The finance ministry&rsquo;s proposal to allow insurance companies to invest in AA-rated securities will broaden the investment options for insurance companies, but it&rsquo;s also likely to expose their policyholders to higher risk.

Easier insurance norms can be a double-edged sword

Business Standard

The finance ministry&rsquo;s proposal to allow insurance companies to invest in AA-rated securities will broaden investment options for insurance companies but is also likely to expose their policyholders to higher risk.

New insurance norms can be a double-edged sword

At their peak in 2006 and 2007, mobile operators were the wonder kids of India Inc, seeing rapid growth and generating immense wealth for shareholders. This was despite the fact that their rates to millions of new customers joining the network every month were among the world&rsquo;s lowest. It seemed nothing could go wrong. For a while, Bharti Airtel and Reliance Communications, the two leading operators, joined the league of India&rsquo;s most valuable firms.

Make-or-break time for mobile operators

The country's telecom industry, reeling under heavy debt, took a knock when the government issued a number of 2G telecom spectrum licences in 2008, doubling the number of operators in every circle overnight. &ldquo;As licences were offered at below-market prices, it attracted many non-serious players looking for arbitrage profits.

Licences below market price in 2008 hurt telecom industry

Every bull market needs a trigger. According to conventional wisdom, the current bull run was triggered by a battery of economic reforms that is expected to juice up India Inc&rsquo;s earnings, going forward.

Dividends driving markets?

There are two ways to win a marathon &mdash; either lead the race from the beginning or stay close to the leaders while conserving energy for that final push. Idea Cellular seems to be following the second strategy.

Telecom's dark horse rises

DLF Ltd, India&rsquo;s largest real estate developer, has been in the news for giving loans and advances to one of its joint venture partners. A study of the balance sheet of leading real estate companies shows many of its peers have also made it a common practice.

DLF is not alone in lending to partners

Indian Hotels&rsquo; ambitious bid to acquire Orient-Express Hotels (OEH) has disappointed the Street. However, this might be a knee-jerk reaction. Analysts say Indian Hotels is acquiring OEH at prices that are at the bottom of the Bermuda-based company&rsquo;s valuation cycle.

Orient-Express to be a value buy for Tatas

Last week, Suzlon Energy defaulted on $221 million worth of foreign currency convertible bonds (FCCBs) &mdash; the biggest ever default by an Indian company &mdash; as bondholders refused to grant four months&rsquo; extension sought by the company. The default has raised a question mark over the survival of the beleaguered wind-turbine maker.

Can Suzlon ride out the storm?

The debt burden arising from the coming 2G telecom spectrum auction and the refarming of the 900 MHz auction in 2014 would hit the balance sheets of telecom operators. However, the country&rsquo;s top three operators &mdash; Bharti Airtel, Vodafone and Idea Cellular &mdash;need not lose sleep over this. It&rsquo;s only financially stretched operators such as Reliance Communications, Aircel, Tata Teleservices and Telenor that would be hit.

Not much sweat for top three telecom operators

Markets are getting back to risk-taking mode. In the last two weeks, the benchmark NSE Nifty has gone up 6.5 per cent, taking Nifty&rsquo;s annual returns to the double-digit territory for the first time in two years. At first glance, these numbers may look small, but dig dipper and they reveal a big shift in the asset preference on the street.

Risk appetite coming back to markets

Markets are rallying and investors have renewed their love for cyclical stocks, but it is still a long road ahead for companies that want to use the buoyancy to deleverage their balance sheets.

Krishna Kant

Krishna Kant

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Easier insurance norms can be a double-edged sword

New insurance norms can be a double-edged sword

Make-or-break time for mobile operators

Licences below market price in 2008 hurt telecom industry

New insurance norms can be a double-edged sword

Dividends driving markets?

Telecom's dark horse rises

DLF is not alone in lending to partners

Orient-Express to be a value buy for Tatas

Can Suzlon ride out the storm?

Not much sweat for top three telecom operators

Risk appetite coming back to markets

Buoyant market means little for over-leveraged firms