The economic slowdown is likely to weigh on the credit offtake of the banking system, but brokerage firm BNP Paribas says in India the sector will recover, thanks to lower cost of funds, cost efficiencies and lower tax.The brokerage said higher operational efficiency driven by digital initiatives and lower workforce requirements will ensure that the cost to income ratio maintains its downward trajectory."We believe a lower cost of funds, cost efficiencies, and the benefit from lower tax rates should lead to return on equity (RoE) accretion of 370bps for private banks. Higher RoEs should warrant much higher price-to-book ratios (P/Bs). We see a 10-15 percent upside from current valuations for private banks over the next five years," said BNP Paribas.Close Given that the asset quality cycle has peaked, the credit cost should be lower than those in the previous cycle, the brokerage said. related news Sensex at record high but midcaps likely to generate wealth; 20 stocks … [Read more...] about Banking set to see a recovery, life insurance the next big sector: BNP Paribas
When are tomatillos ready to pick
We’re all good at something, but one of the first lessons entrepreneurs learn is that no one is good at everything. To thrive, you need to either build a business that requires only one core competency (good luck finding that) or find people who can help you level up in more areas, fast. advertisement advertisement I was lucky in that when I started my company, InHerSight, I had two other cofounders ready to fill in my gaps. We divided and stumbled, then learned from our mistakes. At the time, I would have called our dynamic teamwork a Hail Mary pass, but as my company has continued to grow, I’ve come to realize that a better word for the relationship we formed in those early, scrappy days was and still is mentorship. The popular narrative around mentors is that you need one person—someone who’s older, further along in their career, and has experience in the area where you’re headed. Your personal career guru. But the often untold truth is that … [Read more...] about Forget finding a mentor—this is a better way to help your career
Life insurance and asset management companies (AMC) are likely to be high-growth businesses due to the financialization theme that is playing out, Rusmik Oza, Head of Fundamental Research, Kotak Securities, says in an interview to Moneycontrol’s Kshitij Anand.Edited excerpts:Close Q) What is your assessment of the September quarter earnings? If you had to describe them in one word, what would that be? What were the highlights?Rusmik OzaHead of Fundamental Research|Kotak Securities 'Corporate tax cut will boost earnings by 15-20%; HDFC Bank, ONGC, M&M among 20 cos to benefit the most'Cement, oil & gas among 3 sectors likely to outperform; here’s why'Nifty unlikely to test 12,000; expect the slump in earnings to continue in Sept quarter'A) If one has to summarise the September quarter results in one word, it would be ‘Decent’. Further, if it needs to be summarised in a sentence, it would be ‘Optically healthy on earnings, due to corporate … [Read more...] about Don’t miss! Stocks from life insurance and AMC likely to be included in Sensex & Nifty
The Ministry of Road Transport and Highways has allowed usage of quadricycles on Indian roads to solve issues last-mile connectivity. The notification in this regard was issued on November 23.According to the statement by the ministry, the government has “notified insertion of the item quadricycle as a non-transport vehicle under the Motor Vehicles Act, 1988”.A non-transport vehicle is a vehicle whose usage is allowed under “personal capacity” and not for commercial purposes.Close Centre has defined quadricycle as a vehicle with the size of a three-wheeler but has four tyres and is fully covered. Its engine is similar to a three-wheeler. related news CFMoto ready to launch one new model every quarter in India; plans afoot to bring e-bikes BMW upgrades cars to conform to BS-VI emission norms; prices to go up by 6% Stake sale in BPCL, SCI, Concor to strengthen firms, bring in fresh investments: FICCI Last year, union minister for road transport and … [Read more...] about Centre allows usage of ‘Quadricycle’ to boost last-mile connectivity
Indian market created history yet again on November 20 when the Sensex hit a new high of 40,816, while the Nifty had a touch-and-go moment with 12,000, just 120 points shy of its best-ever performance of 12,103.So, what should be the trading strategy? Is it time to buy the fear in the small and mid-cap space or stay with steady large-cap stocks?The answer lies in your risk-taking ability. Even though the market valuations look stretched, largecaps could still be in favour. However, value buying could be seen in select mid and small-cap stocks, say experts.Close The market is at record highs and valuations have been stretched since the last quarter. The broader markets are still significantly lower from their highs as Small and Midcap indices are still down by about 20 percent from their record highs. related news Don’t miss! Stocks from life insurance and AMC likely to be included in Sensex & Nifty Banking set to see a recovery, life insurance the next big sector: … [Read more...] about What should be your strategy, buy largecaps or chose from mid & smallcaps?