India’s gamified equities are a wake-up call 8 Nov 2023 Retail investors are driving derivative volumes to far higher ratios than in the US. Yet 90% of these speculators lose money. The activity is tough to regulate and it spotlights hidden risks of lightning-speed digitally enabled financial inclusion.
For global banks, India could soon be worth it 7 Nov 2023 CEOs have descended on Hong Kong for a summit, but investment bankers based in the city are spending time elsewhere in Asia as revenue from China shrinks. In India, IPOs are on the rise and fees are improving. Buyout firms’ behaviour suggests those trends will continue.
Disney walks open-eyed towards Reliance mousetrap 31 Oct 2023 Bob Iger’s $147 bln media giant may sell a majority stake in its India business to Mukesh Ambani’s conglomerate, per Bloomberg. The division is losing money and subscribers, mostly to a Reliance-owned rival. A deal at half the value when Disney took control would be a victory.
Kotak’s new boss will have his work cut out 24 Oct 2023 Former Barclays and Citi executive Ashok Vaswani is taking the helm at the $41 bln Indian bank. He’s short on domestic experience, key lieutenants were in the running for the job, and his predecessor is the lender’s top investor and a board member. Vaswani has a hard path ahead.
India and Japan will be Asia’s next power couple 19 Oct 2023 Modi and Kishida's governments partner on security and are setting up a $600 mln fund to co-invest in green infrastructure. It's a fresh sign that financial ties, including potentially on cross-border commodities M&A, may flourish to match the strengthening geopolitical bond.
AI may force IT spending into economic decoupling 11 Oct 2023 If companies want to gain from artificial intelligence, they’ll have to spend big on IT. Clients are holding back for now as global growth slows but valuations of tech giants like Accenture and Tata Consultancy suggest clients will loosen purse strings sooner rather than later.
India’s consumers are surprisingly fragile 5 Oct 2023 Despite near-8% economic growth, weak demand is prompting Unilever and Nestle’s local units to launch multiple low-priced packs of soap and noodles. More official handouts, like an extension to a free food scheme, will be something for companies to both cheer and worry about.
Asia’s breakup party is happening under duress 4 Oct 2023 India’s Anil Agarwal is splitting his $10 bln mining company Vedanta into six. As with China’s Alibaba, the carve-up is spurred by external problems, namely debt at its unlisted parent. Tycoons are unlocking value for weary shareholders, but mostly because they have no choice.
China plus one will lift India’s capital market 28 Sep 2023 Global funds are doubling down on India, supporting IPOs. JSW Infrastructure attracted $7.3 bln of orders for fewer than $200 mln-worth of shares. It paves the way for big debuts like Ola Electric and Reliance Retail. Investors, though, are entering a market priced to perfection.
Byju’s restructuring leaves one big job untouched 27 Sep 2023 India’s troubled edtech star may slash 5,000 roles in its overhaul. That’s easy work compared to solving its $1.2 bln loan dispute. Co-founder Byju Raveendran remains CEO. Starting a new chapter with old hands is tough but it reflects a hard reality for the Prosus-backed group.
Ukraine war gives wings to India bond index debut 22 Sep 2023 JPMorgan will add the country’s sovereign debt to its emerging market index, easing concentration issues following Russia’s exclusion. It drags foreigners into a $1 trln market. New Delhi sees new gains from opening but it may have to bend on taxes and more to win wider backing.
M&A spillover in India-Canada fight hurts everyone 22 Sep 2023 As bilateral relations sour over a murder, tycoon Sajjan Jindal is going slow on his planned $8 bln consortium bid led by JSW Steel for Vancouver-based Teck’s coal assets. The stalling hurts the buyer and the seller, and India’s diversification ambitions a bit more.
Total’s green bet on Gautam Adani is a win-win 21 Sep 2023 The $160 bln oil major is doubling down on its Indian partner, even though units it backed before are among the tycoon's worst performers since a short attack. TotalEnergies’ green targets may be more pressing than the risk of Adani woes. Bullishness is easier now to justify too.
India entry into geopolitical storm will be costly 19 Sep 2023 New Delhi dismissed as ‘absurd’ Canada’s allegation of its involvement in a Sikh leader’s murder. Either way, the fallout will ripple through cabinets and boardrooms in the West. For global companies and money managers, it’s a reminder that de-risking from China is complicated.
Ambani’s retail backers dispel only a little doubt 15 Sep 2023 Asia’s richest man is raising funds at the shopping unit of his Reliance Industries. Infusions from KKR and Qatar signal a $100 bln pre-IPO valuation, twice some analyst estimates, but there are caveats. A few more endorsements from new financial investors would go a long way.
India’s fintech partygoers nurse a needed hangover 11 Sep 2023 The $16 bln industry’s annual shindig was a sombre affair. Founders touted sustainable growth amid dipping valuations, regulators preached risk mitigation and big investors stayed away. Waning euphoria for the country’s digital ecosystem may, though, be an early sign of maturity.
Asia’s richest banker makes a meal of succession 4 Sep 2023 Uday Kotak has quit early as CEO of his $43 bln lender. He seems to be pitching it as a way for Kotak Mahindra Bank to appoint a replacement free from his interference. But he’s on the board and the firm’s biggest shareholder. And his legacy is tied to whoever takes his spot.
India is warming up to a cooling China 28 Aug 2023 Narendra Modi’s meeting with Xi Jinping in South Africa signals some thawing of financial ties hamstrung since 2020 by border tensions. Investments from the People’s Republic into its neighbour shrivelled thanks to a screening policy. That now looks ripe for fine-tuning.
Indian interlopers can disrupt global mining M&A 25 Aug 2023 Sajjan Jindal’s JSW Steel can afford Teck’s coal unit. A full or part bid rivalling Glencore’s $8 bln offer would secure key raw materials and reduce the risk of geopolitical supply shocks. It’s a strong motive for buyers in the fastest growing market for the alloy to do deals.
High food prices put populism on India’s table 22 Aug 2023 The cost of onions and tomatoes are soaring ahead of state elections, ramping up pressure for government relief measures. Modi’s fiscal prudence has helped tame inflation and supports his appeal to global investors. The latest crisis could push everyone out of their comfort zone.