Companies & Sectors
Services sector buoys India's economic activity
Mumbai : Services sector expansion buoyed the overall economic activity in India during December, a key macro economic data showed on Wednesday.
 
The Nikkei India composite PMI (purchasing managers' index) which is a key macro data that indicates monthly trends in overall economic activity rose to 51.6 in December from 50.2 in November.
 
An index reading of above 50 indicates an overall increase in the economic activity, while below 50 an overall decline.
 
The composite PMI weighs the average of the manufacturing output index and the services business activity index. It is based on original survey data collected from around 700 companies spread across sectors in India. 
 
The composite PMI report published by the leading global diversified provider of financial information services -- "Markit" disclosed that the latest improvement was driven by services, as sentiment turned positive for the sector.
 
However, manufacturing production capped the gains, as it declined for the first time since October 2013.
 
"The Indian private sector returned to expansion territory at the end of 2015, eking out modest output growth in December," said Pollyanna De Lima, economist with Markit.
 
"A stronger rise in new business and an improvement in year-ahead expectations at service providers are positive developments, but the overall health of the economy remains fragile amid a weak manufacturing sector."
 
On a standalone basis, the Nikkei India manufacturing PMI recorded a 28-month low in December at 49.1, down from 50.3 reported in November.
 
According to De Lima, goods producers saw both order books and production dip for the first time in over two years. 
 
"Whereas manufacturers linked the slump to the Chennai floods, growth of new orders and output had been on a downward trend in recent months," De Lima said.
 
The Nikkei services business activity index for December stood at 53.6 from November's 50.1. 
 
The services index noted growth in four out of the six surveyed categories, led by 'other services' and financial intermediation.
 
The survey revealed an increase in new business inflows and improvement in demand conditions for the services sector. 
 
Notwithstanding the rise in new business generation, services sector employment levels remained unchanged. 
 
On the other hand, goods producers hired additional staff, but the rate of job creation was only marginal. 
 
"Firms' reluctance to hire was evident throughout 2015, with meaningful job creation last recorded in 2013. This suggests that conditions are likely to remain challenging in the near-term," elaborated De Lima.
 
The survey pointed out a rise in input cost for the services sector which touched a seven-month high.
 
Besides, the input prices across the private sector increased at the fastest rate since May.
 
The report cited that the services companies increased their selling prices in the month under review for the first time since August.
 
In addition, factory gate prices, too, rose, which led the private sector to report a rise in charges for a second successive month. 
 
"Cost inflation continues to surpass charge inflation, highlighting the intense competitive environment," added De Lima.
 
On future outlook, the survey predicted growth in the coming 12 months, linked to hopes of a better demand conditions.
 
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.

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Congress expels Amit Jogi for six years
Raipur/New Delhi : The Congress on Wednesday expelled its legislator Amit Jogi, son of former chief minister Ajit Jogi, for six years for indulging in anti-party activities.
 
The expulsion came in the wake of revelations about his alleged role in fixing the Antagarh by-election in 2014.
 
The decision was taken during a meet of the Congress state unit that also approved a proposal to suspend his father and former chief minister Ajit Jogi. 
 
Chhattisgarh Congress chief Bhupesh Baghel said the party had acted, and it was now the Bharatiya Janata Party's turn to act against those involved in the "murder of democracy" in Antagarh.
 
"The proposal to expel Ajit Jogi was also passed. Since this right is beyond the domain of the state Congress, the proposal to expel him will be sent to All India Congress Committee (AICC)," he said.
 
Amit Jogi, a legislator from Marwahi, voiced disappointment.
 
"I am hurt. The decision to expel me without proving the allegations against me is biased and unfair," he said. 
 
"I will exercise my right to appeal under rule 8 of article 9 of party's constitution. I have full faith in the party's leadership."
 
The Congress had earlier issued notice to Amit Jogi over purported conversations that suggested that financial inducement was offered to the party candidate to make him withdraw from the fray in the by-election to the Antagarh assembly seat in 2014.
 
It also demanded the resignation of Chief Minister Raman Singh and a probe into the issue by a Supreme Court judge.
 
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.

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SC to hear SEBI's plea for appointing receiver of Sahara's assets
New Delhi : The Supreme Court will hear, on February 2, market regulator SEBI 's plea seeking appointment of a receiver for sale of Sahara group's assets for compliance of the apex court's August 2012 order to return investors' money that it had raised in 2008 and 2009.
 
A bench headed by Chief Justice T.S.Thakur directed the hearing of the application next month as senior counsel Arvind Datar, appearing for the Security and Exchange Board of India (SEBI), on Wednesday, urged the court to hear the plea.
 
He told the court that there was no progress in the direction of Sahara mobilising the funds to return the investors money raised through optionally fully convertible debentures (OFCD)as directed by the court. 
 
Counsel appearing for Sahara however said that there was no urgency and they were negotiating with new prospective buyers.
 
At this the court observed that some directions are required to be passed on the matter.
 
The apex court on September 28 had asked Sahara to file its reply to SEBI's application seeking the appointment of a receiver to take over the charge of the entire assets of the group, located within and outside the country, sell the same and deposit the proceeds in SEBI's Sahara Refund Account.
 
The apex court by its August 31, 2012, order had asked Sahara to repay investors Rs.17,400 crore with an interest component of 15 percent. This amount, according to market regulator, coupled with interest component, has escalated to Rs.36,000 crores.
 
Coupled with the plea for the receiver's appointment, SEBI has also sought the refund of Rs.41 crore that it had spent in connection with the scanning, storage, handling and other incidental expenditure relating to investors documents.
 
It said that it has completed the scanning of the documents submitted by Sahara relating to the investors and urged the court to direct the group to either take back the documents or the charge of the storage where they are kept. It said that it was spending Rs.10 lakh per month for their storage.
 
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.

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COMMENTS

Vaibhav Dhoka

1 year ago

The order must be executed in time bound manner when justice can be seen as DONE>

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