Here are some dashboard points that I expect after the clean up of the old currency what we can expect on the Indian economic scenario :
A huge amount of around 15-20 lakhs crore of black money would be identified
We will see a bump of 8 to 10% in deposit with banks
Out of the money identified 15 to 20 lakh would be withdrawn over a period of two to three months
Substantial amount of money around 2.5 to 3.5 lakh cr would still remain in system
There would be a wealth destruction of around 3-4 lakhs crores
30% of money will not reach back to RBI
Next 2 to 3 months property prices and land prices can drop till 30 to 35%
Since there is a surge of deposit huge demand for Govt bonds would be there Continue reading
India being emerges as one of the big market for (M&A) Mergers and acquisitions, in the last decade. The market for M&A is expected to grow at a very rapid pace and sooner we may see many hostile bids by the Indian companies, as they are very uncommon in India. Hostile takeovers must be recognized as manifestations of a market for corporate control. Advanced economies regulate M&A activities only from competition angle.
Private equity continuing to invest capital into India Inc, Hope that there would be some hostile takeovers because that is something Indian market badly needs to ensure good value creation for the shareholders.
Few of the cases which I can recall for hostile take over in India are Abishek Dalmia on Gesco and Arun Bajoria on Bombay Dying. Both were medium-sized barons outnumber their bigger peers, and follow quite different paths when it comes to running their businesses – owning substantial stakes in their business and thus less vulnerable to takeover. Continue reading
Too many research analysts, TV analysts and Exit polls are riding on the India’s biggest event of 2014. Every one knows this is an event driven market and all wants to cash in the euphoria of the bull run.
The Indian market swing in the last 2 sessions discounting the BJP win for the elections. This market period has been quoted as the Mother of bull markets.
I do not know how many portfolios is in green or red. Whenever there is a big swing in the market the investors start anticipating and the analyst start guessing the bottom points. Emerging economies Indian Rupee and the stock market is the famous example now. Continue reading
Folks I would be on holidays for a week, so obviously there would be no blogging …
The biggest democracy of the world is dancing and awaiting for the May 16- 17 outcome, positive outcome is very important for India, as this will break or make the economy. Hung parliament is the worst thing if it happens. As per Election commission of India the cost of conducting polls was INR 600 per person, this is for them those who are not aware of the expenditure for conducting elections.
Well don’t want to express much opinion on the above as in this country every body is a born politician and every one has his/her consensus on the political parties. Continue reading
Economic commentators are disappointingly short on metaphors. New economic figures released last week prompted a slew of articles asking whether or not India’s economy had “turned a corner,” “cleared the woods” or begun sprouting “green shoots.” After a turbulent summer – and against the backdrop of a lingering global downturn, looming general election and a booming China – it’s no surprise that Indians, and investors, are desperate for signs that the country’s economy is “back on track.”
As the global markets flopped at the end of last week under the repeated threat of the Federal Reserve removing its support for the US economy, one market decided to go the other way – India. Continue reading