Snapshots That Wow!

‘ReNew’ed Power Sector!

With the rise of renewable energy in the power generation installed capacity, we are seeing increasing share of private sector ownership of generation assets. Over 50% of installed capacities are now owned by the private sector vs. 10% two decades back.

Note that this is still a share in generation capacity and not actual power generated.

Source: UBS

When the sun shines too bright, it burns!

The gold rush in solar module manufacturing has resulted in a significant overcapacity with 80% higher GW capacity than domestic and export demand combined.

Assuming peak utilisation is 80%, there is still 44% overcapacity!

Source: UBS

London bridge has fallen down!

Once touted as the global financial capital, the humdinger of industrial revolution and everything capitalism that ensued post, London investment bankers are facing a slackening of work like never before. IPO fundraising is now at a three decade low.

Source: Financial Times

The real dha‘maal’ is in debt markets, always!

Private credit has been one of the fastest-growing segments of the financial system over the past 15 years. The asset class, as commonly measured, totaled nearly $2 trillion by the end of 2023, roughly ten times larger than it did in 2009. It is no surprise that the large PE funds have now amassed an even larger AUM in private credit.

Source: Gain.pro

Shot in the arm?

“Across corporate tax, personal income tax and indirect tax, we have seen systematic & material drop in rates. With exception of individuals in the crores/year income bracket, tax burden has fallen for all.”

Source: Axis Bank Research

Winter has come for oil (and not how it used to)

The seasonality of the oil market has changed dramatically.

Because the shift has happened incrementally over a long period, it often doesn’t get the attention it deserves. But the chart makes it obvious. Oil demand that used to peak in winter no longer does so!

Source: Bloomberg