Monday, June 09
ET Intelligence Group: The influx of liquidity after the latest monetary policy measures provides banks with a dual advantage. The freed-up funds can be either deployed to meet growing credit demand or invested in government securities and corporate bonds, each of which will support the growth in interest income. Also, armed with the excess liquidity, lenders are expected to cut deposit rates thereby reducing cost of funds. The combination of rising interest income and declining funding costs is set to enhance net interest income (NII) and net profit. NIM pressure is expected to bottom out by the end of September quarter. Banks with a larger share of fixed-rate loans are likely to benefit more in the current rate-cutting cycle."We expect NIMs to be under pressure in the first half of the c
Nifty is expected to move towards the 25,300–25,500 range, supported by the RBI’s 50-bps rate cut on Friday. Experts believe that rate-sensitive sectors—such as private banks, real estate, automobiles, metals, and select index heavyweights—could lead the market gains this week. Investors are advised to adopt a ‘buy on dips’ approach.JATIN GEDIA TECHNICAL RESEARCH ANALYST, MIRAE ASSET SHAREKHANWhere is Nifty Headed This Week? Nifty is on the verge of a breakout after a threeweek consolidation in the 24,460 – 25,100 range. The consolidation has taken the form of a Symmetrical Triangle pattern, which indicates a trend continuation pattern. The underlying trend for the Nifty is bullish, and the next leg of the up-move is likely to take the Index towards 25,307. The rally has the
The captains of the aerospace industry will gather in Paris next week for the marquee aircraft show and, while order announcements usually grab the headlines, the real driver of value the year will be the further recovery of the pandemic-battered aerospace supply chain, though a new obstacle has emerged.The world wants more aircraft. Airlines want to expand fleets and replace older aircraft that are more costly to operate. Airbus SE and Boeing Co. want to build more planes. The only hang-up has been the recovery of the aerospace supply chain, one of the hardest hit by Covid-19 and the slowest to recover because of its unique structure.Just as the specialized machine shops that make complex parts have started to regain their footing and prepare for Boeing’s large production increases, the
Thailand has shut two of its border crossings to tourists as a "safety measure" amid ongoing tensions with its neighbour, Cambodia. The 'unexpected' move left thousands of people stranded, as per a report by the Bangkok Post.The decision comes after a Cambodian soldier was killed in a short military skirmish on May 28 in the Emerald Triangle, the region where the borders of the two neighbouring countries and Laos converge.Both countries on Sunday reached an agreement to reposition their troops in the disputed border area. There has been sporadic violence on the Thai-Cambodian frontier since 2008, resulting in at least 28 deaths.ALSO READ: Even ‘White Lotus’ buzz isn’t reviving Thailand’s tourism slumpFollowing disputes in recent days over border controls and troops, the two sides m
India's microfinance sector continues to grapple with high interest rates, rising borrower over-indebtedness, and coercive recovery practices, highlighting the need for urgent lender reforms, a deputy governor of the central bank said. "The (microfinance) sector continues to suffer from vicious cycle of over-indebtedness, high interest rates and harsh recovery practices," M. Rajeshwar Rao said at an event in Mumbai on June 5. The speech was uploaded on the central bank's website on Monday. Indian banks have reported stress in the microfinance segment since the beginning of the current financial year, largely due to high borrower indebtedness, declining rural incomes, and election-related disruptions Even lenders with access to low-cost funds have been found to be charging significantly hig
