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Indian economy trends are very important for those who are into economic analysis in India, Indian National rupee popularly known as INR in international market is following a downward trend due to global financial turbulance. As volume of US dollars (USD) in international markets is on a decline so the value of US $ is growing up, well indian IT industrycan feel better to some extent and is the only industry which would be getting a plus from current market scenario.
The post would include (US$ v/$ rupee) daily trends the rate shown of Indian rupee would be as displayed at time of stock markets closure(mainly BSE and NSE) you can also see daily Stock market live rates and closing rates.
INR(Indian National rupee) v/s US$ November trends/updates are as follows:
format for display of rs v/s $ would be in following order:
(date | RS v/s $ rate Daily trends updates | Remarks with respect to US $)
6/2/2009 | 48.82 | Down(0.17) | Rupee (INR) fell weaker by 17 paise wrto US $
4/2/2009 | 48.80 | Down(0.21) | Rupee (INR) fell weaker by 21 paise wrto US $
2/2/2009 | 49.02 | Down(0.12) | Rupee (INR) fell weaker by 12 paise wrto US $
Monday, February 2, 2009
Rs v/s US$ daily updates - February 2009
Tuesday, December 30, 2008
Indian economy growth predicted at 6 - 7% for next year
Kotak Securities have predicted indian economic growth between 6-7% for year 2009 the reason told is: "The global turmoil has had an impact on the Indian economy
due to the resultant liquidity crunch and fall in demand. This will have an impact on the growth of the corporate sector and this impact may continue in the foreseeable future," Kotak Securities' managing director S A Narayan said.
"We see BSE Sensex moving in the range of 9000 – 12000. Further uptrend can be expected only after further visibility emerges on the global economic growth and the extent of the impact on India," said Mr Narayan, adding, "select stocks in the pharmaceuticals, PSU banks, power, construction and capital goods sectors are expected to perform well.
Large players in infrastructure sector less dependent on raising fresh capital from market will outperform," he added. In a technical outlook report put out by Ambit Capital, the brokerage expects Nifty to start its upmove once consolidation gets completed in the first months of 2009. Ambit Capital has given short-term target of 3800 on the Nifty.
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-Indian Agricultural Updates
-Effect of Recession on Indian economy
"Over a medium-term horizon, Nifty looks positive. As per the Elliot Wave Counts, Nifty has completed the price-wise correction and going forward, one can expect time-wise correction. However, in that process also, we expect Nifty to inch upward," the technical outlook report said.
published under - economy of india, dwindling indian economy, India Economy, india economy updates, Indian Economy, india economy updates
Sunday, December 14, 2008
RBI - Finances to deteriorate further
With the government coming out with financial incentives for the industry, the Reserve Bank has said central finances will further deteriorate during the second-half of the year on account of the impact of financial turmoil on the Indian economy.
"While expenditure is slated to increase in the coming months, growth of tax revenue is likely to decelerate with the expected moderation in real economic activities following the global financial meltdown," RBI said in its monthly bulletin.
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"Finances in the first-half indicate deterioration in all key deficit indicators, both in the absolute term as well as per centage of GDP," it said, adding the "pressure" on deficit indicators would continue during the remaining part of 2008-09.
The government has come out with a fiscal stimulus package of over Rs 30,000 crore which will have an adverse bearing on central finances. This will be an addition to over Rs 1 lakh crore the government has sought during the first batch of supplementary demands for grants raising the government expenditures.
With the industrial production as well as exports recording a negative growth of 0.4 per cent and 12.1 per cent respectively in October, the government may come out with the second stimulus package increasing further pressure on finances.
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-World's Strongest economies list
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Referring to the performance of the first half, the RBI report said, "As per cent of the Budget estimates, both revenue deficits and fiscal deficits were higher mainly due to rise in revenue expenditure, both non-plan and plan."
RBI has already indicated that it would review the economic growth estimate at its quarterly monetary policy to be announced on January 27.
posted under - dwindling indian economy, economy of india, indian economy updates, indian finance updates, RBI updates, recession updates
with extracts from www.economictimes.com
Thursday, December 11, 2008
india's economy growth to be among strongest
India's economic growth would be one of the strongest in the world despite the the global meltdown, RBI Deputy Governor Usha Thorat said on Thursday. "Although the International Monetary Fund(IMF) had scaled down growth forecasts of nations, India's growth would be one of the strongest in the world," Thorat said at an interactive session organised by ICC here.
She said that the although incremental growth rate would be lower, the actual growth this fiscal which India would achieve would be nothing to scoff at.
"India had recorded a growth of three per cent for many years. It is only for the last few years the rate had touched nine per cent," she said.
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deflation in world economy, deflation threat, economy of india, global recession updates, indian economy updates, world economy updates
On foreign exchange volatility, she said that India's exchange rate policy had served well and ruled out going back to the fixed exchange rate regime.
She said that the cost of funds would come down, but it would take some time. "It all depends on the inflationary expectations of the bankers."
published under - Indian economy, economy of india, indian economy updates, Indian rupee updates, economy india
Friday, November 14, 2008
India Economy would be hit more in 2009 - thanks to Global crises
The global downturn will pressurise the Indian economy more next year and the government has to speed up reforms and boost investment to sustain high growth rates.
The report jointly prepared by World Economic Forum and Confederation of Indian Industry also said India could see a sharp outflow of capital, and a fall in share and asset prices due to the global financial crises. The report was released ahead of the annual India Economic Summit starting Nov. 16 in New Delhi, where top government officials are expected to interact with heads of global firms.
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"India's dependence on capital flows to finance its current account deficit is a macroeconomic risk and the global crisis could generate a sharp increase in capital outflows and a reduction in the availability of finance,Clearly, the global economic picture will be harsher next year and there will be greater pressures on Indian economy." it said
"It (global crisis) could also weaken the balance sheets of the financial institutions, cause a further fall in share and asset prices, and challenge the macroeconomic situation due to shrinking global growth," WEF said.
Indian policymakers expect a moderation in economic growth to less than 8 percent in the year to March 2009, compared with 9 percent recorded in 2007/08 fiscal year.
Earlier this month, Prime Minister Manmohan Singh cautioned that the global financial crisis could be more severe and prolonged, and the government would take all necessary steps monetary and fiscal to protect growth.
"A tighter environment may also help speed reforms and encourage greater efficiency," WEF said, adding a great deal of political will and dialogue with
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different stakeholders would be required to take reforms forward.
However India economy will be less affected when compared to global economies. The growth of Indian economy would be strong for coming decade that's for sure.
Thursday, November 13, 2008
Rupee may return to strength by early to mid 2010
Worried over the sharp depreciation of the rupee? Here's some solace for you. Risk management consultancy major Mecklai Financial has predicted the rupee will begin to rise again by late 2009 and could return to strength by early to mid 2010.
In its latest research report, Mecklai has said that capital flows will take some time to return to 'normal'. However, "we believe that by late 2009, we should see investment flows resume, which should be the trigger for some modest strength in the rupee ...which could return to strength by early to mid 2010."
Even today "the silver lining for India is that the sharp depreciation of the rupee has rendered exports much more competitive. So, too, the dramatic fall in oil will make the trade balance much more manageable," the report says.
Of course, capital flows remain a major negative for the rupee. After having more than quadrupled to $108bn over the previous two years, capital inflows are expected to fall to $31bn in 2008-09. Portfolio flows are forecast to decrease by $10bn, as compared to an increase of $29bn in the previous fiscal, while borrowings are expected to fall from $41bn to $15bn. FDI has been the only bright spot this year, doubling to $10bn for Apr-Aug 2008; despite the crisis, the net figure should easily surpass last year's level of $15bn.
However, with equity prices having fallen 60% this year, as a result of which many, many companies are cheap even compared to their cash assets, and the credit market slowly on its way to normalcy, "we would expect capital flows to begin to show improvement by the second half of 2009," the report says.
The RBI's recent decision to reverse all restrictions it had placed on ECBs, NRI deposits, and FII flows through participatory notes is timely and will boost flows as and when the environment improves. Interestingly, one of the fallouts of this crisis is that "we will have a more liberal external account when the smoke clears."
Of course, the overall balance of payments is expected to be negative in fiscal 2009 and has already resulted in a substantial drawdown of reserves. However, in view of the factors listed above, "we believe fiscal 2010 should see a surplus of around $20bn, which should support a return to a modestly stronger rupee," the report says.
Saturday, November 1, 2008
India Economy Updates-November 2008
Agriculture Updates, Infrastructure updates, updates on foreign trade, india economy updates, indian rupee updates all in one post.
India Economy Updates November 2008 are as follows:(just click on the link to read full story) Foreign trade updates, Infrastructure updates, India Agriculture updates, India Economy updates, India Economic Policy updates, Finance sector updates all in a single post now isn't that great post on India Economy updates!!
Latest India Economy, India business news updates:
US recession and effect on India -
Live BSE, NSE, DJIA, NASDAQ rates
World's rchest and strongest economy list
25th-November-2008 India Economy Updates are as follows:
New telecom operators can't sell stakes for three years: Government
Government imposes curbs on import of more steel items
Light Is Right: Reforms to rid corporates of bulky statements
Govt says RBI's bias towards growth may deepen
Russia bundles Imperial buy with SAIL orders
Breakthrough in WTO talks possible this year: US official
Canada and Colombia sign a free trade agreement
Transport sop hits dead end
C&C Constructions bags order worth Rs 635 cr
Agriculture growth likely to stay at 4%: Sharad Pawar
22nd,23rd,24th-November-2008 India Economy Updates are as follows:
Govt readies Rs 50,000 crore for infrastructure projects
Govt may not opt for financial package
Investment firms may get FDI push
Govt says RBI's bias towards growth may deepen
Subbarao to meet bank CEOs
RBI to open Rs 20,000 cr special refinance window for SMEs
Breakthrough in WTO talks possible this year: US official
Canada and Colombia sign a free trade agreement
Logjam in global trade: Ports become parking lots
C&C Constructions bags order worth Rs 635 cr
IVRCL Infra bags orders worth Rs 530 cr
Akzo Nobel to invest Rs 90 cr in new plant in India
Agriculture growth likely to stay at 4%: Sharad Pawar
Agri sector may not create more jobs
Farmers turning entrepreneurs for greener pastures
20th,21st-November-2008 India Economy Updates are as follows:
Eco adviser says reforms needed to sustain growth
Indira Gandhi's vision saved us from current financial crisis: Sonia Gandhi
Will employ all policy tools to fight crisis: PM
Foreign borrowings aplenty for India Inc despite turmoil
Adopt uniform definition for policy lapsation: IRDA
FDI in credit info cos likely to go up to 49%
India Tajikistan ink DTAA
WTO meet to begin next week
Malaysia, India to develop mutual capital market investment
Metro man Sreedharan putting India on fast track
Alternative network for defence to be completed by 2011: DoT
19th,November-2008 India Economy Updates are as follows:
RBI asks banks to seek refinance credit to fund small units
Govt to raise spending on infrastructure
Government changes customs duty on steel, soyoil
Better deal soon for prospective miners
Grim outlook for FDI: OECD
NHB may help construct more roofs for aam aadmi
Malaysia, India to develop mutual capital market investment
UK companies look to India to help offset economic gloom
Shield jobs to get bigger export incentive shield
18th,November-2008 India Economy Updates are as follows:
Govt imposes 5% import duty on steel
New urea policy loses sheen with sharp fall in global prices
RBI watching economy, to act at right time: Subbarao
RBI may consider fresh liquidity steps to propel growth: Mohan
Cut excise duties, interest rates to drive demand: CII
Financial crisis: Calling for unity in adversity
PM panel reviews export incentive pack
Exporters to UK feel the heat of falling British currency
Cane crushing begins on sour price note
Crisis forces SEZ developers to review plans
17th,November-2008 India Economy Updates are as follows:
PE inflows dip 72 pc amid global credit crisis
RBI allows housing finance cos to raise funds from overseas
RBI committed to maintaining liquidity flow
LIC may get to invest more in corporate debt
Crisis forces SEZ developers to review plans
Shanghai to invest $73 bn on development
15th,November-2008 India Economy Updates are as follows:
Hypothetical tax paid abroad not income: ITAT
Cement, steel included in focus market scheme
Treat Repo, Reverse Repo as borrowed & lent: RBI
Recession in West, Australia reaches out to India
Govt feels outsourcing won't be an issue in ties with US
Edible oil imports jump 19% on lower global price
'Delayed mega infra projects are sub-standard, not NPAs'
PM approves Rs 300 cr special grant for IGCC Vijaywada plant
14th,November-2008 India Economy Updates are as follows:
Oil slips below $58 despite stock rally
D&B expects RBI to cut key rates by 50 bps
Long way for China, India to shield world from downturn
Centre puts brakes on edible oil import for PDS after prices crash in global mkts
GVKPIL to sell 49% in SPV to Macquarie for Rs 465 cr
Seed farming for jatropha may be banned
13th,November-2008 India Economy Updates are as follows:
Govt likely to clarify stand on KG-D6 gas price tomorrow
Govt should re-impose import duty on steel: Roongta
India to strengthen rural tourism
Banks want to have a LAF as liquidity woes continue
India Inc warms up to Japanese cos
Traders hit as short-term credit rates stay high
GVKPIL to sell 49% in SPV to Macquarie for Rs 465 cr
November 12-2008 India Economy Updates are as follows:
Govt to consider fuel price cut if crude stabilises: Deora
Govt may cut fuel price if crude, currency stabilise
RBI may cut rates again by March: ICICI Securities
EPFO defers plans to withdraw SDS deposits
RBI offers Rs 50,650 crore at special repo
PSUs protest parking 60% fund in PSBs
Traders hit as short-term credit rates stay high
Right policy paradigm for natural assets abroad
Reliance SEZ to be built on Mumbai debris
Financial crisis to hit agricultural production: FAO
November 10,11-2008 India Economy Updates are as follows:
Govt watching cheap steel imports; decision on import duty soon
FIPB no to treaty shopping clamp on FDI
Govt may ask cos to set up grievance redressal panel
RBI sells state loans for 35.95 bn rupees
Govt asks firms to keep funds with govt-run banks
Pre-paid cards, meal vouchers under RBI lens
Right policy paradigm for natural assets abroad
Exports plunge to five-year low in October
Stainless steel importers oppose import duty; seek FM's help
Maha govt to build 10 lakh houses in two years: Deshmukh
Monmohan Singh seeks infra investments from Qatar
Rs 9521.27 crore paid to farmers for paddy in Punjab
Let wheat export ban stay for now as global prices’re low
Debt-relief package for coffee industry on the anvil
November 8,9-2008 India Economy updates:
AIAI asks for slashing key rates
Foreign cos' services under brand names to be taxable: ITAT
Govt asks RIL to supply LNG to Dabhol power project
After lifting export ban,Govt extends sops on maize export
Slowdown to keep India's exports 20 pc below target: Study
Govt slashes duty on garment imports from Nepal upto 75%
Karnataka eyeing more IT destinations
Financial turmoil may hit farmers: FAO
Area under wheat cultivation up 5%
September infrastructure output up 5.1 pct year/year
Relax ECB norms for infrastructure NBFCs: Srei
November 7,2008 India Economy updates:
Govt levies 8% export tax on iron ore fines
RBI issues guidelines for pre-paid instruments
Social security agreements help remove dead-cost phenonenon
Govt constitutes experts panel to address financial crisis
RBI offers forex liquidity to Indian banks abroad
RBI cuts interest rates on floating housing loans
US financial crisis may hit India's exports in Q4: Deloitte
September infrastructure output up 5.1 pct year/year
Global reputation will help Indian firms grow: Gates
ArcelorMittal approaches West Bengal govt for land
November 5,2008 India Economy updates:
India cbank offers 507.8 bn rupees at special repo
Global crisis could badly hit textile industry
India Inc bargains hard for more on bulk deposits in crunch time
Global cotton exports may fall by over 6 pc in 2008-09
Govt turns major cotton buyer as polls draw near
November 4,2008 India Economy updates:
Overseas loans may get costlier next year
PSBs to thaw credit lifeline for NBFCs
India to ease foreign direct investment rules: Kamal Nath
India to provide Rs 49.17 mn assistance to Nepal
PSU banks agree to cut rates; shares soar
November 3 India economy updates:
ICICI Bank to review rates in a few days - CEO
Global crisis impacts India; do everything to push growth:PM
Bharti says no immediate foreign targets
ArcelorMittal approaches West Bengal govt for land
IT SEZs must wait for 100% tax exemption
Foreign firms may get to invest in fertiliser units revival
Bank deposits safe, says Prime Minister
RBI cuts rates to induce Rs 85,000 cr; signals interest cut
RBI cuts CRR, SLR and Repo; lending and deposit rates to fall
Loan waiver could have been handled better: Plan panel member
RBI allows NBFCs to raise up to USD 10 mn in foreign currency
Cabinet clears way for 49% FDI in insurance
WTO ruling on wine duty is a damp squib
Duty cuts to benefit miners, steel companies
IT SEZs must wait for 100% tax exemption
Maharashtra, UP to drag down sugar production
Few takers for FCI wheat tender
Pricey rice to feed on shortage-hit world
Tuesday, October 21, 2008
World Prosperity Index - India 70th
Quality of secondary education, cost of starting a business and the lack of government effectiveness have led India to rally ahead of many South Asian nations ranking at 70 positon among 104 nations on the World Prosperity Index (WPI) 2008.
"India has a relatively entrepreneurial culture. It requires government effectiveness and tackling corruption," Legatum Institute Managing Director Alan McCormick said.
Also Read:
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Agricultural Growth pegged at 3%
Why World economy is slowing
How to make profits from share markets despite crashes
Increase in capital and education contribute directly to the value of physical and human capital and thus directly increase economic output. Poor governance and excessive bureaucracy impose costs on business and thus restrain growth, the report released last week said.
The Institute also ranks India 10th on its 'Who's Going Places' list, with China on number six.
"These countries have the best context right now within which to create wealth," McCormick said.
Both the economies have recently grown faster than almost any country in the rich world. Being the home of more than two billion people, these improvements in competitiveness have brought about a dramatic lessening of the global wealth gap, a good news for global prosperity, the report said.
"India outstrips many South Asian nations in various aspects of wealth creation. It ranks stronger with reference to other Asian countries in terms of avoiding dependence on commodity exports and foreign aid," McCormick said.
- Source -PTI
Monday, October 13, 2008
Govt may relax foreign investment norms in banking, telecom
Government is considering relaxing norms for foreign investment in sectors like banking and telecom by treating portfolio FII investment outside the sectoral cap.
At present, foreign direct investment (FDI) and foreign institutional investments (FII) are added to determine sectoral foreign investment cap in banking, credit information companies, broadcasting, commodity exchanges and telecom.
also read - How US economic recession occured
But, with RBI allowing FIIs to acquire shares in companies under the Portfolio Investment Scheme (PIS), the government is now likely to mandate that sectoral caps would henceforth be for FDI investment only, official sources said.
In sectors with caps, the balance equity would specifically be beneficially owned by/held with/in the hands of resident Indian citizens and Indian companies, owned and controlled by resident Indian citizens.
FIIs investing under PIS shall not seek a representation on the board of directors and they will have to give a self- declaration whenever they act in concert with any of the companies that they have invested in.
also read - Why Global economy is fluctuating
Sources said investments by registered FIIs under PIS are made under Schedule 2 of the Foreign Exchange Management Regulations and are distinct from FDIs which are made under Schedule 1. FIIs are also permitted to make investments under FDI Scheme under Schedule-1.
PIS cannot cross 24 per cent in any company. At present, banking and telecom have 74 per cent foreign investment cap (FDI plus FII), which would, after the policy is accepted by the Cabinet, be changed to 74 per cent FDI.
also read - Fall of US fnancial Institutions
Similarly, 20 per cent FDI plus FII limit in FM radio would now be 20 per cent FDI cap, while 49 per cent FDI plus FII in cable network, direct-to-home commodity exchange and CIC would be changed accordingly.
Wednesday, October 1, 2008
India's Forex reserves in trouble - Goldman Sachs
Decline in capital inflows as a result of ongoing global financial turmoil may see India's foreign exchange reserves depleting by $ 39 billion during 2008-09, says a report by global banker Goldman Sachs.
also read : US recession - Why it happened
India's foreign exchange reserves, which were around $ 310 billion in March 2008, have been declining steadily and may go down to $ 271 by the close of current financial years, the report said.
The decline would mainly be on account of rising current account deficit, it said, adding "capital inflows fell to $ 13.2 billion (in Q1 2008-09) from $ 17.3 billion in Q1 of 2007-08 and $ 25.4 billion in the previous quarter (Jan-March)."
As per the latest RBI data, the country's foreign exchange reserves declined to $ 292 billion as on September 19, 2008, which can be attributed to higher trade deficit and declining portfolio investment.
Pointing out that the current account deficit will remain high during the year, the Goldman Sachs report said, "it would be a bigger concern with oil at $ 150 a barrel than at current prices."
also read : US recession - Why it happened
It further added, "with oil prices coming off substantially, one of the biggest threats to the current account deficit has been alleviated."
Even in the event of a sudden stop in capital flows, the report said, country's buffer of forex reserves would be sufficient to fund the current account and external debt payments.
At $ 271 billion in March 2009, the report said, the country would have sufficient reserves to meet 10.3 months of import bill, down from 15 months of imports in March 2008.
also read : US recession - Why it happened
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