สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 25 กุมภาพันธ์ 2557

RBI needs to keep raising policy interest rate to curb inflation: IMF

The Reserve Bank of India will need to continue raising its policy interest rate given the sticky nature of inflation, the International Monetary Fund said. "The ingrained nature of inflation and inflation expectations mean that reducing inflation - even over a protracted horizon - will require significant increases in policy rates, which will weigh on growth," the IMF said in a report. RBI Governor Raghuram Rajan, a former IMF chief economist, has raised the key repo rate by 75 basis points to 8.00 % since becoming head of India's central bank in September. He has made consumer prices its key inflation barometer, a shift away from using wholesale price inflation. The latest 25 basis point increase, which surprised the market, was on January 28. Rajan, said in his last policy review that further rate hikes were not anticipated if the inflation trajectory remained subdued. The consumer price index touched a two-year low in January at 8.79 % as food prices cooled but was still much higher than the wholesale price index of 5.05 %, an eight-month low. The IMF expects India's consumer price index to remain near double digits well into next year driven by food prices. The IMF expects India's economy to grow at 4.6 % in the current fiscal year ending in March, picking up to 5.4 % in the fiscal year that starts in April, which is in line with the RBI's expectations.

(Source: Hindustan Times)

India's economy to expand at 4.8% in Q3: Moody's

Moody’s Analytics, a research arm of Moody’s group, on Monday pegged India’s gross domestic product growth at 4.8 per cent in the third quarter of the current financial year, dashing hopes of recovery since Q2 had also seen the economy expanding by the same rate. Also, it would be a fifth consecutive quarter of sub-5% growth, if Moody's projections come true. Already, International Monetary Fund (IMF) has projected India's economy to expand by 4.6% in 2013-14. India's economy grew 4.6% in the first half as well. This means that IMF does not see recovery in the second half.  On the other hand, the Central Statistics Office has estimated India's economic growth at 4.9% in 2013-14. This means it expected recovery in the second half of the year. Moody's Analytics said most sectors have under-performed as elevated inflation and financial instability have battered confidence and demand.  On the positive side, it said the improving global economy will support exports.  "On the home front, fewer downside risks, a more competent central bank governor, and the prospect of better government after the May election have boosted business and investor confidence," it added.

(Source: Business Standard)

L&T shares gain after FIPB approves unit's FDI proposal

Larsen and Toubro shares gained today after the government approved a Rs 1,000 crore foreign direct investment proposal of its infrastructure arm. L&T shares climbed 2.85 per cent to Rs 1081.60 at the close on the BSE after rising to Rs 1,085.90. The stock contributed the most to gains in the benchmark Sensex, which added 110.69 points. L&T Infrastructure Development Projects got the go-ahead to allot securities to a wholly owned subsidiary of Singapore-based CCP Investment, entailing a foreign fund inflow of Rs 1,000 crore. The investment in L&T Infrastructure Development Projects will be made through equity shares, compulsorily convertible preference shares or debentures. The investment is subject to finalisation and execution of definitive agreements with the investor and receipt of necessary regulatory and other approvals, L&T said.

(Source: Financial Express)

Gold, silver prices up on seasonal buying

Gold prices rose by Rs 160 to Rs 31,350 per ten grams in the national capital today on sustained buying for the ongoing wedding season. Silver also gained for the third day by adding Rs 120 to Rs 47,880 per kg on increased offtake by industrial units and coin manufacturers. Traders said sustained buying for the ongoing wedding season mainly influenced gold and silver prices. In the national capital, gold of 99.9 and 99.5 per cent purity advanced by Rs 160 each to Rs 31,350 and Rs 31,150 per ten grams, respectively. It had gained Rs 40 in the previous session. Sovereign, however, held steady at Rs 25,400 per piece of eight grams in limited deals. In line with a general firm trend, silver ready rose by Rs 120 to Rs 47,880 per kg and weekly-based delivery by Rs 20 to Rs 47,480 per kg, after gaining Rs 260 in last two trades. Silver coins also spurted by Rs 1,000 to Rs 89,000 for buying and Rs 90,000 for selling of 100 pieces on hectic demand for the ongoing wedding season.

(Source: Financial Express)

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