India newsletter april 2013


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India newsletter april 2013

  1. 1. India Newsletter April, 2013 IIP GROWTH % (INDEX OF INDUSTRIAL PRODUCTION) ECONOMIC AND POLITICAL NEWS12 The Index of Industrial Production (IIP), in10 9.5 January 2013 improved to 2.4% yoy as 8 8.3 compared to de-growth of 0.5% yoy in 6.2 6 December 2012 and 1.0% yoy growth in 6 5.3 January 2012. The rebound in IIP growth, after 3.7 4.1 two straight months of contraction, can be 4 3.4 2.5 2.7 2.5 2.3 2.4 attributed to a pick-up in manufacturing 2 activity and electricity production. The -0.4 -0.6 -0.5 0 1.1 -1.3 Manufacturing sector, reported a 2.7% yoy -2 0.2 growth during the month aided by a low base-2 -3.5 effect as compared to a growth of 1.1% yoy in-4 -5 January 2012 with 11 of the 22 industry-6 groups in manufacturing registering a positive growth. Wholesale Price Index (WPI) inflation for February 2013 edged up to 6.8% as compared WPI % GROWTH (WHOLESALE PRICE INDEX) to 6.6% yoy in the previous month, rising by 0.6% mom largely driven by the rise in fuel 9 index (3.0% mom). Core inflation receded for 8 8.1 8 7.6 7.6 7.5 the sixth straight month to 3.8% yoy as 7.4 7.2 7.3 7.3 6.9 6.9 7.2 compared to 4.1% yoy in the previous month, 6.8 7 6.6 reflecting the decline in commodity prices and 6 weak pricing power. 5 Indias current account deficit (CAD hit a record high of 6.7 percent of GDP in the last 4 quarter (Oct-Dec’12). The current account 3 deficit has widened to $32.63 billion in the 2 three months through December, compared to $22.3 billion in the September quarter. 1 Indias current account deficit at 6.7% is the 0 highest in the last 5 years. It was 4.3% a year JAN12 FEB12 MAR12 APR12 MAY12 JUNE12 JULY12 AUG12 SEP12 OCT12 NOV12 DEC12 JAN13 FEB13 ago and 5.4% in the previous quarter. New Urea Investment Policy to boost QTRLY GDP GROWTH TRENDS% expansion plan the recently approved New Urea Policy is likely to encourage fertilizer10 companies to set up new plants and expand 9.29 8.5 existing capacities, thereby reducing 8.2 8 dependence on imports. India currently8 7.6 imports ~30% of its urea requirement 6.77 Passenger Car volumes down 26% YoY for 6.16 5.3 5.5 5.3 Feb’13 but growth momentum in Utility5 4.5 Vehicles continues. Weakness continues in Commercial Vehicle segment; down 11% YoY4 in February ‘13. Domestic Two-Wheeler3 volumes down 2.8% with all sub-segments2 showing weak growth. Three-Wheeler (passenger) segment benefits from fresh1 permits, registers 7% YoY growth0 1QY11 2QY11 3QY11 4QY11 1QY12 2QY12 3QY12 4QY12 1QY13 2QY13 3Qy13
  2. 2. ECONOMIC AND POLITICAL NEWS Import Export Growth Trend % 70 Gas pricing policy to be reviewed, uncertainties Export Import 60 removed: FM Govt plans to ease, scrap FDI sectoral limits 50 Government to cut subsidies outgo to 1.5% of 40 GDP by FY2017 30 Government plans to set up National Power Committee 20 FDI inflow in Bangalore around US$9.3bn in last 10 10 years 0 RBI (Reserve Bank of India) cuts repo rate by May11 June11 Jul11 Aug11 Sep11 Oct11 Nov11 Dec11 Jan12 Feb12 Mar12 Apr12 May12 June12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 Jan13 Feb13 th 25basis points to 7.5% on 19 March -10 Financial inclusion plan key criteria for new bank -20 license: RBI Loans to PPP infra projects to be treated as secure loans: RBI INDUSTRY AND CORPORATE NEWS Budget realistic, positive for ratings, says Moodys Strides Arcolab finally sells speciality arm to Mylan for US$1.6bn Current account deficit biggest concern: Chief Cipla plans US$512mn takeover of South Africas Cipla Medpro Economic Adviser Alembic Pharma gets US nod for antidepressant tablets High inflation prompting more gold buys: RBI Dr Reddys launches anti-SRE drug in US Share of exports in Indias overall GDP rises to Coal India sets 492 MT production target for FY2014 17.7% in FY12 Coal India to set up ` 9,000cr (nearly 1.6 bln US$) power plant in Odisha India will grow at 6% next year: World Bank Mahindra bets on maiden e-car launch Delinking of environment and forest clearances ONGC (Oil & Natural Gas Corporation), Oil India may bid for Mozambique gas stake gets Supreme Court nod ONGC-led consortium to study feasibility of Mangalore LNG terminal World Bank to lend $5 bn for poverty ONGC (Oil & natural Gas Commission) ties up with BPCL (Bharat Petroleum Corporation Ltd) , eradication Mitsui to set up LNG terminal at Mangalore Indirect tax collections rise by 20% in Apr-Feb 4,000 MW Mundra UMPP (Ultra Mega Power Project) fully operational: Tata Power Foodgrain output likely to dip 3.5% to 250MT in RCF (Rashtriya Chemical Fertilizer) & SAIL (Steel Authority of India Ltd) stake sale offer done FY2013 RIL(Reliance Industry Limited) teams up with Samsung, plans 4G phones for 5.5k INR. India, Africa revise 2015 trade target upwards to GVK, Aurizon to develop Oz basin infrastructure US$100bn Viacom to buy TV18s residual stake in ETVs regional play Indias 2013-14 total food subsidy stands at Rajasthan Government, HPCL tie-up for `37,230cr (nearly US$7 bln) refinery `1,30,000cr (nearly 25 bln US$) JSW steel to raise US$600mn from overseas markets in next quarter FDI up 8% at US$2.2bn in January, 2013 Infosys expands footprint in Latin America, opens delivery center in Costa Rica India to install 1300-1400 MW solar power in NMDC (National Mineral development Corporation) eyes `10,000cr (US$1.8 bln US$) from 2013 stake sale in Nagarnar plant Outbound deals of Indian companies at Bharti Airtel launches 4G services in Chandigarh, Mohali and Panchkula US$11bn in 2012 Apollo Global Management to sell 11% stake in Dish TV Telcos need `90,000cr capex (nearly 18 bln US$) MRPL retracts Haldia PetChem buyout plan for 100% teledensity in villages by 2020: E&Y AAI (Airport Authority of India) to release deregistered KFA (Kingfisher Airlines) planes after Assocham government nod Electrical equipment industry sees 11% fall in Ashok Leyland sells stake worth `216cr (nearly 40mln US$) in IndusInd Bank revenue Hindalco, Vedanta in race to buy Rio Tintos Iron Ore Company Fertiliser subsidy payment of `31,580cr (nearly RIL to give up 4,266 sq km of KG-D6 block 5.6 bln US$) may remain outstanding Amtek close to buying German company Neumayer Tekfor Textiles Min asks firms to invest in technical GMR may sell 5-star hotel at Hyderabad airport textiles Wipro launches new platform for healthcare providers FIPB clears 12 FDI proposals worth `2,600cr Visa Steel forms JV with SunCoke Energy (nearly 480 mln US$) Asian Paints to acquire 51% stake in Sleek Food processing sector got `6,198cr (nearly Credit Suisse buys 1.56% stake in Emami for `141cr (nearly 26 mln US$) 1.2bln US$) FDI in less than 3 yrs Investing in India to secure future growth; Panasonic Corp Gujarat govt to develop Indias first L&T to buy 50% in Future Generali Insurance International Financial Services Centre Educomp Solutions sells its entire 50% stake in Eurokids Nalco, Mines Ministry inks MoU for higher production, sales DISCLAIMER MAJOR UPCOMING EVENTS This report is solely for knowledge purposes. The information contained here has been 1. April 10- Import export Data 2. April 12- Industrial Production YoY obtained from sources which Expand In India believes to be reliable. The Company does not 3. April 15- Monthly Wholesale Prices 4. Start of Corporate Results Announcements warrant that such information is accurate or complete. XNI Consultancy Services Pvt. Ltd. 161, Windsor Greens, F-28, Sector-50, Noida-201301 Tel: +91-120-4316510, +91-9810209134 E-mail: Website: