M&A in India: The Case for an Integrated Code
Valuation is a cornerstone of every M&A transaction, influencing deal structure, pricing, and stakeholder decision-making. However, the current regulatory framework governing valuation is fractured.
Delivery Diaries: Broths or ice creams — the winter food ordering conundrum
Traditional wisdom doesn’t always explain consumers food ordering patterns in winters. There is a surge in soup and dessert orders, with rasam and gajar halwa being popular choices, while ice cream sales defy traditional wisdom, witnessing a 61% increase from November to December.
Europeans need to learn some lessons about power — and fast
The world has changed, but the EU’s worldview hasn’t changed with it
Chart of the Day| EV Batteries: Powering the future
The emerging EV battery industry in India presents significant opportunities, potentially creating over 300,000 jobs and generating $5 billion in value by 2030 while reducing import dependence
Why has Godrej Consumer's Q3 results warning spooked FMCG investors?
The entire FMCG pack has been stung by Godrej Consumer's update, on how rising palm oil prices and unseasonal weather could hurt its business in Q3, amid slow demand
India should focus on internationalisation of rupee not de-dollarisation
Sanghnomics: India is strengthening the internationalisation of the rupee, with 22 countries opening Vostro accounts to trade in Indian currency. The RBI suggests promoting trade invoicing in INR to reduce the current account deficit and foreign exchange reserves
Book Review | The Rocky Road to Prosperity
Prosenjit Datta’s book is a rare find in these lamentably polarised times—it is an impartial analysis that weighs the pros and cons carefully and hopes that policy makers have the good sense to make our dream of becoming a developed economy come true in our lifetimes
VCs will chase startups that help make money move in 2025
Venture capitalists have thrown their wallets towards Indian startups engaged in money flow in 2024
LG India IPO: Best in class profit margins, but lags in cash conversion
The return on capital employed ratio improved significantly in FY24
Are Indian businesses getting smaller?
The share of employment in non-farm establishments employing 5 workers or less has gone up in the past five years. Around three-quarters of workers in the non-agricultural sector are employed in businesses having 9 workers or less
What Elon Musk doesn’t get about military technology
Technology matters amongst military weapons only when they enjoy decisive edge over the existing weapons through a generational advantage. We, therefore, need to water down the enthusiasm over drones being a superior or transformative military technology to fighter jets. Drones, at best, will co-exist with other new generation weapons
The Eastern Window: Nepal-China deal poses strategic challenge to India
Nepal’s PM Oli has signed an agreement allowing China to build connectivity infrastructure under the BRI scheme. This could pose a strategic challenge for India while Nepal risks getting into a debt trap
India shouldn’t let bilateral ties with Bangladesh become hostage to domestic politics
BJP in West Bengal is hunting for an issue to undermine the Mamata Banerjee government after successive electoral setbacks. The party has latched on to the goings-on in Bangladesh to call for a boycott of the country’s citizens. This is self-defeating as Bangladeshis, among other things, bring in significant business to India’s healthcare industry, particularly in Kolkata. India’s strategic interests need to be insulated from the ebb and flow domestic political campaigns
Cautious approach to monetary policy in the backdrop of uncertainties
RBI is counting on a winter disinflation in perishables. But with risks to inflation lurking, MPC's guidance is best described as non-committal. For now, it restricted itself to boosting credit supply through a cut in cash reserve ratio
CRR cut is the first step to monetary easing
Half-a-percentage point reduction in cash reserve ratio will influence bond yields. The average repo rate over the last decade has been 6-6.5 percent. A new cycle could begin with cuts of 25-75 basis points, subject to the inflation trajectory
MPC balances prudence and practicality amid divergent growth inflation dynamics
If no new risks emerge that derail the moderation in inflation to the projected 4.0% by Q2 FY2026, a repo cut in February 2025 could very well be on the table.
The Reading List: December 6, 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
Status quo on rates for now, but CRR cut will keep financial conditions supportive for growth
The infusion of durable liquidity, via the CRR cut, will help avoid any persistent liquidity squeeze, in turn giving MPC the time to assess the strength of the economic growth momentum and inflation pressures
Investors pour $140bn into US stock funds after Trump election victory
Bets incoming administration will enact ‘pro growth’ agenda spur rush into Wall Street equities
RSS concerned about India's changing religious demography
RSSFACTS: Mohan Bhagwat's call for more Hindu children reignites concerns about India's changing religious demographics. Muslim population growth has outpaced others, raising alarms about future societal impacts, as historical trends show potential risks of religious conflict
How the MPC just dodged a curve ball on a sticky wicket
A 50 bps CRR cut, and rates on hold is a safe play for the MPC, caught in a growth-inflation conundrum, at this point.
Europe’s string of setbacks could result in a knock-on effect on Indian equities
Europe contributes to around a fifth of India’s exports and political crises in countries such as France and Germany threaten to upend its economy in the near to medium term
A deep dive to generate maritime momentum
Coastal Shipping Bill and two other proposed legislations to help India harness sea power to enhance commercial activities
If not Indian equities, then where?
Active allocation shifts require investors to jump in at the right time to grab returns, a hard ask
What next for MapmyIndia after consumer business fiasco?
Transfer of B2C business for a minority stake has upset investors.
