TMS Ep471: Inflation, Maruti-Toyota, bank consolidation, Kashmiri saffron

Vegetable prices have increased considerably in several states. Tomatoes are selling at over 120 rupees a kg in Delhi and some other big cities. Supply disruption caused by rains in producing regions is one of the key reasons for this inflation in vegetables prices. And it comes when India’s central bank, RBI, had just started to breathe easy on the inflation front. So, will this development complicate RBI’s job? And, will it have any impact on its future rate actions? 

Car prices too have shot up considerably in the last few years. But that has hardly cast any shadow over the sales. New models are hitting the roads almost every month. Maruti Suzuki recently unveiled its priciest car till date. A rebadged version of the Toyota Innova HyCross MPV, Maruti’s Invicto will come in the range of 24 to 28 lakhs. This vehicle is a result of the collaboration between Maruti Suzuki and Toyota. So is Maruti becoming too dependent on Toyota? 

Buoyed by the launch of Invicto, the shares of Maruti Suzuki India crossed Rs 10,000 milestone for the first time ever this week. Moving on, the mergers of HDFC twins and then the IDFC twins have put a spotlight on NBFC space, especially the banking segment. This has intensified competition in the financial sector of the country. Will the state-owned banks also come together to ward off the heat? And how should investors approach the pack? 

After the markets, let us now turn our gaze to snow-capped mountains of Kashmir. Just about 15-km from Srinagar, in the town of Pampore, purple crocus flower fields will be a dazzling sight in a few months from now. Its yield, called Kashmiri saffron, is famous for its distinct aroma and quality. But why is Kashmir’s saffron so special? And expensive too? Listen to this episode of the podcast for answers.