The importance of liquidity was dramatically illustrated to local bond investors when Franklin India abruptly shut 6 funds in the biggest-ever forced closure in the nation.
The downswing in credit ratings, triggered by liquidity stress in NBFC sector, had worsened as companies struggled to raise funds & sell assets to pare debt.
A delay in lending to residential projects is adding to the mounting default risk, with as many as 5.60 lakh homes worth Rs 4.5 lakh crore stuck in top cities.
After dominating India’s crude imports since 2023, Russian supplies slowed amid US sanctions, but a 30-day ‘waiver’ amid West Asia tensions could now push flows back towards 2 mbpd.
Trump has ushered in the age of humiliation. His method is to push around America’s friends rudely and publicly. He knows none of them can afford to fight back.
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