TMS Ep434: Go First vs lessors, L&T, mutual funds, private credit funds

A war of words has erupted between Go First and aircraft lessors -- who want their planes back from the cash-strapped airline. While the Aviation Working Group, which represents the lessors, has put India on a watch list, the Wadia group-owned airline has termed it as an attempt to influence an ongoing case in NCLAT, where lessors have challenged NCLT moratorium on the airline’s assets. The moratorium bars lessors from recovering their aircraft. So how will this tussle between Go First and lessors impact the Indian aviation sector? 

Boeing, meanwhile, has said that Indian airlines are likely to require over 2,200 aircraft in the next 20 years, and the Go First episode can't knock the growth trajectory of India’s civil aviation market off course. Moving on, one of the largest conglomerates of the country, Larsen and Toubro, has been flying high for decades now - leaving behind a trail of development projects and much more. Recently it has seen a change of guard. So where is L&T headed from here? 

Despite a lower-than- estimated Q4FY23 earnings, several top brokerages like Jefferies and Nuvama have retained their positive views on L&T stock. Moving on, at 6,480 crore rupees, net inflow into equity mutual funds hit their lowest level since November last year. The flows declined even as debt funds saw inflows of over 1 trillion rupees. So, what caused this sharp drop in equity mutual fund inflows? And what is the road ahead? 

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