Factbox: India's complex Goods and Services Tax

NEW DELHI - India is launching a new national Goods and Services Tax (GST) on July 1 that will unify its $2 trillion economy and 1.3 billion people into a single market for the first time.

The GST embodies the principle of "one nation, one tax, one market", according to the government. But in practice the Indian version is more complex and will be tough

Identifying contrarian investment strategies that work - Motilal Oswal

It pays to be different

Identifying contrarian investment strategies that work

Contrarian investing is a time-tested investment tool, which involves buying/selling stocks that goes against the prevailing sentiment of crowd or the market. It is among the first lessons taught to budding investors and literature on the subject

India Strategy Measuring the fiscal cost of farm loan waivers - ICICI Sec

Measuring the fiscal cost of farm loan waivers

State fiscal deficit trend has been rising in the recent past on capex growth and UDAY bonds …:

Combined state fiscal deficit trend has been challenging over the past few years although quality of spending has been improving due to higher outlay for capital spending and a

World Bank, AIIB co-financing for Andhra power project

The Indian government on Thursday signed an agreement with the World Bank and the Asian Infrastructure Investment Bank (AIIB) for co-financing loans worth $570 million for the 'Power for All' project in Andhra Pradesh.

The total cost of the project is $570 million, of which $240 million is from the World Bank arm International Bank for Reconstruction and Development (IBRD) and

E-payments will support China`s economic rebalancing: Moody's

The rapid rise of third-party electronic payments is boosting China's online consumer market growth and it will support its economy's rebalancing, a Moody's report said.

The value of the third-party e-payments in China has grown at an annual rate of more than 100 per cent since 2015, offering consumers an alternative to banks' payment channels at lower transaction cost

RBI's move on NPA resolution credit-positive for banks: Moody's

Global credit rating agency Moody's Investors Service on Monday dubbed as 'credit-positive' for Indian banks the RBI plans to resolve 12 large bank loan accounts accounting for 25 per cent of the banking system's non-performing assets (NPA).

The rating agency said it expects that the effectiveness of the resolutions under the Insolvency and Bankruptcy Code (IBC), 2016,

Tata Technology stake acquisition valuations could stimulate L&T Technology - Equirus Sec

Event:

Warburg Pincus has agreed to invest $360 million (Rs 2,300 crore) for a 43% stake in Tata Technologies Ltd (TTL). The deal implies a value of $837 mn for TTL. Below we compare and contrast growth/valuation metrics of TTL and L&T Technology Services. About TTL: TTL remains focused upon maintaining its leadership in three critical market segm

Gold Shines at India INX GIFT IFSC

The Federal Reserve raised U.S. interest rates by 0.25%, in June FOMC meeting. The FOMC statement also said U.S. inflationary pressures have eased a bit recently. After digesting the FOMC statement, the marketplace deemed this Fed meeting as more hawkish on U.S. monetary policy. The gold market started to erode right after the FOMC statement and due to increase in volatility the volumes of gold

IT spend in Indian banking and securities industry to grow 8.6% in 2017

 IT spending by banking and securities companies in India will grow 8.6 percent in 2017 to reach $8.9 billion, research and advisory firm Gartner said on Friday.

IT services will grow the fastest at 13.8 percent in 2017 followed by software at 13.4 percent. 

Firms in the banking and securities industry are investing more in enterprise resource planning (E

Equirus IT Products Conference - Key takeaways - Equirus Sec

Key note address

* Equirus Software Product Companies Conference, held in Mumbai on May 16th, 2017, featured five companies with round table address by Deepak Ghaisas. A total of 85 meetings with organized during the day. Key takeaways are highlighted in the following slides.

* Deepak Ghaisas, Chairman of Gencoval Strategic Services Pvt Ltd a

Farm Loan Waivers-Assessing Risks to MFIs / Rural NBFCs - Morgan Stanley

Farm Loan Waivers – Assessing Risks to MFIs / Rural NBFCs

Investors are concerned about the risk of higher loan defaults at MFIs and NBFCs with rural exposure owing to recent farm loan waivers and demand for waivers in more states. The state government of Uttar Pradesh announced a farm loan waiver in April and the Maharashtra state government has

Expert Views: India consumer inflation eases to lowest since 2012 in May

MUMBAI - India's annual consumer price inflation eased further to 2.18 percent in May, driven down by cooling food prices, government data showed on Monday.

The rise was lower than the 2.60 percent forecast by economists in a Reuters poll, and was the lowest since India started publishing an economy-wide consumer price index in 2012. Consumer prices rose 2.99 perc

QIP credit positive for SBI, removes dependence on government: Moody's

The Rs 15,000 crore fund-raising by the country's largest lender SBI is credit positive for the bank and will eliminate its dependence on capital infusion from the government, Moody's said today. In a report, the US-based agency said any capital infusion from the government will further strengthen the bank's capitalisation.

Last week, State Bank of India raised Rs 15,000 c

Credit Policy Review: June 2017 - HDFC Mutual Fund

The Monetary Policy Committee (MPC) voted 5-1 in favor of leaving the policy repo rate unchanged at 6.25% in line with consensus expectations. The reverse repo rate has also been kept on hold at, 6.0%, while the cash reserve ratio (CRR) remains at 4.0%. However, the RBI has reduced the statutory liquidity ratio (SLR) to 20% from 20.5% from June 2017 in order to provide banks with greater flexib

India`s retail inflation seen cooling to new record low in May: Reuters poll

By Vivek Mishra

 Inflation in India is expected to have cooled to a new record low in May, a Reuters poll found, which could add pressure on the Reserve Bank of India to cut interest rates later in the year.

The consumer price index likely rose 2.60 percent in May from a year earlier, dipping from 2.99 percent in April, due to a fall in the cost of pulses, cereals and p

Asian Liquidity Stress Index improves to 25.2% in May: Moody`s

Moody's Investors Service, a global rating agency, has said that its Asian Liquidity Stress Index (Asian LSI) fell month-on-month to 25.2 per cent in May 2017 from 25.4 per cent in April.

The Asian LSI measures the percentage of high-yield companies with Moody's weakest speculative-grade liquidity score of SGL-4, when speculative-grade liquidity appears to improve for Asian hi

Expert views: China`s commodities imports mainly rise in May, coal falls

 China's imports of crude oil, copper, iron ore and soybeans rose in May on a month earlier, although coal imports fell, customs data showed on Thursday.

 

KEY POINTS:

Copper: China imported 390,000 tonnes, versus 300,000 tonnes in April

Crude oil: China imported 37.20 million tonnes, versus 34.39 million tonnes in April

Thee RBI would leave the Repo rate unchanged at 6.25% - Quantum AMC

Below is the views the RBI Monetary Policy by Arvind Chari from Quantum Fixed Income Team.

 

Quantum's View on the RBI Monetary Policy  

That the RBI would leave the Repo rate unchanged at 6.25% was expected, but what we were looking for was its assessment of future inflation and f

Monetary policy review - Amrapali Aadya Trading and Investments

Below is the Views on RBI monetary policy review by Mr. Abnish Kumar Sudhanshu, Director & Research Head, Amrapali Aadya Trading & Investments

Reading RBI credit policy we could see it is readying for a rate cut in next policy meet on August. On its own estimate inflation is projected at 2-3.5 % in H1 of this FY. Though it is continue to h

Expert views: RBI keeps repo rate on hold, cuts inflation projections

India's central bank kept its key interest rate unchanged at 6.25 percent on Wednesday, as widely expected, while lowering projections for inflation and striking a somewhat less hawkish tone in a policy statement.

COMMENTS

RADHIKA RAO, GROUP ECONOMIST, DBS

"The tone suggests they are not yet convinced that the fall in infl

Reliance Communication shares fall after rating downgrades

MUMBAI/HONG KONG - Shares and bonds in embattled Indian mobile carrier Reliance Communiations fell on Wednesday after Moody's and Fitch further downgraded their ratings to default levels and warned about its ability to deal with long-term debt.

Shares in RCom, as the company is known, fell as much as 4.5 percent in early trading, taking their losses in the pa

Double whammy of Steel and crude oil hits Nickel - Angel Commodities

Below is the views on Double whammy of Steel and crude oil hits Nickel By Ms. Kaynat Chainwala (Research Analyst- Base Metals, Angel Commodities Pvt Ltd)

Nickel prices plunged to $8700/t, lowest level since 8th June 2016, as the weakness in iron ore prices for the past few sessions owing to bleak demand outlook spilled over to Steel prices. I

Next week Market Outlook - Reliance Securities

Below is the Views on Market Outlook by Mr Vikas Inder Jain,Senior Analyst, Reliance Securities

 

We continue to remain positive but minor profit booking cannot be ruled out as we have closed at all-time high levels and the option data indicates resistance at 9,700 levels with an OI of 51 lakh shares in call options. On the dow

GDP data points to a slowdown, prints 7.1% in FY17 - ICICI Sec

* India’s GDP growth for FY17 came in at 7.1% y/y significantly down from 8.2% y/y in the previous year. Quarterly analysis of GDP growth data points to a deceleration in economic activity. Q4FY17 growth came in at 6.1% y/y which it at its 9-quarter low. Growth in Q1, Q2 and Q3 of FY17 was 7.9%, 7.5% and 7% respectively

* The more reliable GVA growth also slowed down to a mere 6