Economy Round Up – May 12 to 16, 2014

India Infoline News Service | Mumbai |

India has seen the strongest election mandate in 30 years since the era of single party governments . Enthusiasm of the Modi-wave saw market hitting to new highs this week yet again

Top Stories

With everyone, for everyone, says Modi in victory speech

India has seen the strongest election mandate in 30 years since the era of single party governments. Enthusiasm of the Modi-wave saw market hitting to new highs this week yet again. FII inflows continued to drive the indices higher and appreciating rupee which soared to a fresh 10-month high against the dollar also had a positive impact. Narendra Modi who is set to take charge as the next prime minister of India addressed a mammoth rally, his first after victory at Vadodara. "I am grateful for the responsibility given to serve you all," Modi said. He thanked Vadodara for helping BJP to win by a record margin and said that no one has ever won by 5.7 lakh votes in general elections. Gujarat has created history in these general elections with BJP winning all 26 seats. Most Congress leaders lost, including Sushilkumar Shinde, Kapil Sibal and Sachin Pilot. Arun Jaitley was a prominent loser on the BJP side. Big winners included J Jayalalithaa’s AIADMK, in Tamil Nadu, and Mamata Banerjee’s Trinamool Congress.

The Aam Aadmi Party, which stunned observers by winning the Delhi assembly last year, made an encouraging Lok Sabha debut, leading in a handful of seats in Punjab. But its chief, Arvind Kejriwal lost to Narendra Modi in Varanasi. A total of 8,251 candidates, including 668 women and five transgenders, contested the Lok Sabha battle. The contestants included 3,234 independents. Modi, who won from both his constituencies of Varanasi and Vadodara and called it a victory for India, tweeting his poll plank of Ache Din Aane Waale Hain. Modi won from both seats he contested; defeating Arvind Kejriwal, leader of the Aam Aadmi Party, in Varanasi and Madhusudhan Mistry of the Indian National Congress in Vadodara.

Modi won the Vadodara Lok Sabha seat by a margin of 5,70,128 votes. Modi secured 8,45,464 votes out of the total 11.63 lakh votes polled in Vadodara. Modi is set to hold a rally in Varanasi tomorrow to offer thanks, and then will move to Delhi, his new home. Prime Minister Manmohan Singh and his cabinet will resign tomorrow. Singh will address the nation tomorrow morning before going to meet President Pranab Mukherjee to submit his resign ation at noon. Modi's landslide win was welcomed with a thundering rally on the stock markets and jubilant celebrations at offices across the country of his BJP, where supporters danced, exploded fireworks and handed out sweets. The BJP supporters in the US today called for three-day celebrations by lighting "diyas" at their homes, community centers and temples.

Mother’s blessing for India’s new PM

Gujarat created history in these General elections: Narendra Modi

Congress…not even leader of Opposition?

India has voted for change: Rajnath Singh

Acche Din Aane Wale, reaffirms Modi

PM congratulates Narendra Modi

Open letter to the Prime Minister: TRA

Jaya hai…but Modi can do without it now 

Tarun Gogoi says he will resign

Nandan Nilekani loses to BJP's Ananth Kumar

We receive this mandate of people of India with humility tweets Sushma Swaraj

All Congress Chief Ministers offers to resign: reports

29 million people in India on Facebook discuss election

Today's mandate is the biggest since 1984: BJP

Victory & loss are common in politics, says stunned Sonia

The people's mandate is against the Congress and we did not get the support we hoped for, Sonia Gandhi said. As Congress President, I take take full responsibility for the defeat, Sonia Gandhi added.  In brief statements, Sonia Gandhi and Rahul Gandhi took personal responsibility for the Congress failure. The Congress, which saw its worst performance at the hustings had very little to say at the press briefing. After a couple of deferments, Congress President Sonia Gandhi and Congress Vice President Rahul Gandhi finally briefly addressed the media around 4:30 pm. "The Congress has done badly and we have a lot to think about," Rahul Gandhi said today. As Vice President of the party, I take responsibility," Rahul Gandhi added. The stunning defeat is something the Congress will take years to digest. The BJP, riding on the Modi-wave has romped home comfortably to the extent they may not really need an ally by their side technically. Yet, the compulsions and obligations of politics is such that some adjustments and accommodations will be made...Read More

Congress routed; Gandhis take responsibility

Congress…not even leader of Opposition?

Keen to work together to get most from UK-India relationship: British PM

British Prime Minister David Cameron called India's prime minister-elect Narendra Modi to congratulate him on election success after a landslide victory on Friday, the British embassy in New Delhi said.

PM: Congratulations@narendramodi on victory in India's elections. Keen to work together to get the most from UK-India relationship — UK Prime Minister (@Number10gov) on Twitter.

The UK Government congratulates India’s Prime Minister-elect, Narendra Modi, and the Bharatiya Janata Party (BJP) on their election success.

Foreign Minister William Hague said:  "I congratulate Narendra Modi and the BJP on their success and look forward to forging an even closer partnership with India in the months ahead. "With 815 million eligible voters, 915,000 polling stations, and nine days of voting over five weeks, India has seen the largest parliamentary election in the world. "The UK has strong ties with India and the British Government looks forward to working with the new Indian Government to build on this relationship and deliver security, growth and prosperity for both our nations."...Read More

UK Foreign Minister welcomes Indian election results

India elections: It’s a new dawn; bright sunshine will follow

Election results confirm market expectations, policy actions to determine credit implications: Moody's

India Materials: Material Modi-fication, says Barclays

Modi triumph: Recovery is likely to be protracted, HSBC Global says

S&P: Can the New India Government convert expectation iInto Confidence?

Current Stock Market Euphoria likely to sustain with strong government in place: PHD Chamber

British PM call Modi to congratulate him on victory

IIP shrinks 0.5% in March

Index of Industrial Production (IIP) for the month of March 2014 stands at 193.2, which is 0.5% lower as compared to the level in the month of March 2013. The cumulative growth for the period April-March 2013-14 over the corresponding period of the previous year stands at (-) 0.1%. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of March 2014 stand at 145.8, 204.8 and 173.0 respectively, with the corresponding growth rates of (-) 0.4%, (-) 1.2% and 5.4% as compared to March 2013 (Statement I). The cumulative growth in the three sectors during April-March 2013-14 over the corresponding period of 2012-13 has been (-) 0.8%, (-) 0.8% and 6.1% respectively. In terms of industries, twelve (12) out of the twenty two (22) industry groups (as per 2-digit NIC-2004) in the manufacturing sec tor have shown negative growth during the month of March 2014 as compared to the corresponding month of the previous year (St atement II). The industry group ‘Radio, TV and communication equipment & apparatus’ has shown the highest negative growth of (-) 33.1%, followed by (-) 26.1% in ‘Office, accounting and computing machinery’ and (-) 21.5% in ‘Medical, precision & optical instruments, watches and clocks’. On the other hand, the industry group ‘Wearing apparel; dressing and dyeing of fur’ has shown the highest positive growth of 26.0%, followed by 9.2% in ‘Basic metals’ and 6.2% in ‘Food products and beverages’...Read More

April WPI inflation at 5.20%

An astounding 120mn additional votes were cast in the just-concluded general elections, a 29% increase over the 2009 elections. This increase eclipses the ones recorded in the 1977 and 1984 polls, the two elections that produced the biggest landslides yet. The increase in votes polled has been partially driven by the sharp increase in electoral base. The 2014 elections had 97.5mn new voters, which are more than the increase in 2004 and 2009 elections put together. Intuitively, this should increase the proportion of young voters. A massive surge in participation by a relatively younger cohort suggests that the exit polls might be underestimating the change and not overstating the case. The just concluded elections witnessed 66% turnout, which is the highest ever recorded in an Indian general election. The 7.8ppt increase PoP in turnout is also the highest ever. The 28.8% increase in number of votes polled eclipses the increase in 1977 and 1984 elections, which are watershed events in Indian politics. In 1977, the incumbent Congress was almost wiped out of the electoral map in northern India as voters vented their anger against suspension of civil liberties. In 1984, the opposition was wiped out of Northern India as the incumbent Congress rode on sympathy wave for the son of the assassinated prime minister...Read More

What to think? April CPI & WPI inflation diverge

Inflation and policy response going ahead: CARE

2014: The biggest ‘wave’ elections ever

An astounding 120mn additional votes were cast in the just-concluded general elections, a 29% increase over the 2009 elections. This increase eclipses the ones recorded in the 1977 and 1984 polls, the two elections that produced the biggest landslides yet. The increase in votes polled has been partially driven by the sharp increase in electoral base. The 2014 elections had 97.5mn new voters, which are more than the increase in 2004 and 2009 elections put together. Intuitively, this should increase the proportion of young voters. A massive surge in participation by a relatively younger cohort suggests that the exit polls might be underestimating the change and not overstating the case. The just concluded elections witnessed 66% turnout, which is the highest ever recorded in an Indian general election. The 7.8ppt increase PoP in turnout is also the highest ever. The 28.8% increase in number of votes polled eclipses the increase in 1977 and 1984 elections, which are watershed events in Indian politics. In 1977, the incumbent Congress was almost wiped out of the electoral map in northern India as voters vented their anger against suspension of civil liberties. In 1984, the opposition was wiped out of Northern India as the incumbent Congress rode on sympathy wave for the son of the assassinated prime minister...Read More

2014 Elections: How states polled over 4 elections

Hiring activity sees growth of 7% in April’14 over March’14: Naukri Job

The Naukri Job Speak Index for the month of April 2014 was at 1589 showing a 7% increase in hiring activity when compared to March 2014. Yearly comparison shows a 14 % increase in hiring activity when compared to April’13. Industry wise hiring sentiment was buoyant across all the major sectors. Telecom sector saw the index moving up by 19% M-O-M. Among the top metros, Mumbai also saw growth with the index moving up by 10% in April’14 over March’14. Hitesh Oberoi, Managing Director and CEO Info Edge (India) Ltd said "The job market continues to get better every month. Post elections the recovery could become more broad based if we get a stable government"

Industry Sector Analysis:

An in depth analysis reveals that the BPO and Pharma sector have done well with the index moving up by 14% and 11% in April’14 over March’14. Banking& Financial sector and Auto have registered a spike with the index moving up 4% and 6% M-O-M respectively in the same period. Sectors like Construction & Engineering and IT have seen growth with index going up by 4% and 3% M-O-M respectively. In terms of decline, Oil & Gas is the only sector which has seen a downward trajectory with the Naukri Job Speak Index going down by 7% in April’14 over March’14...Read More 

News Infocus

Jaguar XF 2.0: Refined luxury

Luxury cars on Indian roads are now a common sight. We are all very used to seeing Mercedes, BMW, or Audi around us. A few models from these manufacturers still elicit ooohs and aaahs despite the wide presence of these brands in India. But it is the Jaguar brand that evokes a distinctive intake of breath each time you see one of the models drive past. The fact that the brand is still a relative rarity partly contributes to this; however, the other part is played by the distinctly sporty looks that the regular Jaguar saloon carries off. The sporty good looks, relative exclusivity (like the Porsche) compared with competition (despite being owned by Tata Motors), and a slight premium pricing (to go with the image) compared with peers contributes to the aura. The XF was launched in India in 2008. So far, the XF was available in three variants in India, which are the 3-litre diesel, the 2013-launched 2.2-litre diesel, and the 5-litre supercharged petrol. While the oil-burners are displayed at showrooms, the gorilla petrol is available only on order. Now Jaguar has introduced their newest baby in the XF line-up to India – the 2-litre petrol variant (XF 2.0) is a baby by its heart, but not in its dimensions. It has now started to contribute to sales. My first view of the newest XF was at the JLR pavilion at the Delhi Auto Expo in February 2014 (it was launched just a few days before the event). However, I could only drool at it from across the glass barrier. So when I was asked if I would like to take the newest XF out for a six-hour spin within Mumbai limits, I was more than eager. It was definitely an exhilarating experience...Read More

Datsun Go: Iconic brand, robust entry

Hyundai Xcent: Worthy competitor

2 out of 3 Taxi and Auto drivers in city have poor eyesight: TABcab eye camp

TABcab, Mumbai’s largest phone fleet cab service in association with Vision 20-20, recently conducted a free eye testing camp for all "Saathis" (fleet taxi drivers), Auto Drivers and Black & Yellow Taxi drivers. Astoundingly, of the drivers that tested, 41% who previously thought to have had perfect visionwere found to have poor vision and were driving without vision correction aids making the city roads unsafe. Drivers from various taxi and auto rickshaw stands participated in the camp. Out of the 265 taxi and auto drivers, 109 had vision-related problems, while two others have been advised to visit eye hospital for further treatment as their case was critical, according to Vision 2020. Taxi and auto drivers were also screened for various eye ailments including color blindness and those in need of spectacles were given glasses at subsidized rates...Read More

Whistling Cinema

The film fraternity in India – both mainstream and offbeat - is more or less a private club, a mutual admiration society which unabashedly promotes the stickiest of beliefs, stereotypes and archetypes in the name of tradition to meet the diverse demands of various stakeholders. Once in a while, individual mavericks do hint at a renaissance in the making with their offbeat products but they sadly end up as a spent force, one-film wonders sucked up by the lure of lavish praise from the world over. Worse, the veteran makers pledge mechanical allegiance to their self-imposed notions of what constitutes cinema. It’s therefore unreasonable to expect any revolution through a celebration of cinema, especially when it is more of a carnival than a detached introspection. Subhash Ghai’s Whistling Woods International calls its annual event Celebrate Cinema ‘…an access to the complex process of filmmaking to explore and exploit the growth of Indian cinema’whatever that means. What we know for sure is the fact that our industry moguls have invariably placed exploitation ahead of exploration in their glorious tryst with filmmaking...Read More

Top 50 Investment options in India: Makaan.com

Continuous price appreciation in the Indian real estate industry has become an acknowledged fact. Although, there has been a slight consolidation in the recent past, prices have increased handsomely over the past decade. While there are many who have made a killing in the property market, there are many more who have been left out of this dream hunt. When we are out in the market, we get distracted with the various communication and recommendation that are thrown at us. Most of this is biased and without any meaningful analysis. In an attempt to inform real estate investors regarding good property options, Makaan.com, India’s fastest growing property site, conducted a research this May 2014. The research tracked the residential property price movement over the past one year and came up with a list of 50 localities with maximum property price appreciation. We also looked at the prevailing market prices in these localities and gave our recommendation for people falling under different income brackets. We hope you benefit from this analysis...Read More

Ambani's Antilia is the world's most expensive home: Forbes

Reliance Industries Chairman Mukesh Ambani's residence in Mumbai, Antilia, is the world's most expensive according to a Forbes list of billionaire homes. Report said that Ambani's 27-storey, 400,000-square-foot Antilia, tops the list with a value of over $1 billion. Forbes has compared Antilia's scale and cost into perspectiv it to '7, World Trade Center', a 52-storey tower that stands near Ground Zero in Manhattan with 1.7 million square feet of office space, says report. Mittal's houses in London's Kensington Palace Gardens stand 5th and 18th on the list of 21 most expensive billionaire homes, according to Forbes.

Politicizing the Plight of Kashmiri Pundits

Politics is a strange game where no holds are barred for electoral advantages. It also expresses, to some extent, the political ideology of those playing these games in addition to the distortion of events, which are done deliberately. Interpretation of the very same events is diametrically different for different political groups. The sad plight of Kashmiri Pundits exodus is no exception to this. During his election campaign the BJP leader Narendra Modi has been making several statements which at one level are factually inaccurate and at another level they have communal interpretation through and through. He stated that biggest blow to secular fabric of India was delivered from Kashmir from where Kashmiri Pundits were forced out and that Abdullah’s (Sheikh Abdulla, Farooq and Omar) were behind it. (28th April 2014) In response Farooq and Omar shot back that exodus of Pandits took place under the Presidents rule with Jagmohan, a BJP hand, as the Governor of Kashmir. That time it was the V.P.Singh Government at Center and this Government was being supported by BJP from outside. While all three Addullah’s are not the same, nor is their role a continuum nor all of them secular angels the tragedy of exodus of Pundits is much more complex than being attributed to them. The role which each of the Abdulla’s played cannot be put in the same basket...Read More

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