After hitting a high of 8.2% in June 18 quarter (Q1’FY19), GDP growth has slowed to 7.1% in Sept’18 quarter (Q2’19) as per the data released by MOSPI today. GVA growth rate is also in the same line at 6.9% against 8.0% in Q1. Even though the rate has moderated over previous quarter, it is fourth quarter of 7%+ growth and gives sense of stability to the economy after going through the adjustments due to demonetization and GST. However, issues like sharp rise in crude price rise or disturbance in the financial market may keep the growth rate under check in the current quarter. In terms of absolute value, GDP at constant price is Rs 34 lakh crore and Rs 45.5 lakh crore at current prices. Continue reading GDP, Sept 18 – Analyzing the Performance
Unlike equity market where one can buy/sell even one stock, derivatives are traded on minimum lot size basis with Rs 5 lakh as the minimum notional value.For example, in case of NIFTY futures, the current index of about 10,500 represents the notional value of one unit. With one lot comprising of 75 units,minimum exposure in NIFTY futures works out to about Rs 7.9 lakh. However, thetrader only needs to put-in the margin money, roughly around Rs 90,000 and not the entire amount.
Tata Motors recorded consolidated revenue of Rs 2.96 lakh crore in FY18 placing it is the league of biggest company in the country. However, the profits are rather unimpressive at just about Rs 9,000 crore. Standalone domestic business is going through even tougher times with the company accumulating losses of over Rs 8,000 crore during FY15-18. … Continue reading Corporate Analysis – Tata Motors
Among the points of contention between RBI and the government is market liquidity condition. While RBI says that there is enough liquidity in the market, government is not sure of that. Both have a point there. The enormity of the issue is evident from the fact that during September month alone, RBI transacted close to … Continue reading Analysing RBI's Instruments for "Liquidity Management"
The process of withdrawal of United Kingdom from European Union has gained momentum with release of draft agreement about a week back. As per the current legal statute, UK would be out of EU on 29th March 19 and both the parties have to enter into a deal before that to avoid disruption to businesses … Continue reading Operationalizing Brexit – What is at Stake??
The monetary policy committee’s decision today to keep the policy rate unchanged is not surprising. It could have done nothing else. However what is surprising and somewhat concerning is its comments on possibility of a rate cut. While the comment may look fair due to lower inflation, it is actually not so because the core … Continue reading Monetary Policy – Time to Remain Cautious…
Larsen & Toubro (L&T) is among the largest company in the country with consolidated revenue of Rs 1.2 lakh crore in FY18. It is also among those few companies which are professionally managed and not owned by a promoter/ promoter group. Company’s revenues have grown at over 12% CAGR over last ten years, not a … Continue reading Corporate Analysis – Larsen & Toubro
Steel industry has reported aggregate profits of Rs 11,000 crore in H1’19 against loss of over Rs 25,000 crore in FY18. The industry had been reeling under years of crisis which began with sharp rise in imports and got further aggravated with commissioning of large domestic capacities and increase in raw material prices. The current … Continue reading Industry Analysis – Steel Industry
NPAs of banks have again come into limelight with the declaration of quarterly results and discussions on how banks facing PCA can come out of the restrictions. As per latest estimates, gross NPA of banking sector stands at just about Rs 10 lakh crore, somewhat stable for last two quarters. But where are the NPA … Continue reading NPAs – Sectoral Analysis
Government’s budget preparation seems to have begun with media starting to debate whether it will be a full or an interim budget as is the norm in an election year. Whatever may be the case, among the items which face considerable attention is outgo on subsidies, projected at Rs 2.9 lakh crore for the current … Continue reading Government Subsidy – An Overview