Monday, September 21
Global research firm Bank of America (BofA) Global Research has maintained a positive recommendation on securities issued by Vedanta, citing reduced holding company liquidity risk, cheaper debt, and lower reliance on dividends in the future. The firm's report follows allegations by a US-based short seller against the Vedanta Group, which the conglomerate has strongly rejected. BofA has said in the report that a recent third-party report (Viceroy report) reiterated Vedanta Resources Ltd's known structural subordination, reliance on dividends to service debt, and changes in senior management. "Even so, the holding company's liquidity risk has been reduced with a reduction in debt to USD 5.3 billion by end of financial year (FY) 2025, driven by dividends from its majority-owned Vedanta Ltd, a
Reserve Bank will "wait and watch" the evolving situation before deciding on any further rate cut, Governor Sanjay Malhotra has said as he emphasised that both growth and price stability are equally important. With inflation on a downward trend, the RBI's Monetary Policy Committee (MPC) has been reducing the benchmark repo rate and has adopted a neutral stance, which also gives the flexibility to either cut or hike the rate going forward. The central bank has cummulatively reduced the repo rate by 100 basis points since February. In an interview to television channel CNBC-TV18, Malhotra said internal assessments are done on inflation outlook and he does not know whether it will be 3 per cent, as those calculations are still in the process of being done. "We will certainly come out with our
