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Money control pro11/21/2023 ![]() The result of diversification is clearly evident in the changing mix of its loan book in favour of retail assets.Īt a time when NBFC stocks have fallen out of favour with investors and that sentiment has not spared even those with strong institutions backing them. Read here to see why our analyst picked up Indostar for a closer look. Primarily a wholesale financier, Indostar forayed into SME lending, vehicle and housing finance to de-risk its loan book. Indostar’s price is down by over 50% since debut last year, is that reason enough for a second look? Is that enough reason to buy the stock? Read more. However, the good news is that the stake of the promoter-founder is down to 0.8 percent from 9.6 percent. Investors’ loss of confidence and multiple questions on the bank’s asset quality are key culprits. In the last couple of months, the share price corrected by 64 percent to touch Rs 32 before recovering in October 3 trade. Yes Bank has been hitting the headlines for all the wrong reasons ever since the regulator directed its founder Rana Kapoor to step down as CEO. Read here to see what this means for the bank, for the merger plans and more importantly, what all this says about RBI’s supervisory capabilities. The regulator has placed lending restrictions on Lakshmi Vilas citing its weak capital position and high level of sour loans. The Reserve Bank of India faces a tough choice in considering the merger of Lakshmi Vilas Bank with Indiabulls Housing Finance. Lakshmi Vilas Bank problems show continued weakness in the financial system Read here to know why the state of the global manufacturing sector and what this means for the world’s dependence on services for GDP growth. India is still doing relatively better but that is not good enough. The September PMIs show the manufacturing sector continues to shrink in many countries. Macro Matters | Global markets plunge as manufacturing PMIs slump A circular by the tax authorities clarified the matter, which unfortunately could mean bad news for more stocks. Read more. ![]() What was not clear earlier was the treatment of MAT credit. But the initial euphoria has died down and now nearly half the stocks in the BSE 500 are trading below the prices they were at just before the announcement was made. The Indian stock markets had reacted with unbridled joy to the surprise sharp cut in corporate tax rates announced by the finance minister. MAT credit fine print: has the market popped the bubbly too soon? Read here to see what we found when we read between the lines. Or is it? The big question after the monetary policy review is this: If the central bank cut its GDP growth estimates for the current financial year by 80 basis points, why lower the policy rate by only 25 basis points? If it walks like a dove, coos like a dove and looks like a dove, it must be a dove. Monetary policy review | A small rate cut belies dovish statement Here are some key stories from the week that went by, written exclusively for subscribers of Moneycontrol Pro. ![]() This week we analysed these developments, pondered over the impact of the minimum alternative tax (MAT) credit denial to companies who switched over to the lower corporate tax rate and among stocks wondered if Yes Bank had made a bottom. While it was a sobering week for the economy, the IRCTC IPO was one bright spot with a hefty oversubscription that shows there is always healthy investor appetite for good quality stocks that are priced right (even better if they are cheap). What it'll do to the fiscal deficit though is another matter Will the government give in and pull out a personal tax cut from its hat to boost economic growth? That could do a lot to boost and support a consumption revival in the near to medium term. Manufacturing growth continued to shrink showed Purchasing Managers Index (PMI) data, while later in the week the services front offered little respite, with India’s services PMI slipping. This week saw markets inch down a bit as scepticism appeared to have made its way back into investor’s minds. It started with sobering news on the domestic automobile front, although month on month data showed some improvement. The cut in GDP growth estimates should not have surprised, as many others have already done it. Investors may have been expecting a bigger rate cut or more steps to spur credit growth. You could call it sobering even. The week ended with the Reserve Bank of India (RBI) cutting the repo rate by 25 basis points to which the stock market responded with a 434 point decline. This has been a busy news week from the economy’s standpoint. ![]()
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