Adani Crisis May Not Impact India Capex Push, Says Goldman Sachs
As the Hindenburg-Adani row continues to impact Adani Group's wealth in domestic as well as international markets, it will not risk the nation's banking sector or impact the country's capex targets, said Santanu Sengupta, chief India economist at Goldman Sachs Inc
The controversy surrounding Adani Group will not lead to a systemic risk for the nation’s banking sector or impact fund raising ability of other Indian firms tapping the markets, said Santanu Sengupta, chief India economist at Goldman Sachs Inc.
“India’s banking system is in a much better position compared to last decade and that is the main lever for funding investment cycle," Sengupta said in an interview to Bloomberg Television’s Rishaad Salamat and Haslinda Amin Friday. “Other entities should not find it difficult to raise debt or borrow from the banking system as capital positions are the best in the last 15-20 years."
Indian manufacturing firms have also shed their leverage and are ready to take on more loans as capacity utilization climbs, Sengupta said, adding that government spending on capital expenditure will bolster infrastructure in Asia’s third largest economy.
Adani’s $108 Billion Crisis Shakes Investors’ Faith in India
“There are considerations of monetary policy cycle tightening etc., which might come into play, but the investment cycle is based on more fundamental macro factors than one particular group," Sengupta said.
He also expects the central bank to raise rates by a quarter-point in its monetary review on Feb. 8 as core inflation, which strips out volatile food and fuel prices, remains sticky.
Goldman Sachs and Nomura Holdings Inc. had earlier predicted that the RBI will have to start lowering interest rates later in the year as India’s growth may slow due to higher borrowing cost.
This story has been published from a wire agency feed without modifications to the text.
Catch all the
Corporate newsand Updates on Live Mint. Download The
Mint News Appto get Daily
Market UpdatesBusiness News.
No Network
Server Issue
Internet Not Available
" + planName + ""; /* current plan info ends */ /* next billing html starts */ if (planData.next_billing_at != "" && planData.next_billing_at != "null" && typeof planData.next_billing_at != "undefined") {billingCycleText = "Next Billing Date : "; nextActivationDate = planData.next_billing_at; } else if (planData.expires_at != "" && planData.expires_at != "null" && typeof planData.expires_at != "undefined") {billingCycleText = "Expiry date : "; nextActivationDate = planData.expires_at; } else {billingCycleText = "Expiry date : "; nextActivationDate = planData.current_term_ends_at; } var nextBillingMonth = new Date(nextActivationDate).toDateString().split(" ")[1]; var nextBillingDay = new Date(nextActivationDate).getUTCDate(); var nextBillingYear = new Date(nextActivationDate).getFullYear(); var nextBillingHtml = nextBillingDay ? "" + billingCycleText + nextBillingDay + " " + nextBillingMonth + " " + nextBillingYear + "
Labour's Winning Streak: Momentum Builds In The 2024 Local Elections
As the 2024 local elections unfold, Labour has emerged as a formidable force, securing a series of significant victories... Read more
Revisiting Campus Conflict: Rethinking The Role Of Law Enforcement Amidst Student Protests
Recent clashes between protesters and law enforcement at Columbia University and other American campuses have sparked re... Read more
Pro-Palestinian Protests Surge: Unveiling Fault Lines On American Campuses
In recent months, American universities have become the focal points of escalating pro-Palestinian protests, with events... Read more
Hong Kong Introduces Groundbreaking Cryptocurrency ETFs For Retail Investors
Hong Kong has entered a new era in the realm of cryptocurrency investments with the recent introduction of the first spo... Read more
UK's Local Elections 2024: A Decisive Political Landscape Shift
In the spring of 2024, the United Kingdom witnessed a pivotal moment in its democratic process as local elections unfold... Read more
The Fragile Lifeline: America's Aid To Ukraine Amidst Political Struggles
Amidst escalating tensions with Russia, the United States has once again extended a vital lifeline to Ukraine in the for... Read more