Posts Tagged ‘FDI’

Points Discussed in Budget :)

  • Excise duty on silver rose to 10%
    .
  • Surcharge on domestic cos reduced to 7.5% from 10%..
  • Excise duty on oil rose to 10%.
  • Fiscal deficit will be at 5.5% in 10-11, at 4.8% in 11-12 and 4.1% in 12-13
    .
  • Revised income tax slabs πŸ™‚
    .
  • Net market borrowing for 2010-11 at Rs 3, 45,010..
  • Extended 1% interest subsidy scheme for affordable housing.
  • Rs 5400 cr of funds allocated for urban development..
  • Defense allocation rose to Rs 147344 cr.
  • Rs 48000 cr allocated for Bharat Nirman.
  • Farmer loans extended for 6 months to June 30th 2011.
  • Allocated Rs1.73 lakh cr for infrastructure..
  • Agriculture credit flow targets at Rs. 375000cr.
  • FDI worth $20.9 bn in April to Dec 2009.
  • Proposed Rs 16500 cr for PSU banks.
  • Challenge for a 9% growth, need to review stimulus.
  • Stay TunedΒ for More updates πŸ™‚

    .

    Note : For More Latest Industry, Stock Market and Economy News and Updates, pleaseΒ click here

    Advertisements

    Global Market Outlook 2009 and 2010 :)

    SMC Market Outlook

    .

    With markets giving returns on investment more than 79% in 2009 and showing a strong sign of recovery from mid 2009 on the back of strong domestic demand, policy reforms and stimulus packages, 2009 calendar year emerged as the best year for investors since 2000.

    πŸ™‚

    FII’s have once again proved to be the front runners in terms of the inflow, pumping more than Rs 82,000 crore in the Indian market this calendar.

    .

    But 2010 promises to be another testing year as fiscal and monetary stimulus in many of the world’s major economies begins to wane.

    .

    After being in consolidation for most of the month, in the week gone by the domestic markets suddenly jumped back to life and closed at their highest in 19 months as investors rushed to buy stocks on renewed optimism, after foreign direct investment into the nation jumped 60% in the first eight months of this fiscal year.

    .

    The FM`s comments on GDP growth and encouraging cues from global markets also boosted the market.

    .

    Both the indices, Sensex and Nifty made a new high for 2009 on the eve of Christmas, rekindling the festive spirit.

    Bulls were in a mood of rejoice as Christmas took Nifty to a new high of 5,197.90.

    The year ends with more than a spark of hope, and next year seems to be a stable and profitable one.

    However, we believe that markets would continue to be volatile and hence it is important to manage risk in the coming year too.


    πŸ™‚


    For the forthcoming week, markets may remain volatile as traders will roll their positions in the derivative segment from December 2009 series to January 2010 series ahead of the expiry of the near month December 2009 contracts on Thursday, 31 December 2009.

    .

    On the flip side higher advance tax figures by India Inc which suggests better Q3 December 2009 results, may support the market.

    .

    Corporate advance tax payments for the quarter were up 44% to Rs 48,300 crore against a 3.7% decline in April-June quarter and a 14.7% increase in July-September quarter.

    .

    The global developments also need to be seen for any further directions.

    Furthermore, food price index data for the year to 19 December 2009 will be closely watched which is going to release on Thursday, 31 December 2009.

    The high food price inflation is a major worry for the policymakers as they contemplate a right approach to tame hike in inflation which seems to be more of a supply side issue.

    .

    The next quarterly review of monetary policy is scheduled on 29 January 2010 which may also give some direction to the markets.

    .

    On the global economic front, the US economy grew at a revised annual growth rate of 2.2% in the third quarter, much slower than initially projected.

    .

    Japan’s unemployment rate rose to 5.2 percent from 5.1 percent in October, for the first time in four months in November, an indication job growth may not be strong enough to support the economy’s recovery from its deepest postwar recession.

    .

    The world stock markets are not ready to react on the downside and after every consolidation they are moving up only.

    4960 on nifty is strong support as was mentioned in last week magazine and the nifty touched there and moved up sharply.

    Even the base metals and stocks are not reacting to the strong dollar.

    Till the trend of stock markets is up, one should be playing from the long side of it.

    Nifty has support between 5050-4970 and Sensex between 17100-16700 levels.

    πŸ™‚

    New Year celebration may result in thin trading this week.It may impact domestic bourses as well.

    Regarding outlook, dollar index will give next direction to precious metals. If it notices a pause in its rally then precious metals may trade in a range or vice a versa.

    Base metals will remain volatile.

    Gap between lead and zinc should shrink gradually.

    Fresh buying in steel may keep nickel at higher side.

    If US crude and other inventories continue to decline then fresh buying will stimulate in crude oil.

    However, it already saw spiky moves hence upside is limited.

    πŸ™‚

    RBI not in favour of 3-yr lock-in in realty FDI

    The Department of Industrial Policy and Promotion (DIPP) proposal made last month to remove the three-year lock in period for foreign direct investment (FDI) in real estate has not found favour with the Finance Ministry or with the Reserve Bank of India (RBI). Both entities have written to the DIPP to this effect.

    The developers were asking for a removal of the lock-in period in order to encourage speculation in realty. CNBC-TV18’s Latha Venkatesh reports.

    It has been a long standing demand of the real estate companies that this lock-in of FDI into real estate projects should be removed because that restricts the number of investors into real estate projects. But this proposal even historically has never found favor with the RBI and the Finance Ministry. When the proposal was mooted around November 22-23 and was sent by the DIPP to Finance Ministry and related ministriesβ€”the urban development ministry as well as the RBI, what we now gather is that both the Finance Ministry and the RBI have raised their descent note against this proposal, their argument more or less similar is that allowing this lock in to be removed would mean a free flow of money coming in and parking in, pushing up real estate prices and then cashing out and booking a quick profit.

    Primarily to avoid such speculative boosting of asset prices is the reason why both the Finance Ministry and the RBI are opposed to it. But sources who told us that this descent note has been sent, have added that they do not have any final authority over this kind of a proposal and that their descent in the past has been overruled. We know of the various press notes which have been opposed by various sections in the Finance Ministry and in the RBI in very recent cases and their descent need not necessarily be taken in by the Commerce Ministry or the DIPP. But a descent has been put on the record.

    Source:http://www.moneycontrol.com/news/cnbc-tv18-comments/fin-min-rbi-notfavour3-yr-lock-inrealty-fdi_430429.html

    Govt Not to Impose Restrictions on Foreign Borrowings

    Govt Not to Impose Restrictions on Foreign Borrowings

     

    The government ruled out limiting companies from borrowing money from overseas market stating that the rise in foreign money is not a matter of concern at present and there is no such proposal.

    πŸ™‚

    However, companies are permitted to raise $500 million annually under the automatic route while infrastructure firms under the approval route can remit up to $100 million for rupee expenditure and for other companies the cap on approval route remittance is set at $50 million.

    πŸ™‚

    Meanwhile, capital inflows reached record levels as investors borrow cheap from advanced countries and invest in high-yielding assets in developing countries while this led to speculations that government may put in place a system of auctioning ECBs.

    πŸ™‚

    In India, foreign inflows through foreign institutional investors (FIIs), ECBs and foreign currency convertible bonds (FCCBs) have been on the rise, while FDI is not picking up as fast.

    πŸ™‚

    On the other hand, on a quarterly basis, the funds raised through ECBs and FCCBs increased by 70% in the September quarter to $4.61 billion while FIIs have put in a record over Rs 71,900 crore in the equities market.

    πŸ™‚

    India Crossed the $100 Billion Mark in FDI :)

    Amidst of the global crisis, India crossed the $100 billion milestone in foreign direct investment (FDI)

    Amidst of the global crisis, India crossed the $100 billion milestone in foreign direct investment (FDI)

    Amidst of the global crisis, India crossed the $100 billion milestone in foreign direct investment (FDI) through equity confirming its rising profile as a safe and sound investment objective.

    πŸ™‚

    However, 44% of the money came through Mauritius as investors wanted to take advantage of India’s double taxation avoidance treaty with the island nation.

    πŸ™‚

    Moreover, the cumulative FDI inflows since 2000 and up to July 2009 amounted to $100.33 billion while the inflows in the first 4 months of the current fiscal were $10.49 billion and the other big investors included Singapore, the US, UK and the Netherlands.

    πŸ™‚

    Additionally, it is said that FDI’s main impact comes from new technology, new managerial capabilities and new benchmarks in corporate functioning whereas India reached the $100 billion mark at a time when the global financial crisis has had a dampening impact on FDI flows which are expected to fall this year.

    Further, it is said that the global FDI flows will decline by 30% in 2009 reviving only marginally during the next year.

    Although declining, FDI flows to developing countries proved to be more flexible than other capital flows such as portfolio investment and bank lending, the main reasons being that FDI is more of a long term nature than capital flows.

    πŸ™‚

    On the other hand, India’s services sector received 23% of the cumulative equity FDI inflows followed by computer software, hardware, telecommunication and real estate.

    πŸ™‚

    India’s FDI Inflows Surge in July :)

    FDI-Inflow-India-july

    The government has revealed that despite a global financial crisis, the flow of foreign direct investment (FDI) to India during the month of July 2009 has been registered at $3.52 billion, impressive 56.5% higher than the $2.25 billion registered last year.

    πŸ™‚

    However, the inflows in July have been against $2.58 billion during the month of June 2009 and $2.10 billion received during the month of May 2009.

    πŸ™‚

    Moreover, it is said that this raise is an optimistic one if the present fiscal situation of India and world is taken into consideration.

    πŸ™‚

    In addition, it is said that a non-profit company will be encouraging FDI into India and this will act in association with the central and state governments as well as the Federation of Indian Chambers of Commerce and Industry.

    πŸ™‚

    On the other hand, the distinctive feature is the partnership between a private sector organization, the Government of India and state governments is unlike anywhere else in the world.

    πŸ™‚

    However, in order to attract more foreign investments, Indian government on Thursday announced formation of a not-for-profit company β€˜Invest India’.

    πŸ™‚

    Weekly Equity Update 21st-28th August :)

    Weekly Update

    After closing almost flat in penultimate week, in the week gone by markets closed in green terrain following the global markets which rallied to 10-month highs buoyed by renewed hopes that the global economic recovery is gathering pace and is pulling out of its deepest recession since the 1930s.

    πŸ™‚

    Closer home, revival of monsoon rains, fresh buying by FIIs and firm European market boosted sentiment.

    Moreover the statement made by FM that government expects GDP growth to accelerate to over 8% in 2010-11, with the economy showing signs of recovery, acted as a booster to markets.

    πŸ™‚

    However it is expected that higher food prices will lead to WPI inflation accelerating to 6% in the fiscal year to March 2010.

    πŸ™‚

    On the world economic front, the US economy shrank at an annual pace of 1% between April and June 2009, unchanged from an initial estimate released last month.

    From the United Kingdom, its economy contracted 0.7% in the second quarter as the recession prompted companies to cut investment and inventories while consumers scaled back spending.

    😦

    Japan‘s exports tumbled and stood at 35.7% for a tenth straight month in July as demand from all of the nation’s major markets deteriorated.

    Trend of all markets is up though Shanghai has topped out and moving down which is a cause of concern.

    πŸ™‚

    Nifty has support between 4600-4500 and Sensex between 15500-15000.

    πŸ™‚

    Once again commodities have shown the buoyancy that they can hold the support.

    One or two day’s correction in the prices couldn’t break the trend of commodities. However upside is limited.

    Resembling last week, current week as well is jam-packed of event risk as GDP data of many countries will release which will make commodities volatile throughout the week accordingly.

    Precious metals may trade in a range with upward bias.

    Back at home, to see more upside it has to trade above the level of 15000 in MCX.

    πŸ™‚

    In agro commodities, buying may return in spices as recent fall in the prices has made Indian parity more competitive in international market.

    πŸ™‚

    MARKET OUTLOOK

    Trend of all markets is up though Shanghai has topped out and moving down which is a cause of concern.

    It seems that currently US markets are determining the overall trend and our markets might be linked up with US markets now as we have broken above 4730 Nifty.

    πŸ™‚

    If US markets don’t react, then we should be seeing higher levels ahead.

    Nifty has support between 4600-4500 and Sensex between 15500-15000.

    πŸ™‚

    EQUITY TABLES :

    1. Indian and Sectoral Indices :

    weekly indices update

    2. BSE Movers and Shakers & IA Equity Figures

    BSE Movers and Shakers & IA Equity Figures

    3. NSE Movers and Shakers :

    NSE Weekly Movers and Shakers

    4. MONEY MARKET & ECONOMIC INDICATORS :

    MONEY MARKET & ECONOMIC INDICATORS

    5. GLOBAL INDICES :

    Weekly GLOBAL INDICES


    From the United Kingdom, its economy contracted 0.7% in the second quarter as the recession prompted companies to cut investment and inventories while consumers scaled back spending.