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☆ India's Kotak Mahindra Bank's Oct-Dec net profit jumps 31%
▼ + stars: | 2023-01-21 | by ( ) www.reuters.com time to read: +2 min

MUMBAI, Jan 21(Reuters) - India's Kotak Mahindra Bank (KTKM.NS) on Saturday reported a 31% increase in standalone net profit for the October-December quarter, aided by a strong topline and healthy loan growth. The private lender's standalone profit stood at 27.92 billion rupees ($344.2 million) compared with 21.31 billion rupees in the same period last year. Net interest income, the difference between interest earned and interest expended, rose 30.4% from a year ago to 56.53 billion rupees, while other income rose nearly 54%. The net interest margin was at 5.47% as compared to 4.62% last year. As of Dec. 31, the bank held Covid-related provisions worth four billion rupees.

☆ India cannot discount any competition in the electric vehicle sector: Insurance firm's equities head
▼ + stars: | 2023-01-17 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailIndia cannot discount any competition in the electric vehicle sector: Insurance firm's equities headHemant Kanawala, head of equities at Kotak Mahindra Life Insurance, discusses the outlook for India's automotive industry and the challenges it faces.

☆ Indian rupee's rally powered by changing offshore view - traders
▼ + stars: | 2023-01-11 | by ( Nimesh Vora | ) www.reuters.com time to read: +2 min

MUMBAI, Jan 11 (Reuters) - An unexpected rally in the Indian rupee to above 82 to the U.S. dollar was powered mostly by offshore market participants and helped the non-deliverable forward (NDF) and onshore rates to almost converge, traders said on Wednesday. The rupee's jump took market participants by surprise, considering that the USD/INR had been holding a narrow range over the past several sessions. The major reason for the USD/INR moving out of this range was dollar sales by offshore investors in NDF, said a trader at a large private sector bank. The NDF and onshore spreads have shrunk with the improvement in the rupee's outlook. "The above two factors is getting reflected in the NDF and onshore spreads."

☆ India is learning to love electric vehicles — but they're not cars
▼ + stars: | 2023-01-09 | by ( Charmaine Jacob | ) www.cnbc.com time to read: +6 min

Electric vehicle charging stations from Tata Power can be found on 350 of the 600 highways in India. Puneet Vikram Singh, Nature And Concept Photographer, | Moment | Getty ImagesWhen most people think about electric vehicles, they think cars. From brands like Tesla and Rivian in the United States, to Nio and XPeng in China, global sales of electric vehicles have surged. But in India, two-wheel vehicles such as scooters, mopeds and motorbikes, dominate the market. The starting price of electric two-wheel vehicles can be as high as 160,000 rupees.

☆ Analysis: Fall in India nominal GDP growth in FY24 to challenge fiscal math
▼ + stars: | 2023-01-09 | by ( Ira Dugal | ) www.reuters.com time to read: +4 min

At least four leading economists expect nominal GDP growth to come in between 8% and 11% as inflation slows and real GDP growth eases from an estimated 7% this year, when pandemic-related distortions and pent-up demand pushed up growth rates. Das said he expects nominal GDP growth of 8%-9% in FY24, with inflation and real GDP growth seen declining. A growth of 8-9% would bring that number close to the 7.6% nominal growth seen in 2019/20, before the Covid crisis hit. State Bank of India and rating agency ICRA estimate the nominal GDP growth at around 10% for next financial year. "Higher-than-budgeted nominal GDP growth,(will help) to keep fiscal deficit as a percentage of GDP at 6.4%, with downside risks," it said.

BENGALURU, Jan 6 (Reuters) - A budget that accelerates fiscal consolidation would give more support to the Indian rupee in the near term, according to a Reuters poll of FX analysts who forecast the currency would erase a fifth of last year's losses over the next 12 months. A majority of FX analysts, 11 of 17, said a Feb. 1 budget that focuses on fiscal consolidation would help the Indian rupee the most in the near term. None of the respondents expected the rupee to be stronger than 75 per dollar, where it started 2022, at any point this year. Abhishek Upadhyay, senior economist at ICICI Securities Primary Dealership, said the "fiscal deficit is still too high and needs to be reduced" for the rupee to find some support. "High fiscal deficit will hurt the savings-investment balance, curb improvement in current account deficit, and complicate the RBI's efforts to temper inflation pressures."

☆ Indian rupee could see big breakout after being locked in tight range - analysts
▼ + stars: | 2023-01-04 | by ( Nimesh Vora | ) www.reuters.com time to read: +2 min

MUMBAI, Jan 4 (Reuters) - The Indian rupee's narrow trading range against the dollar over the last three weeks may set the stage for a big directional move and a jump in volatility, analysts said. Volatility - Anushka"The longer the narrow range prevails ... the higher is the risk of a big eventual break," said Anindya Banerjee, head research - fx and interest rates at Kotak Securities. He pointed to an instance in the recent past when a narrow trading range was followed by a major slide for the rupee. In September-October last year, the rupee fell from 80.00 to 83.29 in just a month after being held in the 79.50-80.00 range. The rupee has repeatedly found support just under the 83 level over the last three weeks.

☆ Indian markets may see FPI revival after worst-ever selloff in 2022- analysts
▼ + stars: | 2022-12-30 | by ( Bharath Rajeswaran | ) www.reuters.com time to read: +2 min

BENGALURU, Dec 29 (Reuters) - Foreign investors' selloff in Indian equities was the biggest on record in 2022, dragging the benchmark indexes to their smallest annual gain in four years, but analysts expect purchases by cross-border investors to rebound next year. Foreign portfolio investors (FPIs) sold 1,219.08 billion rupees ($14.73 billion) worth of Indian equities in 2022, till Dec. 29, the biggest selloff in Indian shares in a year since 1993, when data became available. Reuters Graphics Reuters GraphicsThe second-worst FPI selloff was in 2008 at 529.87 billion rupees ($6.40 billion), which triggered a 51.79% fall on the Nifty 50 (.NSEI). Foreign funds purchased around 958.78 billion rupees worth of stocks in the second half of 2022, after being net sellers of shares worth 2,173.58 billion rupees in the first half. Reuters GraphicsDOMESTIC INVESTORS WEIGH INMeanwhile, domestic institutional investors net bought equities worth 2,734.60 billion rupees in 2022, their best year since data became available in 2008, according to National Stock Exchange.

☆ India's Mamaearth parent files for IPO - draft prospectus
▼ + stars: | 2022-12-29 | by ( ) www.reuters.com time to read: +2 min

[1/2] Indian skincare startup Mamaearth's products are on display for sale at a wholesale shop in Ahmedabad, India, June 22, 2022. REUTERS/Amit DaveBENGALURU, Dec 29 (Reuters) - Parent of Indian personal care products startup Mamaearth, Honasa Consumer Ltd, on Thursday filed for an initial public offering (IPO), according to draft papers submitted to the market regulator. The Sequoia- and Sofina-backed company's IPO will comprise of a fresh issue of shares worth 4 billion rupees ($48.30 million) and an offer for sale of 46.8 million shares. Reuters had reported in June that Mamaearth was in talks to raise at least $300 million for the IPO scheduled for 2023. Honasa said it would use about 1.86 billion rupees from the IPO for advertising expenses.

☆ No spending spree likely in last full Indian budget before 2024 election: Reuters poll
▼ + stars: | 2022-12-22 | by ( Vivek Mishra | ) www.reuters.com time to read: +4 min

BENGALURU, Dec 22 (Reuters) - The Indian government will focus on fiscal consolidation in its Feb. 1 budget, the last full one before a 2024 general election, according to a Reuters poll of economists who said slowing economic growth would limit it from spending more. That will likely limit the government's ability to provide relief to households and businesses facing an uneven recovery from the pandemic. Economic growth likely slowed sharply to an annual 4.6% in the December quarter from 6.3% reported in the preceding quarter. Sitharaman's expected fiscal prudence coincides with state assembly elections in Karnataka, Chhattisgarh, Madhya Pradesh and Rajasthan in 2023, which would likely discourage the government from making deep cuts to social welfare. Among those who expect it to be a more populist budget, some said the government would announce new subsidies, an increase in healthcare and rural spending to boost jobs.

☆ Analysis: India's post-COVID spending boom drives two-speed economy
▼ + stars: | 2022-12-21 | by ( Ira Dugal | ) www.reuters.com time to read: +5 min

The world's fifth-largest economy is expected grow 6% in the fiscal year ending March 31, 2024, according to a survey by the Indian central bank this month. Importantly, conditions are better than not just the crippling slump during India's devastating COVID surge last year but also the anemic growth of the debt-saddled last decade. "If India does everything right, we could see significant foreign inflows in the next one to two years," said Sridhar Sivaram, investment director at Enam Holdings, a privately managed investment group. India's weight in the MSCI emerging market index has already risen from 8% in 2019 to 16% as of October 2022, said Sivaram. There is also hope that global corporations will diversify supply chains away from China, which would benefit India.

☆ We could get up to 17% return today on cashflow generating assets, says Kotak Investment Advisors
▼ + stars: | 2022-12-16 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe could get up to 17% return today on cashflow generating assets, says Kotak Investment AdvisorsSrini Sriniwasan of Kotak Investment Advisors discusses what's next after the company secured an anchor investment of $500 million from a subsidiary of the Abu Dhabi Investment Authority (ADIA).

☆ India bank sale sharpens valuation rivalry
▼ + stars: | 2022-12-15 | by ( Shritama Bose | ) www.reuters.com time to read: +3 min

Sumitomo Mitsui Financial (8316.T), Carlyle (CG.O) and Fairfax Financial (FFH.TO) may each be eyeing some of the 61% stake on offer in $7 billion IDBI Bank (IDBI.NS), per reports by The Economic Times and Mint. These latecomers’ share of outstanding loans fell to 55% in March 2022 from 70% in 2016, per Reserve Bank of India data. CONTEXT NEWSIndia on Dec. 14 extended the deadline to submit preliminary bids for the sale of a controlling stake in IDBI Bank to Jan. 7 from Dec. 16. New Delhi intends to sell 30.48%; Life Insurance Corporation of India, which is almost entirely government-owned, will sell a 30.24% stake. Carlyle, Fairfax Financial and DBS Bank are considering bidding for at least 10% each in IDBI Bank, Mint reported on Nov. 7, citing unnamed sources.

☆ India cenbank hikes key policy rate by 35 basis points
▼ + stars: | 2022-12-07 | by ( ) www.reuters.com time to read: +7 min

However, the pace of rate hikes is reducing from 50 bps to 35 bps, in line with expected global hikes." The market needs to keep a close watch on global rate hikes and sticky core inflation." "We expect RBI to go for another 25 bps hike in its next policy, with the terminal rate at 6.5%. ANUJ PURI, CHAIRMAN, ANAROCK GROUP, MUMBAI"The 35 bps rate hike by the RBI - the fifth consecutive rate hike this year - comes as no surprise. We see a possibility of another 25 bps rate hike before a prolonged pause."

The monetary policy committee (MPC), comprising three members from the RBI and three external members, raised the key lending rate or the repo rate (INREPO=ECI) to 6.25% in a majority decision. "The MPC was of the view that further calibrated monetary policy action was warranted to keep inflation expectations anchored, break core inflation persistence and contain second round effects,” Das said as he announced the monetary policy committee's decision. We see a possibility of another 25 bps rate hike before a prolonged pause," Upasna Bhardwaj, chief economist at Kotak Mahindra Bank said. A 6.8% growth (rate) is robust," Das said. The Indian rupee dipped against the dollar after the policy decision and comments on inflation, while government bond yields rose.

☆ Indian shares unchanged ahead of RBI policy decision
▼ + stars: | 2022-12-07 | by ( ) www.reuters.com time to read: +2 min

BENGALURU, Dec 7 (Reuters) - Indian shares had a muted open on Wednesday, ahead of a widely expected interest rate hike by the Reserve Bank of India, though investors will focus on the outlook the central bank provides on its fight against domestic inflation. The RBI is widely expected to raise rates by a smaller 35 basis points (bps), after three back-to-back 50-bps moves to tame stubbornly high inflation. The Nifty and Sensex have climbed 9% each since the last RBI rate hike on September 30. The sustainability of the drop in crude prices is also uncertain. "A likely smaller rate hike will signal a mix of cautiousness and comfort while keeping all options open for the February policy depending on the conditions," Suvodeep Rakshit, chief economist at Kotak Instituitonal Equities, wrote in a pre-monetary policy note.

About 26.9 million shares will be sold for between 340 rupees and 357 rupees in the IPO, with Sula raising 9.60 billion rupees, Chief Executive Rajeev Samant said at a press conference in Mumbai on Wednesday. However, that is less than Radico Khaitan Ltd's (RADC.NS) market value of 147.52 billion rupees and United Spirits Ltd's (UNSP.NS) 682.18 billion rupees valuation. Streaming platforms have also helped popularise wine, added Samant, who launched Sula in 1996. Its net revenue rose 8% year-over-year to 4.57 billion rupees in fiscal 2022. Sula's IPO will be open for subscription from Dec. 12-14 and debut on the stock exchanges between Dec. 20-22, the company said.

MUMBAI, Nov 30 (Reuters) - India's biggest companies should be investing much more than they are currently, Uday Kotak, chief executive of Kotak Mahindra Bank (KTKM.NS) said in an interview at the Reuters NEXT conference on Wednesday. Across India's banking sector, lending has been rising steadily - a sign of a new private investment cycle in the world's fifth largest economy. Kotak said he believes the gap between credit and deposit growth will narrow in the next three to six months, but did not elaborate. He also said it was critical for the government to follow through on plans to privatise most state-run companies. To view the Reuters NEXT conference live on Nov. 30 and Dec. 1, please click here.

☆ India cenbank to start pilot of digital rupee on Nov 1
▼ + stars: | 2022-10-31 | by ( Reuters Staff | ) www.reuters.com time to read: +1 min

FILE PHOTO: A man walks behind the Reserve Bank of India (RBI) logo inside its headquarters in Mumbai, India, April 8, 2022. REUTERS/Francis MascarenhasBENGALURU (Reuters) - The Reserve Bank of India (RBI) will launch the pilot for a central-bank-backed digital rupee for the wholesale segment on Nov. 1, it said on Monday, identifying nine banks, including top lender State Bank of India, to participate in the project. Settlements in central bank digital currency would reduce transaction costs, the RBI added. Besides SBI, the pilot will include Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC, the RBI said. The central bank’s plans for a currency in digital form comes amid its staunch opposition of cryptocurrencies.

☆ INDIA STOCKS Indian shares may open lower, tracking Asia
▼ + stars: | 2022-10-25 | by ( ) www.reuters.com time to read: +3 min

BENGALURU, Oct 25 (Reuters) - Indian shares are poised to edge lower at open on Tuesday, tracking weakness in Asian markets, with limited downside seen on the back of expectation the Federal Reserve may slow its pace of rate hikes. However, in the one-hour of trade, shares of Yes Bank Ltd (YESB.NS), ICICI BANK (ICBK.NS) and Hindustan Unilever Ltd (HLL.NS) fell between 2.8% and 3.9%. In addition, foreign institutional investors sold a net 1.54 billion Indian rupees ($18.61 million) worth of equities on Monday, while domestic investors bought net 801.2 million rupees worth of shares, as per provisional data available with the National Stock Exchange. ** Kotak Mahindra Bank (KTKM.NS) on Saturday reported a bigger-than-expected jump in net profit for the June-September quarter, lifted by strong loan growth. ** Yes Bank (YESB.NS)said on Saturday its profit fell in the July-September quarter as it set aside more provisions for bad loans recorded in previous quarters.

☆ India's Kotak Mahindra Bank quarterly net profit jumps 27% y/y
▼ + stars: | 2022-10-22 | by ( ) www.reuters.com time to read: +1 min

MUMBAI, Oct 22 (Reuters) - India's Kotak Mahindra Bank (KTKM.NS) on Saturday reported a bigger-than-expected jump in net profit for the June-September quarter, lifted by strong loan growth. The private lender's standalone profit jumped 27% from the same period last year to 25.80 billion Indian rupees ($313 million) in its fiscal second quarter. Analysts were expecting a profit of 23.68 billion rupees, according to Refinitiv IBES data. India's banks were expected to report strong quarterly results as lending picked up despite a slew of central bank rate hikes. Kotak Mahindra Bank said in a regulatory filing this week that it would consider fund raising by issuing non-convertible debentures.

☆ INDIA RUPEE Rupee hits record low on worries of aggressive U.S. rate hikes
▼ + stars: | 2022-10-20 | by ( Anushka Trivedi | ) www.reuters.com time to read: +3 min

read moreThe partially convertible rupee was trading at 83.16/17 per dollar by 0436 GMT, compared to its close of 83.02 on Wednesday. Register now for FREE unlimited access to Reuters.com Register"We can expect the dollar to continue strengthening as long as the Fed maintains its super hawkish stance. read moreTraders said the falling interest rate differential between India and the U.S. could continue to pressure the rupee. Shilan Shah, India economist at Capital Economics, said in a recent note that 50 bps rate hikes may be off-the-table at the RBI's meeting in early December. "We think other MPC members will have seen enough evidence of growth coming off the boil and price pressures peaking.

☆ India cenbank's FX intervention via forwards may hamper rupee's defence -analysts
▼ + stars: | 2022-10-17 | by ( Nimesh Vora | ) www.reuters.com time to read: +2 min

MUMBAI, Oct 17 (Reuters) - The Reserve Bank of India's (RBI) forex intervention through forward dollar sales instead of an on-spot basis may undermine its effort to boost the rupee, analysts said. The central bank has been selling dollars in spot and conducting buy/sell swaps to shift the delivery of dollars to a future date. Register now for FREE unlimited access to Reuters.com RegisterA buy/sell swap involves an agreement to buy dollars at the spot date and to sell dollars at a future predetermined rate. The difference between the sell rate and the buy rate is the forward premium. Meanwhile, the fall in premiums also dissuades exporters to sell dollar forward.

☆ Economic slowdown will impact all of India's tech companies: Analyst
▼ + stars: | 2022-10-17 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailEconomic slowdown will impact all of India's tech companies: AnalystSumit Pokharna, VP of Kotak Securities says there's a slowdown in IT outsourcing, but sees a lot of upside potential for India's tech stocks if there the global economy stabilizes.

☆ Exclusive: India's RBI asks banks to stop building positions in offshore market
▼ + stars: | 2022-10-13 | by ( Nimesh Vora | ) www.reuters.com time to read: +3 min

The build-up of positions in this segment of the market is forcing the RBI to spend more reserves to defend the rupee, one of the bankers said. For instance, the USD/INR NDF 1-month rate is currently 7 paisa higher than the corresponding onshore rate and the 3-month forward rate is about 25 paisa higher. To take advantage of this arbitrage, eligible banks could buy spot dollars onshore and pay 1-month premium while selling USD/INR 1-month in the NDF market. Bankers argue that the RBI's curbs on the activity of banks on NDF will not ease pressure on the rupee. Instead, it would lead to offshore rates once again having more influence on the rupee exchange rate.

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