Falling oil price? Time to bet on cement, tyres: Chakri Lokapriya

Posted on:
Key Points

The Credit Suisse and SVB banking issues are causing some nervousness in the market, as the consequences of a lack of lending to small and medium businesses could have a domino effect on the global financial market..

Regional banks play a very important role in the SME lending of the US, and if all those companies are to see a credit crunch, the recession that the US, the Fed wanted, is probably going to happen in an unruly way..

So the recession that the US, the Fed wanted, is probably going to happen in an unruly way if they cannot get the regional banks to lend to the small and medium businesses across the country..

And now with the crude having corrected, the input costs for this pet coke or coal and other petroleum-related raw materials all have come down by 30%, 40%, 50% depending on the raw material..

Banks are beginning to look very attractive but we are still waiting because if the economy slows down even further which means credit growth in India is likely to come down..

You might be interested in

Markets in red, defying Fed's smaller rate hike good news; banking stocks drag, SBI top loser

23, Mar, 23

Indian equities on Thursday closed in the red with banking stocks taking a massive toll. Sensex erased its psychological mark of 58,000 and Nifty 50 came below the 17,100 level.

Citi, Goldman lead US banks down amid Credit Suisse rout

15, Mar, 23

The slide started with European banks after Saudi National Bank, Credit Suisse’s top shareholder, ruled out providing more financial assistance to the struggling Swiss bank

UBS to buy Credit Suisse for nearly $3.25B to calm turmoil

20, Mar, 23

Following news of the Swiss deal, the worlds central banks announced coordinated financial moves to stabilize banks in the coming week. This includes daily access to a lending facility for banks looking to borrow U.S. dollars if they need them, a practice which widely used during the 2008 financial crisis. Three months after Lehman Brothers collapsed in September of 2008, such swap lines had been tapped for $580 billion. Added swap lines were also rolled out during market turmoil in the early stages of the COVID-19 pandemic in March of 2020.

As RBI acts tough, NBFCs fear banks may turn wary of lending

08, Mar, 24

Finance companies are expected to moderate loan disbursals following the banking regulator's recent restrictions on high-margin but potentially risky business lines such as gold loans and securities financing. The Reserve Bank of India (RBI) recently ordered curbs on IIFL Finance's gold loans and JM Financial Products' financing of bonds and stocks. This regulatory action is likely to make banks more conservative in lending to non-bank financiers, leading to concerns about liquidity for onward lending. The RBI's moves are aimed at curbing unethical practices and systemic risks in the financial sector, although they may temporarily impact credit expansion.

Credit growth in India to fall over slowdown in retail deposit: Emkay Institutional Equities

21, Mar, 24

New Delhi [India], March 21 (ANI): Credit growth in India is expected to moderate down to 12-14 per cent on a yearly basis over the financial year 2024-25-2026-27 from the current 16.5 per cent, according to Emkay Institutional Equities. The loan-to-deposit ratio (LDR) is expected to fall to a reasonable level of 75 per cent […]

Asian markets rally as bank worries ebb, Fed rates back in view

15, Mar, 23

International Business News: Banks rallied in early exchanges after taking a battering the previous two days in reaction to the demise of Silicon Valley Bank and Signature Bank at

Global stocks steady, lifted by Europe; dollar dips on China selling

10, Aug, 23

By Herbert Lash and Naomi Rovnick NEW YORK/LONDON (Reuters) -Global stocks were steady on Wednesday, with European equities outperforming as Italy soothed market nerves about a windfall tax on bank

US bank lending slumps by most on record in final weeks of March

08, Apr, 23

The biggest 25 domestic banks account for almost three-fifths of lending, although in some key areas — including commercial real estate — smaller banks are the most important providers of credit.

UBS eyeing swoop for Credit Suisse amid fears of banking contagion

18, Mar, 23

UBS AG was examining on Saturday a takeover of its embattled Swiss peer Credit Suisse sources said

Bank turmoil poses a $600 billion question for battered investors

18, Mar, 23

Bank investors have largely been selling first and leaving that question for later Around 600 billion dollars of market value has evaporated from the 70 biggest US and European banks since March 6