In today’s briefing:
- India’s Worst Accounting Scandals
- Ever-Vigilant CRISIL, India Rating Downgrade Firm – After Default
- Nifty Index Options Weekly (Feb 24 – 28): Down Trend Accelerates
- NIFTY Set for a Modest Rally from Current Lows
- Monthly Sales Overview of Indian Listed Tractor Firms – February 2025; Strong Show Continues
India’s Worst Accounting Scandals
- Learn about India’s worst accounting fraud, including Yes Bank, Satyam Computer, Kingfisher and others in this report.
- Misappropriation features prominently in these scandals, in addition to fraudulent reporting and corporate governance failure.
- Siphoning of funds from bank loans, in particular, has been a common feature of Indian corporate malfeasance.
Ever-Vigilant CRISIL, India Rating Downgrade Firm – After Default
- Crisil Ltd (CRISIL IN) and India Rating Downgrade AGS Transact Technologies (AGSTRA IN) to ‘D’ from “A/Stable’ post a default
- Rating agencies exist to anticipate events such as defaults and not react after being informed of a default
- Rating agencies ignored poor fundamentals of AGS Transact Technologies (AGSTRA IN) in 2QFY2025 results which clearly and publicly revealed deteriorating cash flows and a high-risk financial strategy
Nifty Index Options Weekly (Feb 24 – 28): Down Trend Accelerates
- Sell-Off continues with all four trading days this week registering losses.
- 1M Implied vols firmed on the sharp move lower but remain capped at 14 for the time being.
- March seasonality positive for Nifty which might help reverse the trend in the second half of the month.
NIFTY Set for a Modest Rally from Current Lows
- Our latest insight on the NIFTY Index (NIFTY INDEX) recognized the possibility of obstacles against a rally from the index’s lows.
- The index has fallen for another 2 weeks from there, now it is very oversold and a relief rally could begin this week or the next.
- Profit targets for this relief rally are in the 23100 area, but unfortunately the forecast is maximum 3 weeks up, not really a bullish pattern…
Monthly Sales Overview of Indian Listed Tractor Firms – February 2025; Strong Show Continues
- Tractor volume continued to be strong in Feb’25.Favorable reservoir level,strong sowing for the Rabi season and government support are expected to drive good demand for tractors in the medium term.
- We summarize the sales volume published by listed players Mahindra & Mahindra (MM IN) and Escorts Kubota Limited (ESCORTS IN) in February 2025.
- Positive management commentary augurs well for uptick in tractor OEM stocks and related auto ancillary companies like GNA Axles Ltd (GNA IN) in medium term.
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