Industrial output grows 9.1 pc in Sept
Mumbai, Source: Business Standard
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The debate over whether it’s time for the government to start winding up the aggressive stimulus package is expected to get sharper, with industrial output topping market expectations to post 9.1 percent growth in September from a year earlier, continuing its upward spiral for nine consecutive months.
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Government data released on November 12 also revised the annual growth figure for August to a 22-month-high of 11 percent from 10.4 percent.With the Government’s stimulus package working well, Finance Minister Mr. Pranab Mukherjee was optimistic. “We are hoping that when the final figure of the second quarter will be available, perhaps there will be higher growth. If the higher growth projection is there, then in the third and fourth quarters we can make up,’’ Mr. Mukherjee said. When asked how soon India could bounce back, India’s Home Minister Mr. P. Chidambaram said: “We will bounce back soon. We are likely to achieve close to 8 percent growth next year and then we will get to 9 percent growth after that. We are part of the global economy. ” He added that India couldn’t wish away its dependence on oil. “India is still dependent on imports and our economy is dominated by the services sector. These factors bind us to the world,” Mr. Chidambaram said.
Indeed, the October Purchasing Managers’ Index for India showed that the pace of manufacturing activity picked up as domestic demand and factory orders rose. On annualised basis, consumer durable goods output surged by an annual 22.2 percent as stimulus measures, festivals and salary arrears to government employees pushed demand. Department of Industrial Policy and Promotion Secretary Ajay Shankar felt the economy was firmly back on growth path. ‘‘The recovery is broad-based and sustainable.
” Manufacturing production rose 9.3 percent in September, while mining output was up 8.6 percent and power generation 7.9 percent. The market had initially expected around 7 percent growth in September industrial output. With the actual figures topping those expectations squarely, the feeling that despite the poor monsoon and floods the country will still end up with a six-plus GDP growth is getting stronger. |
India's global trade in goods and services rises to 54% of GDP
New Delhi, Source: IBEF
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On the back of strong fund inflows from Foreign Institutional Investors (FIIs) in the recently concluded quarter, the shareholding of this segment in India Inc has risen to 17 percent from 16 percent in the previous quarter. FIIs now own half of the market’s free float. Foreign capital (institutional and direct) at 26 percent now accounts for over half of the market free float, with FII holding itself valued at $187 billion. The peak was in the quarter ended December 2007 when it was $265 billion.
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“While ownership remains well below its 20 percent peak, most recent fund-flows suggest ownership will likely rise further. The ownership is broad-based. With domestic flows dormant to negative in the recent past, the influence of foreigners is only rising,” Aditya Narain and Tirthankar Patnaik, analysts with Citigroup, said in a note. With this increase in shareholding, FIIs have retained the position as the largest non-promoter investors in India (without factoring in the PSUs); and overall foreign share of the market (including subsidiaries, direct, and portfolio) is more than 25 percent. The foreign institutional portfolio in India now stands at more than $187 billion, up 27 percent quarter on quarter, against the Sensex’s rise of 18 percent.
“FII inflows have been one of the drivers for the up-move in the markets, pumping in (net) $16 billion into the equity markets in 2009, while the mutual funds continue to remain net sellers in the market. Thus going ahead, there could be a rise in the FII holdings in the ownership of the stocks,” Dinesh Thakkar, CMD of Angel Broking, said. The insurers continue to become dominant players, with equity assets now 23 percent larger than mutual funds, and growing assuredly. |
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Indian mutual fund industry touches high of US$ 162.62 billion
tober 2009, according to data from the Association of Mutual Funds in India (AMFI). Reliance MF maintained its position as the country’s largest fund house with its AUM standing US$ 24.9 billion, while the assets of the country’s second-largest fund house, HDFC MF, inched closer to US$ 21.4 billion. Other fund houses that saw their average AUM rising in October 2009 include Canara Robeco MF, Sahara MF and SBI MF. Taurus MF Managing Director R K Gupta said, "Fund houses have witnessed a decline in assets of their equity portfolio. But inflows into fixed income schemes helped the industry to record a growth in assets."
Source: IBEF |
Indian economy grows 7.9 per cent during July-September 2009
India's gross domestic product (GDP) grew by 7.9 per cent during July-September 2009, up from 6.1 per cent in the previous quarter, as per data released by the Central Statistical Organisation (CSO). The cumulative expansion for the first half of the current fiscal stands at 7 per cent with the economy registering a 6.1 per cent growth in the first quarter of 2009-10. The surge in GDP numbers was led by a 9.2 per cent growth in the manufacturing sector, with the mining and construction activities expanding by 9.5 per cent 6.5 per cent, respectively. Community, social and personal services expanded by double digit at 12.7 per cent, whereas trade, hotels, transport and communication sector grew by 8.5 per cent. Further, financing, insurance, real estate, and business services increased by 7.7 per cent against 6.4 per cent a year ago. The size of the domestic economy stood at US$ 385.75 billion in the first half of 2009-10. |
BPCL-Videocon strikes more oil in Brazil
A consortium with two Indian partners — state-run Bharat Petroleum and Videocon Industries promoted by the Dhoots — have discovered additional oil in an exploration acreage in the Campos basin, off the Brazilian coast. The consortium has discovered more than 90 feet of high-quality net oil pay in their Wahoo-2 well block, also identified as BM-C-30, The well is five miles to the north from the original Wahoo discovery well, which hit over 195 feet of net oil pay in October last year. Net pay refers to the thickness of an oil reservoir. The acreage is located at a water depth of around 4,650 feet. In October 2008, the consortium had made its first discovery in the block during drilling of Wahoo well.
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