Market

India’s shipbuilding ambitions get a fresh lease of life

In the end, it was Prime Minister Narendra Modi and his ‘Make in India’ initiative that tilted the scales for the cabinet to sign off on a long pending policy, much to the relief of India’s beleaguered shipbuilders. That the shipbuilding policy took 17 months for cabinet approval after finance minister Arun Jaitley announced it in his budget speech on ... Read More »

Corporate profit to GDP: are we bottoming out this year?

Profits of listed Indian companies have remained stagnant for some time now. On the other hand, nominal gross domestic product (GDP) has increased. The upshot is corporate earnings expressed as a percentage of GDP has declined. Corporate profit as a percentage of GDP for the year to March may drop to 3.9%, the lowest since 2003-04, Motilal Oswal Securities Ltd ... Read More »

Will Can Fin Homes continue to clock record growth rates?

Shares of Can Fin Homes Ltd, a Bengaluru-based housing finance company that offers long-term housing loans to lower- and middle-income individuals, have doubled this year on the back of robust loan growth. Given the real estate slowdown and unexpected floods in Chennai, will the growth sustain? The management expects the loan book to grow by 30% to around Rs.10,600 crore ... Read More »

Revenue warning: Investors still prefer TCS

Tata Consultancy Services Ltd (TCS) said last Friday that the Chennai floods will have a material impact on its revenue in the December quarter. Already, growth has been a struggle for the company this year. Organic year-on-year (y-o-y) growth fell to around 6% in the first half of the year in dollar terms. The initial reaction by investors suggests they ... Read More »

Mills spin a woeful yarn in 2015

The year 2015 failed to bring cheer for cotton spinning mills. Yarn prices remained sticky through the year, after tumbling 8-15% from January 2014, across various grades. The festive season, when demand normally inches up, was lacklustre too. Add to this, mills in the south that spin almost half the yarn in the country were affected by heavy rains in ... Read More »

Flexi-staffing: no temporary phenomenon this

The allure of a secure job is unlikely to diminish any time soon in India, but the flexi-staffing or contractual labour market is expected to increase in size. In India, the flexi-staffing industry is still at a nascent stage. Penetration within overall employment in India is estimated at about 0.4%, far behind other countries (see chart 1). Click here for ... Read More »

Sugar: prices play supportive role, export commitment a concern

  These are better times for sugar stocks, which is reflecting in their shares as well. Globally, the sugar market is forecast to be in a deficit situation in 2015-16. Bad weather has affected the crop in key growing countries such as Brazil and India. Sugar prices have risen substantially since mid-September. Domestic wholesale prices are up by 10%, while ... Read More »

If cigarette stocks fell on GST, why have auto stocks not risen?

The sentiment in the stock market is so bearish that investors are quickly discounting even the hint of negative news, while dragging their feet before pricing in positive news. Consider the 4.6% drop in the shares of ITC Ltd last week after a government committee recommended a goods and services tax (GST) of 40% on cigarettes. As this column pointed ... Read More »

Gems, jewellery and power are the engines of industrial growth

The chart shows the sectors that have contributed the most to industrial production growth over the last six months. For each month between May and October, the top three sectors that have shown the highest contribution to growth have been selected. Click here for enlarge The conclusions that follow are: 1) Gems and jewellery has been the biggest contributor to ... Read More »

Steel: falling imports dim the case for protection

  The government appears convinced that the steel industry needs more protection. Safeguard duties on certain varieties of flat steel have already been imposed and more are in the pipeline. Reports of a floor price for imports are also doing the rounds. The impression conveyed is that the steel industry is sinking because of imports. But the numbers convey a ... Read More »