Whenever inflation is mentioned, the markets promptly obey the law of gravity and fall. There is no doubt that inflation is an investors worst enemy. Equity investors lose as companies borrowing costs rise, credit becomes tight, and margins are squeezed.
{ 0 comments }
The success of India?s telecom revolution is restricted to mobile voice with very little to showcase in fixed line and internet access, or high ? speed broadband. For a country that is the global IT or the world?s back office, its own internet penetration remains one of the lowest in the world.
{ 0 comments }
Ratan Tata’s Nano venture of Singur by terming the small car project one of “national importance”, which deserved to be allowed to function without any hindrances.
{ 0 comments }
Corporates would need to manage their forex risks more aggressively and hence we feel currency bourses would play an important role. Globally, given the very nature of commodities trading which is majority cross border participants in commodities markets are also very active in the forex market. That is one of the main reasons why globally a major part of forex trading is done on commodities exchanges.
{ 2 comments }
Some broking houses are also adopting innovative strategies of allowing their ex-dealers and analysts to use the broking house’s brand name to get new jobs even after they have been sacked. Most broking houses are saying that like every year a part of its staff were asked to go because of poor performance.
{ 0 comments }
The retail credit growth of the bank in 2008- 2009 is expected to be in a range of 5% only. Also, if RBI increases the repo rate, at which it lends short term funds to bank against governments securities, the interest rate will further increase. Bank will have no option but to pass on the rate to borrowers. This will further slow down the growth.
{ 0 comments }
A recent report of the Institute of International Finance (IIF), a consortium of 370 banks and financial sector giants, says that the bulk of foreign capital inflows are concentrated in about 35 countries called emerging economies.
{ 0 comments }
Jet’s low cost subsidiary, “JetLite” will stop serving free water, toffees and snacks on its flights. This action will start with effect from August 8, 2008 onwards. Hence, the statement in which the company once strongly believed is no more a concern to them now. The slogan says: “A passenger is like a guest at home who can’t be charged for the food served on board.”
{ 0 comments }
As per many Guru’s on TV inflation is likely to surge to 17% by September 2008. The government is likely to hike prices between 10 and 20% again, as early as September to limit fiscal risks. The rise in the price for the Indian crude oil basket could be the trigger for another round of increase in fuel prices to $145 to 150 per barrel from the current $132 per barrel.
{ 1 comment }
The Indian aviation industry is passing through a bad phase, where all airlines are reporting mounting losses due to Jet fuel rising prices and due to steep fall in load factors. The main culprit is the ATF rise spike. However, the airline itself is also responsible for the present condition.
{ 1 comment }
The government should also ban needless use of cars in a planned manner. Buses, trucks, housing and railways should be subsidized, with massive cuts on service taxes and direct subsidies for carrying passengers and cargo at cheaper rates.
{ 1 comment }
Private sector banks might increase their lending rate to one percentage point (100 basis points). There is a possibility for many, to increase the rates by one percentage point from July1, 2008. This happened because of the inflationary pressure which has led to an increase of interest rates.
{ 1 comment }
It is important to understand the fact that when the inflation rate goes down, it does not mean that prices are actually declining. It only indicates that the rate at which prices are going up has slowed down to a certain extent.
{ 0 comments }
Some of the examples are as follows: 1) Five years ago, LG Electronics, its B2b business stood at Rs.50 crore. Now it has become Rs.400 crore division. 2) An air conditioning company, “Blue Star” has targeted airport air conditioning as a major growth area. The firm has bagged 11 airport projects valued at Rs. 68 crore.
{ 1 comment }