India is, after all, perhaps the only one among the usual suspects to survive without Fed/IMF support. Merrill estimates the FY09 current account deficit at a doable 2.2% of GDP. INR to consolidate around current levels. The INR should also benefit later in the year from stronger risk appetite. The upside, however, is likely bound by a growing policy preference for a weak INR to support exports; combat imported deflation; and recoup ~US$30bn sold in the Indian Equities. (more…)
Category: Economy, Markets and Macro Views
Research on Indian Economy, Markets and Macro Indicators
Ambani’s Reliance Lost Billions in Hedging ?
If 2008 was a year of disaster for World Economy, 2009 doesn’t seem to be much better either for Mukesh Ambani. It is widely reported in the press that he has lost close to $5 bn in Oil Hedging. However, our sources said that it is likely to be less than $1 bn but still a significant amount to be paid by the shareholders of Reliance Industries Ltd.
Tehelka.com report (more…)
Satyam’s Raju Vs Anil Ambani – Corporate Governance
The past few days have been terrible for Satyam Computers and B. Ramalinga Raju. The company has been in the news for all wrong reasons first a failed merger of Maytas Properties & Infrastructure into Satyam Computers and the ban by World Bank for Data Theft at Satyam’s Campus.
B. Raju – Scapegoat of Economic downturn & Activism of Corporate Governance: Yes, you read that right. We believe, B. Raju is the victim in the current scenario. If you have read the book, The Polyester Prince – Biography of Dhirubhai Ambani, you will know how to put dirty corporate governance into practice in India.
We feel, B. Raju and his son should have taken a lesson from Anil Ambani on how to merge or transfer successful projects into different companies. B. Raju got the timing wrong as well and is thus a victim today [Imagine would anybody have objected to this deal had it happened in Dec 2007 ?]. Reliance Power IPO Scam was a much bigger issue but everybody including the regulators were mere spectators. (more…)
Satyam Computers + Maytas Scam on Conference Call
The Rajus of Satyam Computer who had painted a fantastic picture of their IT Services [we call it modern day slave trading] business appear to be skating on a thin layer of ice with global meltdown in BFSI segment. The company absolutely has no corporate governance.
The management came for a face saving exercise and decided to host an analyst call. We are presenting an excerpt from the same, (more…)
Book Profits in the Rally
The Indian market has exhibited some strength over the past few weeks. The market is now in its eighth week of rise from its October intra-day lows.
The BSE Sensex is up 31% since its October lows and this is the fourth time since the bear market started in January that we’ve seen a rally of 20%+ and the longest one thus far. The broad market has started to outperform the narrow market with a 5% outperformance over the past week. (more…)
Apollo Hospitals – Review
The Apollo Hospitals group today includes over 10,000 beds across 43 hospitals in India and overseas, neighbourhood diagnostic clinics, extensive chain of Apollo Pharmacies, medical BPO, health insurance services and clinical research divisions.
Apollo also has a well diversified presence across the value chain of health care services – Apollo Clinics (to cater to the out patient medical requirements), medical BPO and health insurance services. Tie ups with foreign health insurance companies as a part of medical outsourcing to India and (more…)