The appreciation of the Indian rupee is driven by strong foreign institutional investment inflows into the Indian stock market. However, the rupee's rally is dependent on continued global risk appetite and liquidity. Rising global risk aversion due to the European debt crisis has recently caused some foreign funds to pull out of Indian shares. Additionally, surging crude oil prices pose a threat by widening India's current account deficit. The sustainability of the rupee's gains depends on maintaining foreign capital inflows to fund the deficit.
1) The article discusses how the state of Bihar in India has undergone a transformation from being known for corruption and crime to becoming one of the most efficiently run states with high economic growth.
2) Key sectors driving Bihar's growth include construction, communication, and trade/hotels/restaurants. Infrastructure development like roads and internet access have also increased dramatically.
3) Per capita income and tourism in Bihar have risen significantly in recent years, showing improved living standards, though agriculture still needs more development. Overall Bihar has seen sustained high growth replacing past volatility.
Indian markets rose for a sixth straight session on Friday, tracking gains in Asian stocks in response to the US Federal Reserve's decision to keep interest rates low until late 2014. Key Indian indexes were up around 1%, led by oil & gas, consumer durable and metal stocks. However, bank stocks declined as most state-run lenders' earnings failed to lift sentiments due to higher provisions and weaker asset quality. Asian stocks traded modestly lower on Monday ahead of an important EU leaders' summit. The Indian markets may see a weak opening, following Asian peers and potential profit-taking by investors.
Indian markets edged higher on Friday, closing up modestly. Investors are expecting that declining inflation could allow the central bank to ease monetary policy and boost investment. However, Asian markets declined on Monday following rating downgrades in Europe. The Indian markets are expected to open lower, following Asian cues, but monthly inflation data may provide some support if it remains moderate. Key corporate news includes Reliance Industries' plans to acquire stakes in cable operators and GMR Group's entry into renewable energy by commissioning a solar power plant.
- The introduction of GAAR in India has caused anxiety among foreign investors, especially in the real estate sector, which attracts significant foreign investment.
- While GAAR aims to increase transparency and reduce tax avoidance, investors are concerned about its implementation and how it may impact transactions. This uncertainty may result in slower investment in the short term.
- In the long run, most experts believe that India's strong growth prospects will continue to attract strong investor interest in the real estate sector, despite initial concerns around GAAR implementation.
- Indian markets rallied over 2% the previous day on expectations of easing inflation and potential interest rate cuts. Moody's upgrade of India's sovereign credit rating also boosted markets.
- Most sectoral indices closed higher led by banks, capital goods, and metals. Financial and auto stocks like ICICI Bank, SBI, L&T, and Mahindra & Mahindra rose on hopes of improved business conditions.
- Asian markets opened higher following gains on Wall Street and better than expected Chinese trade data. The Indian markets were expected to have a positive opening as well.
- Indian markets fell around 2% yesterday due to uncertainty over short-term capital gain taxes, hitting their lowest close in nearly two months.
- Banking and real estate stocks were among the hardest hit. Asian shares gained on comments from the Federal Reserve chairman signaling continued accommodative monetary policy in the US.
- The document provides market snapshots, FII and MF activity data, top gainers and losers on Indian exchanges, and the economic calendar for India, US and global markets.
Indian markets rose for the third straight session, up around 2%, driven by foreign fund inflows. Most sectoral indices closed in positive territory except for oil & gas. Interest rate sensitive sectors like auto, realty and banking gained on expectations of future rate cuts. Power stocks increased after the government ordered fuel supply contracts for new projects. TCS hit a record high on expectations of stronger business growth next fiscal. ONGC rose on approval for divestment through an auction. Asian shares traded mostly lower on worries over a potential Greek default.
This document discusses strategies for investing in Indonesia in 2012. It predicts that Indonesia's stock market index, the JCI, will reach 4,500 by the end of 2011 and 5,300 by the end of 2012, driven by expected earnings growth of 25% in 2011, 20% in 2012, and 17.5% in 2013. It identifies key investment themes as riding a spending boom in Indonesia, benefiting from turnaround companies, a stronger rupiah currency, and increased infrastructure development by the government. It recommends overweight positions in several sectors and provides details on top stock picks, citing factors like consumer spending growth and economic development.
1) The article discusses how the state of Bihar in India has undergone a transformation from being known for corruption and crime to becoming one of the most efficiently run states with high economic growth.
2) Key sectors driving Bihar's growth include construction, communication, and trade/hotels/restaurants. Infrastructure development like roads and internet access have also increased dramatically.
3) Per capita income and tourism in Bihar have risen significantly in recent years, showing improved living standards, though agriculture still needs more development. Overall Bihar has seen sustained high growth replacing past volatility.
Indian markets rose for a sixth straight session on Friday, tracking gains in Asian stocks in response to the US Federal Reserve's decision to keep interest rates low until late 2014. Key Indian indexes were up around 1%, led by oil & gas, consumer durable and metal stocks. However, bank stocks declined as most state-run lenders' earnings failed to lift sentiments due to higher provisions and weaker asset quality. Asian stocks traded modestly lower on Monday ahead of an important EU leaders' summit. The Indian markets may see a weak opening, following Asian peers and potential profit-taking by investors.
Indian markets edged higher on Friday, closing up modestly. Investors are expecting that declining inflation could allow the central bank to ease monetary policy and boost investment. However, Asian markets declined on Monday following rating downgrades in Europe. The Indian markets are expected to open lower, following Asian cues, but monthly inflation data may provide some support if it remains moderate. Key corporate news includes Reliance Industries' plans to acquire stakes in cable operators and GMR Group's entry into renewable energy by commissioning a solar power plant.
- The introduction of GAAR in India has caused anxiety among foreign investors, especially in the real estate sector, which attracts significant foreign investment.
- While GAAR aims to increase transparency and reduce tax avoidance, investors are concerned about its implementation and how it may impact transactions. This uncertainty may result in slower investment in the short term.
- In the long run, most experts believe that India's strong growth prospects will continue to attract strong investor interest in the real estate sector, despite initial concerns around GAAR implementation.
- Indian markets rallied over 2% the previous day on expectations of easing inflation and potential interest rate cuts. Moody's upgrade of India's sovereign credit rating also boosted markets.
- Most sectoral indices closed higher led by banks, capital goods, and metals. Financial and auto stocks like ICICI Bank, SBI, L&T, and Mahindra & Mahindra rose on hopes of improved business conditions.
- Asian markets opened higher following gains on Wall Street and better than expected Chinese trade data. The Indian markets were expected to have a positive opening as well.
- Indian markets fell around 2% yesterday due to uncertainty over short-term capital gain taxes, hitting their lowest close in nearly two months.
- Banking and real estate stocks were among the hardest hit. Asian shares gained on comments from the Federal Reserve chairman signaling continued accommodative monetary policy in the US.
- The document provides market snapshots, FII and MF activity data, top gainers and losers on Indian exchanges, and the economic calendar for India, US and global markets.
Indian markets rose for the third straight session, up around 2%, driven by foreign fund inflows. Most sectoral indices closed in positive territory except for oil & gas. Interest rate sensitive sectors like auto, realty and banking gained on expectations of future rate cuts. Power stocks increased after the government ordered fuel supply contracts for new projects. TCS hit a record high on expectations of stronger business growth next fiscal. ONGC rose on approval for divestment through an auction. Asian shares traded mostly lower on worries over a potential Greek default.
This document discusses strategies for investing in Indonesia in 2012. It predicts that Indonesia's stock market index, the JCI, will reach 4,500 by the end of 2011 and 5,300 by the end of 2012, driven by expected earnings growth of 25% in 2011, 20% in 2012, and 17.5% in 2013. It identifies key investment themes as riding a spending boom in Indonesia, benefiting from turnaround companies, a stronger rupiah currency, and increased infrastructure development by the government. It recommends overweight positions in several sectors and provides details on top stock picks, citing factors like consumer spending growth and economic development.
Considering that Interest Rate Volatility can be a major cause of concern for individuals, especially the ones who have availed floating rate credit, it is important for Financial Planners to understand the hedging mechanism, evaluate its suitability and be
able to advice their clients in accordance.
The Indian stock markets declined on Monday led by losses in public sector, realty and metal stocks. The BSE Sensex fell 0.86% and Nifty 50 dropped 0.91%. State Bank of India reported higher profits for the September quarter but its shares fell 3.89%. Asian markets also declined on concerns about the impact of storm Sandy on the US economy and a contraction in the Japanese economy. The Indian markets are expected to have a weak opening on Tuesday ahead of the industrial production data release and following losses in Asia.
Let's take a look at each type:
Commodity money - Money that has intrinsic value, like gold, silver, etc.
Representative money - Money that represents value of a commodity, like paper notes representing gold.
Fiat money - Money without intrinsic value established by government order, like modern paper currency.
Currency - Notes and coins issued and backed by central banks as legal tender.
Commercial bank money - Deposits created by commercial banks through lending, like checking accounts.
Vol. 1.1-4n4
Future Capital Holdings (FCH) is a financial services provider in India with over Rs. 7.57 billion in net worth that aims to leverage its parent company Pantaloon Retail's large retail presence. FCH has brought on V. Vaidyanathan, a highly experienced banking executive, as its new Vice Chairman and Managing Director to lead its expansion into consumer and wholesale financing businesses. The company intends to significantly grow its balance sheet and deliver returns to shareholders by capitalizing on the large untapped market opportunities in India's growing financial sector.
Indian markets edged higher, closing flat with a positive bias after choppy trading. Gains in metal, auto and bank stocks were offset by losses in capital goods, IT and FMCG. Asian stocks fell modestly on credit rating downgrades of eurozone nations by Moody's. The daily session may see volatility ahead of monthly Indian inflation data release.
This document provides a quarterly update on the Indian residential property market in May 2013. It summarizes economic indicators and trends in key cities like Mumbai, Delhi, and Gurgaon. In Mumbai, demand increased for projects priced affordably, while capital and rental values saw marginal changes. Delhi saw limited new supply and price appreciation of 2-7% in some areas. New projects launched in Gurgaon priced between Rs. 5,000-9,000 per square foot, with buyer activity restrained by high prices.
Indian markets fell as worries over slowing domestic economy weighed on sentiment. Banking stocks were hit hard due to lower-than-expected advance tax payments. Asian stocks turned higher after an initial drop as investors recovered some losses. The markets are expected to open positive today following Asian shares, but worsening domestic growth and tight liquidity may limit gains.
- The Indian markets continued their decline for the second straight session on Friday due to concerns about a slowing global economy. The Sensex and Nifty indices fell nearly 2% each.
- Selling was seen across sectors, with IT, capital goods, banks and consumer durables stocks declining the most. FIIs were net sellers of Indian equities worth Rs. 9.02 billion.
- Asian stocks opened mixed on Monday but were in positive territory overall, while cues from domestic markets were awaited. The report provided details on recent economic developments and corporate news.
The document provides an overview of the residential real estate market in Atyrau, Kazakhstan in Q2 2012. It discusses that Atyrau is known as the 'oil capital' of Kazakhstan and its economy relies heavily on oil and gas. Demand for purchasing residential property is mostly internal, while the rental market is dominated by foreign companies. Mortgage lending has become the main way for people to purchase homes, but rates are high at 13-14% annually and down payments range from 30-40%. Residential construction investment and space commissioned increased in the first half of 2012 compared to the previous year. The average selling prices on the primary and secondary markets remained stable in Q2 2012.
The document summarizes major events that impacted the Indian capital markets in 2011. It describes how Indian shares had one of their worst performances in decades, declining approximately 25% as various domestic and global factors contributed to a bearish market. These factors included concerns about recessions in the US and Europe, high inflation and interest rates in India, a declining rupee, and several corporate scams. Bullion significantly outperformed equities on the year. The mutual fund industry also saw muted growth despite an increase in overall assets under management.
The RBI projects higher inflation even as risks to growth emerge. While there were no surprises in RBI's mid-quarter monetary policy review, it revised expected inflation in March to 8% from 7% previously, indicating a hawkish stance. High inflation is not expected to decrease quickly due to base effects wearing off and pressures from higher crude oil prices. RBI also acknowledged emerging risks to growth from moderating credit growth. The policy review offers little comfort to equity markets as it points to both high inflation and challenges to growth.
- Indian markets snapped a two-day rising trend and closed lower, tracking declines in Asian and European markets as hopes faded for more economic stimulus in the US.
- The Sensex fell 1.29% while the Nifty declined 1.21%, with auto, metal, bank and capital goods stocks among the biggest losers.
- Market breadth was weak and foreign institutional investors sold equities worth Rs. 8.83 billion while domestic institutions purchased equities of Rs. 5.61 billion.
Mickey and Donald, two iconic Disney characters, discussed the economic recession affecting their work. Mickey proposed moving to India to pursue a career in finance since countries like India are well-positioned to handle the crisis. Donald was unsure but willing to learn. Mickey began teaching Donald about non-banking financial companies (NBFCs), including that they can accept fixed deposits and lend but cannot participate in the payment system like banks.
- Indian markets closed flat on January 23 as investors took a cautious approach ahead of the RBI's monetary policy review. The Sensex rose 0.08% while the Nifty fell 0.05%.
- Asian shares advanced modestly led by energy firms higher after the EU agreed to embargo Iranian oil exports. The report expects a positive but cautious opening for Indian markets with investors watching the RBI meeting.
- Key corporate developments include telecom operators meeting the telecom minister seeking clarity on spectrum pricing, and industry group FICCI forecasting slower Indian economic growth of 6.9% for this fiscal year compared to 8.5% last year.
This document provides an overview of the role of financial institutions in India. It discusses the evolution of financial institutions from their foundation phase to the current reforms phase. It describes the various types of financial institutions in India including development banks, specialized institutions, state-level institutions, investment institutions, and non-banking financial companies. The document also outlines some of the key roles of financial institutions like providing services, mobilizing savings, and facilitating development. It discusses recent reports that aim to improve the financial services sector by 2020 with a focus on customer needs, inclusion, and tapping new market segments.
- Indian markets fell for the third straight day, hitting their lowest level in 16 weeks as central bank measures failed to boost the rupee or curb foreign selling. Key sectors like autos and metals declined.
- Asian markets were mixed with Japan up slightly and Hong Kong down as investors awaited Chinese economic data. The dollar strengthened against the euro.
- Domestic inflation and industrial production numbers are expected next week which may impact the direction of the Indian markets.
Present trends of financial sector in india finalNitin Kirnapure
The financial sector in India has grown significantly in recent years and includes banking, insurance, capital markets and other non-banking financial institutions. Banking has expanded with new branches and ATMs, while the insurance sector is growing rapidly led by life insurance. The capital markets have also increased in size and importance with the primary market helping companies raise funds and the secondary market seeing increased trading volumes. Overall the financialization of the Indian economy has accelerated and further reforms are expected to make the sector more effective in allocating resources and supporting economic growth.
- Housing demand in India has grown rapidly in recent years due to economic growth, lower interest rates, and changing consumer preferences.
- Premium housing in particular is set to become a $200 billion market over the next four years as incomes rise.
- While near-term price increases may slow due to affordability concerns, long-term demand drivers like demographics, income growth, and urbanization will support the housing market.
This document provides definitions for important banking terms in simple English. It defines over 50 terms related to banking, including ATM, balance of trade, bancassurance, bank rate, bounced cheque, CAMELS, cash reserve rate, capital gain tax, cheque book, cheque clearing, CIBIL, clearing bank, commercial paper, core banking solution, credit card, credit rating, and others. The definitions are brief and concise to serve as a quick reference guide for banking awareness.
30.a.Bhaskar Kanungo -GOCA - Sept 30 2015 v 7Bhaskar Kanungo
- India represents an attractive market for investment and collaboration in the defense sector due to its large and growing economy, defense budget, and demand for defense products.
- India's defense budget has grown significantly in recent years and is expected to continue growing at around 9% annually, with around $35 billion allocated for capital expenditures by 2020.
- The government has implemented policies to encourage indigenous production and private sector participation in defense manufacturing through initiatives like "Make in India" and increasing FDI limits.
Subsequent to a huge shift of economic growth and opportunities to emerging economies, particularly in Asia, managing and retaining key talent has become important for sustainable growth. Organizations are being forced to rethink their talent pipeline and transform their HR function to deal with new priorities and risks.
The impact of technology and the need for innovation continue to demand new skills in new places. A clear plan for global talent mobility alongside the development of strong local talent is vital. The paradigm shift has also brought new regulator y obligations, transformed our view of pay and incentives, and refocused our definition of employee engagement.
This document discusses issues related to defence procurement in India and reforms that have been proposed to address these issues. It summarizes recommendations from committees such as the Dhirendra Singh Committee and VK Aatre Task Force aimed at increasing indigenization, introducing a strategic partnership model with the private sector, and improving transparency in the procurement process. Key reforms in the new DPP 2016 policy are outlined, including expanded funding and recognition for private sector R&D and different categories for 'Buy,' 'Buy and Make,' and 'Make' procurements prioritizing indigenous development and production.
Considering that Interest Rate Volatility can be a major cause of concern for individuals, especially the ones who have availed floating rate credit, it is important for Financial Planners to understand the hedging mechanism, evaluate its suitability and be
able to advice their clients in accordance.
The Indian stock markets declined on Monday led by losses in public sector, realty and metal stocks. The BSE Sensex fell 0.86% and Nifty 50 dropped 0.91%. State Bank of India reported higher profits for the September quarter but its shares fell 3.89%. Asian markets also declined on concerns about the impact of storm Sandy on the US economy and a contraction in the Japanese economy. The Indian markets are expected to have a weak opening on Tuesday ahead of the industrial production data release and following losses in Asia.
Let's take a look at each type:
Commodity money - Money that has intrinsic value, like gold, silver, etc.
Representative money - Money that represents value of a commodity, like paper notes representing gold.
Fiat money - Money without intrinsic value established by government order, like modern paper currency.
Currency - Notes and coins issued and backed by central banks as legal tender.
Commercial bank money - Deposits created by commercial banks through lending, like checking accounts.
Vol. 1.1-4n4
Future Capital Holdings (FCH) is a financial services provider in India with over Rs. 7.57 billion in net worth that aims to leverage its parent company Pantaloon Retail's large retail presence. FCH has brought on V. Vaidyanathan, a highly experienced banking executive, as its new Vice Chairman and Managing Director to lead its expansion into consumer and wholesale financing businesses. The company intends to significantly grow its balance sheet and deliver returns to shareholders by capitalizing on the large untapped market opportunities in India's growing financial sector.
Indian markets edged higher, closing flat with a positive bias after choppy trading. Gains in metal, auto and bank stocks were offset by losses in capital goods, IT and FMCG. Asian stocks fell modestly on credit rating downgrades of eurozone nations by Moody's. The daily session may see volatility ahead of monthly Indian inflation data release.
This document provides a quarterly update on the Indian residential property market in May 2013. It summarizes economic indicators and trends in key cities like Mumbai, Delhi, and Gurgaon. In Mumbai, demand increased for projects priced affordably, while capital and rental values saw marginal changes. Delhi saw limited new supply and price appreciation of 2-7% in some areas. New projects launched in Gurgaon priced between Rs. 5,000-9,000 per square foot, with buyer activity restrained by high prices.
Indian markets fell as worries over slowing domestic economy weighed on sentiment. Banking stocks were hit hard due to lower-than-expected advance tax payments. Asian stocks turned higher after an initial drop as investors recovered some losses. The markets are expected to open positive today following Asian shares, but worsening domestic growth and tight liquidity may limit gains.
- The Indian markets continued their decline for the second straight session on Friday due to concerns about a slowing global economy. The Sensex and Nifty indices fell nearly 2% each.
- Selling was seen across sectors, with IT, capital goods, banks and consumer durables stocks declining the most. FIIs were net sellers of Indian equities worth Rs. 9.02 billion.
- Asian stocks opened mixed on Monday but were in positive territory overall, while cues from domestic markets were awaited. The report provided details on recent economic developments and corporate news.
The document provides an overview of the residential real estate market in Atyrau, Kazakhstan in Q2 2012. It discusses that Atyrau is known as the 'oil capital' of Kazakhstan and its economy relies heavily on oil and gas. Demand for purchasing residential property is mostly internal, while the rental market is dominated by foreign companies. Mortgage lending has become the main way for people to purchase homes, but rates are high at 13-14% annually and down payments range from 30-40%. Residential construction investment and space commissioned increased in the first half of 2012 compared to the previous year. The average selling prices on the primary and secondary markets remained stable in Q2 2012.
The document summarizes major events that impacted the Indian capital markets in 2011. It describes how Indian shares had one of their worst performances in decades, declining approximately 25% as various domestic and global factors contributed to a bearish market. These factors included concerns about recessions in the US and Europe, high inflation and interest rates in India, a declining rupee, and several corporate scams. Bullion significantly outperformed equities on the year. The mutual fund industry also saw muted growth despite an increase in overall assets under management.
The RBI projects higher inflation even as risks to growth emerge. While there were no surprises in RBI's mid-quarter monetary policy review, it revised expected inflation in March to 8% from 7% previously, indicating a hawkish stance. High inflation is not expected to decrease quickly due to base effects wearing off and pressures from higher crude oil prices. RBI also acknowledged emerging risks to growth from moderating credit growth. The policy review offers little comfort to equity markets as it points to both high inflation and challenges to growth.
- Indian markets snapped a two-day rising trend and closed lower, tracking declines in Asian and European markets as hopes faded for more economic stimulus in the US.
- The Sensex fell 1.29% while the Nifty declined 1.21%, with auto, metal, bank and capital goods stocks among the biggest losers.
- Market breadth was weak and foreign institutional investors sold equities worth Rs. 8.83 billion while domestic institutions purchased equities of Rs. 5.61 billion.
Mickey and Donald, two iconic Disney characters, discussed the economic recession affecting their work. Mickey proposed moving to India to pursue a career in finance since countries like India are well-positioned to handle the crisis. Donald was unsure but willing to learn. Mickey began teaching Donald about non-banking financial companies (NBFCs), including that they can accept fixed deposits and lend but cannot participate in the payment system like banks.
- Indian markets closed flat on January 23 as investors took a cautious approach ahead of the RBI's monetary policy review. The Sensex rose 0.08% while the Nifty fell 0.05%.
- Asian shares advanced modestly led by energy firms higher after the EU agreed to embargo Iranian oil exports. The report expects a positive but cautious opening for Indian markets with investors watching the RBI meeting.
- Key corporate developments include telecom operators meeting the telecom minister seeking clarity on spectrum pricing, and industry group FICCI forecasting slower Indian economic growth of 6.9% for this fiscal year compared to 8.5% last year.
This document provides an overview of the role of financial institutions in India. It discusses the evolution of financial institutions from their foundation phase to the current reforms phase. It describes the various types of financial institutions in India including development banks, specialized institutions, state-level institutions, investment institutions, and non-banking financial companies. The document also outlines some of the key roles of financial institutions like providing services, mobilizing savings, and facilitating development. It discusses recent reports that aim to improve the financial services sector by 2020 with a focus on customer needs, inclusion, and tapping new market segments.
- Indian markets fell for the third straight day, hitting their lowest level in 16 weeks as central bank measures failed to boost the rupee or curb foreign selling. Key sectors like autos and metals declined.
- Asian markets were mixed with Japan up slightly and Hong Kong down as investors awaited Chinese economic data. The dollar strengthened against the euro.
- Domestic inflation and industrial production numbers are expected next week which may impact the direction of the Indian markets.
Present trends of financial sector in india finalNitin Kirnapure
The financial sector in India has grown significantly in recent years and includes banking, insurance, capital markets and other non-banking financial institutions. Banking has expanded with new branches and ATMs, while the insurance sector is growing rapidly led by life insurance. The capital markets have also increased in size and importance with the primary market helping companies raise funds and the secondary market seeing increased trading volumes. Overall the financialization of the Indian economy has accelerated and further reforms are expected to make the sector more effective in allocating resources and supporting economic growth.
- Housing demand in India has grown rapidly in recent years due to economic growth, lower interest rates, and changing consumer preferences.
- Premium housing in particular is set to become a $200 billion market over the next four years as incomes rise.
- While near-term price increases may slow due to affordability concerns, long-term demand drivers like demographics, income growth, and urbanization will support the housing market.
This document provides definitions for important banking terms in simple English. It defines over 50 terms related to banking, including ATM, balance of trade, bancassurance, bank rate, bounced cheque, CAMELS, cash reserve rate, capital gain tax, cheque book, cheque clearing, CIBIL, clearing bank, commercial paper, core banking solution, credit card, credit rating, and others. The definitions are brief and concise to serve as a quick reference guide for banking awareness.
30.a.Bhaskar Kanungo -GOCA - Sept 30 2015 v 7Bhaskar Kanungo
- India represents an attractive market for investment and collaboration in the defense sector due to its large and growing economy, defense budget, and demand for defense products.
- India's defense budget has grown significantly in recent years and is expected to continue growing at around 9% annually, with around $35 billion allocated for capital expenditures by 2020.
- The government has implemented policies to encourage indigenous production and private sector participation in defense manufacturing through initiatives like "Make in India" and increasing FDI limits.
Subsequent to a huge shift of economic growth and opportunities to emerging economies, particularly in Asia, managing and retaining key talent has become important for sustainable growth. Organizations are being forced to rethink their talent pipeline and transform their HR function to deal with new priorities and risks.
The impact of technology and the need for innovation continue to demand new skills in new places. A clear plan for global talent mobility alongside the development of strong local talent is vital. The paradigm shift has also brought new regulator y obligations, transformed our view of pay and incentives, and refocused our definition of employee engagement.
This document discusses issues related to defence procurement in India and reforms that have been proposed to address these issues. It summarizes recommendations from committees such as the Dhirendra Singh Committee and VK Aatre Task Force aimed at increasing indigenization, introducing a strategic partnership model with the private sector, and improving transparency in the procurement process. Key reforms in the new DPP 2016 policy are outlined, including expanded funding and recognition for private sector R&D and different categories for 'Buy,' 'Buy and Make,' and 'Make' procurements prioritizing indigenous development and production.
Defence Acquisition Procedures Offset Guidelines and Opportunities in Defe...IPPAI
This document discusses India's defence acquisition procedures, budget, procurement process, and offset guidelines. It provides details on the annual defence budget amounts from 2009-2014 and budget allocation across the armed forces. It outlines the Defence Procurement Procedure and Manual, categorization process, sanctioning authorities, and differences between the two. Finally, it explains India's defence offset policy, eligible products and services, methods for discharging offsets, and the roles of agencies involved in managing offsets.
Billion Dollar Opportunities in the Indian Defence SectorDr. Amit Kapoor
This presentation was delivered by Dr V K Saraswat at India's National Competitiveness Forum 2015, the flagship event of India Council on Competitiveness.
Institute for Competitiveness (India) the Indian knot in the global network of the Institute for Strategy and Competitiveness at Harvard Business School has initiated the India Council on Competitiveness. The Council, created in collaboration with the U.S. Council on Competitiveness; is based in Gurgaon, India and is an association of distinguished members from industry, academia, think tanks, media and researchers. The mission of the India Council is to set an action agenda to drive Indian competitiveness, productivity and leadership in world markets to raise the standard of living for all Indians. For more information, visit www.compete.org.in
INDUSTRY ANALYSIS OF INDIAN DEFENCE SECTOR - FinalJay Prajapati
The document analyzes the Indian defense sector, including its history, key players, budget trends, and SWOT analysis. Some key points:
1. The defense industry in India is large and growing, but heavily reliant on imports currently.
2. Major players include public sector companies like HAL, BEL, and MDL as well as private companies entering the sector.
3. The defense budget has increased annually by an average of 8%, with the capital budget intended for modernization, but often underspent.
4. Strengths include government support and skilled workforce, while weaknesses include corruption and low innovation. Opportunities lie in the growing market, but threats include strategic technology barriers.
Private banking in India has expanded since the 2008 financial crisis as India's wealth has grown. However, the industry continues to be limited by regulations and technology. After 2008, Indian investors became more aware of global investment products and began demanding more sophisticated services from their private banks. In response, Indian banks have begun offering products more in line with global private banking, focusing on alternative investments and distributing third-party products. However, the industry still needs improvements in infrastructure, human capital, and regulatory support to meet global standards.
Private banking in India has expanded since the 2008 financial crisis as India's wealth has grown. However, the industry remains limited by regulatory and technological factors. After 2008, Indian investors became more aware of global investment products and began demanding more sophisticated services from their private banks. In response, Indian banks have begun offering products more in line with global private banking, focusing on alternative investments and distributing third-party products. However, further development is needed to meet global private banking standards.
Hindalco acquired Novelis to become the world's largest aluminum rolled products maker and fifth largest integrated aluminum producer. The acquisition provided Hindalco with global reach, scale, and downstream processing capabilities. Hindalco funded the acquisition through a combination of cash reserves, debt financing, and a rights issue. The cultural integration focused on maintaining Novelis' existing management structure while sharing best practices between the companies over time.
Private Banking in India After the 2008 Financial CrisisCognizant
Private banking (PB) services in India are expanding very rapidly in conjunction with a growth economy and many high et worth individuals seeking better returns on their investments through such PB offerings as REITs, third-party products, CDOs, mortgage-backed securuties, etc. We ofer a guide to investment options and options for IT infrastructure to enable banks to provide wide-ranging PB services.
Global Competitive Insights (GCI) are monthly reports, which discuss the latest activities taking place in a particular sector, across the globe. The reports are published with an objective of providing all the latest and relevant information to the readers in a concise format.
The objective of GCI reports is to keep the readers abreast with the developments in the concerned sectors, while saving their time and resources in compiling all the data and extracting information of it.
In order to book your subscription, please visit www.indalytics.com
Hindalco acquired Novelis to become a global integrated aluminum producer. The $6 billion acquisition gave Hindalco downstream aluminum rolling capabilities and a global footprint through Novelis' operations in 11 countries. Hindalco funded the acquisition through a combination of cash reserves, rights issue equity, and debt financing from international banks. Hindalco integrated Novelis culturally by allowing the existing management structure to remain unchanged and focusing on financial, organizational, business process, and market integration over time. The acquisition established Hindalco as a leading global aluminum producer.
Cloud computing offers many benefits like on-demand access to computing resources and pay-per-use billing. However, there are also security risks and concerns about losing control over sensitive data. While cloud services provide location-independent resources, enterprises worry about relying on providers to safeguard valuable data. Additional challenges include ensuring manageability of cloud infrastructure and platforms as they currently lack robust management capabilities. Overall, cloud computing presents opportunities but also risks that must be addressed for organizations to fully embrace the technology.
1) Hindalco Industries acquired Novelis, a global leader in aluminum rolling and recycling, for $6 billion in 2007. This created the fifth largest integrated aluminum producer in the world.
2) The acquisition provided Hindalco with global scale and downstream aluminum processing capabilities. However, Novelis had significant debt from its spinoff from Alcan.
3) Hindalco financed the acquisition through a combination of cash, rights issue equity, and debt financing. Banks including UBS, ABN Amro, and Bank of America provided over $2.8 billion in acquisition loans.
The Indian Tiger Widens Its Territory Rob Ruhl IngBICCI
The document discusses the liberalization of financial markets in India and its impact. It covers 1) the gradual liberalization process in India, both domestically and internationally, 2) how liberalization is improving financing and cash management options for businesses while also making the economy more vulnerable to global developments, and 3) opportunities for the services sector, including for Belgian exporters of services, in various high-growth categories of India's imports.
The document summarizes recent private equity investments in microfinance institutions in India. It notes that private equity funds have invested $230 million in MFIs over the past two years and that investment is expected to continue growing. It provides examples of recent private equity deals made with Indian MFIs totaling $84 million. While microfinance aims to serve the underprivileged, some argue that large private equity investments could turn MFIs solely focused on profits at the expense of their social mission. However, others view private equity and MFI partnerships as mutually beneficial, with investors earning high returns from MFIs' interest rates and repayment rates while providing capital to expand financial services.
Hindalco acquired Novelis, a global leader in aluminum rolling and recycling, for $6 billion. The acquisition made Hindalco the world's largest aluminum company and provided access to Novelis' downstream aluminum products business and global footprint. While the high purchase price raised financial concerns, the combination created strategic and cultural fit between the companies. Hindalco planned to leverage Novelis' technologies and global operations to grow its aluminum business while maintaining cultural integration through minimal management changes at Novelis.
Cloud computing offers on-demand access to computing resources and applications over the internet. While it provides benefits like scalability, cost savings, and mobility, there are also security and control concerns to address. Enterprises are wary of losing control over sensitive data and relying on service providers to ensure its safety. Overall, cloud computing presents opportunities but also challenges around manageability, security, and governance that must be overcome for widespread adoption.
Market Research Report : Roofing Industry in India 2011Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
The roofing industry in India is driven by growth in the construction industry. Rise in disposable income and willingness to spend on better roofing standards due to rising aesthetic sense among consumers has increased demand. The roofing industry is poised to grow gradually.
The report begins with an overview of the roofing market in India including market size and growth. A brief description of the various segments in the roofing market has been provided and incorporates the market segmentation, by product, in the Indian market.
An analysis of the drivers explains the factors for growth of the industry including growth in construction industry, government initiatives, increasing disposable income, growth in pre-engineered building industry and environmental considerations. The key challenges of the market include increase in input costs and practice of banning asbestos mining. A section on the sector-wise opportunity for roofing is provided which speaks about the opportunities in real estate, retail industry, airports, hospitality sector, healthcare sector, metro rail and SEZs.
A competitive landscape of the major players in the market has been provided which contains a snapshot of their corporate information and business highlights.
This document provides an overview of mining in Indonesia, with a focus on the coal industry. Some key points:
- Indonesia has vast mineral potential and coal production has grown rapidly, making it the world's largest exporter of thermal coal. However, the overall mining industry remains underdeveloped compared to other countries.
- Large state-owned companies like Bumi Resources dominate the coal industry and have invested billions to expand infrastructure and increase production to over 80 million tons annually.
- Mid-tier private companies have also grown rapidly in recent years through infrastructure investment and securing long-term contracts. They aim to distinguish themselves through high production standards.
- While coal remains the dominant sector, the mining industry overall faces challenges
The document analyzes the working capital and capital structure of Indian Tobacco Corporation (ITC) Ltd. over a 5-year period compared to Hindustan Unilever Ltd. (HUL). Various ratios are calculated including current ratio, quick ratio, inventory days, debtor days, and creditor days. The analysis finds that ITC's current ratio and quick ratio have increased over time, indicating stronger liquidity, while HUL's ratios have declined. ITC's inventory days have risen whereas HUL's have fallen. Both companies have maintained consistent debtor quality. ITC's creditor days have decreased showing efficient working capital utilization, while HUL's have increased. Overall, both companies appear to be managing working capital well
Research report on Strategic Finance & Real Estate in IndiaSaurabh Trivedi
Prepared research report on Strategic Finance & Real Estate in India presented Indian School of Business (ISB, Hyderabad) on November 9th, 2012. The report consist of real estate trend in India in the year 2012. Comparison among the various funding options available for real estate development in India. REITS operation in India and discussion about yield generating assets. Emerging real estate asset class in India.
This document discusses capital budgeting and investment analysis processes at Hindalco Industries Limited. It provides an overview of Hindalco's business and products, including its aluminum and copper manufacturing operations. The document also outlines the objectives and scope of the author's study project, which was to understand Hindalco's capital budget preparation, investment decision making, and analysis of capital expenditures.
Real estate publication - RealtyReality - Grant Thornton IndiaMarcom18
This publication provides insights on the commercial real estate market, which is bearing the brunt of subdued economic activity, high cost of finance and falling rental incomes.
www.wcgt.in/publications
The document discusses potential places to save money, including under a bed, in a cookie jar, pillow, wallet, money belt, or small home safe. It asks if the reader would save money in any of these places, and to consider reasons why or why not, as well as other possible places to save money.
Cover Story Indian Entrepreneurs Are More Measured Than The Chinese
Corporate Credit Bank Guarantee
Business Trivia Vadilal- A Oldest brand of India
Visual Facts Sensex, Gold, Crude, Dollar, MCX Metal & MCX Agri
Cover Story Outlook Of Non- Ferrous Metal
Corporate Credit FCNR(B) Loans
Business Trivia First self-made female millionaire
Visual Facts Sensex, Gold, Crude, Dollar, MCX Metal & MCX Agri
Cover Story What Flipkart can learn from TCS
Corporate Credit Forfaiting
Business Trivia Bharatiya Reserve Bank Note Mudran Private Limited
Visual Facts Sensex, Gold, Crude, Dollar, MCX Metal & MCX Agri
Cover Story Why corporate houses keen to set up universities
Corporate Credit Packing Credit in Foreign Currency
Business Trivia BRICS- Mini IMF
Visual Facts Sensex, Gold, Crude, Dollar, MCX Metal & MCX Agri
Cover Story Base Metal Outlook (CY 2014)
Corporate Credit-Buyer’s Credit
Business Trivia -Bombay Stock Exchange
Visual Facts-Sensex, Gold, Crude, Dollar, MCX Metal & MCX Agri
Cover Story A shaky vision for Financial Inclusion
Outlook US Dollar
Stats Share of Public sector in capital formation
Emerging Country Peru
In Focus USA is second to China in monetary stimulus
The Tata group withdrew its application for a banking license in India, deciding that its current financial services model better supports its domestic and overseas strategy. This leaves 25 other applicants, including companies from the Aditya Birla, Bajaj, and Reliance groups, still in the running for new private banking licenses that the Reserve Bank of India is expected to issue. Some analysts believe the high capital requirements and regulations around priority sector lending deterred some large corporate groups from applying for a banking license.
Cover Story King of the pack-Indigo Airlines
Outlook Japanese Yen
Stats Insignificant growth in World Trade
Emerging Country Ukraine
In Focus Blackberry’s Knight: V Prem Watsa
Cover Story End to QE: Not a great idea for Asia?
Outlook Chinese Yuan
Stats India Gloom on GDP, Fiscal Deficit and Mining and Manufacturing output
Emerging Country Nigeria
In Focus Facts on Food Security Bill
Raghuram Rajan has been appointed as the next Governor of the Reserve Bank of India (RBI), replacing Duvuri Subbarao whose term ends in September 2013. Rajan faces several challenges in his new role, including improving RBI's relationship with the finance ministry, strengthening the rupee, replenishing foreign exchange reserves, keeping inflation in check, and overseeing the licensing of new banks in India during a period of economic uncertainty. As RBI Governor, Rajan will have to balance various economic goals and guide monetary policy prudently through the difficult economic conditions.
Cover Story China Running out of Breath
Outlook Crude Oil
Stats India Trade Deficit FY-2014
Emerging Country Russia
In Focus Land Acquisition Bill- A Snapshot
Cover Story Is the irony of raising FDI limit
Outlook Coal
Stats Restructuring profile of PSU Banks
Emerging Country Hungary
In Focus E-Commerce Industry in India
Cover Story Is India's food security bill the magic pill?
Outlook Euro
Stats Currency Composition of Foreign Exchange Reserve
Emerging Country Philippines
In Focus US Becoming a Surveillance State. Right or Wrong?
- Ranbaxy Laboratories Ltd, an Indian generic drug maker, pleaded guilty to felony charges related to drug safety and agreed to pay $500 million in fines to the US Department of Justice. This is the largest settlement ever with a generic drug maker over drug safety issues.
- The settlement is due to drugs manufactured at two Indian plants not meeting safety standards and false statements being made. The civil settlement is for $350 million for false claims submitted to US healthcare programs from 2003-2010.
- The case raises questions about quality standards of drugs manufactured in India and could damage the reputation of the Indian pharmaceutical industry. It may make it more difficult for Indian drug companies to secure contracts in the US market.
Cover Story Narayana Murthy’s Second Innings
Outlook US Dollar
Stats Major Global Currencies Recent Movement
Emerging Country South Africa
In Focus Target Gold, Again
1. December 2010, Volume: 8
Sensex 19508.89 Nifty 5857.35 Dollar 45.05 Gold 20435 Silver 43915 Crude Oil ($) 90.94
Investeurs Chronicles
INSIDE
• Current Chronicles
• Cover Story –
Development of
indigenous Defence
Industry in India
• Open Forum – Rupee
Appreciation
• Emerging Markets
• Outlook – Aluminium
• Financial Q
• In Focus – Chindia
Investeurs Consulting P. Limited
S-16, U.G.F, Green Park Ext. New Delhi-110016, www.investeurs.com
2. Current Chronicles
RBI announced a temporary reduction in reserve Telecom value-added services provider One97
requirement for banks to help them tide over the liquidity Communications Ltd has further delayed its initial public
shortage that lenders as well as corporates are grappling offering to raise as much as 1.2 billion rupees, said two
with. The move will free Rs 40,000 crore, but may turn out sources close to the development. Earlier, the company
to be inadequate as money flows out of banks mid- had already delayed its IPO to Dec. 13 from Dec. 1 due to
December when corporates and other entities pay advance the same reason.
tax.
More…
More…
Tata Steel could team up with an Indian metals company
Repo trade in corporate bonds has taken off with ICICI
or a miner to make a counterbid for Riversdale Mining, in
Securities Primary Dealership (I-Sec PD) striking the first
response to Rio's $3.5 billion (about . 15,750 crore) bid for
deal. IDFC entered into a repo agreement to purchase
coal-rich Australian miner Riversdale. Tata Steel is gearing
National Housing Bank’s Triple A-rated three-year bonds
up for a battle to control the Australian-listed miner that
as the underlying paper. The underlying value is Rs 25
owns large coal mines in Mozambique and has become a
crore, which is exclusive of the 10% haircut, mandated by
target for global mining majors such as Anglo-American
the Reserve Bank of India in repo trades in corporate
and Rio Tinto.
bonds. More…
More…
India's economy could grow by nine percent this fiscal
Novelis, the Canadian unit of Hindalco Industries , will on
year, the highest in three years, and average inflation will
10th December close a deal that will refinance the debt
be nearly double the central bank end-year targets,
taken by Hindalco but at a higher rate, said people with
according to a review of the economy by the finance
direct knowledge of the financing exercise. The Aditya
ministry. The economy grew 7.4 percent last fiscal year.
Birla group has mandated five banks for the $4 billion
The fiscal deficit will not be more than 5.5 percent of its
loan-cum-bond financing that will partly refinance the
gross domestic product in the current fiscal year to end-
loans that were taken when Hindalco acquired Novelis for
March 2011, according to the report.
$6 billion in 2007. The rate of interest for the loan cum-
More… bond issue would be about 7%. More…….
3. C Development of Indigenous Defence Industry in India
o ‘The eyes of global defence market are turning to India to see whether it will fulfill its potential
as a future ‘home market’.
v The Indian Armed Forces with regards to ‘State of the Art’, ‘Matured’ and ‘Obsolescent’ equipment
e is only 15, 35 and 50 percent as against required equipment profile of 30, 40 and 30 percent
respectively. Currently the bulk of Indian military hardware is sourced from overseas and a
r handful of state firms, but by 2020 the Ministry of Defence hopes to acquire 70% of defence
equipment from indigenous sources. The drive comes as India is increasing its defence budget to
S modernize its armed forces. Defence spending totaled $19bn (£10.6bn) in the last financial year
and is expected to exceed $30bn by 2012. To achieve autonomy in defence supply through
t development of home market defence industry, Government will be required to make not only
serious efforts towards upgrading its defence resources either by developing or procuring defence
o equipment and systems but will also be required to realize that self reliance would remain a pipe
dream if it continued to bank on public sector alone. Even in the new defence procurement
r procedure, there is no mention of role of the private sector and no worthwhile initiatives have been
proposed to integrate private sector’s potential in India’s quest for self-reliance.
y Past Initiatives taken by the government to encourage private participation in defence sector:
Manufacture of components, assemblies and sub-assemblies was thrown open to the private sector
in 1991. With a view to promote defence-industry partnership, the Ministry of Defence (MoD)
constituted six Joint Task Forces in collaboration with Confederation of Indian Industry in 1998.
Consequent to their recommendations, the Government opened defence production to the private
sector in January 2002. It allowed 100 percent private equity with 26 percent Foreign Direct
Investment (FDI). It was a major policy change. Subsequently, the Department of Industrial Policy
and Promotion issued detailed guidelines for the issuance of licence for the production of arms
and ammunition.
The Kelkar Committee, constituted in 2004, made many radical recommendations. The
Government has accepted a majority of them but their implementation has lacked earnestness and
focus. The Department of Industrial Policy & Promotion (DIPP), in consultation with Ministry of
Defence, has so far issued 37 letters of intent for the manufacture of various types of defence
hardware which include armored and combat vehicles, radars, electronic warfare equipment,
4. Cover Story Development of Indigenous Defence Industry in India
warships, submarines, avionics, military aircraft, safety and ballistic products, armaments and ammunition.
Despite the above measures, there has been no discernible change in the ground situation. Only a handful of India’s top companies are involved in
small value defence contracts. The private sector has to remain content with the supply of some low-tech items to the public sector. Its supplies to
DPSU and Ordnance Factories grossed over Rs. 1200 crores and Rs. 1900 crores respectively last year. Whereas these figures signify the contribution
made by the private sector, they also highlight the fact that the private sector continues to be merely an outsourcing base for the public sector. Foreign
companies still account for the majority of procurement from the private sector in India, with approximately 70 percent of Indian defence
procurement coming from overseas sources. Of the 30 percent of orders placed in India, only an estimated 9 percent is attributed directly to the
private sector.
Reasons for Continued Non-Participation of the Private Sector & Way Forward
A number of defence-industry seminars, conferences and exhibitions have been held in the recent years. Given decades of insulation and prejudices,
this was no small achievement. But old mindsets, complexity of procurement procedures and clout wielded by the public sector have been acting as
major deterrents to any meaningful participation of the private sector. New aspirants, in particular, find the whole regime to be highly forbidding.
There are various policies, procedural and functional issues that need to be addressed. The present process of interaction between the Government,
public sector and private enterprises should be continued, albeit with renewed vigor and purpose. All joint committees should be represented at the
level of decision makers, so that follow up action can be taken in a time bound manner.
Structural Reforms
A representative of the designated industry association should be a permanent invitee to the Defence Acquisition Council, depending on the security
sensitivity of agenda points. His inputs as regards the technical prowess of the private sector will prove invaluable while deciding whether to import
technology or not. Similarly, selected agenda points of Defence Procurement Board, Defence Production Board and Defence Development Board should
be circulated to the industry association for advice. These steps will go a long way in integrating the private sector.
Early Interaction with Industry on Acquisition Proposals
The Acquisition Wing should indicate broad parameters of equipment under procurement to the industry association six months prior to the issuance
of RFP. The association could circulate this information amongst the concerned companies for their advance knowledge. This will give adequate time to
the interested companies to carry out technology scan and scout for foreign collaborations, if required.
Support to Indigenous Industry
Most nations support indigenous producers by giving them purchase and price preference. Foreign producers should be given incentives for
collaborations with Indian companies. It could even be made mandatory, as has been done by Great Britain under its Industrial Participation policy.
5. Cover Story Development of Indigenous Defence Industry in India
Policy on grant of waivers for deviations from parameters must make a distinction between an Indian and a foreign producer. Easier grant of waivers,
albeit within acceptable limits, to Indian companies will encourage them to commit resources more willingly. Even commercial terms should be made
more favorable to the local vendors as the lower life-cycle cost of indigenous equipment must also be factored in. Presently, the payment terms are
unfavorable to the Indian producers. Foreign vendors are released full payment of their dues on submission of proof of dispatch (against performance
and warranty bonds – each equivalent to 5 percent of contract value). However, Indian companies get payment only after the issuance of inspection
note by the designated inspectors. This may take a few months, thereby increasing the cost of the capital involved. This incongruity needs to be
addressed.
Facilitation Service
There is an urgent need to have a mechanism in place to facilitate the participation of Indian private sector in defence industry. Such a mechanism can
serve twin objectives. First, it could assist in the assessment of a company’s current technical/manufacturing prowess and its potential for the
development of defence products. A directory of credible defence manufacturers should be compiled with details of all assessed companies. This
directory should be made available to all the defence procurement agencies to assist them to identify companies for issuance of tenders. The directory
could also help foreign producers to locate potential Indian partners for collaboration.
Secondly, advisory service could be extended to companies as regards the availability of opportunities for the supply of their current products to the
defence. The service could also suggest defence products which a company can manufacture with marginal addition to its facilities. Related areas for
development/diversification could also be indicated. Thus, this service can acquaint a company with the prevailing business opportunities and guide it
as well.
Public-Private Sector Partnership
The public sector possesses excellent infrastructure, manufacturing facilities and a highly experienced task force. It will be a waste of national
resources if these assets are duplicated by the private sector. The Government has to realize that both public and private sectors are national assets
and harnessing of their potential is essential if India wants to achieve self reliance in defence production.
The private sector, on the other hand, can bring in latest technology, managerial practices, marketing skills and financial management. Therefore, a
well-blended fusion of both will result in synergizing of their strengths through economies of scale and prove mutually beneficial.
Conclusion
During the last three years, a serious and concerted effort has been made by the Government to reform and streamline the entire acquisition process.
The Government has come to appreciate the potential of the private sector and wants it to complement the efforts of the public sector.
6. Cover Story
A number of praiseworthy initiatives have been taken and
policies reviewed. Yet, the results on ground have very little to
show. There has been no appreciable inflow of anticipated
foreign funds.
And finally, India plans to spend USD 100 billion on capital
Even today all major defence deals are signed with foreign
producers. The public sector continues to get bulk orders expenditure during the 7th Plan Period (2007-12). Imports account
under transfer of imported technology. The private sector
for close to 70 percent of capital expenditure and offsets are
continues to be a peripheral participant with the production
of some low-tech items and indigenization of some required equal to 30 percent of import contracts. Thus, India
components.
expects offset trade worth USD 21 billion during the next five years.
The present process of interaction and integration should be
continued, albeit with renewed vigor and purpose. All joint Currently, Indian defence exports amount to paltry USD 50 million
committees should be represented at the level of decision annually, i.e. USD 250 million in five years. From USD 250 million
makers so that the follow up action can be implemented in a
time bound manner. There is no point in having committees to USD 21 billion, it will be a quantum jump of enormous
and joint task forces if their reports are going to gather dust proportions. The public sector cannot handle it by itself. The private
with no follow up action. Technological prowess of the private
sector has to be closely integrated and its potential fully harnessed
sector should be given due recognition and considered a
national asset. The objective of achieving self-reliance will for beneficial absorption of the projected offset business.
remain elusive unless the private sector is duly integrated and
its potential fully harnessed to build a viable indigenous
defence industrial base. The Government has to create an
environment where in the private sector feels assured of just
business opportunities, level playing ground and fair play.
7. Rupee Appreciation- Two faces of Rupee Open Forum
Inflows from FIIs has crossed the magical Rs. 1 lakh crore mark in
October, 2010 – an achievement by no means less than a gold medal for
the Indian stock market.
The strong domestic demand and robust investment climate in the
country has resulted in a surge in capital inflows, which have helped However, let’s not forget the golden rule which states that – whatever goes
finance the higher level of current account deficit. up has to come down. Moreover, the higher the markets move northward,
steeper would be the fall on the downside.
Further, as emerging markets like, South Korea, Thailand and Brazil
impose curbs on overseas funds from developed nations and Korean A lot of Asian currency’s rally is dependent on global liquidity and risk
conflict and Ireland’s debt issue were driving overseas fund into the appetite, any weakening of global sentiment impacts foreign institutional
Indian market. investors who own around 14-15 percent of Indian markets. Global risk
appetite is more destabilizing for the rupee because, unlike other Asian
The rupee appreciated 4 percent this year as capital inflows poured a countries, India needs capital flows to fund the current–account deficit.
record $39 billion into Indian shares compared with last year’s $17.45
billion. Coal India Ltd. IPO pushed a major part of FII inflows in the India. Indian rupee was the worst performing currency among the 10 most-
Just about every part of the issue was oversubscribed, there was record traded currencies in Asia excluding Japan in the month of November.
participation from FII, who put in bids for nearly Rs 1.2 lakh crore worth China’s Yuan was little changed in the period at 6.667 a dollar, while
of shares.
8. Open Forum
European debt crisis will not be the only reason for the rupee to go down. A
surge in crude oil prices to the highest level in two years will widens current
account deficit and will also threaten
the rupee’s rally. It touched $90 a barrel on Dec 7, 2010, a level not seen since
Oct 2008.
Crude oil imports by Asia’s second fastest growing major economy surged 41
percent in the first 10 months of this year to $82.1 billion according to data
compiled by Bloomberg.
Whenever oil prices go up, the risk of the current account deficit widening
increases quite significantly. Rupee is expected to continue underperform as the
FII inflow shortfall is pretty much the main point and oil prices are definitely at
risk. Historical data supports this view. The rupee dropped to 8 percent in the
Taiwan’s currency slipped 0.2 percent to NT$30.85. Reason third quarter of 2008, when crude oil prices rose to a record $147 a barrel on
behind is, global funds pulled money from Indian shares in the July 11 of that year and in this quarter Indian currency is little changed.
last week of November since May because of the worsening debt
FII have reduced their exposure to India. India’s share of FII inflows to Asia
crisis in the Europe.
(excluding Japan) has declined from around 50 percent in the year till date to 35
When the external environment is bad, countries like India with percent in the week till date. South Korea, Taiwan and Thailand have gains at
low liquidity would get sold off first and threats the efforts to India’s expense. The share of FII inflows for the week-till date for these countries
offset Asia’s worst current-account deficit by attracting has increased to 34 percent, 20 percent and 11 percent from 29 percent, 12
investment. A rise in global risk aversion could lead to strong percent and 3 percent respectively. Given the global liquidity environment,
outflows from India. Reversal of flows remains one of the key
risks to Indian markets as the possibility of a double-dip
recession in developed markets cannot be ruled out.
The Indian currency slid 3.3% till November end, the most since
May.
9. Copper theft costs SA R5bn a year
Emerging Markets
Copper theft is costing the economy an Brazil Securities Commission Fines Credit The paper said the volume of the suspicious
estimated R5bn per year, the SA Chamber of Suisse For Insider Trading transactions was more than double the 57
Commerce and Industry (Sacci) said as it Brazil's Securities Commisssion CVM said it is trillion rouble figure reported for the same
released its first copper theft barometer in an fining Credit Suisse Group (CS, CSGN.VX) 26.4 period of last year and is over three times
attempt to reduce the costs of the crime on million Brazilian reais ($15.35 million) for Russia's nominal gross domestic
the economy. insider trading and influencing local markets. product. Russia's central bank expects a
The R5bn includes only the replacement value Fines were imposed on Credit Suisse capital outflow of $22 billon in 2010. In
and does not take into account security or International and on Credit Carteira Propria, a September, the central bank warned that the
labour costs, said Drodskie. It also has an local Credit Suisse investment fund, for their number of suspicious transactions to
adverse impact on the economy through loss involvement in sale in the control of energy accounts outside the country was on the rise.
of productivity, negative investor perceptions transmission company Terna Participacoes SA to Investment-grade status still some way off
and poor service delivery, among others. energy generator Companhia Energetica de for Indonesia
Minas Gerais SA (CMIG4.BR), or Cemi. The bank's Indonesia has made significant strides
SA's current account deficit widens
involvement in the transaction caused an towards building the political institutions
South Africa's current account deficit widened
unusual increase in Terna's trading volumes necessary for the country to achieve
to 3% of gross domestic product (GDP) in the
and share prices, CVM said in a report emailed investment-grade status.
third quarter of the year from 2.5% the
to Dow Jones Newswires. "Generally, investment-grade sovereigns are in
Reserve Bank said. In its December quarterly
bulletin, the Reserve Bank said South Africa's Russia reports $3.8 trillion in suspect charge of their own fate, meaning they are
trade surplus with the rest of the world had transfers: report able to absorb exogenous shocks by drawing
increased significantly in the third quarter of Russian financial institutions reported 120 on entrenched economic, political, and
2010, as terms of trade improved and trillion roubles ($3.8 trillion) of suspicious institutional strengths," S&P credit analyst
volumes of exports and imports increased. transactions to the anti-money laundering Agost Benard said in a statement.
But this was neutralised by a widening in the watchdog in the first nine months of 2010. Indonesia’s foreign currency debt is rated BB
deficit on the income, services and current Russian businessmen sent hundreds of billions (with a positive outlook) by S&P, which is two
transfer account, partly because of lower of dollars abroad in the years following the 1991 notches below investment grade. At the
receipts from foreign tourists after the end of fall of the Soviet Union, though such a high beginning of this month, rival agency Moody’s
the 2010 Fifa World Cup hosted by South volume of suspicious transactions could fuel assigned a positive outlook to Indonesia’s
Africa in June to July. fears of increased capital flight and money foreign currency debt, which it rates Ba2
laundering. (equal to the S&P rating).
10. Aluminum: Going up or down?
Aluminum has a strategic importance in overall demand increases on the back of sound
Outlook
development of the country due to its wide demand from sectors like aviation,
range of uses in infrastructure, construction transportation and electronics. As a result, Call Rates as on 10th December 2010 → 4.45% -
and transportation sector. Global capacity to the metal, used in cars and construction 6.65%
Aluminum (1 kgs) 104.95
produce the metal is expected to increase 47 materials, is expected to consolidate at Commodities
Copper (1 Kg) 400.30
percent to 66 million tones. On the other hand, $2,500 a metric ton next year. Although LME
consumption is expected to grow to 74 million stockpiles are at 4.46 million tons, five times
tones from current level of 38 million tones, the average since 1980,they do not signify Zinc (1 kg) 104.10
Steel (L) (1000kg) 26200
primarily, on the back of higher growth in supply glut as so much is held by investors
China in the coming decade. Demand in China, or tied up in financial arrangements.
As on 10th December 2010
the world’s largest consumer of the metal used Increase in long term price is further
for cars and houses, is forecasted at 44 million suggested by forward spreads on aluminum,
tons in 2020.
Forex
which have widened implying that buying
Forward Rates against INR as on December 10,
Towards end of the previous month, Aluminum interest has picked up. Indeed order books
2010
prices rose to $2,500 per mton (113.4 cent/lb) in Europe are reportedly strong & there are Spot Rate 1 mth 3 mth 6 mth
US 44.97 45.29 45.78 46.47
(highest level since September ‘08) but fell 13% reports that Brazil & Mexico have to import Euro 59.62 60.02 60.67 61.56
to a two-month intraday low of $2,184 per aluminum from North America as demand in Sterling 71.26 71.74 72.51 73.57
Yen 53.8 54.19 54.8 55.66
mton (99 cent/lb). Such sharp decline in prices the region is booming. Swiss 45.83 46.17 46.69 47.43
occurred due to a stronger dollar in In the recent months factors like pessimistic Franc
Source: Hindu BusinessLine
international market coupled with renewed job data from the US, debt crisis in Europe,
financial crisis in Europe. monetary tightening in China along with the Libor Rates as on December 10, 2010
Aluminum prices started to rebound towards recent Korean crisis had dragged Aluminum Libor % 1 mth 3 mth 6 mth 12 mth
start of December to $2,387.50 /ton driven by in the international bourses. However, long US 0.26 0.30 0.46 0.78
Euro 0.76 0.96 1.20 1.49
ECB’s decision to back EU stability. However, term scenario appears brighter for the metal
Sterling 0.58 0.75 1.04 1.50
this proved to be short lived, with aluminum due to robust demand from China. The only Yen 0.13 0.18 0.35 0.57
prices falling as an impact of worse than deterrent, here, appears to be a strong dollar Swiss Franc 0.14 0.17 0.24 0.53
Forward Cover % as on December 10, 2010
expected US employment report showing that might hurt the future prospects of the
1 mth 3 mth 6 mth
39,000 jobs were created in November against metal. US 8.39% 7.21% 6.72%
expectations for 143,000. Euro 7.96% 7.07% 6.56%
Aluminum prices are expected to rebound in Sterling 7.85% 7.00% 6.51%
the next year as supplies tighten and investor Yen 8.36% 7.38% 6.93%
Swiss Franc 8.76% 7.52% 7.03%
Source: Homefinance.nl
11. Financial Q In Focus
1. Which Indian Entrepreneur was recently awarded Chindia
the Max Schmidheiny Foundation Freedom Award?
2. Who created SDR, Special Drawing Rights, in 1967
which deals with the reserve of international assets
whose value is based on the widely used
currencies?
3. What is known as the purchase of insurance against
losses because of currency fluctuations?
4. Which country's foreign market is known as Chinese Premier Wen Jiabao's three day visit to India from 15-17 December
'Rembrandt Market'? 2010 is projected to be a milestone in Sino-India relations, which similar to
other high profile visits in last one month, is primarily aimed at expanding
5. Which leadership guru coined the term
bilateral trade .However, China maintains that it also hopes to strengthen the
“Transformational Leadership”?
high level contacts to enhance strategic mutual trust and build consensus.
6. With which form of economy is the term “Laissez-
Heading the biggest ever delegation of 400 businessmen, Wen is expected to
faire” associated?
sign deals worth 20bn US$ with India. The booming bilateral trade which is on
7. The Hollerith Corporation changed its name to course to touch $60 billion has already crossed $49.84 billion this October
something iconic in the future. What is it? with Indian exports amounting to $17 billion, while China continue to
dominate with 32.87 billion worth of exports.
8. Which Financial Giant has Rocks of Gibraltar as its
logo?
9. "Bollywood" name has been granted as a trademark Answer of Quiz: 7
to which US based Media and Entertainment
Company by Indian Trademark Registry? (1) Italy (2) Payroll tax (3) Sweden (4) G8 (5) 1954. (6) Dow Jones & Company
(7) Amsterdam stock exchange (8) Numismatics (9) No period (10) Cash cow