Presenting not so rosy picture of the economy and also echoing RBI’s views, the government in its ‘Mid-Year Economic Review’ tabled in the Rajya Sabha on Thursday acknowledged that high inflation rate was the biggest risk to growth outlook and pressed the need for bringing down the headline wholesale price inflation (WPI) below 6%. Besides this, it made note of limited ability of RBI had to extend monetary policy support to growth revival in the background of high inflation.
On the positive side, the report noted that despite cuts in government spending, private consumption expenditure and gross fixed capital formation had increased, indicating that the structural reforms undertaken by the government had started to bear fruits. The document highlighted that a decisive pick-up in economic activity could be gradually expected in the Indian economy over the next few quarters.
As per the review, the Indian economy grew by 4.6% in the first half of 2013-14 (Apr-Mar), compared with 5.3% in the same period of the previous fiscal. Further, the review pegged India’s 2013-14 growth at 5.0%, in line with Central Statistics Office’s (CSO) advance estimate released last month. However, it also said that it may take some more time for the economy to reach its higher growth potential.
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Friday, 14 February 2014
High inflation rate - biggest risk to growth outlook: Economic Review Feb-14-2014
Thursday, 13 February 2014
Sensex, Nifty plunge as IIP shrinks for 3rd straight month
Stock market in India plunged sharply on Thursday. The NSE Nifty managed to close above the psychological 6000 mark. During the day, the Nifty breached the critical level for the first time since February 6, led by heavy selling in scrips across the sectors.
Barring the BSE Realty index all the other major sectoral indices on the BSE ended in the red. Today’s decline was led by the banking, capital goods, oil and gas, power and the healthcare index.
Sentiment was dampened after the industrial production growth rate remained in the negative zone for the third month in a row, contracting 0.6% in December 2013. The manufacturing segment, which contracted 1.6% during the month, has a weight of over 75% in the index of industrial production (IIP), and has contracted for most part of the current fiscal. On the other hand, Inflation, as per the consumer price index, dropped to 8.79 percent in January from 9.87 percent in December.
Meanwhile, the ruckus in Parliament prolonged, as The Lok Sabha erupted in mayhem on Thursday when a lawmaker fired pepper spray in parliament in protest against a bill on a new Telangana state.
Finally, BSE Sensex closed at 20,193 down 255 points, while NSE Nifty closed at 6,001 down 83 points over the previous close.
Barring the BSE Realty index all the other major sectoral indices on the BSE ended in the red. Today’s decline was led by the banking, capital goods, oil and gas, power and the healthcare index.
Sentiment was dampened after the industrial production growth rate remained in the negative zone for the third month in a row, contracting 0.6% in December 2013. The manufacturing segment, which contracted 1.6% during the month, has a weight of over 75% in the index of industrial production (IIP), and has contracted for most part of the current fiscal. On the other hand, Inflation, as per the consumer price index, dropped to 8.79 percent in January from 9.87 percent in December.
Meanwhile, the ruckus in Parliament prolonged, as The Lok Sabha erupted in mayhem on Thursday when a lawmaker fired pepper spray in parliament in protest against a bill on a new Telangana state.
Finally, BSE Sensex closed at 20,193 down 255 points, while NSE Nifty closed at 6,001 down 83 points over the previous close.
Sun Pharmaceutical Industries reports 74% rise in Q3 consolidated net profit
Sun Pharmaceutical Industries has reported results for third quarter ended December 31, 2013.
The company has reported 15.71% rise in its net profit at Rs 85.88 crore for the quarter as compared to Rs 74.22 crore for the same quarter in the previous year. However, total income of the company decreased by 16.56% to Rs 759.63 crore for quarter under review as compared to Rs 910.36 crore for the quarter ended December 31, 2012.
On the consolidated basis, the group has reported 73.61% rise in its net profit after taxes and minority interest at Rs 1531.09 crore for the quarter ended December 31, 2013, as compared to Rs 881.30 crore for the same quarter in the previous year. Total income of the group has increased by 51.60% at Rs 4446.82 crore for quarter under review as compared to Rs 2933.33 crore for the quarter ended December 31, 2012.
The company has reported 15.71% rise in its net profit at Rs 85.88 crore for the quarter as compared to Rs 74.22 crore for the same quarter in the previous year. However, total income of the company decreased by 16.56% to Rs 759.63 crore for quarter under review as compared to Rs 910.36 crore for the quarter ended December 31, 2012.
On the consolidated basis, the group has reported 73.61% rise in its net profit after taxes and minority interest at Rs 1531.09 crore for the quarter ended December 31, 2013, as compared to Rs 881.30 crore for the same quarter in the previous year. Total income of the group has increased by 51.60% at Rs 4446.82 crore for quarter under review as compared to Rs 2933.33 crore for the quarter ended December 31, 2012.
Hindalco Industries reports 23% fall in Q3 net profit
Hindalco Industries has reported results for third quarter ended December 31, 2013.
The company has reported 22.96% fall in its net profit at Rs 333.98 crore for the quarter, as compared to Rs 433.52 crore for the same quarter in the previous year. However, total income of the company increased marginally by 3.99% at Rs 7477.28 crore for the quarter under review as compared to Rs 7189.80 crore for the quarter ended December 31, 2012.
Hindalco Industries, the metals flagship company of the Aditya Birla Group, is an industry leader in aluminium and copper. The company’s aluminium units across the country encompass the entire gamut of operations from bauxite mining, alumina refining, aluminium smelting to downstream rolling, extrusions, foils and alloy wheels, along with captive power plants and coal mines.
The company has reported 22.96% fall in its net profit at Rs 333.98 crore for the quarter, as compared to Rs 433.52 crore for the same quarter in the previous year. However, total income of the company increased marginally by 3.99% at Rs 7477.28 crore for the quarter under review as compared to Rs 7189.80 crore for the quarter ended December 31, 2012.
Hindalco Industries, the metals flagship company of the Aditya Birla Group, is an industry leader in aluminium and copper. The company’s aluminium units across the country encompass the entire gamut of operations from bauxite mining, alumina refining, aluminium smelting to downstream rolling, extrusions, foils and alloy wheels, along with captive power plants and coal mines.
India Inc gives thumbs up to Interim Rail Budget 2014
India Inc has given thumbs up to Interim Rail Budget 2014, wherein no populist measures were announced. Appreciating government's focus on modernization and expansion of the country's vast rail network without touching passenger fares and freight rates, India Inc termed ‘Railway Budget 2014’ - a step in the right direction.
It noted that government’s focus was rightly attracting huge investments to upgrade, modernizing and expanding railways as per aspirations of people and attempting to bring in foreign direct investment (FDI). It further stated that increasing private participation, as rightly noticed by the government, seems to be the way of future development.
In the interim budget for four months in the Lok Sabha, Railway Minister Mallikarjun Kharge announced to set up an independent Rail Tariff Authority to rationalize fares. He also highlighted that there was a proposal to expand dynamic pricing of tickets in line with the airline industry.
Further, the minister announced the launch of 17 new premium trains, 39 express trains and ten passenger trains in the coming year and providing rail connectivity to Katra and Vaishnodevi in Jammu and Kashmir, and Meghalaya and Arunachal Pradesh in the Northeast.
It noted that government’s focus was rightly attracting huge investments to upgrade, modernizing and expanding railways as per aspirations of people and attempting to bring in foreign direct investment (FDI). It further stated that increasing private participation, as rightly noticed by the government, seems to be the way of future development.
In the interim budget for four months in the Lok Sabha, Railway Minister Mallikarjun Kharge announced to set up an independent Rail Tariff Authority to rationalize fares. He also highlighted that there was a proposal to expand dynamic pricing of tickets in line with the airline industry.
Further, the minister announced the launch of 17 new premium trains, 39 express trains and ten passenger trains in the coming year and providing rail connectivity to Katra and Vaishnodevi in Jammu and Kashmir, and Meghalaya and Arunachal Pradesh in the Northeast.
D B Realty gets nod for scheme of amalgamation
D B Realty’s board of directors at its meeting held on February 11, 2014 has approved for the scheme of amalgamation of two of its subsidiaries viz. Gokuldham Real Estate Development Company, a company in which D B Realty holds 74.998% of the paid up capital and Real Gem Buildtech, a wholly owned subsidiary of the Company.
D B Realty is real estate Development Company that focuses on residential, commercial, retail and other projects, such as mass housing and cluster redevelopment, in and around Mumbai.
D B Realty is real estate Development Company that focuses on residential, commercial, retail and other projects, such as mass housing and cluster redevelopment, in and around Mumbai.
Eicher Motors climbs on plan to invest Rs 600 crore in Royal Enfield business
Eicher Motors is currently trading at Rs. 4700.95, up by 280.55 points or 6.35% from its previous closing of Rs. 4420.40 on the BSE.
The scrip opened at Rs. 4599.85 and has touched a high and low of Rs. 4884.00 and Rs. 4525.40 respectively. So far 16,000 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 5294.95 on 03-Dec-2013 and a 52 week low of Rs. 2512.00 on 28-Mar-2013.
Last one week high and low of the scrip stood at Rs. 4884.00 and Rs. 4405.00 respectively. The current market cap of the company is Rs. 12,710.00 crore.
The promoters holding in the company stood at 55.12%, while Institutions and Non-Institutions held 25.09% and 19.79% respectively.
Eicher Motors is planning to invest Rs 600 crore in Royal Enfield business. The company would utilize the investment to expand capacity and new products of Royal Enfield. This development is much as per company’s plans of investing Rs 600 crore this year on product development and marketing initiatives.
Additionally, the company, earlier reportedly was eying to increase its market share with the introduction of its Pro series of trucks, which would be rolled out as early as next month.
Eicher Motors is one of the leading manufacturers of commercial vehicle. It has manufacturing facilities located in Madhya Pradesh, Tamil Nadu, Maharashtra, and Haryana.
The scrip opened at Rs. 4599.85 and has touched a high and low of Rs. 4884.00 and Rs. 4525.40 respectively. So far 16,000 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 5294.95 on 03-Dec-2013 and a 52 week low of Rs. 2512.00 on 28-Mar-2013.
Last one week high and low of the scrip stood at Rs. 4884.00 and Rs. 4405.00 respectively. The current market cap of the company is Rs. 12,710.00 crore.
The promoters holding in the company stood at 55.12%, while Institutions and Non-Institutions held 25.09% and 19.79% respectively.
Eicher Motors is planning to invest Rs 600 crore in Royal Enfield business. The company would utilize the investment to expand capacity and new products of Royal Enfield. This development is much as per company’s plans of investing Rs 600 crore this year on product development and marketing initiatives.
Additionally, the company, earlier reportedly was eying to increase its market share with the introduction of its Pro series of trucks, which would be rolled out as early as next month.
Eicher Motors is one of the leading manufacturers of commercial vehicle. It has manufacturing facilities located in Madhya Pradesh, Tamil Nadu, Maharashtra, and Haryana.
Ashok Leyland plans to sell prime property in Chennai: Report
Ashok Leyland, the Hinduja group flagship company, is reportedly planning to sell its prime property in Chennai. This is part of a plan involving sale of immovable property to tackle the high debt it is facing, following the slowdown in commercial vehicle sales. The company has put the one-acre property in the Boat Club area in Chennai for sale.
The company is looking to cut debt of Rs 1,000 crore this fiscal and has taken a slew of measures to reduce costs, which include cutting production days to five from six, lay off of 1,300 temporary workers in addition to enforcing a 5% salary cut for the executive cadre and selling stake in non-core subsidiaries.
Ashok Leyland, the Hinduja Group flagship company in India, is engaged in the manufacturing of commercial vehicles and related components. The company’s products include buses, trucks, engines, defense and special vehicles.
The company is looking to cut debt of Rs 1,000 crore this fiscal and has taken a slew of measures to reduce costs, which include cutting production days to five from six, lay off of 1,300 temporary workers in addition to enforcing a 5% salary cut for the executive cadre and selling stake in non-core subsidiaries.
Ashok Leyland, the Hinduja Group flagship company in India, is engaged in the manufacturing of commercial vehicles and related components. The company’s products include buses, trucks, engines, defense and special vehicles.
ITC plans to set up a production unit: Report
Diversified conglomerate ITC is reportedly planning to set up a production unit in the north-east region for its packaged food items. This new manufacturing unit would be run by the company’s newest 76% subsidiary - North East Nutrients. The manufacturing plant is expected to be ready by the end of 2015.
Recently, the company had acquired 15,200 equity shares of Rs 10 each for cash at par representing 76% of its share capital of North East Nutrients
ITC, a diversified conglomerate has business interests in cigarettes, hotels, paperboards and specialty papers, packaging, agri-business, packaged foods and confectionery, information technology, branded apparel, personal care, stationery, safety matches and other FMCG products.
Recently, the company had acquired 15,200 equity shares of Rs 10 each for cash at par representing 76% of its share capital of North East Nutrients
ITC, a diversified conglomerate has business interests in cigarettes, hotels, paperboards and specialty papers, packaging, agri-business, packaged foods and confectionery, information technology, branded apparel, personal care, stationery, safety matches and other FMCG products.
State Bank of India unveils tax collection service in West Bengal: Report
State Bank of India (SBI), the country’s largest public sector bank has reportedly unveiled commercial tax collection for West Bengal Government at all its 1104 branches. This new tax collection service will work through Government Receipts Portal System (GRIPS), which will be effective at all SBI branches in the State. Moreover, GRIPS will facilitate submitting more than one type of tax at one go, it will ensure faster payment of tax to the Government.
Currently, commercial taxes, stamp duty, excise duty, state medical exam fees can be deposited through GRIPS. The bank is planning to introduce payment of motor vehicle tax through this route.
State Bank of India has reported 35.07% fall in its net profit at Rs 2375.01 crore for the second quarter ended September 30, 2013 as compared to Rs 3658.14 crore for the same quarter in the previous year. However, total income of the bank has increased by 12.88% at Rs 37199.92 crore for quarter under review as compared to Rs 32953.47 crore for the quarter ended September 30, 2012.
Currently, commercial taxes, stamp duty, excise duty, state medical exam fees can be deposited through GRIPS. The bank is planning to introduce payment of motor vehicle tax through this route.
State Bank of India has reported 35.07% fall in its net profit at Rs 2375.01 crore for the second quarter ended September 30, 2013 as compared to Rs 3658.14 crore for the same quarter in the previous year. However, total income of the bank has increased by 12.88% at Rs 37199.92 crore for quarter under review as compared to Rs 32953.47 crore for the quarter ended September 30, 2012.
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