MC Insider | Trouble on the tracks, a rule to regulate star power and new bank in town

Railway stocks have been on a dream run, fuelled by order books and growth projections that could make even bullet trains blush. But when it’s time to roll out the goods — quite literally — the tracks seem a lot bumpier. Execution delays, supply-chain snags, and testing troubles are threatening to derail the narrative. And here’s the juicy bit: a little birdie tells us one wagon maker for a high-profile metro corridor may be staring at some serious penalties for failing to deliver on time. It’s a timely reality check for investors betting on untested capabilities and “on-paper” growth. After all, it’s easy to rally on the bourses but much harder to deliver steel on wheels.

SEBI’s Rs 50,000-crore threshold for letting asset managers launch a second fund in the same category has the industry buzzing but not in harmony. The smaller fund houses are yelling “rigged for the big boys.” One CEO fumed, “Why Rs 50,000 crore? Why not Rs 10,000? Or Rs 1,00,000?” And why for all categories, when there is hardly any liquidity problem in large-caps?” But the spiciest mutterings come from inside the big houses themselves. Some suspect it’s less to do with market discipline and more about boardroom control — a neat way for CEOs of these asset management firms to keep star fund managers well out of the limelight. After all, this is the only industry where fund managers outshine their bosses. Here, portfolios can balloon, but star power must remain well-regulated.

Indian private banks may still dominate retail banking in the affluent segment, but challengers are lining up at the gate. One foreign bank has gone all in seeking approvals to open branches in every nook and corner of the country, rattling private banks in the affluent segment. Another one from the Middle East is busy ramping up it's manpower and presence in the retail segment. Affluent to mass affluent is its target, setting stage for a larger deal at play. Is this a precursor to a much talked about stake sale?