India’s equity markets closed at a new all-time high on Friday, beating the record set in the previous session, while Arvind Kejriwal, head of the anti-corruption Aam Admi Party was refused an appointment with Narendra Modi, the opposition Bharatiya Janata Party’s prime ministerial candidate. Continue reading »
Its population is bigger than Brazil’s. The way its people vote can decide the direction taken by world’s largest democracy. No state in India is more important in the country’s forthcoming general election than Uttar Pradesh, the underdeveloped northern state of 200m people.
Of the 814m eligible voters mentioned by the Election Commission when it announced the April and May polling dates this week, 134m are in Uttar Pradesh. Continue reading »
The first official day of electioneering in India, after the Election Commission announced dates and details for the polls. The benchmark Sensex index hits an all-time high. Continue reading »
If electoral success were measured by publicity alone, Arvind Kejriwal could rightly claim victory in the tumultuous first day of the Indian election campaign.
Hours after the Election Commission announced dates and details of the general election to be held in April and May in the world’s biggest democracy, Mr Kejriwal of the Aam Aadmi (Common Man) Party was publicly arrested in Gujarat, the stronghold of his main rival Narendra Modi of the Bharatiya Janata Party. Continue reading »
By Saurabh Mukherjea of Ambit Capital.
Why has wage inflation, especially at the bottom of the labour pyramid, kept surging ahead even as India has suffered its sharpest economic downturn in the last 15 years? This puzzle has flummoxed most Indian economists.
A rural wedding 300km from Mumbai offered me some clues to resolve this conundrum. It appears that sharp improvements in transport and communications have contributed to a situation of “labour scarcity” in rural India which is propelling wages at the bottom of the pyramid higher by 15 to 20 per cent per year. Continue reading »
Maruti Suzuki, India’s largest car maker by sales, may have thought it would appease investors and critics with an empty set of clarifications on Wednesday, following a backlash against the company’s controversial $500m factory tie-up with its Japanese parent group.
Indian markets are closed for a holiday on Thursday, muting the reaction, but it seems the announcement is unlikely to mollify investors. Continue reading »
Last week India’s Central Electricity Regulatory Commission (CERC) made two big announcements. Both have moved shares – and both mark a step change in the country’s power sector.
First, the commission published tariff regulations for the next five years – an announcement which helping push shares in NTPC, the power producer, down 11.4 per cent on Monday and another 0.9 per cent on Tuesday to close at Rs115.85. Continue reading »
At a time when everyone is nervous about emerging markets, Henry Kravis, a well-recognised pioneer in the private equity industry, is optimistic about India.
And given his New York-based company, KKR, made a return on equity of 27 per cent last year, it’s worth hearing why. Continue reading »
India’s policy makers clamped down on gold imports last year, repeatedly hiking duties and introducing quantitative restrictions which squeezed supplies and pumped up premiums in the local market.
As a result China knocked India off the top spot to become the world’s biggest gold market in 2013, according to research by the World Gold Council (and as beyondbrics predicted a while before). What’s surprising is that demand for the yellow metal is still growing rapidly in India, where love for gold is deeply ingrained in culture and religion. Continue reading »
The poor northern state of Uttar Pradesh (UP) is home to some 200m people, makes up 7 per cent of the country’s land mass and has 80 out of 543 parliamentary seats in India.
That means this largely rural region is crucial as we head towards a general election. Analysts from Citi travelled to UP to gauge the mood. Continue reading »
Raghuram Rajan, governor of the Reserve Bank of India, may be right when he dismisses the link between inflation and growth – if Indian shoppers are anything to go by.
Rajan has been hiking the repo lending rate since he took office in September, looking to control inflation. And quite right too, says KPMG: it seems that high inflation is hitting consumer confidence in Asia’s third largest economy. Continue reading »
The recent turmoil in emerging markets has hit India, reversing some of the the gains and optimism from the end of last year.
Early on Tuesday, the benchmark Sensex index was down 0.7 per cent to 20,062.48 in Mumbai, adding to significant losses in the last session and hovering around the psychological threshold of 20,000. That a level not seen since last October, although it has since recovered to be flat on the day.
It’s both global factors as well as news from home that are dragging India’s markets lower. Continue reading »
India’s telecoms industry has been under a big, dark cloud. From aggressive price wars to the infamous scandal around the allocation of spectrum, the sector has suffered multiple setbacks.
So the new round of spectrum auctions that kick off on Monday are of great interest – they could raise some Rs113bn ($1.8bn) for a government scrambling to meet fiscal deficit targets. The big question is: will operators bid generously or is India set for another embarrassing flop? Continue reading »
Word on Dalal Street is that State Bank of India’s $1.5bn qualified institutional placement flopped on Wednesday, missing its target by some 25 per cent.
The state-backed bank issued shares at between Rs1,565 and Rs1,596 ($24.93 – $25.42), a fair offering according to local analysts, and a small discount to the closing price on Tuesday. Continue reading »