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Jun 23, 2015

SEBI approves trading platform for start-ups

MUMBAI (Reuters) – The capital market regulator plans to set up an alternative trading platform for internet startups, relaxing some of its requirements in an effort to encourage these companies to list at home instead of overseas.

The Securities and Exchange Board of India (SEBI) said the Institutional Trading Platform will be open to a broad range of technology companies, according to a statement released after its quarterly board meeting.

Jun 21, 2015

Food price surge puts Rajan on the back foot

AURANGABAD, India (Reuters) – Prices of many foodstuffs are surging in India, despite a good start to monsoon rains – an unexpected boon for wholesalers, but a major headache for the central bank and a government hoping for its help to reboot the economy.

Reserve Bank of India (RBI) Governor Raghuram Rajan has cut interest rates three times this year to boost growth, but he has since warned he will not cut again if poor rains drive up prices and threaten his inflation target.

Jun 21, 2015

Food price surge puts India’s Rajan on the back foot

AURANGABAD, India (Reuters) – Prices of many foodstuffs are surging in India, despite a good start to monsoon rains – an unexpected boon for wholesalers, but a major headache for the central bank and a government hoping for its help to reboot the economy.

Reserve Bank of India Governor Raghuram Rajan has cut interest rates three times this year to boost growth, but he has since warned he will not cut again if poor rains drive up prices and threaten his inflation target.

Jun 15, 2015

Mid-caps pay for borrowing binge

MUMBAI/BENGALURU (Reuters) – Had India’s hundreds of mid-cap firms aggressively cut their massive debts acquired in the boom years after the 2008 global crisis, their shares might not have dropped as precipitously in today’s uncertain economy.

India’s mid-caps are largely concentrated in the industrials, materials, utilities and energy sectors – the very sectors that had borrowed heavily to help grow Asia’s third-biggest economy in the last few years. Their debt-to-equity ratio averages 1.5, higher than those of small caps and bigger companies. Infrastructure firm Jaiprakash Associates Ltd (JAIA.NS: Quote, Profile, Research, Stock Buzz) is the most indebted mid-cap, with almost $10 billion of liabilities. Its shares have dropped 56 percent this year.

Jun 15, 2015

India’s mid-caps pay for borrowing binge

MUMBAI/BENGALURU, June 15 (Reuters) – Had India’s hundreds of
mid-cap firms aggressively cut their massive debts acquired in
the boom years after the 2008 global crisis, their shares might
not have dropped as precipitously in today’s uncertain economy.

India’s mid-caps are largely concentrated in the
industrials, materials, utilities and energy sectors – the very
sectors that had borrowed heavily to help grow Asia’s
third-biggest economy in the last few years. Their
debt-to-equity ratio averages 1.5, higher than those of small
caps and bigger companies. Infrastructure firm Jaiprakash
Associates Ltd is the most indebted mid-cap, with
almost $10 billion of liabilities. Its shares have dropped 56
percent this year.

Jun 5, 2015

Stock, bond markets reel on signs of trouble ahead

MUMBAI (Reuters) – India’s shares and bonds were headed for one of their worst weeks of the year on Friday as fears of a drought add to a growing list of risks facing a country that until recently had been one of the world’s best emerging market performers.

A drought could reduce chances the Reserve Bank of India will cut interest rates again after it eased the repo rate by 25 basis points on Tuesday, even as the economy is struggling.

Jun 5, 2015

India markets reel on signs of trouble ahead

MUMBAI, June 5 (Reuters) – India’s shares and bonds were
headed for one of their worst weeks of the year on Friday as
fears of a drought add to a growing list of risks facing a
country that until recently had been one of the world’s best
emerging market performers.

A drought could reduce chances the Reserve Bank of India
will cut interest rates again after it eased the repo rate by 25
basis points on Tuesday, even as the economy is struggling.

Jun 3, 2015

Indian shares tumble as rate-cut hopes wane; midcaps plunge

MUMBAI, June 3 (Reuters) – Indian shares slumped for a
second straight session on Wednesday as a forecast for
lower-than-expected monsoon rains raised concerns that the
central bank will not cut interest rates any more this year,
sending lenders such as State Bank of India sharply
lower.

Midcap infrastructure and property developers also bore the
brunt of the sell-off, with Unitech Ltd losing 35.7
percent as investors were worried that companies would find it
difficult to reduce debt levels should the central bank hold off
on rate cuts.

Jun 3, 2015

Rate cut hopes wither after weak monsoon forecast

MUMBAI (Reuters) – The Reserve Bank of India’s new inflation mandate could stop it from lowering interest rates again this year if drought strikes, and bond yields have risen sharply on the possibility that the latest rate cut would be the last for some time.

After the central bank cut rates on Tuesday for the third time this year, Governor Raghuram Rajan explicitly tied further cuts to how the annual monsoon affected food prices.

Jun 3, 2015

India’s rate cut hopes wither after weak monsoon forecast

MUMBAI, June 3 (Reuters) – The Reserve Bank of India’s new
inflation mandate could stop it from lowering interest rates
again this year if drought strikes, and bond yields have risen
sharply on the possibility that the latest rate cut would be the
last for some time.

After the central bank cut rates on Tuesday for the third
time this year, Governor Raghuram Rajan explicitly tied further
cuts to how the annual monsoon affected food prices.

    • About Rafael

      "Rafael Nam is the Chief Markets Correspondent for India, overseeing markets and chat room coverage across stocks, debt and fixed income. He has recently started tweeting at @rafaelnam"
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