Latest news with #Nomura
Fibre2Fashion
5 hours ago
- Business
- Fibre2Fashion
China shifts to short-term tools in monetary policy overhaul: Nomura
China is transitioning its monetary policy framework to resemble Western models, focusing on short-term policy rates and reducing reliance on medium-term lending tools. China is reshaping its monetary policy, shifting from the medium-term lending facility to short-term tools like the 7-day reverse repo rate. The PBoC is creating a narrower interest rate corridor and using DR001 as a key benchmark. However, policy transmission remains weak, and open market operations are still developing amid lingering challenges. The People's Bank of China (PBoC) has de-emphasised the one-year medium-term lending facility (MLF), instead elevating the seven-day open market operations (OMO) reverse repo rate as the primary policy rate, according to Nomura. To enhance clarity and improve rate transmission, the PBoC is establishing a narrower interest rate corridor with temporary overnight repo rates acting as the floor and reverse repo rates as the ceiling. The DR001 rate—overnight repo for depository institutions—has emerged as a key interbank benchmark. The shift comes amid growing limitations of the MLF, which has constrained bond market liquidity by tying up large volumes of Chinese government bonds (CGBs) at the central bank. In response, the PBoC resumed direct CGB trading and launched outright reverse repos to manage liquidity more efficiently. Despite this shift, challenges remain. The PBoC does not commit to unlimited lending at the corridor's ceiling. Transmission from policy and interbank rates to bank lending and deposit rates remains weak, with window guidance still critical. Open market operations are also in a formative stage, as shown by the suspension of CGB purchases shortly after resumption. Fibre2Fashion News Desk (HU)
Economic Times
11 hours ago
- Business
- Economic Times
Kaynes Technology shares in focus after launching Rs 1,600-crore QIP
Kaynes Technology shares will be in focus on Friday after the semiconductor manufacturing company opened its qualified institutional placement (QIP) issue on Thursday to raise up to Rs 1,600 crore. ADVERTISEMENT The company has set the floor price at Rs 5,625.75 per share, according to media reports. The indicative price range for the QIP is reportedly between Rs 5,344 and Rs 5,612 per share, implying a discount of up to 4.8% to the floor price. Also Read: These 9 Nifty Microcap Index stocks trading below industry PE may rally up to 42% Motilal Oswal Investment Advisors, Nomura, and Axis Capital are managing the issue. Kaynes Technology India is projecting revenue of around Rs 4,525 crore for FY26, with EBITDA margins expected to improve by 50 basis points to 15.6%, supported by a strong order book and new business executions. Jairam Sampath, Whole-Time Director & CFO, said the company anticipates robust export growth in the coming quarters. 'We will have some US major company orders getting executed. We will start doing additionally about Rs 200–300 crore of exports. These are US- and Europe-based companies in both aerospace and automotive segments,' he said. ADVERTISEMENT Kaynes' OSAT (Outsourced Semiconductor Assembly and Test) and PCB (Printed Circuit Board) divisions, both largely export-focused, are expected to contribute significantly to its international the company's subsidiary, Kaynes Semicon Pvt Ltd, entered into an asset purchase agreement with Fujitsu General Electronics Ltd of Japan to acquire production lines for power modules. The transaction was valued at 1.59 billion Japanese yen. ADVERTISEMENT Also Read: 8 debt-free penny stocks that surged 110-300% in the last 1 year. Do you own any? Shares of Kaynes Technology closed 2.1% lower at Rs 5,608.8 on the BSE. The stock has declined 26% year-to-date but has gained 45% in the past 12 months. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Business Recorder
a day ago
- Business
- Business Recorder
Japan's Nikkei retreats from 4-month high as threat of US involvement in Iran conflict looms
TOKYO: Japan's Nikkei share average retreated from a four-month high on Thursday as the threat of war between the United States and Iran dampened demand for higher-yielding assets. The Nikkei 225 Index slid 0.8%, snapping a three-day rise that lifted the gauge to the highest since February 20. The broader Topix lost 0.6%. The Israel-Iran conflict entered its seventh day, and President Donald Trump was ambiguous about whether the US would join in bombardment of Iran's nuclear sites. 'Heightened tensions in the Middle East continue to cool investor sentiment, with the downside appearing to widen,' said Nomura strategist Fumika Shimizu. Japan's Nikkei climbs for fourth day on US-China trade framework; Hino plunges There were 48 advancers on the Nikkei against 175 decliners. The biggest losers were Taiyo Yuden, down 3.1%, followed by Sumitomo Pharma, which lost 3%. The largest gainer was Nippon Steel Corp, surging 4.3% after it completed its long-simmering $14.9 billion acquisition of US Steel.
Times of Oman
a day ago
- Automotive
- Times of Oman
CNG demand in India may grow along with EV adoption, despite policy pressure: Report
New Delhi: Compressed Natural Gas (CNG) could continue to grow as an auto fuel in India, even as electric vehicle (EV) adoption gathers pace across key states, according to a recent report by Nomura. The report highlighted that state governments, especially Delhi and Mumbai, are expected to roll out aggressive EV policies to address the problem of rising air pollution. While this could put some pressure on the growth of CNG, analysts believe both fuel types could still co-exist in the coming years. It stated, "CNG as an auto fuel could grow alongside EVs.... EV policies by states to continue pressuring CNG growth." The report added that Delhi, which had already banned diesel vehicles older than 10 years nearly a decade ago, may now consider placing restrictions on CNG vehicles as a next step in its clean fuel transition. The state is seen to be intensifying its focus on cleaner mobility solutions to tackle worsening air quality. In contrast, Mumbai, being a coastal city, usually records better air quality index (AQI) levels. In the short term, the EV policy focus in Mumbai could shift more towards reducing the use of liquid fuels like petrol and diesel, rather than targeting CNG. The report noted that this could work as a policy tailwind for both CNG and EV adoption in Mumbai. Further, the report mentioned that the ongoing High Court-monitored committee on EV adoption in Maharashtra includes participation from Mahanagar Gas Limited (MGL), a key supplier of CNG in the region. During its recent investor day, MGL's management expressed confidence that CNG could benefit under the state's upcoming EV policy. The company sees potential in policies that promote a multi-fuel transition instead of focusing only on electric vehicles. The report also pointed out another key development that could benefit gas suppliers, the possible inclusion of natural gas under the Goods and Services Tax (GST) regime. Currently, natural gas is subject to a combination of state VAT, central excise duty, and central sales tax. Moving it under GST would simplify the tax structure by eliminating these cascading taxes and potentially lowering the overall tax burden for businesses.
Yahoo
a day ago
- Business
- Yahoo
Uncertainty Drives Rotation Out of the US: Nomura's Nicholson
Geopolitical instability and ambiguity around tariff impacts are key factors shaping global markets, according to Gareth Nicholson, Nomura CIO and Head of Discretionary Portfolio Management. Ongoing uncertainty is also prompting a rotation of assets out from the US. He speaks on Bloomberg's The China Show. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
