Private debt is currently booming, attracting interest due to its appealing advantages. However, signs of a potential bubble are emerging, raising concerns about the opaque nature of the market and the unpredictable consequences if it were to burst. Historically, banks managed loans through a straightforward creditworthiness analysis, maintaining them on their books for the entire term, which provided a more predictable financial structure.
Rivian Automotive Inc. has received preliminary approval for a $6.6 billion federal loan to support the construction of its Georgia electric-vehicle plant, which was previously delayed. The facility will produce Rivian’s midsize platform, including the R2 SUV and R3/R3X crossover, with plans for two phases, each capable of producing 200,000 vehicles annually.
Swiggy shares surged 6% to Rs 456 after UBS initiated coverage with a 'buy' rating, projecting a target price of Rs 515, indicating a potential 27% upside. The brokerage noted Swiggy's strong growth prospects and its narrowing margin gap with Zomato, while highlighting areas for improvement in quick commerce.
The global medical equipment maintenance market is set to grow by $51.2 billion by 2028, driven by a 13.64% compound annual growth rate. This growth is fueled by the rising adoption of advanced medical technologies in emerging countries and an increasing focus on preventive maintenance. Key advancements include regenerative medicine, surgical robots, and wearable devices, alongside a growing demand due to chronic conditions like cancer and diabetes.
Sagility India shares surged 8% on November 26, trading at Rs 30.02, following strong Q2 earnings. The company reported a 30.5% year-on-year increase in net profit to Rs 163.60 crore and a 21% rise in revenue to Rs 1,325 crore, with EBITDA growing 22% to Rs 337.80 crore. CFO Sarvabhouman Srinivasan emphasized the commitment to technology and AI investments to enhance stakeholder value.
Indian markets are unlikely to see a significant rally until corporate earnings improve, as recent Q2 results led to steep downgrades, particularly in the oil refining sector. Experts suggest that it may take another 2-3 quarters for a meaningful recovery, with current valuations appearing stretched. Investor sentiment remains cautious amid foreign outflows and a strengthening dollar, with Q3 results seen as a potential catalyst for market movement.
Electric vehicle (EV) sales are gaining market share, with internal combustion engine vehicles dropping from 78% to 63% over two years, while EVs nearly doubled their share from 10% to 17.4%. Despite some market declines, particularly in Europe, the overall trend shows a strong shift towards EVs, driven by declining battery costs and improved technology. By 2030, replacing an EV battery is projected to be cheaper than replacing a gas engine, further encouraging consumer adoption.
Japan's SBI has disclosed its exposure to Adani Funds, following Nomura's lead, amid global repercussions from US federal prosecutors indicting Gautam Adani over an alleged bribery scheme. Kenya has canceled $2.6 billion in contracts with Adani's conglomerate, while TotalEnergies SE has paused new investments pending clarity on the situation. SBI's mutual fund exposures range from 0.21% to 2.55%, with Nissay's between 0.02% and 0.24%.
Asian markets are bracing for pressure as President-elect Donald Trump plans to impose trade tariffs on Mexico, Canada, and increase levies on China. Analysts predict that Asian currencies, particularly the Korean won and Thai baht, will underperform, while stocks in China, Mexico, and Canada, especially those reliant on US exports, are expected to decline.
Anand Rathi has upgraded Astral Ltd to a Buy rating with a target price of Rs 2,666, reflecting strong expected growth in revenue, EBITDA, and PAT over FY24-27. Despite a challenging PVC pricing environment, the company maintained stable gross margins at 38.9%, although PAT fell 16% year-on-year due to reduced other income and increased expenses.
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