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Readings: China Raises Rates, Coal India, Bond Yields

Deepak Shenoy1 min read
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What is "Readings: China Raises Rates, Coal India, Bond Yields" about?
What category is this article in?
Commentary
Who wrote this article?
Deepak Shenoy, Capitalmind's research team.
When was this article published?
Published 19 October 2010.
How long does this article take to read?
1 min read

China takes rates up 25 basis points. Inflation, it seems. Lending rates are now 5.56%.

Coal India’s 15,000 crore IPO is 1.7 times oversubscribed.

Coal India IPO statistics

For the record: I looked at the IPO document, realized I don’t understand a darn thing about coal, and know just two things:

  • The P/E is 15 or so. This is a commodity. Big and all, but they won’t get a single paisa from this IPO (it all goes to the govt).

  • The issue is already oversubscribed, but retail will perhaps get full only by 21st (when the issue ends)

I’m not subscribing – there are better opportunities out there. (Biocon – yes, even now. Sugar looks like a better cyclical, Auto-ancilliaries, etc. )

India’s 10-year bond yields are at 8.07% while 91-day T-bills are at 6.6%. This is one narrow band.