Mid and small cap lure frays a bit: What's next for investors?
Stress tests of liquidity in regular market periods may not be an accurate representation of how things progress when there is a sharp or long correction and fear takes over
Five ways India’s next growth cycle is different
By the end of this decade, India’s GDP will clock an average 6.7 percent growth annually. The upturn underway is on a stronger footing and is taking place in an entirely different geopolitical setting than before. The world is moving away from hyper-globalisation to tariff wars and industrial policies that promote domestic production. The post-pandemic focus on resilience rather than efficiency will continue
Chart of the Day: Flexible NBFCs piled on more risk in past three years
Lending to micro, small and medium enterprises has been largely bank-driven. But the past three years have witnessed a sharp increase from non-bank lenders
Biden and Netanyahu are going from frenemies to enemies
Biden is a true and life-long friend of Israel. But warning Netanyahu against invading Rafah, where about half of Gaza’s displaced population now huddles, is a red line. The president didn’t spell out what consequences its crossing would bring, and his national-security staff subsequently tried to soften the message. Biden must now follow through, if he wants to prevent a terrible conflict from becoming even worse
Andhra: Delhi’s hand of friendship and poll arithmetic drives zero-chemistry Naidu-BJP alliance
Chandrababu Naidu needs BJP’s crutches to take on the imperious Jagan Mohan Reddy. Whatever votes BJP and Jana Sena can pull will help TDP in the assembly polls. But a smooth vote transfer may be difficult between the three allies. Moreover, BJP isn’t exactly popular in Andhra Pradesh because of inaction on the “special status” front
Moneycontrol Pro Panorama | ‘Tis the time to cherry-pick stocks
In this edition of Moneycontrol Pro Panorama: SEBI tries to rein in the raging bulls, SKM split threatens farmers’ agitation, is India-EFTA trade agreement achievable, alleged illegal stock options transaction saga continues, and more
Japan: Where more regulation leads to higher stock prices
Regulation designed to create more transparency and reduce systemic risk has routed trading activity away from opaque over-the-counter markets managed by banks and into clearinghouses, mostly owned by stock-exchange companies. After decades of languishing stock prices, Japan reorganised its market segments, calling on top-tier companies to provide more value to investors. The JPX Prime 150 Index launch has also been a success. The number of Japanese companies that trade below book value has shrunk and stocks have rallied
Oodles of instant noodles: how a global favourite became an economic red flag
Cheap and calorie-filled, the rapid foodstuff tells us about the state of the world
The Kate Middleton mess should terrify brands on social media
The British monarchy is essentially a massive global brand and the mess it finds itself in right now should be a warning to any business that thinks it can control its own messaging. Recognising that they can seem out of reach and out of touch, brands have taken to social media to meet their consumers where they are. When you attempt to regularly engage with an audience in order to come across as accessible, it only amplifies the decision to go silent when things take a turn
Private credit has had its 15 minutes of fame
The conditions that led to the private credit boom are unwinding. After two years of ceding turf to direct lenders, investment banks, which are the public credit markets’ gatekeepers, are striking back. With confidence growing of a Fed interest-rate cut, private credit funds will have to cut their premiums. But they wont mind cheap public debt, as many sit on a “towering backlog” of unsold investments amid anemic IPOs and are in need of more cash
It’s too late to China-proof the lithium supply chain
There plans to cut Chinese dependency are coming nearly a decade too late. If rich democracies wanted to build a clean-energy industry free of Beijing’s influence, they should have had their checkbooks out when miners and processors were starved of cash during the 2010s. The global lithium industry is so interwoven with Chinese capital now that it’s going to be impossible to unpick
Chart of the Day: Falling share of HFCs in home loan market
While market share of public sector banks was stable, the private sector banks saw a significant increase in share
AI Impact on Indian Film Industry: Lessons from the Hollywood negotiations
The guardrails erected in Hollywood in respect of consent and compensation come at a timely juncture for India. Going forward, performers, talent managers and producers in India would be better equipped at delineating the exact purposes and duration for which digital replicas may be deployed
Stock options trading settlement scheme 2024 – a never ending saga?
It will soon be a decade since these transactions took place but there is no sign of the issue attaining closure. There are lessons in it for future cases
Here an SKM, there an SKM, and the threat to farmers’ unity
Ramlila Maidan Farm Mahapanchayat: Samyukta Kisan Morcha’s success in getting permission for a mahapanchayat in Delhi even as its splinter outfit, the SKM (Non-Political) languishes at the Shambhu border, has created unease in the farm movement. GoI has played a smart political hand, but will the two groups resolve differences for the sake of their common goals like legal guarantee for MSP?
Is the $100 bn FDI target under the India-EFTA trade agreement achievable?
It’s not a governmental commitment to invest the money but India’s industrial priorities in areas where the EFTA countries’ strengths lie, such as green hydrogen, renewable energy and infrastructure, provide enough avenues if the intent is there
Has the SEBI chief finally reined in the raging bulls?
While the near-term positives are already priced into valuations, there are some challenges from weak domestic consumption and slow exports
Pharma stock valuations out of sync with normalising market growth
While shares of India-focused drug companies re-rated, growth in domestic pharma market is returning to pre COVID levels
The market realises small may not necessarily be beautiful
RBI data show that in Q3 2023-24, companies with annualised sales of Rs 25-500 crore saw their operating profits shrink year-on-year, in the aggregate
Google’s bad Gemini rollout did the world a favour
The laughable screw-ups in the Gemini chatbot’s image-generation — racially diverse Nazi soldiers? — offered a salutary glimpse of an Orwellian dystopia. And in so doing, they also highlighted vital questions of opacity, trust, range of application, and truth that deserve more attention as we contemplate where AI will lead
Moneycontrol Pro Panorama | The road to stability is paved with penalties
In today's edition of Moneycontrol Pro Panorama: EFTA model and its replication for future deals, surging cotton price adds to woes, IIP contradicts GDP data, Maldives’ growing closeness with China explained, and more
Investigate possible use of electoral bonds for money laundering
During an electoral bond’s 15-day life cycle, it can be used to conveniently move large amounts of anonymous money, settle shady transactions without leaving a money trail, and even channel money routed through shell companies to political parties. Riddled with such opportunities for money laundering, this allowed for a ready secondary market for electoral bonds. A fit case for investigation by central agencies exists
Strategic policy reforms that can propel the Indian space sector to a faster growth trajectory
The space value chain needs targeted reforms for its upstream, downstream and auxiliary segments. Strategic policies that can be offered range from production-linked and service-linked incentives to GST- and customs duty exemptions, creating ‘space’ infrastructure, and regulations that boost private sector participation
The dangerous illusion that we are all overworked
The best economic data show that, on average, people are working fewer hours than ever. Working hours have declined the most in countries with higher GDPs because it takes fewer hours of work to earn a comfortable living. Most people have about 40 hours of free time a week. All those streaming platforms are doing a roaring trade for a reason. But it mustn't be forgotten that it is hard work that helps economies, companies and individuals pull away from the competition
Will Britain let China browbeat its universities?
A recent incident of a University College London lecturer being barred from teaching a research module after Chinese students complained that it was “provocative” has kicked off a debate on academic ideals and commercial pragmatism. Overseas students in the UK pay on average 2.4 times more tuition fees than domestic counterparts, providing a critical revenue stream that any administrator would be loath to jeopardise
