IIFL cuts by 3 per cent aviation volume growth assumption

The domestic air travel industry has grown at around 20% since mid-CY2014. However, this coincided with a significant increase in supply; hence, pricing was under pressure. Just when the pricing scenario seemed to stabilise, the government’s demonetisation move has come as a bolt from the blue. The proportion of cash payment for air tickets is low. Nevertheless, the negative wealth effect and the resultant fall in consumer sentiment would affect sales, especially given the discretionary nature of air travel. We cut our FY18 industry volume growth assumption by 3-4ppt. Lower demand will hurt load factor and pricing, given that aircraft deliveries […]

Continue reading

Eclerx’s share buyback to open on Monday

The buyback offer is for Rs 2,000 per share, 37% above its closing price of Rs 1457.10 a piece on Thursday at the Bombay Stock Exchange (BSE).(Reuters) Eclerx Services, a Mumbai-based knowledge and business process outsourcing company, has in a regulatory filing said that it will buy back 11.7 lakh shares from the existing shareholders for about R234 crore from November 28. The company has cash and equivalents of Rs 544 crore as on March 31,2016. The buyback offer will close on December 9,2016. The buyback is proposed to be made from all the existing shareholders, including promoters, of the company […]

Continue reading

Morgan Stanley says US Fed rate hike to have negligible impact on Dalal Street

Besides, Desai said while demonetisation will have some negative impact on the Indian economy in the short term, the scenario looks positive in the long run. (Source: Reuters) Keeping its Sensex target for the March 2017 unchanged at 30,000, Wall Street brokerage Morgan Stanley today said the impact of a US Fed rate hike seems to be becoming less relevant for the domestic market.”In the context of the country’s macro stability today that risk (Fed) is less relevant to India. We are pretty comfortable and in fact this is the first time since the liberalisation 25 years ago that India has […]

Continue reading

P-Notes investments fall to 30-month low at 2 lakh crore in October

The total value of P-Notes investment in Indian markets has fallen since October 2015 and the trend continued till February this year. (Source: IE) Investments in domestic capital markets through participatory notes (P-Notes) fell to its lowest level in two-and-half years to Rs 2 lakh crore in end-October. P-Notes are typical instruments issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to participate in Indian markets without registering themselves directly in the country to save time. But they still need to go through a proper due diligence process. According to data available with Sebi, the total value of […]

Continue reading