Bank NPAs are down, but watch the SMA-2 loans closely
A look at the second quarter results of banks suggests that there has been a rise in the special mention category-2 loans (SMA) of some large banks. These can be tricky for the lenders if things don’t go according to plan.
All the signs point to a downcycle in commercial vehicles
Lack of strong bounceback in infra activity, moderating urban demand and easing truck rentals raise doubts over CV sales improving
Will there be a Santa Claus rally this year?
Instead of trying to profit from this rally by buying in advance and anticipation of higher prices, attempt to exit from weaker stocks
Who’s Who in the Musk ‘A-team’ vying to shape Trump 2.0
Billionaire likely to push for government roles for acolytes and allies to cut regulation and protect his businesses
Chart of the Day: The remarkable recovery in Power Grid’s capex
Total works in hand rose to Rs 1.43 lakh crore in November 2024 from Rs 50,500 crore in the year ago period.
Trump’s trade war threat against China signals a bumpy ride for India’s exchange rate
Trump’s trade policies would make Asian economies get into a currency war soon and the Indian rupee won’t be able to avoid it.
Share buybacks by listed companies is a bad idea
The best way to boost share price is through business performance, not financial engineering. Buybacks, in particular, are unfair to the patient investor who stays invested. If a firm has surplus cash and no meaningful avenue of deployment, a special dividend is a clean option to return money to shareholders
No Lok Sabha narratives at work as BJP gears up for big Maharashtra battle
BJP is cautiously aligning with smaller parties in different parts of Maharashtra to ensure that a Dalit-Muslim-Maratha combine doesn’t go entirely to the MVA.
Is COP29 a Trojan Horse?
Since 1850, developed nations journeyed their way to prosperity through carbon emissions. They now account for more than 76 percent of cumulative CO2 emissions. To expect emerging economies like India to bear a disproportionate share of energy transition in the name of fighting climate change is unfair. It does lead to the question if climate summits are a covert way to main economic hegemony
Delivery Diaries: Size does matter, in both life and food deliveries
Majority of bulk and large orders are post 6 pm, which reinforces the idea that unlike the West, dinner is the main meal for Indian families. Indians still haven’t warmed up to the idea of a working meal
Global food inflation’s upward march keeps key risk in play
Central banks that are eyeing data on inflation as they seek to ease monetary policy are not going to get the prints they seek if this trend continues
Trump should heed Adam Smith’s lesson on markets
The President-elect would do well to remember the role of ‘moral sentiments’
Trump 2.0 may not be as disruptive on trade as campaign speeches indicated
Sanghnomics: Even if the Trump administration turns more protectionist, as his pre-election promises suggest, existing supply chain linkages with the rest of the world cannot be unravelled right away. While Trump’s cultural stand may be a cause for cheer for many in India, on trade issues we have to wait and watch
The Eastern Window: Is the world ready to call Trump’s bluff?
Trump's policies are likely to face strong pushback from the affected countries and may come back to haunt the US
Chart of the day| Will investor confidence in Gold ETFs hold under the new US regime?
The World Gold Council says physically backed Gold ETFs have seen a continuous inflow for six consecutive months, with an additional $4.3 billion added in October alone
Supreme Court draws the line on 'endless resolution' in Jet Airways case
Early resolution is the foundation of a successful insolvency process. SC set a benchmark in the Jet issue by signalling that “timely liquidation” is better than a resolution process with no end in sight. The judgement also showed that institutional weaknesses are limiting the potential benefits of IBC
Climate concern — Is COP29 doomed from the start?
Trump’s re-election and absence of heavyweight world leaders at the Baku climate summit do not hold out hope for concrete action
The Second Coming: How Jerome Powell aided and abetted Donald Trump's return
Much attention has been paid to Fed chair Jerome Powell’s remark that he wouldn’t resign even if Trump wants him to. But if a research paper from the Institute of New Economic Thinking is right, he need have no fears on that score. On the contrary, the President-elect should give him a medal because the Fed had, through its misguided policies, helped create the economic conditions for the Trump victory
How to get selection of the SEBI chief right
Picking the right person to head the capital market regulator can’t follow a conventional process of inviting applications. The relevant selection committee needs to be empowered to search for the right candidate and not limit itself to applicants. SEBI’s functional autonomy is non-negotiable. The chief, however, should report to a parliamentary committee to ensure accountability
What do SBI’s July-September numbers tell us?
SBI numbers suggest an overall improvement in performance, rebalancing of loan growth from retail to corporate/SME and improvement in asset quality
Trump won – But the game is not as straight as it looks
Trump's tough stand on immigration and Make in America proved to be a top draw with voters
The Reading List: November 8, 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
Vasundhara Raje’s last gamble
She has been absent from the campaign for the seven Rajasthan assembly by-elections. Her reluctance to campaign across the state during the Lok Sabha polls undermined the BJP’s performance but highlighted her importance. At loggerheads with both state and national leaders, her best and possibly last chance for a comeback is if the BJP fares poorly in the by-elections.
The Fed talks about not talking about Trump
Jay Powell sets some limits
Vault Matters: The partial stand on usurious pricing
It’s time RBI calls out the rates charged by banks on credit cards as usurious. Singapore is a step ahead on this. Timely action is critical because the repercussions of increasing delinquencies among middle class borrowers can be far more scathing than what’s playing out in the low income category. The latter somehow or other gets support from the government. The middle class is left on its own
