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Morning buzz: Delinquencies rising in low ticket home loans, rupee hits new low, and more

Here are the top business headlines this morning to get your day started

Samar Srivastava
Published: Dec 14, 2023 10:24:27 AM IST
Updated: Dec 14, 2023 10:36:05 AM IST

Morning buzz: Delinquencies rising in low ticket home loans, rupee hits new low, and moreLow-income borrowers are facing issues with servicing home loans on account of rural stress and a fall in household savings. Image: Shutterstock

Delinquencies rising in low ticket home loans

Low-income borrowers are facing issues with servicing home loans on account of rural stress and a fall in household savings. There is also a repayment shock on account of rising interest rates. Affordable housing interest rates are usually 2-2.5 times NPA levels of usual housing loans. Affordable housing EMIs have risen by 20 percent due to a rise in interest rates to 13-14 percent.
(BusinessLine) 

Two-wheeler makers offer up to Rs 50,000 of discounts  

Two wheeler makers have started offering discounts ranging from Rs 2,500 to Rs 50,000 as they fear a slump in demand post the year-end sales season. According to the Federation of Automobile Dealers Association, dealers are sitting on 32-37 days’ inventory despite the fact that the industry clocked 21 percent sales growth in November. Electric two-wheeler makers are offering even bigger discounts.
(Financial Express)

Rupee hits new low

In advance of the Fed decision on interest rates, the rupee closed at a record low of Rs 83.40. The latest inflation print showed that the disinflation part continues to be rocky. As a result, the Fed in its meeting kept rates on hold. The dollar index, which measures the value of the dollar against six major currencies, also rose to 104.03.
(Economic Times, BusinessLine)

December IPO rise before FIIs go on holiday

More than half a dozen IPOs are planned for the last two weeks of December before FIIs go on vacation. In 2008, 2013 and 2018, there were no IPOs in December and the first week of December 2023 saw no IPOs as there was uncertainty over the election results. Both India Shelter and DOMS Industries’ IPOs got off to a flying start on Wednesday. Expect the next round of IPOs to come after January 8.
(Business Standard)  

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