TMS Ep434: Go First vs Landlords, L&T, Mutual Funds, Private Credit Funds

A war of words has broken out between Go First and the plane lessors, who want the cash-strapped airline to return their planes. While the Aviation Task Force, which represents lessors, has put India on a watch list, the Wadia group-owned airline has called it an attempt to influence an ongoing case at NCLAT, where lessors have challenged NCLT’s moratorium on the airline’s assets. The moratorium prevents lessors from repossessing their aircraft. So how will this dispute between Go First and the lessors affect the Indian aviation sector?

Meanwhile, Boeing has said that Indian airlines are likely to require more than 2,200 aircraft in the next 20 years, and the Go First episode cannot derail the growth trajectory of India’s civil aviation market. Moving on, one of the country’s largest conglomerates, Larsen and Toubro, has been flying high for decades, leaving behind a trail of development projects and much more. You have recently seen a changing of the guard. So where does L&T go from here?

Despite lower-than-estimated fourth-quarter FY23 earnings, several major brokerages, including Jefferies and Nuvama, have maintained their positive view of L&T stock. Continuing, at Rs 6,480 crore, the net inflow into equity mutual funds reached its lowest level since November last year. Flows declined even as debt funds recorded inflows of more than Rs 1 trillion. So what caused this sharp drop in equity mutual fund inflows? And what is the road ahead?

Once a favorite investment option, debt mutual funds seem to have lost their charm after the government withdrew the long-term tax benefits they used to enjoy. But, as they say, where there is a will there is a way. High net worth individuals are now turning to private credit funds. So what are they? Listen to this podcast episode to learn more.