Archive for September 8th, 2009

UNCTAD Projects 5% Growth for India :(

Indian economy

The UN body United Nations Conference on Trade and Development (UNCTAD) on Monday projected a lower growth of five per cent for India in 2009 as against Reserve Bank of India (RBI) and Government”s forecast of more than six per cent in the current financial year.

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Releasing its “Trade and Development Report 2009” in New Delhi, UNCTAD report said that it expected Indian economy to grow by five per cent in 2009.

The economy grew by 6.7 per cent in 2008-09 fiscal while in the first quarter of the 2009-10 financial year the Gross Domestic Product (GDP) expanded at 6.1 per cent.

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However, the UNCTAD report listed India as the second fastest growing economy after China, in the backdrop of the global economy set to shrink by 2.7 per cent in 2009.

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“The economic winter is far from over: tumbling profits in the real economy, previous over-investment in real estate and rising unemployment will continue to constrain private consumption and investment for the foreseeable future.

Even economies that will grow this year, such as those of China and India, are slowing significantly compared to previous years. The crisis is unprecedented in its depth and breadth leaving virtually no country unscathed,” it said.

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Further, the report said that improvement of certain financial indicators reached in the first quarter of 2009 as well as falling interest rate spreads on emerging-market debt and corporate bonds and the rebound in securities and commodity prices were seen as green shoots of economic recovery.

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UNCTAD has said the growth rate of developed nations is expected to contract by 4.1 per cent in 2009, while it is likely to decelerate to 1.3 per cent in 2009 from 5.4 per cent in 2008 for developing countries.

😦

The UN body United Nations Conference on Trade and Development (UNCTAD) on Monday projected a lower growth of five per cent for India in 2009 as against Reserve Bank of India (RBI) and Government”s forecast of more than six per cent in the current financial year.

Releasing its “Trade and Development Report 2009” in New Delhi, UNCTAD report said that it expected Indian economy to grow by five per cent in 2009. The economy grew by 6.7 per cent in 2008-09 fiscal while in the first quarter of the 2009-10 financial year the Gross Domestic Product (GDP) expanded at 6.1 per cent. However, the UNCTAD report listed India as the second fastest growing economy after China, in the backdrop of the global economy set to shrink by 2.7 per cent in 2009.

“The economic winter is far from over: tumbling profits in the real economy, previous over-investment in real estate and rising unemployment will continue to constrain private consumption and investment for the foreseeable future. Even economies that will grow this year, such as those of China and India, are slowing significantly compared to previous years. The crisis is unprecedented in its depth and breadth leaving virtually no country unscathed,” it said.

Further, the report said that improvement of certain financial indicators reached in the first quarter of 2009 as well as falling interest rate spreads on emerging-market debt and corporate bonds and the rebound in securities and commodity prices were seen as green shoots of economic recovery.

UNCTAD has said the growth rate of developed nations is expected to contract by 4.1 per cent in 2009, while it is likely to decelerate to 1.3 per cent in 2009 from 5.4 per cent in 2008 for developing countries.

Future Venture to Re-File for IPO Soon :)

future group

Future Venture is likely to approach Sebi again for an initial public offering soon, as the validity of the earlier approval by the market watchdog lapsed this month.

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“We are going for a fresh filing (for IPO) with Sebi,” Future Group Chairman Kishore Biyani told PTI.

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The company, which is a part of diversified Future Group, had received the Securities and Exchanges Board of India (Sebi) approval for IPO on September 4, 2008.

As per regulations, a company has to hit the capital markets within 12 months of receiving the Sebi nod.

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Last year, the company had planned to raise up to Rs 1,000 crore through a public offering of about 374 crore shares so as to fund the group’s expansion plans.

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However this time amount to be raised from the capital market would be less than the previously planned Rs 1000 crore.

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Liquidity crunch and volatility in recent times had forced many companies including Future Venture to either postpone or shelve their plans to mop up funds from the capital market.

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“The planned IPO by Future Venture was actually a by-product of the bull market.”

“After the success of Future Capital IPO last year, the Future group thought of tapping the capital market with another offer, although there was no actual necessity of fund raising,” SMC Capital Equity Head Jagannadham Thunuguntla said.

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The Future Group, which is into various businesses apart from retail, is currently looking at ways to raise funds.

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uture Venture is likely to approach Sebi again for an initial public offering soon, as the validity of the earlier approval by the market watchdog lapsed this month.

πŸ™‚

“We are going for a fresh filing (for IPO) with Sebi,” Future Group Chairman Kishore Biyani told PTI.

πŸ™‚

The company, which is a part of diversified Future Group, had received the Securities and Exchanges Board of India (Sebi) approval for IPO on September 4, 2008.

As per regulations, a company has to hit the capital markets within 12 months of receiving the Sebi nod.

πŸ™‚

Last year, the company had planned to raise up to Rs 1,000 crore through a public offering of about 374 crore shares so as to fund the group’s expansion plans.

πŸ™‚

However this time amount to be raised from the capital market would be less than the previously planned Rs 1000 crore.

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Liquidity crunch and volatility in recent times had forced many companies including Future Venture to either postpone or

World Trade to Slip by 11%; More Trouble for Exporters :(

World trade down

The International trade in 2009 is estimated to decline by 11 per cent in real terms and by more than 20 per cent in current dollars (terms), United Nations Conference on Trade and Development (UNCTAD) report said on Monday.

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This seems to a bad news for the Indian exporters due to the worsening of the global merchandise outlook.

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There was a fall in demand from major developed countries like US and European Union due to the global recession.

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The exports of India stood in the negative zone for the tenth month in a row since October 2008.

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The exports during April-July period of this year, dropped by over 31 per cent.

However, earlier, the World Trade Organisation had estimated the global trade to be slipping by nine per cent in 2009.

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World trade slowed down in 2007 and has been shrinking at a fast pace since November 2008, in both volume as well as value terms.

The trade volume decelerated first in the United States and other developed countries, the report said.

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On the top of this, the report also stated that as the crisis is global, the reliance on exports offers no easy way out, since trade is expected to fell by about 11 per cent in real terms and any expansion of new trade requires a recovery of consumption and investment somewhere in the world.

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