Volatility gripped India’s equity benchmarks today as shares of Yes Bank Ltd. and mortgage lenders Dewan Housing Finance Ltd. and Indiabulls Housing Finance Ltd. tumbled. It began with a 35 percent slide in Yes Bank in morning trading after its co-founder Rana Kapoor was granted only four months extra as its chief executive officer. The Sensex and Nifty, however,…
Category: Sensex and Nifty
Investing is Hard
On June 30th 1997, Amazon.com (AMZN) was trading at a split adjusted $1.50 per share and was valued at $700 million. That day the stock traded 228,900 shares in a range of $1.48 – $1.59. I’m sure someone traded in and out of a great business that day, not knowing that the stock was about to…
India may get thrown out of MSCI Indices
MSCI Inc. (NYSE: MSCI), a leading provider of research-based indexes and analytics, announced today that it is closely monitoring developments related to the concerted announcement by three Indian stock exchanges, including the two principal exchanges, of the imposition of anti-competitive measures restricting the accessibility of the Indian equity market. MSCI is evaluating the measures’ potential…
India’s Economy: Creating ‘One Billionaire Per Month’ Since 2010
Anyone who has been to India has seen the poverty. Mumbai is home to one of the largest slums in the world. India’s per capita income is the lowest of the big four emerging markets, thanks in part to its 1.2 billion inhabitants. China has about 150,000 more people, and it’s median income is around…
Emerging-Market Chaos Can’t Tame Stock Bulls as Economy Wins
A fired finance minister and political upheaval won’t be enough to stem the rally in emerging-market stocks. That’s the lesson from the first quarter, when equities posted their best gains since 2012 even as Donald Trump threatened to end trade deals, the U.K. began laying the path for its exit from the European Union, South…
China Coal Control Jolts World Markets From Steel to Freight
China’s efforts to overhaul its coal industry to reduce overcapacity after years of expansion and curb pollution are reverberating through global markets from steel to freight. What’s happening? Output has fallen more than 10 percent so far this year as the government of President Xi Jinping ordered miners to lower output to the equivalent of…
The working of the ‘offer for sale’ mechanism
In 2015, equity investors will see a number of companies, especially government-owned, come out with offer for sale (OFS) issues. One reason for this is that OFS, a shorter and less complex way to sell stake than initial and follow-on public offers, is a route the government will take to sell its share in some…
FIIs, not RBI policy, behind boom in markets since 2000.
It’s clear that behind five-fold increase in Sensex and ten-fold increase in market capitalisation in the 21st century is actually the greenback The US Federal Reserve has started to wean the US economy off phantom money, euphemistically called “quantitative easing” (QE). Reserve Bank of India (RBI) Governor Raghuram Rajan has been apprehensive about its potential…
Second year of falling car sales on tap for India
Car sales in India have fallen 4.7 percent in the first six months of the fiscal year, the sharpest decline in half-year sales since 2002-2003, according to figures released by the Society of Indian Automobile Manufacturers (SIAM). Despite a slight 0.7 percent uptick in sales in September when automakers sold 156,018 cars, the industry is…
U.S. Shutdown Could Be Good for India
Investors in India have so far been mostly indifferent to the shutdown of the U.S. government, but if the U.S. political deadlock persists, they may have eventually reason to cheer. The longer the U.S. federal government remains shut, the bigger the negative impact on U.S. economic growth, analysts said. That would make it tough for…