FDI in India increased by 17% to $28 billion in 2013: United Nation Report

As per the United Nation report, foreign direct investment (FDI) in India grew by 17 percent in 2013 to $28 billion in spite of unexpected capital outflows in the middle of the year. However, India's FDI ranking has slipped by one notch to 16th position in 2013 among the top 20 global economies receiving FDI. The report further added that risks related to the US Fed tapering of quantitative easing and uneven levels of growth, fragility and unpredictability in a number of economies could dampen the FDI recovery.

Referring to global growth in FDI, the United Nation report highlighted that foreign investment across the world rose to highest levels since the start of the global economic crisis in 2008. Global FDI increased by 11 percent in 2013 to an estimated $1.46 trillion, with the major share going to developing countries. FDI flows to developing economies reached to a new high of $759 billion dollars, which account for around 52 percent in the reported period. Among the developing nations, the BRICS - Brazil, Russian Federation, India, China and South Africa continued to be strong performers in attracting FDI with a 22 percent share of global FDI, which was twice that of their pre-crisis level. Further, total inflows to these five leading emerging economies reached $322 billion in 2013, 21 percent higher than 2012. South Africa outperformed other emerging countries within the group, with FDI inflows rising by 126 percent in the reported period. China again ranked second in the world for FDI inflow with estimated foreign investment at $127 billion, including both financial and non-financial Sectors.

On the other hand, FDI inflows to developed countries increased by 12 percent to $576 billion, however with around 39 percent share, developed countries remained at an historical-low for the second consecutive year. Among developed nations, some European nations witnessed positive signs of recovery.

Jyothy Laboratories to acquire regional brands: Report

In a bid to strengthen its fast-moving consumer goods portfolio, Jyothy Laboratories is reportedly planning to acquire regional brands for around Rs 500 crore. The acquisitions could be brands in adjacent categories like hair care and body care, where the company is not present currently.

Recently, the company had raised Rs 263 crore through a preferential allotment late last year, and is now ready to use the same for acquisitions.

Jyothy Laboratories is one of the leading players in the mid and economy segments of the FMCG industry having its presence in Fabricare (Detergents/soaps for clothes), Household Insecticide (Repellent coils/liquid or spray) Dishwashing products/Toilet cleaners, Personal care (Toilet soap) and Others (Incense sticks).

RBI not taking Inflation lightly: Montek Singh Ahluwalia

Justifying RBI’s surprising move of hiking key policy rates by 25 basis points, Deputy Chairman of Planning Commission Montek Singh Ahluwalia underscored that bringing down inflation remains country’s top priority and RBI’s third quarter monetary policy is just reiteration of its commitment of bringing down inflation.

Further, batting on behalf of RBI, he stated that RBI clearly wants to send a signal that it was not taking inflation lightly, also as short-term lowering of repo rates would not make a long-term difference. He also added that interest rates would reduce only with a decline in inflation, which must be high on the priority list.

However, on Rajan’s expectations of economy growth below 5 per cent in the current financial year, Ahluwalia said that it was bit premature to come to any conclusion that GDP growth rate for 2013-14 could be below 5 per cent.

Tata Motors likely to bag Rs 1,000 crore order from Defence: Report

Tata Motors is reportedly in the final stages of closing Rs 1,000 crore contract from Ministry of Defence for the supply of 1,239 heavy duty trucks. The order for the supply of six-wheel-drive high mobility vehicles (HMV), fitted with material handling cranes, has the option of a follow-on order for 600 more units.

This deal is among the three procurement projects the defence ministry kicked off last year involving specialized trucks.

Tata Motors is India’s largest automobile company, is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is also the world's fourth largest truck and bus manufacturer.

ICICI Bank adds 81 Branches, 117 ATMs during third quarter

ICICI Bank, India's largest private sector bank has added 81 branches and 117 Automated Teller Machine (ATMs) during the third quarter ended December 31, 2013.

At December 31, 2013, the Bank had 3,588 branches, the largest branch network among private sector banks in the country. The Bank’s ATM network increased to 11,215 ATMs at December 31, 2013 as compared to 10,040 at December 31, 2012.

ICICI Bank has registered a rise of 12.53% in its net profit at Rs 2532.21 crore in Q3FY14 as compared to Rs 2250.24 crore in the corresponding quarter previous year. The total income of the bank has increased by 15.40% to Rs 14255.96 crore for the quarter under review as compared to Rs 12352.91 crore in the same quarter last year.

Crompton Greaves reports consolidated net profit of Rs 62.02 crore in Q3

Crompton Greaves has reported results for third quarter ended December 31, 2013.

The company has reported 27.68% rise in its net profit at Rs 135.54 crore for the quarter as compared to Rs 106.16 crore for the same quarter in the previous year. Total income of the company increased 7.06% at Rs 1897.07 crore for quarter under review, as compared to Rs 1772.02 crore for the quarter ended December 31, 2012.

On the consolidated basis, the group has reported a net profit of Rs 62.02 crore for the quarter as compared to a net loss of Rs 189.36 crore for the same quarter in the previous year. Total income from operations of the group has increased by 13% at Rs 3392.35 crore for quarter under review as compared to Rs 3002.18 crore for the quarter ended December 31, 2012.

Inflation is both Monetary and Political Issue: Raghuram Rajan

A day after hiking the key policy rates by 25 basis points, Reserve Bank of India (RBI)’ governor Raghuram Rajan terming inflation as both monetary and political issue, pressed the need for political establishment understanding the importance of curbing rising prices. However, the governor said that he was not ignorant of the issues arising from low growth that remains to be big area of concern.

Emphasizing the need for greater co-operation, the governor highlighted that in countries across the world, the monetary authority and fiscal authority were co-operative as far as possible and one which adjusted for the other.

Further, the governor pointed that if fiscal policy was expansionary then policies need to be adjusted to meet the overall disinflationary process. Notably, Rajan's predecessor D Subbarao had blamed the fiscal policies of the government for continuous spike in inflation and slow growth during his tenure.  Subbarao also attributed the 'loose fiscal stance of government' for slow growth and high inflation and described inflation as a tax on the poor.

Sensex slips nearly 200 points

At 9:46 am (IST), the BSE Sensex was trading at 20,452, down 195 points over the previous close, while NSE Nifty was quoting at 6,055, down 64 points over the previous close.
The BSE Small-Cap index and BSE Mid- Cap index was trading down at 1%.
Bharti Airtel, Tata Motors are among gainers in Sensex and Nifty.
RIL, Wipro,  Infosys, TCS,ONGC, Coal India, Gail India, ICICI Bank, HDFC, Hero MotoCorp, Maruti,  Jindal Steel,  HDFC Bank, Tata Power, Cipla, Tata Steel, Mahindra & Mahindra, are among losers in Sensex and Nifty.
Teck, FMCG, Metal,  PSU, IT, Capital Goods, Consumer Durables, Realty, Oil and gas, Power indices are the losers

On expected lines, the Federal Reserve has decided to cut its bond purchases by another US$10 billion. Investors were expecting some comment on the recent crisis in emerging market but not a word was mentioned on the same. Speculation was that the Fed could put on hold its tapering given the emerging market jitters.
The Dow fell 190 points. The S&P 500 and the Nasdaq both fell more than 1%. Asian markets are bleeding. Japan's Nikkei is down over 3% while Hong Kong's Hang Seng has lost over 1.5%.

Meanwhile, US investors were hoping the Fed would make some mention about the recent issues regarding the weakening currencies of emerging markets. RBI governor Raghuram Rajan meanwhile said the repo rate hike was aimed at lowering inflationary pressures adding that the hike would have happened whether or not there was financial markets turmoil in the last few days.
India’s much anticipated and most rigorous brand evaluation, The Brand Trust Report, India Study, a comparison of the trust held in brands, has been released for 2014. Samsung has emerged as India’s Most Trusted brand this year.Sony ranks as India’s 2nd Most Trusted Brand followed by Tata which has ranked 3rd this year.
US President Obama used his annual State of the Union address to chart a new path forward relying on his own executive authority. "I'm eager to work with all of you," Obama said in his nationally televised speech in the House chamber. "But America does not stand still - and neither will I. So wherever and whenever I can take steps without legislation to expand opportunity for more American families, that's what I'm going to do."

BHEL to set up world’s largest 4,000 MW ultra mega solar power project in Rajasthan

As many as six state-owned companies including Bharat Heavy Electricals (BHEL), Power Grid Corporation of India (PGCIL), Solar Energy Corporation of India (SECI), Hindustan Salts, Satluj Jal Vidyut Nigam (SJVNL) and Rajasthan Electronics and Instruments (REIL) have inked an agreement for setting up the world’s largest 4,000 MW ultra mega solar power project in Rajasthan. To this effect, a Memorandum of Understanding (MoU) was signed among the six companies to form a Joint Venture company (JVC) for the same.

The JVC will develop the Solar Power Project on the surplus land available with Sambhar Salts (SSL) in Sambhar, Rajasthan with equity participation from BHEL (26%), SECI (23%), Hindustan Salts (16%), PGCIL (16%), SJVNL (16%) and REIL (3%). The project set up on land provided by SSL will have equipment supplied by BHEL, power evacuation by PGCIL, sale of electricity by SECI, O&M by REIL and project management by SJVNL.

The plant shall be set up in two phases over a period of 7 years with Phase I comprising 1,000 MW and the balance 3,000 MW in subsequent phases. With the commissioning of this plant and commercial utilization of the harvested energy therein, this would become the largest single location solar electricity generation project in the world.

Tata Global Beverages reports 49% rise in Q3 consolidated net profit

Tata Global Beverages has reported results for third quarter ended December 31, 2013.

The company has reported 23.56% rise in its net profit at Rs 87.95 crore for the quarter as compared to Rs 71.18 crore for the same quarter in the previous year. Total income of the company increased 12.52% at Rs 768.90 crore for quarter under review, as compared to Rs 683.36 crore for the quarter ended December 31, 2012.

On the consolidated basis, the group has reported 48.95% rise in its net profit at Rs 119.55 crore for the quarter as compared to Rs 80.26 crore for the same quarter in the previous year. Total income from operations of the group has increased by 8.66% at Rs 2095.69 crore for quarter under review as compared to Rs 1928.66 crore for the quarter ended December 31, 2012.