TMS Ep229: 5G auction, IIBX GIFT City, markets, twin balance sheet problem

India is finally set to join the league of countries where people are enjoying high-speed 5G networks. The auctions were termed as successful by the government -- which added Rs 1.5 trillion to the exchequer. Now, as the dust is settled, let us explore how each player is placed, and will the 5G rollout be a watershed moment for the telecom sector.  

5G network will indeed change the way we use the internet. It may also transform the telecom sector entirely. Similarly, one more sector is all set for a dramatic transformation. On July 29, Prime Minister Narendra Modi launched India’s first bullion exchange at Gujarat’s GIFT City. Experts believe that the exchange will usher in transparency in the gold’s price-setting mechanism -- which was missing so far as agencies were charging different margins. It will also bring down the price of the yellow metal. Let us know more about this exchange and what else will it do. 

Meanwhile, investors are again looking at striking some gold as foreign investors return to equity markets. Analysts are eying select sectors that are expected to garner the most attention from global buyers. We look at these top picks.

In the mid-2000s, several infrastructure companies saw a period of robust growth and their shares shot up. Thanks to easily available credit. But as the loans piled up, public sector banks and the over-leveraged companies found themselves in a tight spot. It was called the twin balance sheet problem. Listen to this episode of the podcast to know more.