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The Week That Was

India Infoline News Service | Mumbai |

It was a highly volatile week yet again as Nifty hit a low of 5,119 before staging a recovery to close above 5,450.

Top Stories


Don't think investors have lost confidence in India: PM

PM Manmohan Singh said that "don;t think investors have lost confidence in India." Consenseus building is responsibility of govt, Opposition, says PM. I am not the custodian of coal ministry files, added PM. Need to make sure India perceived as creditworthy, bankabale and viable, says PM. He said some price rise was inevitable. We need to deal collectively for restoring investots confidence, quoted PM. Problems can be solved if opposition allows parl as function.Good Monsoon will help curb high food inflation, says PM. PM also said that Forex correction has cut out of balance. We have enough forex reserves. Earlier Prime Minister Manmohan Singh has reportedly said that rupee fall was a matter on concern but the government will not meet rupee decline with capital control measures. The sharp dip in rupee was due to unexpected external factors, PM said. The depreciation will have positive impact on export competitiveness in coming months, PM added. On fiscal deficit, Singh reportedly said that government will do whatever is needed to rein it in at 4.8%.

PM's statement on the economic situation

Thank God, the Reserve Bank exists: Subbarao

First of all, my sincere thanks to the Nani Palkhivala Memorial Trust, particularly Shri Y.H. Malegam, the widely respected Chairman of the Trust, for extending me the honour of delivering the Palkhivala Memorial Lecture for this year. I know many eminent thought leaders had delivered this memorial lecture in the past, and I attach a lot of value to adding my name to that very select list.

Nani Palkhivala
I did not have the privilege of meeting or interacting with late Shri Palkhivala. He was already a preeminent public intellectual in the country by the time I had entered the IAS in the early 1970s. But I count myself among the millions of educated Indians who were deeply impressed by Shri Palkhivala’s commitment to protecting India’s democratic institutions, and the intellectual vigour with which he did so. In a career spanning over six decades, he distinguished himself as a brilliant lawyer, a perceptive political scientist, an intelligent communicator and an erudite diplomat, leaving behind a legacy that continues to influence our public discourse in several areas...Read More

Q1 GDP growth at 4.4%

Quarterly GDP at factor cost at constant (2004-2005) prices for Q1 of 2013-14 is estimated at Rs. 13.71 lakh crores, as against Rs. 13.14 lakh crores in Q1 of 2012-13, showing a growth rate of 4.4% over the corresponding quarter of previous year. The economic activities which registered significant growth in Q1 of 2013-14 over Q1 of 2012-13 are ‘financing, insurance, real estate and business services’ at 8.9% and ‘community, social and personal services’ at 9.4%. The estimated growth rates in other economic activities are: 3.9% in ‘trade, hotels, transport and communication’, 3.7% in ‘electricity, gas & water supply’, 2.8% in ‘construction’, 2.7% in ‘agriculture, forestry & fishing’, (-)1.2% in ‘manufacturing’ and (-)2.8% in ‘mining & quarrying’ during this period. According to the information furnished by the Department of Agriculture and Cooperation (DAC), which has been used in compiling the estimate of GDP from agriculture in Q1 of 2013-14, the production of coarse cereals and pulses during the Rabi season of agriculture year 2012-13 (which ended in June 2013) recorded growth rates of 9.8%, 13.7% respectively while rice and wheat declined by 7.0% and 2.6% over the production in the corresponding season of previous agriculture year. Among the commercial crops, the production of oilseeds increased by 11.4% during the Rabi season of 2012-13...Read More

GDP to perform better than 5% in FY14: CARE Survey

FM: Banks must ensure flow of credit

The Union Finance Minister Shri P. Chidambaram said that banks must ensure flow of credit to every sector of industry. He said that bankers have been told to be sympathetic and have humane approach towards genuine defaulters. He said that this is time for hand holding of borrowers who are facing difficulties, especially industry. He said that genuine defaulters and wilful defaulters need to be dealt with separately. We have to be strict with wilful defaulters, he added. The Finance Minister was speaking at the Third Parliamentary Consultative Committee Meeting of his Ministry here today. The subject matter for the discussion of the today’s meeting was "NPAs in Public Sector Banks (PSBs) and measures taken to contain them." The Finance Minister said that NPAs are critically dependent on the performance of the economy. He said that if the economy is growing at 8 to 9 percent p.a. then the NPAs would be low. He said that NPAs is at 3.84 percent at the end of March 2013 while it was 2.32 percent in March, 2011. He gave details of sectoral NPAs including agriculture sector at 5.46%, MSME sector at 5.82%, Corporate Sector at 3.44%, retail loans at 2.37%, and real estate at 1.92% among others...Read More

FM doesn't rule out sovereign bonds issue

Happy weekend: Nifty ends above 5470

The Indian equity market ended near day’s high on Friday extending its winning streak for the third consecutive trading session. Today’s rally was led by the banking, healthcare, FMCG, IT and the telecom stocks. On the other hand, metals, capital goods and the realty stocks were among the top laggards. It was a day of wild gyrations, the Nifty swung over 130 points while the Sensex see-sawed over 400 points between the day’s high and low. The indices which opened positive went into a tailspin as the Prime Minister started speaking in the Rajya Sabha. The PM said India needs to be perceived as creditworthy, bankable and viable. India's fiscal deficit during the April-July period was Rs3.41 trillion, or 62.8% of the full-year target. Net tax receipts for the first four months of the current fiscal year to March 2014 touched Rs1.45 trillion, while total expenditure was Rs5.21 trillion. Finally, the BSE Sensex closed at 18,619 up 218 points, while NSE Nifty closed at 5,472 up 62 points over the previous close. In the coming week, the auto stocks will be in action as market participants will focus on August auto sales numbers. Among the other important data are, the August HSBC markit manufacturing and service PMI data. Amar Ambani, Head of Research at IIFL expects "Nifty to continue its recovery". Close above the long term rising trendline support of 5440-5450 has confirmed the bullish stance. However, a close below the critical levels would mean that Nifty is once again heading towards the recent lows of sub 5150 levels, he added...Read More

Rupee ends at 65.70/$

The rupee gained for a second straight session on Friday. The rupee closed at 65.70/71 per dollar and rose below 66 level in afternoon trade against the US dollar in view of steps taken by Reserve bank of India. It has posted its biggest monthly fall in at least 18 years. The rupee is down nearly 19% so far this year. Finally, the BSE Sensex closed at 18,619 up 218 points, while NSE Nifty closed at 5,472 up 62 points over the previous close.

Hedging insulates Indian industrials from rupee fall: Fitch

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