Rafael's Feed
Dec 9, 2015

In India, corporate transparency comes with puzzling questions

A man watches television inside his currency exchange shop in New Delhi August 30, 2013.  REUTERS/Mansi Thapliyal/Files A man watches television inside his currency exchange shop in New Delhi August 30, 2013. REUTERS/MANSI THAPLIYAL/FILES

Indian regulators have launched an unprecedented drive to boost corporate transparency, bombarding firms with disclosure demands, but clumsy execution has created suspicions of a box-ticking exercise that may not entirely achieve its aim.

Poor disclosure among India-listed firms is a turnoff for foreign investors, a weakness Asia’s third-largest economy can ill afford as competition for overseas capital heats up among emerging markets in expectation of higher U.S. interest rates.

Dec 9, 2015

RBI keeps rates on hold, more easing seen as challenging

Reserve Bank of India (RBI) Governor Raghuram Rajan speaks during a news conference in Mumbai, December 1, 2015. REUTERS/Shailesh Andrade Reserve Bank of India (RBI) Governor Raghuram Rajan speaks during a news conference in Mumbai, December 1, 2015. REUTERS/SHAILESH ANDRADE

The Reserve Bank of India (RBI) kept its key lending rate unchanged on Tuesday, leaving the door open for more easing but making that dependent on meeting a challenging inflation target f‎or 2017.

At its last meeting in September, the RBI slashed the repo rate by 50 basis points to 6.75 percent to boost growth.

Nov 9, 2015

Indian companies struggle to escape debt burden as profit slows

MUMBAI/BANGALORE (Reuters) – Core profit growth at India’s top companies has slowed down sharply from last year’s levels, hampering efforts to cut debt in one of Asia’s most leveraged corporate sectors and dampening the private investment needed to spur sluggish economic growth.

With a majority of Indian companies already reporting financial results for the quarter to end-September, 53 top firms have shown collective 9.4 percent growth in core profit, the slowest since January-March 2013, according to Thomson Reuters data. That compared with average quarterly profit growth of 16.9 percent in the previous financial year that ended in March, the data showed.

Nov 9, 2015

After Bihar defeat, investors tell Modi to speed up reform

MUMBAI (Reuters) – Foreign investors shook off turbulence in Indian financial markets on Monday after a weekend defeat for the government in a key regional election, but they pressed Prime Minister Narendra Modi to do more to accelerate promised reforms.

Modi needs to win most state elections in the next three years to secure full control of parliament, and the heavy loss in the northern state of Bihar prompted some to fret he could struggle to push through key economic reforms.

Nov 6, 2015

Rajan says ‘comfortable’ with interest rates

MUMBAI (Reuters) – RBI governor Raghuram Rajan said on Thursday that he was comfortable with current interest rates of 6.75 percent but would stay “accommodative”.

Rajan was speaking in a televised debate with the government’s chief economic adviser Arvind Subramanian, who prodded the RBI governor to take into account wholesale price inflation in monetary policy decisions.

Nov 5, 2015

India cenbank governor says ‘comfortable’ with interest rates

MUMBAI, Nov 5 (Reuters) – India’s central bank governor
Raghuram Rajan said on Thursday that he was comfortable with
current interest rates of 6.75 percent but would stay
“accommodative”.

Rajan was speaking in a televised debate with the
government’s chief economic adviser Arvind Subramanian, who
prodded the RBI governor to take into account wholesale price
inflation in monetary policy decisions.

Nov 2, 2015

Coffee Day shares slump on market debut

MUMBAI (Reuters) – Shares in Coffee Day Enterprises(CODE.NS: Quote, Profile, Research), operator of India’s biggest coffee chain, fell as much as 15.5 percent on its debut on Monday, as investors fretted over a generous price tag they said underestimated concerns around its complex structure.

Apart from selling cappuccinos to office workers and India’s middle classes, the group also owns a logistics firm, a brokerage, three luxury boutique resorts and has a stake in software company MindTree Ltd (MINT.NS: Quote, Profile, Research).

Nov 2, 2015

India’s Coffee Day shares slump on market debut

MUMBAI, Nov 2 (Reuters) – Shares in Coffee Day Enterprises
, operator of India’s biggest coffee chain, fell as
much as 15.5 percent on its debut on Monday, as investors
fretted over a generous price tag they said underestimated
concerns around its complex structure.

Apart from selling cappuccinos to office workers and India’s
middle classes, the group also owns a logistics firm, a
brokerage, three luxury boutique resorts and has a stake in
software company MindTree Ltd.

Oct 28, 2015

IndiGo’s $464 mln share listing attracts strong demand

MUMBAI, Oct 28 (Reuters) – InterGlobe Aviation Ltd
IPO-INAI.NS, owner of Indian budget airline IndiGo, on
Wednesday filled the order book for its up to 30.2 billion
rupees ($464.3 million) initial public offering, which attracted
strong demand from foreign investors.

InterGlobe had received orders for 46.7 million shares as of
5 p.m. (1130 GMT), or 1.55 times the 30.1 million shares on
offer during a second day of bookbuilding, according to data
from National Stock Exchange and BSE Ltd.

Oct 19, 2015

S&P unlikely to change India’s rating till at least 2016

MUMBAI (Reuters) – Standard & Poor’s kept India’s sovereign rating at the lowest investment grade of “BBB-minus” and a “stable” outlook, saying factors such as its sound external position were offset by low income and weak public finances.

The agency added it does not expect to change its rating this year or in 2016 based on its current set of forecasts.

    • About Rafael

      "Rafael Nam is the Chief Monetary Policy and Markets Correspondent for India, overseeing coverage of the central bank, all domestic markets, and private equity. He was previously posted in Hong Kong and Seoul."
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