Though results for the second quarter suggest ‘healthy’ state of affairs for Indian corporates, fears of global financial contagion pulling down growth in developing countries are mounting,” industry chamber Assocham said
New Delhi: Domestic demand is helping the Indian economy, but signs from Europe’s debt crisis and a faltering US recovery are worrying, reports PTI quoting industry chamber Assocham.
Though results for the second quarter suggest ‘healthy’ state of affairs for Indian corporates, fears of global financial contagion pulling down growth in developing countries are mounting,” it said.
An analysis of the second quarter results of 87 companies across different sectors showed that even the domestic consumption is coming under the impact of high interest rates and increasing raw material costs.
The Reserve Bank of India (RBI) has followed a tight monetary policy since March 2010, raising interest rates by 375 basis points since then.
Besides, fresh investments face delays in government clearances, the Assocham said.
“There are some long-term concerns,” which need to be addressed by the government, Assocham secretary general DS Rawat said.
He said the chamber found that while there were no visible signs yet, fall in business for the IT and ITeS to Europe and the United States,” prices have fallen or remain unchanged".
Macro-economic concerns in Europe are weighing on the Indian corporates, the Assocham said.
It said the fast moving consumer goods (FMCG) firms are unable to pass on higher input costs to customers due to competitive market conditions while automobiles, real estate and other industries could hold on to profits with declining margins.
It said the power companies have declared subdued results. While generation costs have gone up, tariffs are difficult to revise.
Depreciating rupee value has posed another challenge for the Indian industry. The landing cost of the imported raw materials have gone up as a result of weakening rupee, it said. The rupee has weakened by about 12% in the last two months.
This is the first instance in this calendar year till date that any mutual fund has mobilised more than Rs1,000 crore in a single working day
Mumbai: Indiabulls Mutual Fund (Indiabulls MF) has garnered Rs1,107 crore through its maiden fund launch of ‘Indiabulls Liquid Fund’. Indiabulls MF is sponsored by Indiabulls Financial Services Limited (IFSL).
This is the first instance in this calendar year till date that any mutual fund has mobilised more than Rs1,000 crore in a single working day.
The new fund offer (NFO) opened for subscription on Monday 24th October and closed the same day. The scheme will re-open for ongoing purchase and sale from 28th October 2011 at Net Asset Value (NAV) based prices. Indiabulls Liquid Fund is benchmarked against ‘Crisil Liquid Fund Index’.
Indiabulls Mutual Fund has a net worth of Rs4,661 crore with an asset book of over Rs27,000 crore and has presence in over 87 cities and towns with a network of 170 branches.
In the current 2011-12 marketing year starting this month, the sugar production is pegged at 260 lakh tonnes based on the ISMA’s projection and 246 lakh tonnes as per the food ministry’s estimates
New Delhi: The Indian Sugar Mills Association (ISMA) has urged the government to immediately allow exports of at least 20 lakh tonnes of the sweetener to improve their cash flows for making payment to cane farmers, reports PTI.
Top ISMA officials met food minister KV Thomas last week and made a presentation on the overall scenario of the sector.
In the presentation that touched upon export strategy, ethanol pricing and reforms in the sector, ISMA pointed out that cash flow situation is ‘very tight’ in both private and co-operative mills and therefore “large export window was needed at the start of the (2011-12) season”.
During 2010-11 marketing year ended last month, the government had allowed exports of 15 lakh tonnes of sugar under Open General Licence (OGL) in three equal tranches.
“Export of over 40 lakh tonnes is required (in the current 2011-12 marketing year). At least 20 lakh tonnes OGL export permission is required immediately... small tranches of exports will not help this time,” the presentation said.
ISMA has even proposed to the government that additional exports could be allowed subject to a condition that mills would have to import similar quantities in case of shortages.
The industry body has noted that maximum cash would be required between November 2011 and March 2012 as during this period 90% of sugarcane are being crushed and mills need fund to make payments to cane farmers.
India, the world’s second largest sugar producer after Brazil, resumed exports of sweetener from last marketing year after the country’s sugar output exceeded the annual domestic demand after a gap of two years.
Sugar production rose to 243 lakh tonnes in 2010-11 marketing year from nearly 190 lakh tonnes in the previous year. The annual domestic demand is 215 lakh tonnes.
In the current 2011-12 marketing year starting this month, the sugar production is pegged at 260 lakh tonnes based on the ISMA’s projection and 246 lakh tonnes as per the food ministry’s estimates.
“At government estimates of sugar production of 246 lakh tonnes, there is still surplus of 33 lakh tonnes,” ISMA said, while making a case for allowing immediate exports.