Archive for January 6th, 2010

Banks May Not Up Interest Rates For Next Six Months

Banks May Not Up Interest Rates For Next Six Months

.

New Year has brought a good news for the Corporate India.

.

SBI Bank chairman has indicated that there will be no increase in interest rates for next six months despite inflationary pressure.

.

As inflation is rising, there was speculation going around that RBI, (in its review of monetary policy) might take measures to tighten the money supply which would have led to the hardening of interest rates.

.

As the global economy is still in the grip of recession, industry players feel that any hike in interest rates will affect the economic recovery in India.

.

Banks authorities and market analysts feel that there was surplus liquidity in the system and credit offtake was slowly picking up.

.

This situation of liquidity surplus will force banks not to increase interest rates, in current situation.

.

Because of this surplus liquidity, banks have cut deposits rates.

But they are not cutting the lending rates due to slow credit offtake, despite the speculation that RBI can increase key rates (repo or reverse repo) to contain inflation.

.

🙂

.

In the eight months of the current financial year till December 4, while the deposits with the commercial banks rose by 3,69,535 crore, credit off take was only Rs 1,44,151 crore.

.

This forced the banks to park around Rs 100,000 crore with the RBI at reverse repo rate of 3.25%.

.

🙂

When the interest rate condition was benign, Banks had cut their lending rates, particularly home loan rate.

This had helped reviving real estate market. The buyers started coming back and cement and steel sectors also started improving.

.

The recession did not hit India the way it had affected European countries last year.

.

There was only a slowdown in the growth rate which came down to 7% from 9%.

.

Market experts believe that withdrawal of stimulus package by the government should not be done in the prevailing situation, but should be phased out in staggered manner.

.

🙂

India Inc Set to Raise Rs.50k Crores Through IPOs in 2010

India Inc Set to Raise Rs.50k Crores Through IPOs in 2010.

.

Domestic companies seems set to get on with the huge fund raising exercise this year with plans to raise over Rs 50,000 crore via public offers, driven by the sharp recovery in the stock market.

.

Almost 50 companies have already filed the draft prospectus with the market regulator, the Securities and Exchange Board of India (SEBI).

This depicts at the healthy prospect of the strong IPO market after the encouraging revival of IPO market in 2009.

.

Indian companies had raised about Rs 20,000 crore through IPOs in 2009.

.

Market Experts feel that fund raising can go up to Rs 50,000 crore this year since Government has already planned to sell shares in a host of public sector companies by way of IPOs and follow-on public offers (FPOs).

.

Five companies aiming to raise over Rs 300 crore have already received the regulator’s clearance for the IPO, if draft prospectus filed with the SEBI is anything to go by.

.

“The IPO pipeline looks strong in 2010.

Also the way the government is pushing ahead with the disinvestment plan, fund raising can go up to Rs 50,000 crore by the end of the year,” SMC Capitals Equity Head Jagannadham Thunuguntla said.

.

As part of its disinvestment plans the government intends to raise over Rs 20,000 crore by way of FPOs of NMDC, SAIL, NTPC, and REC.

.

Some of the prominent private companies which have their IPOs lined up, beside this, include Jindal Power, BPTP, Reliance Infratel, Emaar MGF etc;

.

“Of the total IPOs that are in the pipeline, as many as 16 are from real estate sector. However, their success is a bit doubtful as the appetite for realty IPOs are currently less,” Thunuguntla added.

.

Primary market fund raising in 2008 saw 30 IPOs mopping up Rs 17,000 crore, but shares of many these companies gave the investors modest-to-good returns.

.

Cardamom exports may touch 1.5k tonne mark

Hello Friends here we come up with the Latest Agri Commodities updates from various parts of the country.

.

Cardamom exports may touch 1.5k tonne mark

.

Cardamom exports may touch 1.5k tonne mark

.

With exports racing towards  a new high and the domestic demand  remaining strong, the average cardamom prices have surpassed the Rs. 1,000 per kg mark for the first time.

.

The cardamom exports  for November 2009 stood at 275 tonne, taking the total exports in the april November period to 895 tonne compared with 370 tonnes  in the same period of the previous year.

.

In 2008-09, the cardamom export was 750 tonne.

With another four months to go  the growers and traders feel the export could register a new record this year.  That is something in the range of 1,500 tonne.

.

The harvest period is over and the growers are releasing  their stock to take advantage of the high price.

.

The upcountry buyers  are continuing their  purchase fearing a scarcity of the spice  in February as the existing stock with the growers could be exhausted.

.

The growers are expecting the prices to move further to 1200 per kg in the coming weeks with arrivals thining.

A lower production in the current year has also aided the rise in prices.

.

🙂

.

In Other major Commodities Updates, we have info on the ATMA recommendations to the Govt to suspend the tradings of rubber futures.

.

Suspend rubber futures – ATMA :

.

Unusual volatility in natural rubber prices, despite peak production season and record imports, smacked of speculative  manipulation in the commodity.

.

This view has been put forth by the association of automotive tyres manufacturers  association (ATMA).

.

ATMA has therefore, called for a suspension of futures trading in rubber in the wake of the  unusual volatility in natural rubber prices.

.

“As immediate and direct fallout of heavy speculative activity in natural rubber futures trading, the physical market for rubber is being unduly affected”.

.

R Singhania, chairman of the ATMA has said so in a note sent to commerce and industry minister Anand Sharma and agriculture minister Sharad pawar.

.

🙂

.

Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here