Section from India
- India’s growth projection lowered: India’s estimated growth has been lowered to 6.5% for the current fiscal by the Asian Development Bank. The previous figure was 7%. India’s demand for products/manufacturing is clouded both domestically and internationally. This combined with high inflation has created a negative outlook for the second half of the year.
- Southeast is the safe haven as India and China stumble: Southeast Asia, which had a crippling financial crisis almost 12 years ago, is now looking a safe haven as it proves resilient to the global financial crisis. This region of 600 million people that boasts a rapidly growing middle class has a record high foreign investment. The trend has reversed as investors are now looking towards India and China has high-beta investments, while they look towards Indonesia, Thailand, Philippines as safe investments.
- Infosys triggers IT crash, Sensex loses 257 points: Benchmark indices have posted their biggest fall since June as poor results from Infy dragged down most IT stocks. Infosys plunged 8.15%, as it expects revenues to grow only 5% compared to earlier estimates of 8-10%. Sensex fell 1.47%, while NIFTY closed 1.34% lower.
- Diesel prices may rise after presidential poll: Following the presidential poll, the Govt. plans to raise Diesel, cooking gas and kerosene prices. Petrol prices are expected to be stable for the time-being. The reason being cited is ‘to boost the economy by raising fuel prices’.
- FMCG companies to focus on volumes: Weak monsoon this year might affect crop yields, but FMCG companies like Dabur and Parle are readying their contingency plans by focussing on stemming loss of sale volume. This will be done through several measures- delaying price hikes, shifting focus to smaller sized packs. This will be combined with improving procurement efficiency, and considering cost-effective rural expansion.
- JSPL raises Rs. 3500 Cr.: Jindal Steel and Power has raised Rs. 3500 crore from a consortium of lenders for a steel project which is to be set up in Odisha. This loan is to be used for a 2-million tonne coal-to-gas direct reduced iron plant. This is the first of a kind project all over the world. This capital raising comes on the back of Jindal Steel preparing to terminate a $2.1 billion investment contract with the Bolivian Government.