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Record defaults are clouding India's resilient equities, bonds


Record defaults are clouding India’s resilient equities, bonds
Bloomberg
April 28 |
Updated on
April 28, 2021
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Firms have defaulted on at least $763 million of domestic bonds this year, the most on record for a similar period
Credit markets are sounding warnings for other asset classes amid India’s unprecedented surge in Covid-19 cases.
Firms have defaulted on at least 57 billion rupees ($763 million) of domestic bonds this year, the most on record for a similar period. Traders expect more. They’ve pushed spreads on A rated local corporate bonds over AAA notes to a 17-year high, a grim sign for the small businesses that tend to have those weaker ratings and that form the bedrock of the $2.7 trillion economy. ....

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Stocks that helped PMSes focused on smallcaps, midcaps outperform in March


Stocks that helped PMSes focused on smallcaps, midcaps outperform in March
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Saurabh Mukherjea, Founder, Marcellus Investment Managers, thinks Indian specialty chemicals today is where the pharma sector stood in the mid-1990s on the cusp of a golden 20-year run.
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Some multicap PMSes, which have larger allocation to midcap and smallcap stocks, also performed well in March, continuing from the earlier months. That was even when their benchmarks finished largely flat for the month.
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NEW DELHI: Smallcap and midcap-focused PMS schemes outperformed their peers by a vast margin for yet another month, as the equity market favoured smaller names vis-à-vis the larger ones in March. ....

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