TMS, Ep 28: T2 results, capital account convertibility, in-app purchases

Based on early company results for the July-September quarter, it may appear that India Inc is doing well in terms of sales, but margins are squeezed, especially for manufacturing and consumer businesses, due to higher input costs. So what does this mean for businesses in the future? *** At a recent industry event, RBI Deputy Governor T Rabi Shankar said India was on the verge of achieving full capital account convertibility. As analysts see REIT inflows increasing by $ 20 billion a year as a result of the move, the government and the RBI need to tackle a few red flags. *** Rating downgrades continue to pour in for India while valuations remain excessively high.

After UBS, Nomura has now downgraded Indian stocks as valuations have overtaken the pre-Covid era. Will this valuation-based correction last? And which stocks are likely to be the most affected?

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