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The recent pause in interest rate hikes could mark the peak of the interest rate cycle which is very positive for wholesale borrowers, such as Non-Banking Financial Companies (NBFCs) and smaller banks. This pause, combined with strong Q4 updates, has led to renewed vigour in Bajaj Finance and momentum for many NBFCs. However, it is important to watch the profitability of these companies given the recent increase in rates for bulk borrowers who lack a strong Current Account Savings Account (CASA) franchise.

Both economic fundamentals and market sentiment took a serious beating during the last financial year FY23, thanks to the radical uncertainties from post-Covid recovery, decades of high inflation, sharply rising interest rates and ongoing tensions from the Russia-Ukraine war etc.

The brokerage expects banks under its coverage to report a strong 44% YoY growth in net profit in the last quarter of FY23, led by a 30% growth in pre-provision operating profit.

“The worst sort of business is one that grows rapidly, requires significant capital to engender growth, and then earns little or no money. Think airlines. Here a durable competitive advantage has proven elusive ever since the days of the Wright Brothers

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The three companies - OPJ Trading, Opelina Sustainable Services and Gagan Infraenergy - had a peak of ₹1,140 crore in loans against the shares in October 2018.

Financial markets, in the business of reading the future from the present, were excited that interest rate increases are behind after the RBI did not raise rates. But Governor Shaktikanta Das snatched the candy back in less than a minute.

Parachute hair oil maker Marico forecast stronger margins for the March quarter and added that gross margins are expected to expand and "drive reasonable growth" with falling raw material prices. "The sector continued to witness gradual recovery with year-on-year volume trends, improving in each quarter," Marico said, in its March quarter update

The company has diversified across various FMCG categories with manufacturing competencies in food and beverages, home care, fabric care, beauty and personal care, health care and wellness, leather and sports footwear, and pest control, among others

“The FMCG sector can be selectively looked upon. Recent updates from a couple of companies were quite encouraging, says Pankaj Tibrewal of Kotak Mutual Fund. He also says that they continue to remain positive on the broad overall capex recovery theme and capital goods is a great proxy to play that revival..”