After weeks of speculation, Arvind Subramanian, who has previously worked closely with Raghuram Rajan, is appointed as the new Chief Economic Advisor
The Indian government on Thursday appointed Arvind Subramanian as the country's next Chief Economic Advisor. Subramanian's name had been in the list of nominees sent by Finance Minister Arun Jaitley to the Prime Minister’s Office (PMO). However, after weeks of speculation, his name was officially confirmed today.
Arvind Subramanian has been a celebrated economist and academic. Arvind Subramanian is an alumnus of the St. Stephens College in Delhi, IIM Ahmedabad and the University of Oxford, where he got his M Phil and D Phil. He spoke to the media after the appointment and said that, "It was an honour and privilege to serve in the Government that has a mandate for reform and change." On the challenges ahead, he said that, "Macro economic growth and creating opportunities for growth and development are the two important things for any country."
However, in an Op-ed written for the Business Standard in January 2013, he had questioned the Chief Minister of Gujarat Narendra Modi's so-called Gujarat Model. "in the tax collection data, why can one see a Raman Singh effect, a Nitish Kumar effect, a Naveen Patnaik effect, but not a Narendra Modi effect?" he had written.
In the same article Subramanian had also spoken of the merits of a reasonable tax regime, "A corollary is that reasonable (but not onerous) taxation ensures that good governance will be durable, outlasting individual leaders," he wrote.
Writing about the lacklustre performance on tax collection by the Modi administration in Gujarat, he had said "On this important measure of governance, Mr Modi stands indicted as a mediocre performer and one whose performance has not improved over time."
This appointment takes on an interesting dimension in view of Arvind Subramanian's earlier views on Modi's performance in Gujarat.
Nifty can dip a bit more and stabilise at the current level. However, any rally from here will be short-lived
We had mentioned in Tuesday’s closing report that the NSE’s CNX Nifty is likely to move up sharply, if it is able to sustain above 7,930. The index had a weak opening Thursday and except for trading in the positive at the beginning of the session, it moved mostly in the negative till 1pm around Tuesday’s closing. After this the index started moving further lower. Later in the session, it suffered a sharp relentless decline.
S&P BSE Sensex opened at 26,260 while Nifty opened at 7,837. Hitting the day’s high at the beginning of the session at 26,462 and 7,894, both Sensex and Nifty moved lower to hit their lows at 25,934 and 7,730, respectively. Sensex closed at 25,999 (down 350 points or 1.33%) while Nifty closed at 7,748 (down 116 points or 1.47%). The indices recorded highest percentage loss since 23 September 2014. NSE recorded a volume of 84.87 crore shares. India VIX rose 12.61% to close at 16.4325.
Except for FMCG (0.38%) all the other indices on the NSE closed in the red. The top five losers were Nifty Midcap 50 (3.06%), Smallcap (2.89%), Nifty Junior (2.80%), Metal (2.72%) and Commodities (2.60%).
Of the 50 stocks on the Nifty, 6 ended in the green. The top five gainers were DLF (5.57%), NMDC (2.63%), ITC (1.44%), BPCL (1.33%) and Coal India (0.99%) while the top five losers were Ultratech Cement (6.32%), Hindalco (5.96%), Grasim (5.06%), M&M (4.52%) and Tata Steel (4.29%). Of the 1,590 companies on the NSE, 252 companies closed in the green, 1,289 companies closed in the red while 49 companies closed flat.
India's merchandise export rose 2.7% to $28.90 billion in September 2014, data released after market hours on Tuesday showed. However, the merchandise imports surged at more than two-and-half year pace of 26% to $43.15 billion in September 2014. Thus, the trade deficit more than doubled to $14.25 billion in September 2014 from $6.12 billion in September 2013, while also galloped from $10.84 billion in August 2014.
According to various exit polls released after assembly elections in Maharashtra and Haryana, it seems that BJP may be able to form the next government in both Maharashtra and Haryana. However, there are still questions about whether this will happen with it getting a clear majority. The counting of votes for elections in both these states takes place on Sunday and the results will be out on the same day.
The Telecom regulator suggested that the Department of Telecommunications auction of select frequencies in the 900-megahertz band with a starting price of Rs3,004 crore per unit and in the 1800-megahertz band at Rs2,138 crore.
RBI Governor Raghuram Rajan, while speaking at the 10th IDRBT Banking Technology Excellence Awards, said, "In the next few weeks, we will put out guidelines inviting applications for what we call small finance banks. These are banks that will cater to smaller customers across the country. The detailed guidelines will also be put out".
DLF (5.15%) was the top gainer in ‘A’ group on the BSE. The stock which was the top loser in the group on Tuesday hit its new 52-week low today. The company was in the news for Sebi barring DLF and six of its top executives including chairman KP Singh from accessing stock markets for a period of three years.
Strides Arcolab (18.41%) was the top loser in ‘A’ group on the BSE. The stock traded ex-dividend today. It hit its 52-week high on Tuesday.
Union Health Minister Dr Harsh Vardhan on Wednesday issued a notification requiring cigarette manufacturing companies to devote at least 85% of the surface areas of cigarette packets on both sides to graphically and literally represent the statutory warning. Beginning 1 April 2015 every cigarette packet will carry on both side’s pictorial depiction of throat cancer and a message in English, Hindi or any Indian language. However, ITC (1.48%) was the top gainer in Sensex 30 pack.
Mahindra & Mahindra (4.41%), which is gearing up to launch air-conditioned tractors, is optimistic about sales growth in the segment during the current fiscal despite the industry witnessing a 4% decline in the first half of the year. The stock was among the top two losers in the Sensex 30 stock.
US indices closed Wednesday lower.
According to the Fed's Beige Book of economic conditions data released yesterday, 15 October 2014, officials there see the economy moving at a modest-to-moderate pace, with consumer spending gaining at a slight-to-moderate pace.
All the Asian indices closed in the red today. Nikkei 225 (2.22%) was the top loser.
China attracted $9.0 billion of foreign direct investment in September, up 1.9% from a year earlier, the Ministry of Commerce said in a statement today. The figure was up from August's $7.2 billion, which was down 14% from a year earlier and the lowest level since July 2010.
European indices were trading lower. US Futures too were trading lower.
German Chancellor Angela Merkel told parliament today that Europe must push ahead with efforts to cut public deficits and improve competitiveness because the euro zone debt crisis has not yet been overcome and its causes have not been eliminated. Merkel said European Union leaders must bear in mind, as they debate ways to boost growth that painful fiscal reforms have begun to pay off.
The CIC has ordered disclosure of information on the action taken against Dikshit and Chauhan for overruling their officers for their photo-publicity and self-glorification through loan-application-forms for Dilli Swarojgar Yojna
The Central Information Commission (CIC) has directed the Delhi Government to make public details of indictment of the then Chief Minister Sheila Dikshit by Lokayukta Manmohan Sarin for printing their photographs on loan applications for Dilli Swarojgar Yojna.
The order says comments of President Pranab Mukherjee on the issue should also be provided to activist Subhash Agrawal who had sought the information under the Right to Information (RTI) Act.
The case related to publication of photographs of Dikshit on a government scheme loan forms on which Delhi Lokayukta Manmohan Sarin had indicted her government. The recommendation was rejected by the then President Pratibha Patil.
Later Sarin asked President Pranab Mukherjee to issue an advisory to Dikshit and the then PWD Minister Raj Kumar Chauhan asking them to desist from putting their photographs on application forms offering loan at low rates to entrepreneurs from SC, ST, OBC and minority communities under 'Dilli Swarojgar Yojna'.
The President had referred the matter to Home Ministry for necessary action and issue of an advisory.
In a letter to Lokayukta last year, Home Ministry conveyed Mukherjee's directions and also said there was no need to put photographs of the Chief Minister and Minister-in-charge on loan applications.
The CIC has ordered disclosure of information on the action taken against Dikshit and Chauhan for overruling their officers for their photo-publicity and self-glorification through loan-application-forms.
Information Commissioner Sridhar Acharyulu after hearing the submissions made by Delhi Government and Agrawal directed the public information office to "furnish information against point 5 and 8 to 12 of the RTI application".
"Copy of rules/procedures/norms etc about action to be taken by Delhi government on observations/strictures of President of India on a report of Delhi Lokayukt mentioning if observations/strictures of President of India are binding for Delhi government," said one of the points on which CIC ordered disclosure of information.