Kathleen Kahle, a professor at the University of Georgia's business school, offers another reason: the growth of high-tech companies, which tend to hold lots of cash. Younger, riskier firms have more difficulty raising money when credit is tight, so they keep more cash on hand, she says. "At the same time, they have a lot of growth opportunities and want to make sure that they have the funds necessary to invest in good projects," she adds.
SHANGHAI: As it scales up presence in China, India's top private sector lender ICICI Bank today said there is also enough space for Chinese banks to play a complementing role in the Indian growth story. Ruling out any threat from Chinese banks for the Indian banking sector, ICICI Bank's chief Chanda Kochhar said that India's growth is largely reliant on bank funding at present and "there are enough opportunities" for everyone to participate in the growth process of the nation.
Wall Street pundits talk about it all the time: corporations are sitting on record levels of cash. According to Moody's, non-financial corporations are sitting on around $1.5 trillion worth of cash. Bulls argue that this means companies could unleash this cash in the forms of capital expenditures, mergers and acquisitions, dividends, and share buybacks.
NEW DELHI: India has "better investment climate" than other BRIC nations even as regulatory and tax system-related challenges are impacting immediate investment plans, says a survey of top executives of German companies. More than 90 CEOs and CFOs from leading German high-tech companies participated in the survey done by global consultancy EY and research firm Delphi. Investors recognize India's market growth, large market size and efforts to attract FDI while the perceived obstacles, are its infrastructure, administration and regulation, the study said.
NEW DELHI: Giving thumbs up to PM Narendra Modi-led NDA government, Moody's on Thursday revised India's outlook to 'positive' from 'stable', while maintaining the credit rating at Baa3. According to Moody's the policymakers are establishing a framework that will allow the country's growth to continue to outperform that of its peers over the medium-term and improve India's macro-economic, infrastructure and institutional profile.
NEW DELHI: Coolpad, Meizu and Phi-Comm are three popular Chinese smartphone brands that forayed into the hot Indian smartphone market in less than a month. All three would do well to keep in mind the fate of their better known and larger global peers — Huawei, ZTE and Korea's LG — while trying to make a mark in the surging and intensely competitive market. Huawei, ZTE and LG, which are all box-office hits globally and ranked in the top 10 by Gartner, have turned out to be duds so far in India — one of the largest and most sought after smartphone markets in the world.
Alibaba Group Holding Ltd (NYSE:BABA) reported the results of its Indian operations today. The Chinese e-commerce giant recorded net profits in the region, despite falling gross profits due to selling a lesser number of units.
There is some comforting thought for Indian stock investors despite the volatility in the market. Exposure of most large offshore funds is the highest ever and even more than the weights that emerging market stock indices give India. Global Funds, Asia-Pacific Funds and Emerging Market Funds are overweight on India by 120 to 500 basis points (bps) compared with their benchmark indices. For instance, these EM funds have parked 10.9% of their money in India as against a country weight of 6.7% in the MSCI EM Index - a widely tracked index by fund managers.
In times of turmoil, the chief financial officers of the corporate sphere tighten their hold on the corporate purse. The first line item to get squeezed is usually advertising and marketing. Then hiring. Then spending on information technology. When things start looking up again, they usually loosen that hold, and the money starts flowing once more. At least that’s what usually happens. But when one crisis follows another as has happened of late—first the financial crisis, then the European debt crisis, then the U.S. fiscal cliff—the CFOs of the world can turn perpetually stingy.