Valuation of PSU stocks has become less attractive, says Akhil Kalluri of Franklin Templeton. The rally in small caps can be attributed to retail liquidity and the deployment of excess cash. Kalluri discusses the valuation risk in the broader market and the March quarter earnings. He also comments on the possibility of a re-rating if BJP comes back to power. Kalluri highlights power, defence, and capex as hot investment themes. He further mentions the future prospects of financial giants and suggests an ideal asset allocation strategy with a long holding period.
The Indian data center industry is set for significant growth with its capacity expected to double in the next three years. The increase in capacity will require an estimated investment of Rs 50,000 crore over the same period. Despite generating 20% of global data, India currently holds only a 3% data center capacity share globally. Incentives like data localization and tax benefits, along with the absorption of new capacity, will attract robust investments. Strategic adoption of renewable energy and low carbon technologies will be crucial for sustainability and cost competitiveness. Revenue growth and stable operating margins are anticipated in the coming years.
Investment in developing oilfields is predicted to decline below $3.5 billion by 2030, according to industry experts. This decrease is attributed to a combination of factors such as lower oil prices, increasing focus on renewable energy, and advancements in technology. Read more to understand the potential impacts of this drop in capex on the oil and gas industry.
The interim budget has laid the ground for cheaper home loans and lower interest rates in general, according to lenders. The lower fiscal deficit has meant borrowing is almost Rs 1 lakh crore lower than expected. The Centre is seen as having put subtle pressure on RBI to boost liquidity and soften interest rates. Financiers are also expecting home loans to get cheaper because of the two affordable housing schemes the government announced.
A Reserve Bank of India report on state finances advises against reverting to the old pension scheme, arguing it will limit growth and add to fiscal burden. The report suggests that states should avoid providing non-merit goods and services and subsidies. The report also recommends increasing tax revenue by states through measures like higher stamp duty and registration fees.
Coal India’s capital expenditure has increased by 7.6% in the current fiscal year 2023-24
India’s GDP grew 7.8% in the April to June quarter of FY24, aided by central and state governments’ increased investment in infrastructure.
