocks may experience some profit-taking.
BUSINESS
Chart of the day| How Technology has transformed the trading landscape
The contribution of non-algo or manual trading in the derivatives segment has plummeted from 100 percent in FY03 to just 4.7 percent in FY25.
BUSINESS
Harnessing AI for India’s Growth: The case for establishing a dedicated AI ministry
India should establish a dedicated AI ministry to unify policies, foster innovation, and address ethical concerns. This move would harness AI’s potential for economic growth, global leadership, and social progress, positioning India as a leader in the AI landscape
BUSINESS
Chart of the Day: Earnings upgrade momentum weakens for FY25
June quarter earnings were subdued because of lower sales volumes and volatile input costs
INDIA
A pathway to transform India’s ports
Like the Logistics Policy, where the central government led the way; creating guidelines and states subsequently developing their own aligned versions, India needs to follow the same pattern as far the maritime policies are concerned
BUSINESS
The Reading List: August 16, 2024
A list of articles and social media gems from the world of economy, business and finance curated by our research and opinion teams for you to catch up on your weekend read
BUSINESS
Chart of the Day: Factors that could tighten liquidity in coming weeks
Government spending has been a harder variable to predict
BUSINESS
Supreme Court sought balance in mineral extraction judgement but more litigation appears inevitable
The Court's pronouncement has been met with considerable alarm and disappointment from the industry stakeholders. While the provision for staggered payment over 12 years offers some respite, the persistence of a 20-year tax liability represents a considerable financial obligation
POLITICS
Supreme Court walks a tightrope in allowing states to retrospectively levy tax on mineral extraction
Supreme Court has given effect to states right to levy a tax on mineral extraction with retrospective effect. The Court has held that it generally does not apply a judgment prospectively when upholding the legislative competence of states. However, states have been left with the discretion to forego the dues prior to July 25, 2024. So, a lot depends on the approach that respective states adopt now
TECHNOLOGY
EV competitiveness is based on mastery of design by the manufacturer
The vertical design integration model works on the premise that in the automobile industry value chain, the biggest opportunity to reduce cost is at the design stage and not so much in manufacturing
BUSINESS
ESG Disclosures: Navigating corporate misconduct and investor confidence
India's regulatory landscape for ESG disclosures has evolved from voluntary guidelines to mandatory BRSR reports for top firms. Recent corporate misconduct highlights the importance of robust governance, with investors increasingly scrutinizing ESG disclosures to mitigate risks and bolster trust
BUSINESS
Chart of the Day | Comparing MSCI India and Nifty
While both indices are constructed using the free float market capitalisation method, the MSCI India Index applies a special adjustment called the Foreign Inclusion Factor (FIF) and foreign room
INDIA
Competition Commission’s standard to gauge cartelization is in the midst of a quiet change
Data and a July order of CCI which reversed an earlier decision indicates a shift in the standard of proof required in order to establish a contravention. Preponderance of probabilities may no longer be sufficient
BUSINESS
Budgetary GST reforms will help improve ease of doing business, new age businesses & increase investor confidence
The changes are expected to benefit multiple sectors, particularly small and medium business, for whom tax litigations can often spell a death sentence
BUSINESS
The Reading List: August 9, 2024
Our research and opinion teams have curated articles and social media gems from the world of economy, business and finance for you catch up on the weekend
BUSINESS
A golden opportunity beckons
Budget’s proposal to reduce import duty on gold opens the door to transform the entire sector. Government should consider establishing price benchmarks and quality standards that will align with a body such as London Bullion Market Association
