When IL&FS defaulted on its ICD with SIDBI for the second time on Friday, the alarm bells surely started ringing. In fact the warnings were already out when IL&FS first defaulted on its ICD to SIDBI a couple of weeks ago. That was the time most of the credit rating agencies rushed to downgrade IL&FS debt to Junk category. But that has only exacerbated matters as most of the bond holders are now sitting on huge losses on their books. But, what exactly is this IL&FS fiasco?
The rupee rallied sharply over the week-end after a touching a low of 72.91/$ to close at around 71.85/$. Even the 10-year bond yield tapered on expectation that the weekend package to revive the rupee would do away with the need to hike rates for the RBI. But the package announced by Arun Jaitley, was patchy and slightly utopian in nature. First let us look at the highlights of the package.
When Nitin Gadkari painted his picture of the future of Indian auto, it looked exciting and also a tad ambitious. Gadkari expects Electric Vehicles (EV) to constitute 15% of Indian auto sector by 2023 and 100% by 2033. While the numbers may sound a bit lofty, his thinking is surely in line with what the world is thinking about. Here is what you need to know.
According to a recent study done by Price Waterhouse Coopers, the global market capitalization of the top 100 companies has increased by nearly $11.5 trillion in the last 9 years since the financial crisis. But what is striking is the dominance of a handful of stocks.
During the last one week, the 10-year bond yields decisively settled above the 8% mark. After touching a high of 8.06%, the bond yields settled around the 8.03% mark. What is material is that 8% is not the psychological barrier anymore and now appears to be the new normal. Why was the level of 8% breached so suddenly during the week? There are 3 things to understand here.
