The bank rout in global markets continues. A silver lining from behind the dark clouds perhaps could be the Fed pressing the pause button on rate hikes
or at least the possibility of a 50-basis-point increase going off the table. Not many in the market are hopeful, though.
Goldman Sachs' seems to be the only voice betting on a rate pause. Some short covering is expected in Indian shares, but the near to medium term outlook is bearish.
Consumer inflation for February at 6.44 percent was slightly higher than what economists were expecting.
“Uncertain FX in case of global financial stress contagion and the possibility of sticky services inflation could keep the inflation trajectory far from a secular fall in the coming months
The RBI will continue to remain non-committal on the future rates path, as the fluid global situation demands frequent macro re-assessments,” wrote Emkay lead economist Madhavi Vora in a note to clients.
Stock moves IndusInd shares plunged over 7 percent on Monday after the RBI extended CEO Suman Kathpalia’s term by two years instead of the three as proposed by the bank.
“Ever since the Yes Bank fiasco, investors are jittery whenever the RBI disagrees with a bank’s proposal on extension of CEO’s tenure,” says Moneycontrol Banking Editor Dinesh Unnikrishnan. “The fears may not always be justified
For instance, Federal Bank CEO Shyam Srinivasan’s tenure was extended by just a year despite the bank asking for three. Initially, the market was worried, but the stock later did fine.”
Tech Mahindra shares held ground in Monday’s bearish session. The announcement of Infosys veteran Mohit Joshi as CEO designate was cited by brokers as one of the triggers
Astral shares turn ex-bonus today; HUDCO board to consider dividend
Tech M’s margins have plenty of scope for improvement, and that does make it a potential re-rating candidate among top tier IT stocks.
But it is not going to be an easy ship to turn, analysts caution, more so as Joshi will be taking control of the wheel as the weather is getting rough.
Those wanting to take a bet on Tech M should be prepared for the long haul.
Those wanting to take a bet on Tech M should be prepared for the long haul.