India

Viewsroom: Trump solar tax is more burn than balm

25 January 2018

The U.S. president seems to be trying to right past trade wrongs. But business has long since moved on, meaning tariffs on washing machines and solar panels will do more harm than good. Also, Merkel and Modi disappoint in snow-ravaged Davos. Plus: Spotify’s Wall Street snub.

Make in India clashes with America First in Davos

23 January 2018

Narendra Modi and Donald Trump share strongman characteristics and both have a zero-sum approach to trade. The Indian premier needs to boost manufacturing just as the U.S. president wants to do the same. The Asian nation has the most to lose if it fails to realise its vision.

India’s $6 bln oil deal is slick for Narendra Modi

22 January 2018

ONGC’s purchase of the government’s holding of Hindustan Petroleum makes more sense for New Delhi than the buyer. The logic of an explorer purchasing a refiner is flawed. But the deal helps the prime minister burnish his economic credentials by hitting asset disposal goals.

Viewsroom: Donald Trump goes to Davos

19 January 2018

The U.S. president heads to the Swiss Alps confab that’s the antithesis of his “America First” ideology. He’ll have competition: keynote speaker Narendra Modi, with his “Make in India” policy. Plus: BlackRock’s Larry Fink pushes social activism. And why Ford is stalling.

India’s “Big Bull” likes stocks, not bitcoin

19 January 2018

Billionaire investor Rakesh Jhunjhunwala, in a recent Breakingviews Predictions chat, discussed his positive outlook on Indian growth and why he likes domestic equities. He also sees the country privatising assets, including banks, and thinks crypto-currencies are madness.

Unilever’s $47 bln Indian arm is real beauty spot

17 January 2018

India is set to become the consumer giant’s largest market by sales. Hindustan Unilever dominates sales of soap and is well positioned to fight off rivals. A multiple of almost 50 times forward earnings – more than twice its parent’s valuation – reflects that promise.

Indian bank M&A is creative fix for both sides

15 January 2018

IDFC Bank is paying $1.5 bln in stock for Capital First, a fast-growing consumer lender backed by U.S. buyout firm Warburg Pincus. The buyer gets a much better retail business and a star CEO. The target gets a shortcut to obtaining the bank licence it always wanted.

India gets tough on auditors with PwC ban

11 January 2018

The regulator has banned a PwC affiliate from auditing listed companies for two years over its role in the 2009 Satyam scandal, known as "India's Enron". A ban against a Big Four firm is rare, but new SEBI Chairman Ajay Tyagi is willing to disrupt to bring order to the market.

Trump will be party pooper-in-chief at Davos

10 January 2018

The U.S. president’s “America First” agenda is the antithesis of the Swiss conflab’s global ethos. His visit to the mountain resort may be a bid for reconciliation, or a pitch for strongman status. Either way, his presence is a stark rebuke to Davos elites who got him badly wrong.

Indian tycoon has golden opportunity in aluminium

10 January 2018

A reported $2.5 bln bid from Hindalco for U.S. aluminium producer Aleris would mark a shift in focus to growth for Kumar Mangalam Birla. The headline price is punchy. But surging demand for electric vehicles and more fuel-efficient petrol cars should be great news for the metal.

Electric cars will catch up with gas guzzlers

5 January 2018

Plans to ban dirty vehicles are stoking investment in clean transport, driving down costs. Consumers could find battery power as cheap as combustion engines for the first time in 2018. But it will be harder to drive up profitability. Automakers will struggle as margins tighten.

Ambani’s debt cure is no elixir for shareholders

28 December 2017

Anil Ambani says he has rescued his Reliance Communications with a $6 bln firesale. That’s a relief for lenders, assuming buyers turn up as promised. But it’s not the moral victory the tycoon claims. Even if creditors play ball, investors are left with a much diminished company.

India bids adieu to “promoter” capitalism in 2018

21 December 2017

The country's errant tycoons have fewer places to hide as Prime Minister Modi ushers in a new era of governance, starting with a strict insolvency code. This will send serial defaulters packing and signal a shift towards more market, creditor and shareholder-friendly forces.

India’s e-commerce war to surface on U.S. shores

20 December 2017

Amazon's arch-enemy Flipkart has good reason to snub Mumbai and head to New York for an IPO in 2018. Its biggest global peers are listed stateside. With SoftBank and Alibaba as backers, the $12 bln retailer is primed to take its local fight against Jeff Bezos to global investors.

Privatisation is no longer a dirty word in India

19 December 2017

The state has been stealthily reducing its role in industry by allowing private players to gain market share. There's appetite for a more aggressive approach. If national carrier Air India can be sold, look for banks, energy and other assets to follow if Modi wins a second term. This is a Breakingviews prediction for 2018. To see more of our predictions, click here.

Modi’s shrunken home-state win may slow reform

18 December 2017

The Indian premier’s BJP won in Gujarat, but with a reduced margin. That could signal a tougher-than-expected fight in the 2019 general election and prompt Narendra Modi to put his bigger, more disruptive initiatives on the back-burner for now in favour of more populist policies.

Ambani is programmed to punch through $100 bln

13 December 2017

Mukesh Ambani's Reliance Industries could be India's first mega-cap stock. His refineries are at the mercy of oil prices, but his bid to dominate Indians’ digital lives is generating excitement. A potential listing of his upstart telecoms business will add to the upward momentum.

New Delhi bowls Rupert Murdoch a bouncer

4 December 2017

Star India may be forced to share its $2.5 bln cricket rights with a state broadcaster if the league is deemed of “national importance.” That might score the government some points. For Murdoch, who is fielding interest for parts of his Fox empire, it would be a sticky wicket.

Indian economy shaking off Modi’s shock therapy

30 November 2017

Growth of 6.3 pct last quarter suggests fallout from the premier's policy pileup is fading. He’s leading a bold drive to improve the way India is governed. Getting a few more things right, like the resolution of bad debt, is a precondition to turn this into a solid economic run.

Indian family writes its own philanthropic code

24 November 2017

The Bhartis are donating $1.1 bln to their own foundation. Though the sum pales next to other billionaire pledges, there's a creative twist. Money will be used to start a university to teach AI and robotics, free to poor kids. There's no global playbook when it comes to giving.