RBI rejects Indiabulls Housing-Lakshmi Vilas Bank merger, credit growth at a 22-month low; all this and more in MoneyControl Pro
When it came to a decision on the Lakshmi Vilas Bank-Indiabulls Housing Finance merger, it was always a lose-lose situation for the Reserve Bank of India.
When it came to a decision on the Lakshmi Vilas Bank-Indiabulls Housing Finance merger, it was always a lose-lose situation for the Reserve Bank of India
Bank credit growth as of 27 September 2019, fell to 8.8% compared to a year ago, the lowest rate of growth since November 2017
Market capitulation refers to the threshold reached after a severe fall in the market when large numbers of investors can no longer tolerate the financial losses incurred
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RBI has rejected Indiabulls Housing–Lakshmi Vilas Bank merger. What next?
When it came to a decision on the Lakshmi Vilas Bank-Indiabulls Housing Finance merger, it was always a lose-lose situation for the Reserve Bank of India. Both organisations are battling legal troubles and allegations of impropriety which they have refuted strongly. A nod for their union would have had people asking questions about whether the central bank was applying its fit-and-proper criteria correctly. But now that it has nixed the marriage, the central bank has to deal with the aftermath. Read more.
Credit growth at a 22-month low
Bank credit growth as of 27 September 2019, fell to 8.8 percent compared to a year ago, the lowest rate of growth since November 2017. Non-food credit growth was at 8.7 percent year-on-year. The continuing fall in bank credit growth not only indicates that GDP growth for the September quarter is likely to be low but also that far from showing any improvement, the fall in credit growth accelerated last month. A rise in credit growth will be one of the first signs of a turnaround. Click here for more.
IIFL Wealth is well-positioned to capitalise on millionaire boom
India is one of the fastest-growing wealth markets and is projected to grow at 10 percent CAGR for the next five years. Thanks to a burgeoning affluent class—those with wealth between $1-20 million—India is the only nation apart from China which is expected to see double-digit CAGR in personal wealth. Upper and ultra-high net worth individuals (UHNWI) segment i.e. individuals with investable assets of $20 million or more, too is likely to see fastest growth in wealth. It is with this background that our in-house research team is recommending IIFL Wealth. Read more.
TCS Q2: What should investors do?
TCS reported an extremely subdued performance in a quarter which is traditionally considered to be seasonally strong. Revenue performance was decisively weak and that percolated to a softer margin. While the management sounded confident about long-term structural tailwinds and deserves kudos for record deal wins in the quarter, the weak commentary on near-term growth (H2 FY20) certainly points to a soft FY20. The stock has underperformed both the benchmark Nifty and IT index in recent times. So what should investors do? Read more.
How to identify capitulation—the case study of Yes Bank
Market capitulation refers to the threshold reached after a severe fall in the market when large numbers of investors can no longer tolerate the financial losses incurred. These investors then capitulate (give up) and sell in panic, or find that their pre-set sell stops have been triggered, thereby automatically liquidating their holdings in a given stock. Using the real-life example of Yes Bank, trader Subhadip Nandy explains how investors can make money by identifying this trend. Read more.
Picks from our technical analysts
Infosys: The stock is on a sideways trend ahead of its results. It is likely to continue the same trend and remain below 830. Click here for an options trading strategy.
Indigo: Prices of IndiGo shares are on a strong uptrend. Click here for technical analysis of its share price chart and a futures trading strategy.
Introduced by the Reserve Bank of India in 2016, MCLR is the minimum interest at which banks can lend to their customers. MCLR is generally revised on a monthly basis
Inflation has remained above the RBI's comfort zone of 6 per cent for four months in a row mainly due to the Russia-Ukraine war which has impacted the prices of commodities across the globe
The Reserve Bank of India decided to increase the repo rate by 40 basis points, citing rising inflation. Banks might hike interest rates on loans, which means EMIs on home, auto, and personal loans will go up