สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 11 มีนาคม 2557

Gold price falls by Rs 100 to Rs 30,730 on weak global cues

Extending losses for the second session, gold prices fell by Rs 100 to Rs 30,730 per ten gram on sustained selling by stockists influenced by a weakening global trend. Silver also declined by Rs 470 to Rs 45,930 per kg on lack of buying support from jewellery makers and industrial units.  Marketmen said sustained selling by stockists influenced by a weakening global trend as US jobs data backed the case for the Federal Reserve to keep on reducing stimulus mainly led to the fall in the precious metals. Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.9 per cent to USD 1,327.94 an ounce and silver by 1.6 per cent to USD 20.61 an ounce. On the domestic front, gold of 99.9 and 99.5 per cent purity fell further by Rs 100 each to Rs 30,730 and Rs 30,530 per ten gram, respectively. It had lost Rs 230 in the previous session. Sovereign traded lower by the same margin to Rs 25,300 per piece of eight gram. Silver ready dropped by Rs 470 to Rs 45,930 per kg and weekly-based delivery by Rs 520 to Rs 45,680 per kg. The white metal had lost Rs 930 in last trade. Silver coins also plunged by Rs 1,000 to Rs 86,000 for buying and Rs 87,000 for selling of 100 pieces.

(Source: Financial Express)

Govt might alter shareholding norms for comexes

The Indian government is considering a change in the equity holding norms for commodity exchanges, said a source. The intention is to attract more capital and align norms with those the securities markets.  There is a proposal to cap a private corporate body’s investment in a commodity exchange at 15 per cent, while removing several caps within the overall ceiling for public-sector companies and cooperatives. Till recently, the commodity futures market was under the ministry of consumer affairs. It is now under the ministry of finance and there was a proposal to converge the equity holding norms of commodity and stock exchanges. As part of this, there is a proposal 51 per cent in a comex be held by the public. Also, a stock exchange cannot hold more than five per cent in a comex; this could be changed. An overall 15 per cent ceiling might be made applicable to all categories of investors. Ceilings for public sector units and cooperatives might also go. In the earlier norms for holding a stake in a comex, the mandate was there be an anchor investor to draw a growth path and lead it. The limit for an anchor investor was fixed at 26 per cent for the first five years. There is no new decision yet on whether there is a need for anchor investors.

(Source: Business Standard)

India economy to grow at 5.6% in 2014-15: India Ratings

India is likely to grow by 5.6 % in 2014-15 against a projected growth of less than 5 % in the current fiscal, a report by India Ratings and Research has said.  "The economic growth in FY15 is likely to be contributed majorly by the industrial sector, which is estimated to grow by 4.1 %. This is good news for centre as well state government finances," it added. The rating agency also expects merchandise exports to grow by 8-10 % in the next fiscal year. It expects a minor slippage in consolidated state deficit from the budgeted FY14 estimate. "Aggregate state's fiscal slippage in FY14 is estimated at 0.1 % of GDP. Consolidated state fiscal deficit in FY14 is likely to 2.3 % of GDP vis-a-vis 2.2(BE)," the report said.  It further said that state governments' debt in 2013-14 is estimated to increase marginally to 21.7 % of GDP from budget estimate of 21.5 %. The agency, however, said that it maintains a stable outlook on state government finances for the next fiscal.

(Source: Hindustan Times)

GSK pays $1 billion to increase stake in Indian subsidiary

GlaxoSmithKline has increased its stake in its pharma subsidiary in India,GlaxoSmithKline Pharmaceuticals from 50.7 to 75%, following a recent open offer. The company announced that the subsidiary will remain publicly-listed. The offer of Rs 3,100 per share values the transaction at approximately Rs 6,400 crore (pound 625 million).  GlaxoSmithKline Pte Ltd accepted 20.6 million shares from the shareholders of GlaxoSmithKline Pharmaceuticals, representing 24.33% of the total shares outstanding through the open offer, which commenced on February 18 and closed on March 5. The final payment for shares tendered and accepted will be completed on or before March 20, at which point GlaxoSmithKline Pte Ltd will acquire full beneficial ownership of the shares tendered in the open offer, a company statement said.

(Source: Times of India)

Five reasons why stock prices are rising

The Sensex gained almost 1,000 points last week. Experts expect the rally to sustain. Here are five reasons why stock prices are defying gravity:  

1) Investors, led by FIIs, are expecting Narendra Modi to lead the NDA to victory in the coming Lok Sabh elections. Such a government is expected to be more business-friendly than the current administration.  

2) Indian economy seen to have bottomed out. Investors expect growth rates to pick up in 2014-15. 

3) Indian growth rates, though at a decadal low, are still higher than all other large economies barring China. Hence, India offers FIIs a relatively better investment opportunity than other markets.

4) By bringing CAD and fiscal deficit numbers umder control, finance minister P Chidambaram has signalled that he will not allow poll season populism to override hardnosed economic decision making. This is giving investors confidence to bet on India.

5) Since 1991, the Sensex has always risen sharply in the run-up to the general elections. That trend is holding this time as well.

(Source: Hindustan Times)

Economic Section

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