Adani, Birla acquisitions could reshape southern cement landscape
Large cement companies have sufficient levers in terms of cost synergies and branding, which along with quality improvement and green energy usage, could lift realisations over time
How to make a just transition in energy mix?
The aspiration of becoming a developed nation makes it imperative that the churn in energy mix balances the social and economic needs of all sections of society
Metal Stocks – A health check
While industrial metal prices are under pressure, companies that use metals for raw material will benefit
RBI’s bank-like PCA framework for bigger co-op banks is good news for depositors
In terms of financial health, most of these banks have been walking on a thin rope. These banks needed more effective monitoring of financials and early recognition of stress, which is what the new PCA framework will do.
Chart of the Day: Why Suzlon's orders look more resilient this time
The company’s order book increased to the highest levels in its history in the June 2024 quarter
Here’s how to bypass the hurdle of credit-deposit growth mismatch
Indian banks have experienced significant credit growth in the post-pandemic years, but weak deposit growth threatens to undermine this progress. Permitting banks to issue bonds could address the challenge of sluggish deposit growth
Q1 shows FY25 could be the year of the banking underdogs
Stocks of mid-sized and smaller private sector banks have delivered outsized returns to investors since January.
US: Pete Buttigieg is Kamala Harris’ best choice for Vice President
The most important quality for a running mate is being a good communicator, and the transportation secretary is the best the Democrats have
Big business signals to US Federal Reserve it’s either rate cuts or job cuts
The clear message from this earnings season is that companies are only keeping headcount steady in anticipation of lower borrowing costs ahead
Solution for unemployment lies in creating entrepreneurs and not merely jobs
The RSS leadership has repeatedly emphasised that creating more employment does not mean creating more jobs, it has proposed that the government needs to promote entrepreneurship in the country
Chart of the Day | Corporate Tax Rates: Old 30 percent tax rate is giving the new 22 percent rate a run for its money
While the new lower 22 percent tax rate still accounts for more than half of corporate income offered to tax, its share has fallen. The 30 percent tax gained ground with income under this tax rate rising by 60 percent, twice that of the 22 percent tax rate
Falling inflation, sturdy economy, happy Fed
Jay Powell & Co needn’t rush into a September cut
Policymakers and retail investors: Damned if you do, damned if you don’t
They are trying to limit the stock market frenzy by throwing sands in the wheels of stock market participation. Retail investors should listen and act on the growing concerns over high valuations and excesses of stock markets
Ola’s ride to electrifying profits may have near-term shocks
The price band of INR 72-76 per share implies a valuation that is at a discount to the last investment made by Singapore-based Temasek in the company
The pros and cons of the budget, in a nutshell
While the Budget has addressed some broad economic issues, it may not materially impact the corporate earnings trajectory in the near term
The Eastern Window: Time for India to change its policy towards Chinese investment?
In a sign of policy reversal, the government’s Economic Survey has argued in favour of attracting Chinese funds. What is driving this move other than the economic logic of using Chinese funds and machinery to improve the manufacturing sector? The government must consider the political and military implications of such a move
Government’s silence on WazirX mess is unfair to India’s 19 million crypto investors
From an investor point of view, the exchange’s recent announcement to socialise losses is grossly unfair. The key question is why would customers pay the price of WazirX’s inability to safeguard investments?
Why integrating technology platforms is essential for quickening insolvency resolution
‘A single source of truth’ on the affairs of a debtor can compress timelines in resolution. Information asymmetry leads to delay. Also, segregating insolvency court from the company court will result in shaper focus
The Reading List: July 26, 2024
Here's 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 catch up on the weekend
Why the Economic Survey’s suggestion to target non-food inflation is misguided
When food inflation is high and non-food inflation is low, cutting interest rates will first raise food prices that respond faster to demand side increases. The political response to impose export bans will reduce incentives to produce, thereby raising farm prices in the long run, and then headline inflation too
Russia’s surprising consumer spending boom
Heavy government expenditure and labour shortages have led to a sharp rise in real wages and consumption but the economy risks overheating
Kargil War will always be remembered for the soldiers' gallantry and Vajpayee government's strategic prudence
The Kargil War situation was complex, kinetic, and posed a national security challenge and it was dealt with restraint, resolve and transparency by the Vajpayee government. The Kargil war and its handling burnished India’s profile as a responsible nation
In Budget 2024, catalysts introduced to augment growth for auto sector
India's auto sector has received a major boost from the government's recent policies which focus on encouraging local manufacturing and lessening regulatory constraints
Taylor Swift and the fallacy plaguing modern economics
Why what we consider to be economic activity matters
Financial services perspective of India’s Budget and the path to Viksit Bharat
The Budget for FY24-25 is a forward looking one and it lays down a comprehensive framework for fostering economic growth, with a clear focus on inclusivity and sustainability. Its effective implementation would significantly contribute to the realization of the Viksit Bharat agenda
