As the results season draws to a close, and news flow from companies reduces to a trickle, the sound bytes in the studio were somewhat subdued. There were however several non-corporate happenings that still created some buzz. A slice of the conversation.
Manish : The turbulence in the air refuses to abate with Kingfisher Airlines' woes not coming to an end or even a logical conclusion. Their lenders have cleared stated that conversion of debt to equity now is not possible. The airline says it hasn't sought a bailout and wants permission for directly importing fuel.
Natasha : Yeah, forex losses and cost pressures ate into profits. But the company continues to see robust traction in the commercial vehicles segment.
Manish : There is something to cheer though, as oil marketing companies have lowered the price of petrol by a couple of rupees a litre.
Natasha : Don't be so sure. There are some reports that say that fuel prices are likely to go up again in a couple of weeks' time.
Manish : Hey, did you notice that the government has raised the limit for FII investments in government securities and corporate bonds? They can invest $5 billion more, which takes the limit to $15 billion.
Natasha : Yeah I did. With yields being quite high in India, FIIs are expected to step up investments. Analysts say it will also have a positive effect on the rupee and that it would appreciate.
Manish : The capital markets regulator SEBI has decided to impose circuit filters on stocks on the day of listing itself. Given that some of the stocks have swung quite wildly on listing day recently, the move is welcomed by some.
Natasha : Yeah true. But there are others who say that an investor who comes for listing gains alone would be denied the opportunity to exit or enter a stock if circuit filters are imposed.
Manish : Hmm…We will have to look at international cues in the days to come, especially from Europe to see how Greece and Italy manage fiscal austerity measures.
Natasha : Domestically too, with the Parliament session due to start from next week, there are several economic bills waiting to be passed. We will have to wait and see if it indeed happens .