Tame second knock
Compared to the momentous changes in the banking sector ushered in by the first Narasimham committee, the recommendations made in the second report seem rather tame. The report has hardly anything new to say, and it has reiterated many of the suggestions made in the first report.
Universal banking
The Khan working group has recommended that we move to the universal banking concept, an idea also propounded by the Narasimham committee. The financial institutions are all in favour of universal banking, but perhaps they are so because of the wrong reasons.
Liberalisation: Going beyond the hype
Along with the rush that a number of stocks experienced in recent weeks GEC Alsthom was a surprise participant. Actually it was not much of a surprise considering, the kind of companies that participated in the rally and the reasons involved. Catering to the power sector had suddenly seemed like a major plus point for companies; as there was a lot of expectation of IPP projects being cleared.
GEC Alsthom: Overkill by bulls
Along with the rush that a number of stocks experienced in recent weeks GEC Alsthom was a surprise participant. Actually it was not much of a surprise considering, the kind of companies that participated in the rally and the reasons involved. Catering to the power sector had suddenly seemed like a major plus point for companies; as there was a lot of expectation of IPP projects being cleared.
Weighed down by unsold plots
The prolonged economic slowdown of the economy combined with the pessimism that has shrouded investments in real estate has taken its toll on Maxworth Orchards (India). It is facing a severe cash crunch and its chairman, R Subramanian, has been "negotiating with foreign companies, multinationals, overseas investors and World Bank affiliates for collaboration by way of equity participation, preference shares, long-term loans, grants and soft loans".
The Index
Max India -- Max India's sale of a part of its stake in Hutchison Max, is a mere continuance of its surprising divestment philosophy. Earlier MI had also sold of some of its pharmaceutical brands for Rs 12.5 crore when it had found the going tough in the formulation business.
