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India Inflation Replies |
rffrydr
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 Posted: Tue Feb 07, 2012 1:50 pm Post subject: |
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BRIC this:
Indian airlines: boarding pass
| Quote: | At last some welcome news from the control tower. India’s airline stocks jumped this week on a government proposal to allow foreign airlines to buy stakes of up to 49 per cent in local carriers. The beleaguered industry certainly needs a lift – Indian airline stocks lost an average of three quarters of their value last year, compared with about a 25 per cent drop on the Sensex.
Is the excitement justified? No. Granted, for those eyeing the Indian market, air travel has seemingly sky-high potential. Last year, passenger numbers grew by a fifth and only 55m of India’s 1.2bn population currently fly. Twelve new airports are under construction.
Domestic airlines, however, face problems familiar to potential overseas buyers. For starters a price war, led by state-backed Air India
and overcapacity. In addition, taxes have lifted fuel-related costs well over the industry average of about 30 per cent of revenues, according to Angel Broking data.
The rupee is also depreciating; oil prices jumped by a quarter in rupee terms over the past six months compared with just 7 per cent in dollars. Operating margins, unsurprisingly, have diminished. At Kingfisher Airlines, number two by market capitalisation, they were a negative 30 per cent last quarter. The industry average is 2.2 per cent.
And which airline to choose? Debt-ridden Kingfisher is run by the billionaire Vijay Mallya alongside his brewery group and political activities. Net losses almost doubled in the last half from a year earlier. Profits at Jet Airways and budget airline SpiceJet have also gone from black to red in the past year.
Even India’s banks are wary of lending to the industry – Kingfisher’s loans are on the brink of becoming non-performing. It is hard, therefore, to imagine foreign carriers wanting majority stakes, let alone no control. And with operating margins heading towards zero, global airlines are hardly in a buying mood. Indian airlines are far from attractive yet.
Email the Lex team in confidence at lex@ |
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rffrydr
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| Posted: Wed May 04, 2011 7:56 am Post subject: |
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Tack on another 50bps. Simultaneous hikes in china and india back in '08 finally xxx the EEM last hurrah. Seems to be having the same effect last few days. Note now there is a debate about supply in the context of developing nations vs. the macro article of faith, pulling back demand:
http://blogs.ft.com/beyond-brics/2011/05/04/india-business-negative-on-rate-hike/
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rffrydr
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rffrydr
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rffrydr
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| Posted: Wed Apr 21, 2010 8:33 pm Post subject: |
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The Indian Meteorological Department is forecasting a normal monsoon. This is (still)huge for monetary policy.
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rffrydr
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| Posted: Fri Mar 19, 2010 7:42 am Post subject: |
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Raises rates.
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rffrydr
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| Posted: Thu Feb 25, 2010 8:34 am Post subject: |
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India’s Food Inflation rose 17.58% y/y (week of 2/13) and has eased from the high, but is still very elevated. Collapse of sugar should show rear-view mirror but talk of tax hikes is taking the bloom off stimulus around asia.
As PBOC said:
"The nation’s economic and financial development faces a more severe and complicated situation this year."
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rffrydr
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goldbug
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rffrydr
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nisarg
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| Posted: Thu Dec 11, 2008 2:41 am Post subject: Inflation this week |
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| It was announced that Inflation for this week is at 8%. |
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rffrydr
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rffrydr
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| Posted: Sun Jul 13, 2008 10:39 pm Post subject: |
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IFN topped a few weeks before that Economist Article (basically got our Santa Clause rally) and never looked back...up.
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rffrydr
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rffrydr
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