Indian Economy-News & Updates

[anarchy 99]

MUMBAI: The rupee gained for a fourth consecutive session on Wednesday to touch a new five-month high as companies and custodian banks sold dollars, with dealers expecting more such sales in coming sessions.

The gains has been largely driven by foreign fund inflows into rallying local equities, which received over $3.5 b illion i n net purchases last month.

Custodian banks were heavy buyers of rupees on behalf of foreign institutional investors, while dealers also cited inflows from a state-run utility, an IT company, as well as a financial services firm that recently sold a stake in one of its businesses.

However, the rupee is already in overbought zone, as per 14-day relative strength index, technical charts showed.

"The rupee is being driven by inflows, and I expect it to test 52 to a dollar," said N.S. Venkatesh, treasurer at IDBI BankBSE 1.91 %.

"I expect inflows to continue for the next 1-2 weeks." The partially convertible rupee closed at 52.155/165, as per State Bank of IndiaBSE 1.15 % closing rate

from Monday's close of 52.40/41. It rose to an intraday high of 52.13, its highest since April 23.

The market was shut on Tuesday for a national holiday. The local currency was also helped by a steadier euro , on hopes Spain will eventually request financial aid and thus soothe concerns around the biggest hotspot in the euro zone's debt crisis.

$/INR 1-month non-deliverable forwards were last trading at 52.41.

In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed at around 52.45 with a total traded volume of around $6 billion.


Rupee hits 5-month high as foreign inflows rally continues - The Economic Times

Rupee at 51, CAD 3.5%: Goldman Sachs

Mumbai: American investment bank and leading brokerage house Goldman Sachs today said it sees the current rally in rupee to continue with the currency closing the year at 51 to the dollar.
It pegged the CAD at 3.5 percent for the fiscal.

"We remain positive on the rupee due to an improving CAD (current account deficit) and greater capital inflows, in part due to the recent reform efforts by the government, as well as the global easing of liquidity. We maintain our 12-month rupee target at 51 to the dollar," Goldman said in a note today.

Stating that CAD had peaked last fiscal, it said, "We continue to maintain our earlier forecast that the CAD may have peaked in FY12, and will likely trend down due to the sharp rupee fall. We expect the FY13 CAD at 3.5 percent of GDP, down from 4.2 percent in FY12."


Rupee at 51, CAD 3.5%: Goldman Sachs

Even the euro is trading at around 1.30 from 1.20.
Even though Europe is in an economic depression.
It's not about euro strength, but dollar weakness.

India is in recession, all the data are weak.
Surveys like PMI are a poor measure because its based on opinion, not facts.

 

[IndoCarib]

Indian newbies don't understand....as usual

China invests in the real economy, while Indians just speculate their money on the stock market.

Most of that rise in the Indian market is due to inflation not due to real earnings growth.
It's like QE in the US that inflates the stock market.

Zimbabwean stock market is NOMINALLY the best in the world because their currency has collapsed and the value of stock market which are denominated in Zimbabwean dollars has has risen.
Stocks rise when currency collapses.

This is exactly what has happened in India. The Indian stock market has surged due to the rupee losing value.

Clueless Indians in here won't understand this.

Dream on...

Usual self consolation ! whatever rocks your cradle wipe on

what you dont know is that stock market returns are a leading economic indicator

"Michael Cembalest, Chief Investment Officer at J.P. Morgan Private Banking, might like India just a little bit more than China.

It’s not an unfounded preference. Since it began its market reforms, India has outperformed China. Year-to-date India’s equity market has seen a return of 22% while Shenzen has been -3%, over 10 years the Sensex saw 19% to China’s 10% and since 1993 the Sensex retuns at 12% are still ahead of Shenzen’s 9%. Of the 13 managers on his platform who invest in emerging or Asian equities, 10 are overweight India, a winning strategy this year, he says, given India’s out performance versus most developed and developing equity markets.

India Vs. China: J.P. Morgan's Banker To The Rich Picks The Former - Forbes

 

[KRAIT]

Even the euro is trading at around 1.30 from 1.20.
Even though Europe is in an economic depression.
It's not about euro strength, but dollar weakness.

India is in recession, all the data are weak.
Surveys like PMI are a poor measure because its based on opinion, not facts.

When Goldman Sachs says Indian economy is dipping you take it as gospel but when they publish something positive, you ignore it.

Also read the increase inflow of money. Doesn't it matter.

And Indian credit rating is safe which you guy thought will be degraded.

Tell me the various criteria according to which you assess an economy, I will give you the details. Jot down and post atleast 10 points.

 

[karan.1970]

Indian newbies don't understand....as usual

China invests in the real economy, while Indians just speculate their money on the stock market.

Most of that rise in the Indian market is due to inflation not due to real earnings growth.
It's like QE in the US that inflates the stock market.

Zimbabwean stock market is NOMINALLY the best in the world because their currency has collapsed and the value of stock market which are denominated in Zimbabwean dollars has has risen.
Stocks rise when currency collapses.

This is exactly what has happened in India. The Indian stock market has surged due to the rupee losing value.

Clueless Indians in here won't understand this.

Dream on...

by real economy, do you mean ghost towns and vacant highways that no one uses??

and Indian currency today stands at a devaluation of 10%-15%.. May be in Chinese language that is termed as a collapse, but not is most of the world...

 

[anarchy 99]

by real economy, do you mean ghost towns and vacant highways that no one uses??

and Indian currency today stands at a devaluation of 10%-15%.. May be in Chinese language that is termed as a collapse, but not is most of the world...

Real economy is investing in productive things that will give a future return and remove bottkenecks like manufacturing and infrastructure.

Deadweight loss is part and parcel when you are investing, if we have 70% success rate, then it's a success.

They used to call pudong shanghai a ghost town in the 1990s
Now go to pudong and see for yourself.

 

[IndoCarib]

India among top 25 exporters: Lamy

India has emerged as one of the top 25 leading exporters in the world along with countries like Brazil Mexico and Malaysia, WTO chief Pascal Lamy has said.

India among top 25 exporters: Lamy | Business Standard

 

[Agent_47]

Rupee breaches 52-level; up 28 paise against dollar

The rupee on Thursday rose above the Rs. 52 level by gaining 28 paise to fresh five-and-half month high of 51.88 against the American currency in early trade on persistent dollar selling by exporters amid hopes of further reforms measures.

Dealers said sustained capital inflows and a higher opening in the equity market also supported the rupee.

Meanwhile, the BSE benchmark Sensex surpassed 19,000 points level by rising 200.48 points, or 1.06 per cent, to 19,070.17.

On Wednesday, the rupee had gained 24 paise to close at nearly 5-1/2-month high of 52.16 on sustained dollar selling by exporters and hefty capital inflows in local stock market.

 

[luckych]

Rupee hits intra-day high of 51.76, gold at 5-week low

The rupee gained for a fifth consecutive session on Thursday to touch a five-and-half month high, breaching 52 to the dollar for the first time since April 20, 2012.

It rose to an intra-day high of 51.76 in afternoon trades, having closed at 52.1550/1650 on Wednesday. At 1.15 p.m., the rupee traded near the day's high of 51.79 to the greenback.

Strong gains in equity markets and the government's likely move to further reforms measures today have boosted sentiments in the currency. The Nifty today breached the 5,800 mark for the first time since April 2011 sending the rupee to a new intraday high. Earlier, the BSE Sensex rose above the 19,000 to a 15-month high.

The government may approve a hike in the cap on foreign direct investment in insurance firms and open the pension sector to foreign investors after a cabinet meeting today.

Strong liquidity flows have also supported the appreciation in the rupee. Stock markets received over $3.5 billion net purchases last month.

"If the Nifty hits the 6,300 mark, the rupee might rise to 47 to the dollar," independent analyst Sarvendra Srivastava told NDTV.

A strong rupee also gave gold buyers a reprieve, pushing domestic gold prices to a five-week low and luring gold importers to stock up bullion for upcoming festivals. The most-active gold for December delivery on the Multi Commodity Exchange (MCX) struck an intra-day low of Rs. 30,969 per 10 grams, the lowest since August 31.

Rupee hits intra-day high of 51.76, gold at 5-week low - NDTVProfit.com

 

[Quick MIK]

Services sector grows at fastest pace in 7 months

BANGALORE: India's services sector expanded at its fastest pace in seven months as a spurt in new business encouraged firms to hire more staff, a survey showed on Thursday, suggesting the worst of the economic slump may be over.

The HSBC purchasing manager's index for the services sector, which gauges the activity of hundreds of Indian companies, rose to 55.8 in September from August's 55.0.

A reading of 50 and above separates growth from contraction and the index has held above the break-even mark since November last year.


Services sector grows at fastest pace in 7 months - The Times of India

 

[Night_Raven]

Audi sells 1011 vehicles in September; witnesses highest-ever grossing month in India

MUMBAI: Audi, the German luxury car manufacturer, witnessed its highest-ever grossing month in India with a sale of 1011 vehicles in the month of September 2012. The luxury carmaker registered a growth rate of 82% over the same period last year (September 2011: 555 units).

It also crossed the 2011 annual sales figure (Jan-Dec 2011: 5511 units) with a sale of 6417 units in the first 9 months (Jan-Sept 2012), recording a 52% growth rate YTD (Jan-Sept 2011: 4210 units).

"Our performance in September has been stellar. We have witnessed a record month with 1011 vehicles sold, our highest ever in India so far. Apart from this, September also enabled us to cross another milestone by surpassing our annual sales figure of 2011. We are confident of crossing the 2012 sales target of 8000 cars even before the year comes to an end. We have had a very exciting 9 months in 2012 and our robust car sales amidst the taxing market scenario highlights the conviction our brand enthusiasts have put in Audi. Our Q-life range - Audi Q3, Audi Q5 and Audi Q7, continue to strengthen their leadership in the luxury SUV segment and are emerging as the top-sellers this festive season. Increasing input costs, inflation and weakening of the rupee forced us to increase prices for Audi Q3 and we are also evaluating price increases for other models in the later part of the year." said Mr. Michael Perschke, Head, Audi India.

Audi sells 1011 vehicles in September; witnesses highest-ever grossing month in India - The Economic Times

 

[IndoCarib]

Sensex ends above 19,000 as govt readies to unleash new reforms

The government's move to unleash new reforms sent the 50-share Nifty to an 18-month high Thursday. The BSE Sensex closed above the 19,000 mark for the first time since July 7, 2011.

The strong rally was on hopes that the cabinet may approve bills that would raise the cap on foreign direct investment in insurance firms and open the pension sector to foreign investors later today. The rupee, too, hit fresh five-and-half month high against the dollar.

Sensex ends above 19,000 as govt readies to unleash new reforms - NDTVProfit.com

 

[lepziboy]

Rupee hits intra-day high of 51.76, gold at 5-week low

The rupee gained for a fifth consecutive session on Thursday to touch a five-and-half month high, breaching 52 to the dollar for the first time since April 20, 2012.

It rose to an intra-day high of 51.76 in afternoon trades, having closed at 52.1550/1650 on Wednesday. At 1.15 p.m., the rupee traded near the day's high of 51.79 to the greenback.

Strong gains in equity markets and the government's likely move to further reforms measures today have boosted sentiments in the currency. The Nifty today breached the 5,800 mark for the first time since April 2011 sending the rupee to a new intraday high. Earlier, the BSE Sensex rose above the 19,000 to a 15-month high.

The government may approve a hike in the cap on foreign direct investment in insurance firms and open the pension sector to foreign investors after a cabinet meeting today.

Strong liquidity flows have also supported the appreciation in the rupee. Stock markets received over $3.5 billion net purchases last month.

"If the Nifty hits the 6,300 mark, the rupee might rise to 47 to the dollar," independent analyst Sarvendra Srivastava told NDTV.

A strong rupee also gave gold buyers a reprieve, pushing domestic gold prices to a five-week low and luring gold importers to stock up bullion for upcoming festivals. The most-active gold for December delivery on the Multi Commodity Exchange (MCX) struck an intra-day low of Rs. 30,969 per 10 grams, the lowest since August 31.

Rupee hits intra-day high of 51.76, gold at 5-week low - NDTVProfit.com

im speechless this is just amazing.i hope it doesnt go down anymore

 

[Kloitra]

Big-bang reforms continue: Cabinet allows 49% FDI in insurance, 26% in pension sector - The Economic Times

NEW DELHI: Signaling the government's intent to continue with reforms to boost economic growth and investor sentiment, the Cabinet on Thursday cleared all amendments to the insurance bill. In a major move the cabinet approved allowing 49% Foreign Direct Investment (FDI) in insurance.

The cabinet also cleared the Pensions Bill and allowed FDI in Pension Funds. Upto 26% FDI in the pension sector will now be permissible. The proposed changes to both the bills will now have to be cleared by both houses of the Parliament before they can come into effect.

 

[INDIC]

Big-bang reforms continue: Cabinet allows 49% FDI in insurance, 26% in pension sector - The Economic Times

Next hurdle is getting it passed in the Parliament.

 

[Kloitra]

Next hurdle is getting it passed in the Parliament.

Who is left in UPA to oppose it. Besides, half the opposition would be for some reason or the other on a boycott. If they can get fdi in retail, it should be a small problem.