BUSINESS
What's dragging PSU stocks down
The recent sell-off in PSU stocks by institutions is driven by two main factors: valuation and performance concerns
BUSINESS
Chart of the Day: Home loans the slowest growing segment for lenders in FY24
Indians have borrowed more to finance discretionary consumption than housing
TECHNOLOGY
India Eyes Global Gaming Market: Crafting the next generation of AAA games
India is emerging as a potential AAA gaming hub, leveraging its growing talent pool and government support. Despite challenges like investment and infrastructure, strategic investments and enhanced skills could propel Indian studios to global prominence in AAA game development
BUSINESS
SEBI’s shifting positions on beneficial ownership leaves FPIs in limbo
In view of the September 9 deadline, one would hope that the pending applications would be disposed of expeditiously in accordance with law. There are significant costs and hardship involved in winding-down a structure and to recreate a fresh structure
BUSINESS
Something feels not quite right in the mid-cap rally
A significant portion of the rally in mid-caps can be attributed to the substantial inflows of mid-cap, small-cap, and sectoral/thematic funds. Mid-cap funds, which attracted just Rs 500 crore in 2020, saw inflows of Rs 1,600 crore in July 2024 alone and a total of Rs 22,900 crore in 2023
BUSINESS
Chart of the day | IPO investors seek quick returns
If institutional investors, equipped with extensive research capabilities and resources, behave similarly to retail investors and sell their IPO holdings rapidly, are they truly maximising the potential of their investments?
BUSINESS
India-Singapore Trade Ties: Boosting economic relations amid regional challenges and changing global landscape
Despite growing ties, India must address protectionist policies, enhance service sector access, and explore broader Southeast Asian trade opportunities to fully leverage regional economic integration
BUSINESS
Rate cuts may be round the corner as economic growth drivers are losing momentum
Growth is softening and the global rates cycle is pivoting. RBI may deliver the first rate cut next month and lower policy rate by a percentage point in FY25
BUSINESS
Chart of the Day: Is China’s steel output decline the answer to the Indian steel producers’ woes?
China’s steel output declined sequentially in June and July, raising hopes output curbs could limit its appetite for exports that have depressed global steel prices
BUSINESS
What GVA data tell us about the structural change in the Indian economy
The share of manufacturing in total GVA was higher in the June 2011, June 2014 and June 2019 quarters than in the June 2024 quarter
BUSINESS
The Reading List: August 30, 2024
A look at 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
India’s Digital Payments Surge: Revolutionising commerce and empowering small businesses
India’s digital payments have surged nearly fivefold in six years, with over 40% of transactions now cashless. UPI leads this shift, empowering small businesses by removing geographic barriers and enhancing convenience. Government initiatives have also helped in driving the growth story
BUSINESS
Chart of the Day: More Indians are becoming credit aware to be credit worthy
Indians in smaller cities and towns are becoming more credit aware and ready to borrow.
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
Chart of the day | How to give your SIP investment a booster dose
A hack popular among investment managers and one proposed by Zerodha Fund House is to progressively increase the SIP contribution each year
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.
