Stocks
Maruti Suzuki's October sales up 29 percent
 India's manufacturing sector growth waned further and touched a 22-month low in October largely due to a slower increase in new orders, a leading international business survey showed on Monday.
 
Revealing the weakest purchasing activity since December 2013, the Nikkei India Manufacturing Purchasing Managers Index (PMI) recorded an eight-month low in October at 50.7, down from 51.2 in September and from 52.3 in August.
 
According to the PMI report published by financial information services provider Markit, in which a value above 50 in the reading index indicates an overall increase in manufacturing and below 50 an overall decrease, expansion in production and order books were the weakest in their current 24-month growth sequence.
 
"Rates of expansion in both production and order books were the weakest in their current 24-month sequences of growth, with panellists reporting challenging economic conditions and a reluctance among clients to commit to new projects," the report said.
 
"PMI data for October show a further loss of growth momentum across the Indian manufacturing economy, with a slower rise in new business inflows resulting in a weaker expansion of output," said Pollyanna De Lima, economist at Markit and the report's author.
 
Despite the slowdown in new order growth, manufacturers recruited additional workers in October. Employment rose only marginally for the first time since January.
 
"Undeterred by tough economic conditions overall, firms took extra staff in October. This, combined with a further drop in inventories of finished goods, suggests that production growth may rebound in coming months," Lima said.
 
The report said October saw inflationary pressures return to India's manufacturing economy. Average purchase costs rose, though the rate of increase was "slight", the survey said.
 
Part of the additional cost was passed on to clients by raising tariffs.
 
"A return to inflationary pressures, meanwhile, indicates that RBI may pause its loosening cycle for the rest of the year following a 50 basis points cut of the key repo rate in September," Lima said.
 
"Upcoming survey data will show how effective the central bank's effort to revive the economy has been," Reserve Bank of India Governor Raghuram Rajan on September 29 cut the RBI's repo rate, at which it lends to commercial banks, to 6.75 percent making it the third cut in the bank's short-term lending rate this year.
 
The RBI has also lowered its GDP growth forecast for the current fiscal to 7.4 percent, from its earlier projection of 7.6 percent.
 
Under the PMI, the manufacturing sector is divided into 8 broad categories of basic metals, chemicals and plastics, electrical and optical, food and drink, mechanical engineering, textiles and clothing, timber and paper and transport.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

India's October production growth falls to 22-month low: PMI
 India's manufacturing sector growth waned further and touched a 22-month low in October largely due to a slower increase in new orders, a leading international business survey showed on Monday.
 
Revealing the weakest purchasing activity since December 2013, the Nikkei India Manufacturing Purchasing Managers Index (PMI) recorded an eight-month low in October at 50.7, down from 51.2 in September and from 52.3 in August.
 
According to the PMI report published by financial information services provider Markit, in which a value above 50 in the reading index indicates an overall increase in manufacturing and below 50 an overall decrease, expansion in production and order books were the weakest in their current 24-month growth sequence.
 
"Rates of expansion in both production and order books were the weakest in their current 24-month sequences of growth, with panellists reporting challenging economic conditions and a reluctance among clients to commit to new projects," the report said.
 
"PMI data for October show a further loss of growth momentum across the Indian manufacturing economy, with a slower rise in new business inflows resulting in a weaker expansion of output," said Pollyanna De Lima, economist at Markit and the report's author.
 
Despite the slowdown in new order growth, manufacturers recruited additional workers in October. Employment rose only marginally for the first time since January.
 
"Undeterred by tough economic conditions overall, firms took extra staff in October. This, combined with a further drop in inventories of finished goods, suggests that production growth may rebound in coming months," Lima said.
 
The report said October saw inflationary pressures return to India's manufacturing economy. Average purchase costs rose, though the rate of increase was "slight", the survey said.
 
Part of the additional cost was passed on to clients by raising tariffs.
 
"A return to inflationary pressures, meanwhile, indicates that RBI may pause its loosening cycle for the rest of the year following a 50 basis points cut of the key repo rate in September," Lima said.
 
"Upcoming survey data will show how effective the central bank's effort to revive the economy has been," Reserve Bank of India Governor Raghuram Rajan on September 29 cut the RBI's repo rate, at which it lends to commercial banks, to 6.75 percent making it the third cut in the bank's short-term lending rate this year.
 
The RBI has also lowered its GDP growth forecast for the current fiscal to 7.4 percent, from its earlier projection of 7.6 percent.
 
Under the PMI, the manufacturing sector is divided into 8 broad categories of basic metals, chemicals and plastics, electrical and optical, food and drink, mechanical engineering, textiles and clothing, timber and paper and transport.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

Rohtang tunnel excavation, an engineering marvel, set to pick up speed
The excavation of the Rohtang tunnel, one of India's most strategically important infrastructure projects, is likely to pick up speed after missing its February 2015 deadline.
 
Of the 8.8-km horseshoe shaped Rohtang tunnel, an engineering marvel that will ensure all-weather connectivity to landlocked Lahaul Valley from Manali, about 5.2 km has been dug since work commenced in November 2011. Over 600 men and more than a dozen Indian and European engineers have been working day and night to excavate the tunnel, located at altitudes ranging between 3,053 and 3,080 metres on both sides, despite prevailing sub-zero conditions.
 
Engineers finally foresee the end of the loose strata that slowed down its construction for almost three years. A geological surprise in the form of a glacial-fed rivulet that sprung up in 2012 during work in the tunnel below the 3,978-m Rohtang Pass is still posing a challenge because of water seepage and fragile strata. But it has now been largely contained.
 
"We are close to covering the 600-metre highly fragile strata on the south portal (towards Manali) side. As per surveys, a solid rock is coming after 20 metres. The seepage and inflow of the Seri rivulet in the tunnel have been largely controlled," project Chief Engineer Brigadier Manoj Kumar, who is associated with the Border Roads Organisation (BRO), told IANS.
 
The Seri is a tributary of the Beas river and flows down the mountain.
 
Kumar said in an interview that once the hard rock surfaces, the excavation would automatically pick up speed.
 
The project is estimated to be commissioned by 2019, and both ends of the tunnel -- south and north portals -- will meet by July 2017, he added.
 
The Rs.1,495-crore tunnel's foundation stone was laid by Congress president Sonia Gandhi on June 28, 2010, in the picturesque Solang Valley.
 
Official sources told IANS that the delay in tunnel construction will mean a cost overrun of Rs.500-600 crore. The project is being built by the BRO in collaboration with Strabag-Afcons, a 60:40 joint venture between Strabag SE of Austria and India's Afcons Infrastructure Ltd.
 
The north portal of the tunnel that lies towards the Lahaul Valley in Lahaul-Spiti district has already experienced snowfalls.
 
Kumar said work on the north portal would be stopped by mid-November because of the onset of heavy snowfall by then. However, work on the south portal towards Dhundi, 25 km from Manali, will continue during winter.
 
"The highest elevation in the tunnel that lies towards the north portal has been dug successfully. On that side, we encountered geological surprises in the shape of hot water springs and emission of toxic gases.
 
"But they were on a smaller stretch. They raised the temperature inside the tunnel," he added.
 
The south portal is prone to flash floods and snow avalanches.
 
To counter them, the Snow and Avalanche Study Establishment (SASA) has designed several avalanche-control structures, including four snow galleries and eight snow bridges. One gallery has been constructed that was hit by a snow avalanche in February.
 
While a snow gallery would allow the avalanche to pass overhead without affecting the traffic inside, a snow bridge prevents the snow mass from rolling down the slope or break its flow.
 
Once ready, the Rohtang tunnel will be a boon for the cold deserts of Lahaul Valley, where over 20,000 people remain cut off from the rest of India in winter owing to the closure of the Rohtang Pass, a major attraction for both domestic and foreign tourists and located 52 km from Manali.
 
Besides reducing road distance by approximately 46 km and saving travel time of about four hours, the tunnel will open up new vistas of trade and tourism and generate jobs for the locals. The tunnel will provide ample room for two-way traffic and is designed to cater to a maximum vehicular speed of 80 km an hour.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)