Q) What are the important events and levels on Nifty which one should track in the coming week?A) The Nifty50 formed a Doji pattern on the daily charts and a ‘Hammer’ formation on the weekly scale after falling 1.2 percent for the week. After defending the psychologically important 9,000-mark, Nifty closed below 9,050. … [Read more...] about ‘Rate cut could benefit auto companies, watch out for Hero, Maruti Suzuki & Eicher Motor’
Rbi repo rate cut
It depends on how long we are in lockdown and how much time the economy takes to recover from the shock. We are expecting the economy to contract by 3-4 percent in FY21. While first half of FY21 is likely to be very bad, we could see recovery in the second half. In this scenario, we don't anticipate severe pressure on banks after six months. However, if recovery takes longer and individuals and businesses still find it difficult to repay loans after the 6-month moratorium ends, we could witness rising NPAs and stress in the banking sector. … [Read more...] about ‘Need more stimulus with focus on GST cut, wage support, higher MNREGA spend’
Simply Save podcast | Can debt funds really assess credit risk? Coronavirus Essential podcast | Kerala see another wave of infections; MHA refutes lockdown 5.0 claims; SC takes note of migrant issue Taking Stock | Market rises for second day in a row; investors richer by nearly Rs 2 lakh cr in a day … [Read more...] about Coronavirus Essential podcast | RBI’s push to revive economy, does COVID-19 spread through corpses?
This case joins several cases which have emerged in the Indian financial system in recent times. What is more worrisome, though, is the way the Indian financial sector story is unravelling. When the global financial crisis stormed financial markets, misconduct was found in financial institutions across countries from Lehman Brothers in the US to Barclays in the UK to several banks in Europe. Penalties on these institutions continue until today. Several central banks studied the issue of misconduct and their analysis revealed how culture in finance has declined across activities from cheating depositors to inflating credit rating agencies to manipulating Libor rates. … [Read more...] about NSE Case | The Indian financial sector story is unravelling
The CGs led to not just an increase in credit towards these neglected areas, but also of rising claims. The CGC expedited the processing of claims, but that also weakened its financial position. This weak financial position led to the merger of the CGCI with the DIC to become the Deposit Insurance and Credit Guarantee Corporation. The group which led to the formation of the CGC had anyway recommended the DIC to take over the tasks of credit guarantees. So, it was more like coming home really. The Act to provide for acquisition of the CGC by the DIC was passed in April 1978 and came into effect from July 15, 1978. … [Read more...] about Credit guarantees of 1970s make a comeback