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The Week that was...

India Infoline News Service | Mumbai |

It was quiet an action packed week. The government continued with its reforms process. First, it raised the foreign direct investment limit in telecom to 100%.

It was quiet an action packed week. With the army lending support, President Mohammed Morsi government was ousted and a caretaker government was set up. In India, the government continued with its reforms process. First, it raised the foreign direct investment limit in telecom to 100%. This was followed by the Central Board of Direct Taxes relaxing transfer pricing rules for MNCs.  

The conscientious National Food Security Bill has finally got Cabinet and President's approval. It will soon be promulgated into an ordinance. The bill seeks to grant legal rights to 67% of the population over subsidised grains every month. This may further muddle the country's rising fiscal deficit and may once again raise hackles with global rating agencies.

The weakness in the rupee returned to haunt Dalal Street. In the course of this week, it crossed the 60 dollar mark, a first time since it crossed the same on June 27. On June 26, it touched an all-time low of 60.76 against the dollar. The Indian unit continues to trade close to 60 per dollar mark. Concerns that the Federal Reserve may rollback its stimulus measures earlier than usual on positive May factory data is ailing sentiment.

Oil companies on Saturday hiked diesel prices by 50 paise per litre in line with the falling rupee and rising crude prices.

On the economic front, core sector data for the month of May stood at 2.3% as compared to 7.2% in the same period last year. The decline in the growth rate was on account of negative growth witnessed in the production of coal and crude oil.

Manufacturing sector activity remained broadly flat in June amid decline in new orders for the first time in over four-years. The Markit Purchasing Managers' Index for the manufacturing industry stood at 50.3 in June, slightly higher than 50.1 in May.

The services sector, which accounts for about 60% of GDP, shrank sharply in June. The HSBC Purchasing Managers' Index for services posted a reading of 51.7, compared with May's three-month high of 53.6.

There seems to be no respite for automobile companies. June auto sales have dipped for the eight straight month. Major auto companies such as Ashok Leyland (-31.3% YoY), Eicher Motors (-18.8% YoY) , Tata Motors (-18.1% YoY), Maruti Suzuki (-12.6% YoY), M&M (-7.8% YoY), Hero MotoCorp (-6% YoY), TVS Motor (-2.7% YoY) all reported tepid sales in June. M&M Tractors, the farm equipment arm of Mahindra & Mahindra grew at 16.8% YoY, signalling healthy agricultural activity in the country after plentiful monsoons.

Next week, Eurozone finance ministers will review a progress report on Greece on Monday. EU sources say there are still 'a number of outstanding issues' -- such as public sector job losses, privatisation receipts and health sector reform -- to be resolved before ministers can allow the tranche to be disbursed.

On the domestic front, next week promises to full of action with multiple economic data points to be announced. June Consumer Price index, IIP data for the month of May and the June export and import data are important data to watch out for.


TOP NEWS

RBI gets 26 applications for bank licence

The Reserve Bank of India has received 26 applications for new banking licences. Besides corporate houses, government department, state-owned companies, a few non-banking financial companies and a couple of microfinance institutions are also in the race to set up a commercial bank. L&T, the Tata group, Reliance Capital, Aditya Birla Nuvo, Bajaj Finserv, Videocon (in the name of Aurangabad-based Value Industries), infrastructure financier IDFC, gold loan company Muthoot Finance, realty developer Indiabulls, micro financier Bandhan and Bangalore-based Janalakshmi have envisaged interest.

No cap yet on number of new bank licences: FM

Vinod Jain joins race for banking licence

IIFL submits banking licence application

India Infoline has submitted its banking licence application to the Reserve Bank. IIFL proposes to convert its existing NBFC, India Infoline Finance, into a bank. IIFL is compliant with all RBI guidelines, read along with clarifications issued on June 3, a company spokesperson stated.

New bank licence: Few applicants to succeed, says Fitch

June auto sales weak; dip for 8th month straight

June sales as reported by almost all major auto companies showed glum figures. Major auto companies such as Ashok Leyland (-31.3% YoY), Eicher Motors (-18.8% YoY) , Tata Motors (-18.1% YoY), Maruti Suzuki (-12.6% YoY), M&M (-7.8% YoY), Hero MotoCorp (-6% YoY), TVS Motor (-2.7% YoY) all reported tepid sales in June. M&M Tractors, the farm equipment arm of Mahindra & Mahindra grew at 16.8% YoY, signalling healthy agricultural activity in the country after plentiful monsoons.

Bajaj Auto moves Pulsar production to Aurangabad

Chakan workers paid 22p on each Pulsar sold: Bajaj Union

Hero MotoCorp to buy 49.2% stake in superbike co Erik Buell

Nissan's Micra priced at Rs. 4.8-7.14 lakh range

Mercedes-Benz rolls out its new E-Class from Chakan

Hero MotoCorp forays into African continent

Telecom Commission approves 100% FDI in telecom

The Telecom Commission, on Tuesday, approved hiking the foreign direct investment limit in the telecom sector to 100%. At present, the FDI limit in the sector is 74%. Of this, 49% can be invested automatically, while the consent of the Foreign Investment Promotion Board is required to take it up to 74%. If 100% FDI is approved, the 49% investment limit would still be allowed through the automatic route.

Bharti Airtel subscribes for 2% stake in Qualcomm entities

Vodafone objects to roaming tax notice by DoT

LG targets 10% smartphone market share by FY14

Kapil Sibal releases National Cyber Security Policy

Assocham to UPA: Undertake one spectrum auction before polls

See TRAI lowering spectrum base price by 30%: IIFL Inst Eq

LG Electronics introduces LG Optimus G Pro

Karbonn introduces Karbonn Titanium S9 HD IPS smartphone

R Chandrashekhar to be NASSCOM chief

The National Association of Software and Service Companies (NASSCOM) announced that Mr. R. Chandrashekhar, former Secretary – Telecom, Government of India will succeed current President Som Mittal to head the industry association’s executive body. This was announced at the conclusion of its Executive Council meeting held at Pune...Read More

Re may depreciate to 63 per dollar by July-end: IIFL

Disha Bhatt, Currency Analyst at IIFL, expects the rupee to weaken to 63 per dollar levels by July-end. She sees it touching 68 levels by June next year after taking support at 59 levels.

Weakening Re reverses under-recovery gains for OMCs: ICRA

Indian rupee will find its level: FM

Currency volatility not to impede economic recovery: BluFin

Volatile Re adds to corporate treasury dilemma: KPMG India

Eight core industries growth dips 2.3% in May

Core sector data for the month of May stood at 2.3% as compared to 7.2% in the same period last year. The decline in the growth rate was on account of negative growth witnessed in the production of coal and crude oil.

Current Account Deficit: How the Prime Minister sees it?

India's June factory PMI rises marginally at 50.3

June PMI data suggests rising input costs: Nomura

India’s June services PMI falls to 51.7 from 53.6 in May

Ajay Piramal to acquire 10% stake in Shriram Capital

Billionaire Ajay Piramal is planning to acquire 10% stake in Shriram Capital for around Rs. 650-700cr. Colloborating the same, R Thyagarajan, founder of the Shriram Group, said that both companies are working out modalities for the deal. The deal values Shriram Capital at at Rs. 6,500cr.

Unilever open offer ends, ups stake in HUL to 67%

Rakesh Jhunjhunwala buys 4% stake in Firstsource

Diageo completes USL share purchase agreement with UBHL

Oil India to acquire stake in Videocon Mozambique Rovuma

Reliance Digital plans to sell 80% stake to Sun TV

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