Mumbai

GDP slowdown is real not technical, says SBI

Noting that the economy has been on a down­sl­ide sin­ce September 2016, SBI Research on Tuesday said the slo­wdown is real and not tec­hnical and cal­l­ed for more public spending to arrest the slide. “We believe we are in a slowdown mode since September 2016 and a slowdown that has been prolonged to the first quarter of this financial year is technically not short-term in nature or even transi­e­nt,” SBI Research said in a report.

The report said continuing slowdown has “raised the spectre of whether slowdown is temporary or not” but stopped short of answering the question.

Tata stocks get a boost as Chandra begins rejig of group structure

Select Tata Group stocks notched up handsome gains on Tuesday as the group is on a drive to reduce crossholdings. This exercise of the $104 billion group is aimed at lowering debt burden and interest expenses.

Shares of Tata firms holding stake in other group companies rose between 1 per cent and 5 per cent on BSE. Tata Motors, Tata Motors DVRs, Tata Chemicals, Tata Power and Tata Global Beverages have kicked off the process of reducing cross holdings.

New debt disclosure norms from October

The capital market regulator’s new debt disclosure norms that kick in from October 1 are a double-edged sword. It requires listed companies to disclose their loan defaults, which would instil credit discipline among borrowers. Non-payment of interest to banks by a day could lead to downgrade in a company’s rating.

Mergers boost finance sector consolidation

Within just two months after private lenders IDFC Bank and Shriram Capital announced an agreement to examine a merger to create one of the country's largest retail banks, private lender IndusInd Bank said that it has entered into an exclusivity agreement with Bharat Financial Inclusion Ltd (BFIL), formerly known as SKS Microfinance to explore the possibility of a merger – the announcement was made last week. Such transactions are a win-win for both entities with analysts giving a positive view on their stocks.

Flag bearer

The last two-three years have been quite eventful for the commercial real estate segment, even as the residential market has continued to be sluggish. The period witnessed revival of the asset class in a big way, which in turn is all set to drive the activities in the domestic real estate sector, going forward.

India has over $400b in forex reserves

India’s foreign exchange reserves touched a record high of $400.73 billion for the first time. Much of the growth in the reserves happened in the last three years.

Data released by the central bank after a lag of seven days showed that as on September 8, the foreign exchange reserves was at $400.73 billion, up by $2.6 billion from a week ago.

Economists, however, said the reserves were built on capital account surplus and not on current account surplus, which needs to be addressed.

India has over $400b in forex reserves

India’s foreign exchange reserves touched a record high of $400.73 billion for the first time. Much of the growth in the reserves happened in the last three years.

Data released by the central bank after a lag of seven days showed that as on September 8, the foreign exchange reserves was at $400.73 billion, up by $2.6 billion from a week ago.

Economists, however, said the reserves were built on capital account surplus and not on current account surplus, which needs to be addressed.

India has over $400b in forex reserves

India’s foreign exchange reserves touched a record high of $400.73 billion for the first time. Much of the growth in the reserves happened in the last three years.

Data released by the central bank after a lag of seven days showed that as on September 8, the foreign exchange reserves was at $400.73 billion, up by $2.6 billion from a week ago.

Economists, however, said the reserves were built on capital account surplus and not on current account surplus, which needs to be addressed.

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