The markets started the last trading session of the week on a strong note with the Sensex up 123 points at 17,743 while the Nifty gained 31 points to begin the day at 5351. The broader markets too had a fair opening. The smallcap and the midcap indices are up 0.6% each underperforming the Sensex which gained 0.7% in the opening trades.
Currently the BSE benchmark index has gained 239 points at 17,962 and the Nifty added 69 points at 5,389.
All the sectoral indices started in the positive. Consumer Durables, IT, PSU and Oil & Gas indices gaining 1% are leading the opening gains. Power index had a muted opening with a moderate 0.2% gain.
However in the US markets, stocks closed way off session lows on Thursday on news Greece agreed to a five-year austerity plan, but lingering economic uncertainty ultimately drove the S&P 500 lower, keeping a downward trend in place. The Dow Jones industrial average dropped 0.49% to end at 12,050. The Standard & Poor's 500 lost 0.28% to 1,283.50. But the Nasdaq Composite gained 0.66% to close at 2,686.75.
Meanwhile, the Asian markets largely opened positive with Hang Seng and Seoul Composite indices leading the gains up 1% each. The gains were mostly lead by the airlines stocks after a sharp drop in oil prices and exporters also gaining ground.The Nikkei marginally picked up 0.3% on reports that European Union leaders promised more money to help Greece stave off looming bankruptcy, provided its parliament enacts an austerity plan finalised in fraught last-minute talks with international lenders.
The top Sensex gainers are ONGC and TCS up nearly 2% followed by SBI, Hero Honda,Maruti Suzuki,Infosys,HDFC,ICICI Bank and Reliance Communications gaining 1% each. The sugar stocks rallied as an empowered group of ministers (EGoM) gave a nod for 5 lakh tonnes of sweetener exports.
Market heavyweight, Reliance Industries is the only Sensex scrip which started in the negative, down 1% at Rs 861.
The market breadth is positive. Of the total 1455 stocks traded on the BSE, 995 stocks have advanced while 407 declined.
Thursday, June 23, 2011
MFs use spare cash to hunt for mid-caps
Mutual funds are beginning to bargain-hunt, as smaller stocks are tumbling to new lows. A number of mid-cap and small-cap schemes of MFs, which were sitting on huge cash positions in November 2010, when the Sensex touched an all-time high of 21,000, have begun to deploy this cash in the market.
According to Value Research, a Delhi-based MF research agency, 19 of 21 schemes which took the right call at the peak of the market in November 2010, with 10 per cent or more cash in their portfolio, are now buying.
Reliance Small Cap Fund, which has a corpus of Rs 532 crore, had 55 per cent of this in cash at the end of November 2010. Being a new scheme, the fund remained cautious during the first two months this year. It has since reduced its cash position, to 18 per cent of its portfolio by the end of May. Some of its top positions are ABG Shipyard, FAG Bearings and Take Solutions.
Similarly, ICICI Prudential Dynamic Fund, which had cash of nearly 30 per cent in November, is down to 16 per cent. AIG Infrastructure saw its cash level drop from 25 to 15 per cent.
Other schemes which have seen a drop in cash positions in the past six months include Franklin India, DSP Blackrock Small and Midcap, Quantum Long Term Equity, Reliance Equity and JM Midcap. Axis Midcap Fund, which raised money in February, has also rapidly deployed funds, bringing down cash levels to 32 per cent at the end of May.
In the past six months, while the Sensex lost 15 per cent, the BSE Midcap and BSE Small Cap fell 24.5 per cent and 29.5 per cent, respectively. Some stocks have lost 50 per cent or more. This is creating a number of bargains for fund managers.
“It is very evident. Fund houses have increased exposure in quality mid-cap stocks which were beaten down, irrespective of their fundamentals,” said Gopal Agarwal, head of equities at Mirae Asset Global. “The valuations are good in the mid-cap space and during such a volatile market scenario, people will use the cash available with them to buy more.”
In June, the MF houses were net buyers for Rs 748 crore, adding to the Rs 434 crore they bought in May. This is in sharp contrast to foreign institutional investors, which have been big sellers in the market through the year. “This way, I believe the cash level will deplete completely in these (mid-cap) funds,” Agarwal said.
According to Value Research, a Delhi-based MF research agency, 19 of 21 schemes which took the right call at the peak of the market in November 2010, with 10 per cent or more cash in their portfolio, are now buying.
Reliance Small Cap Fund, which has a corpus of Rs 532 crore, had 55 per cent of this in cash at the end of November 2010. Being a new scheme, the fund remained cautious during the first two months this year. It has since reduced its cash position, to 18 per cent of its portfolio by the end of May. Some of its top positions are ABG Shipyard, FAG Bearings and Take Solutions.
Similarly, ICICI Prudential Dynamic Fund, which had cash of nearly 30 per cent in November, is down to 16 per cent. AIG Infrastructure saw its cash level drop from 25 to 15 per cent.
Other schemes which have seen a drop in cash positions in the past six months include Franklin India, DSP Blackrock Small and Midcap, Quantum Long Term Equity, Reliance Equity and JM Midcap. Axis Midcap Fund, which raised money in February, has also rapidly deployed funds, bringing down cash levels to 32 per cent at the end of May.
In the past six months, while the Sensex lost 15 per cent, the BSE Midcap and BSE Small Cap fell 24.5 per cent and 29.5 per cent, respectively. Some stocks have lost 50 per cent or more. This is creating a number of bargains for fund managers.
“It is very evident. Fund houses have increased exposure in quality mid-cap stocks which were beaten down, irrespective of their fundamentals,” said Gopal Agarwal, head of equities at Mirae Asset Global. “The valuations are good in the mid-cap space and during such a volatile market scenario, people will use the cash available with them to buy more.”
In June, the MF houses were net buyers for Rs 748 crore, adding to the Rs 434 crore they bought in May. This is in sharp contrast to foreign institutional investors, which have been big sellers in the market through the year. “This way, I believe the cash level will deplete completely in these (mid-cap) funds,” Agarwal said.
Rupee depreciates by 6 paise against dollar
MUMBAI: Ignoring smart rise in local equities, the rupee depreciated by six paise to close at 44.95/96 against the US currency on the back of a firm dollar overseas and continued funds outflow.
Dealers said that the main reason behind the fall in the rupee was firm dollar overseas.
Moreover, persistent dollar demand from some banks and importers, mainly oil refiners, put pressure on the rupee, they said.
Some dollar sale by exporters, however, capped the fall in the rupee, they added.
FIIs remained net sellers for the ninth straight session and sold shares worth Rs 287.4 crore Wednesday as per provisional data.
The Bombay Stock Exchange benchmark Sensex shot up 177 points to 17,727 as investors ignored spurt in food inflation and a string of concerns over domestic as well as global economic growth, buying heavyweights like RIL and Infosys.
"Globally Dollar gained against the major currencies like EUR, GBP & JPY. It also traded strong against Rupee and touched a major resistance of 45.00. Local equities traded bullishly which helped rupee to end below 45 levels. Expect Rupee to trade above its resistance in coming days," Alpari Forex ( India) CEO Pramit Brahmbhatt said.
"The trading range for the USD/INR will be 44.70 to 45.20 tomorrow," he added.
At the Interbank Foreign Exchange (Forex) market, the local unit opened lower at 44.92/93 a dollar from previous close of 44.89/90 and moved in a range of 44.80 and 45.00 before concluding at 44.95/96.
Dealers said that the main reason behind the fall in the rupee was firm dollar overseas.
Moreover, persistent dollar demand from some banks and importers, mainly oil refiners, put pressure on the rupee, they said.
Some dollar sale by exporters, however, capped the fall in the rupee, they added.
FIIs remained net sellers for the ninth straight session and sold shares worth Rs 287.4 crore Wednesday as per provisional data.
The Bombay Stock Exchange benchmark Sensex shot up 177 points to 17,727 as investors ignored spurt in food inflation and a string of concerns over domestic as well as global economic growth, buying heavyweights like RIL and Infosys.
"Globally Dollar gained against the major currencies like EUR, GBP & JPY. It also traded strong against Rupee and touched a major resistance of 45.00. Local equities traded bullishly which helped rupee to end below 45 levels. Expect Rupee to trade above its resistance in coming days," Alpari Forex ( India) CEO Pramit Brahmbhatt said.
"The trading range for the USD/INR will be 44.70 to 45.20 tomorrow," he added.
At the Interbank Foreign Exchange (Forex) market, the local unit opened lower at 44.92/93 a dollar from previous close of 44.89/90 and moved in a range of 44.80 and 45.00 before concluding at 44.95/96.
Wednesday, June 22, 2011
Asia stocks slip on Fed remarks about US economy
Asian stock markets followed Wall Street down on Thursday after the Federal Reserve admitted to being caught off guard by recent signs of deterioration in the U.S. economy.
Oil prices fell to near $94 a barrel amid a stronger U.S. dollar.
Japan's Nikkei 225 dropped 0.4 percent to 9,594, with shares lower in heavy machinery and equipment makers _ companies likely to feel a slowdown in the global economy more sharply. Mitsubishi Heavy Industries Ltd. dropped 1.6 percent and Komatsu Ltd. lost 1.4 percent.
But Japanese export shares benefited from a weaker yen, which makes products sent overseas cheaper. Consumer electronics giant Sony Corp. rose 1.1 percent. Isuzu Motors Ltd., which on Wednesday forecast an increase in dividends for the fiscal year through March, rose 3.7 percent.
Hong Kong's Hang Seng lost 0.8 percent to 21,696.79, with banking shares slumping a day after the China acknowledged that surging inflation will rise again this month _ raising the possibility of more action by China's central bank to tighten monetary policy.
China Construction Bank Ltd., the country's third-biggest commercial lender, slid 2.3 percent. Industrial and Commercial Bank of China, the world's biggest bank by market value, was down 1.6 percent.
South Korea's Kospi was 0.2 percent lower at 2,058.88 and Australia's S&P/ASX 200 lost 0.5 percent to 4,511.40. Benchmarks in Singapore, Taiwan and Indonesia were also lower, while those in New Zealand and Malaysia were higher.
Investor sentiment slid Wednesday, after Fed Chairman Ben Bernanke said at a news conference in Washington that some of the problems plaguing the U.S. economy such as weakness in the financial industry and the housing market and ``may be stronger and more persistent than we thought.''
Earlier, the Fed released a slightly lower forecast for U.S. economic growth this year. The Fed said it now expects the economy to grow between 2.7 percent and 2.9 percent this year, down from its previous estimate of 3.1 percent to 3.3 percent after its last meeting in April.
The Dow Jones industrial average and the Standard & Poor's 500 index slumped after Bernanke's cautious remarks about the economy.
The Dow closed down 0.7 percent at 12,109.67. The S&P 500 index fell 0.7 percent to close at 1,287.14. The Nasdaq fell 0.7 percent to 2,669.19.
Even with the dimmer outlook, the Fed pledged no new help to boost the economy. The central bank's $600 billion bond-buying program draws to a close at the end of this month.
Benchmark oil for August delivery was down $1.19 to $94.22 a barrel in electronic trading on the New York Mercantile Exchange. The contract gained $1.24 to settle at $95.41 on Wednesday.
In currencies, the euro dropped to $1.4312 from $1.4376 late Wednesday in New York. The dollar strengthened to 80.48 yen from 80.32 yen.
Oil prices fell to near $94 a barrel amid a stronger U.S. dollar.
Japan's Nikkei 225 dropped 0.4 percent to 9,594, with shares lower in heavy machinery and equipment makers _ companies likely to feel a slowdown in the global economy more sharply. Mitsubishi Heavy Industries Ltd. dropped 1.6 percent and Komatsu Ltd. lost 1.4 percent.
But Japanese export shares benefited from a weaker yen, which makes products sent overseas cheaper. Consumer electronics giant Sony Corp. rose 1.1 percent. Isuzu Motors Ltd., which on Wednesday forecast an increase in dividends for the fiscal year through March, rose 3.7 percent.
Hong Kong's Hang Seng lost 0.8 percent to 21,696.79, with banking shares slumping a day after the China acknowledged that surging inflation will rise again this month _ raising the possibility of more action by China's central bank to tighten monetary policy.
China Construction Bank Ltd., the country's third-biggest commercial lender, slid 2.3 percent. Industrial and Commercial Bank of China, the world's biggest bank by market value, was down 1.6 percent.
South Korea's Kospi was 0.2 percent lower at 2,058.88 and Australia's S&P/ASX 200 lost 0.5 percent to 4,511.40. Benchmarks in Singapore, Taiwan and Indonesia were also lower, while those in New Zealand and Malaysia were higher.
Investor sentiment slid Wednesday, after Fed Chairman Ben Bernanke said at a news conference in Washington that some of the problems plaguing the U.S. economy such as weakness in the financial industry and the housing market and ``may be stronger and more persistent than we thought.''
Earlier, the Fed released a slightly lower forecast for U.S. economic growth this year. The Fed said it now expects the economy to grow between 2.7 percent and 2.9 percent this year, down from its previous estimate of 3.1 percent to 3.3 percent after its last meeting in April.
The Dow Jones industrial average and the Standard & Poor's 500 index slumped after Bernanke's cautious remarks about the economy.
The Dow closed down 0.7 percent at 12,109.67. The S&P 500 index fell 0.7 percent to close at 1,287.14. The Nasdaq fell 0.7 percent to 2,669.19.
Even with the dimmer outlook, the Fed pledged no new help to boost the economy. The central bank's $600 billion bond-buying program draws to a close at the end of this month.
Benchmark oil for August delivery was down $1.19 to $94.22 a barrel in electronic trading on the New York Mercantile Exchange. The contract gained $1.24 to settle at $95.41 on Wednesday.
In currencies, the euro dropped to $1.4312 from $1.4376 late Wednesday in New York. The dollar strengthened to 80.48 yen from 80.32 yen.
Markets open weak
The Indian markets opened in the negative with the Sensex down 23 points at 17,527 and the Nifty started lower by 12 points at 5,266, in line with the negative global markets. The broader markets, on the other hand opened mixed with the midcap index down 0.2% underperforming the Sensex which is down 0.1% and the smallcap index started flat with a positive bias at 7,808.
Among the sectoral indices, Oil & Gas and IT indices are the only indices that started in the positive while Consumer Durables and Realty down 1% each are leading the losses. Rate sensitives, Auto and Bankex have started in the negative down 0.4% each.
Overnight, in the US markets, stocks dropped as investors hoping for positive comments from Fed Chairman Ben Bernanke were disappointed, and that gave them a reason to sell after a four-day rally that had lifted stocks from three-month lows.The Dow Jones industrial average slid 0.6%, to end at 12,109. The Standard & Poor's 500 Index fell 0.6% to 1,287. The Nasdaq Composite Index lost 0.6% to close at 2,669.
In the light of these developments, the Asian markets too started in the negative. The top losers among the Indian indices are Hang Seng down nearly 0.7% followed by Seoul Composite, Taiwan Weighted losing 0.5% each.
Back home, among the top Sensex gainers in the opening trades are Reliance Communications up 1% followed by RIL, ITC and NTPC adding in the range of 0.2-0.7%
Maruti Suzuki, Cipla, Hero Honda, Hindalco, Sterlite Industries and Reliance Infrastructure down 1% each are the top losers among the Sensex scrips.
The market breadth is negative. Of the total 1451 stocks traded on the BSE, 952 stocks declined while 434 advanced.
Among the sectoral indices, Oil & Gas and IT indices are the only indices that started in the positive while Consumer Durables and Realty down 1% each are leading the losses. Rate sensitives, Auto and Bankex have started in the negative down 0.4% each.
Overnight, in the US markets, stocks dropped as investors hoping for positive comments from Fed Chairman Ben Bernanke were disappointed, and that gave them a reason to sell after a four-day rally that had lifted stocks from three-month lows.The Dow Jones industrial average slid 0.6%, to end at 12,109. The Standard & Poor's 500 Index fell 0.6% to 1,287. The Nasdaq Composite Index lost 0.6% to close at 2,669.
In the light of these developments, the Asian markets too started in the negative. The top losers among the Indian indices are Hang Seng down nearly 0.7% followed by Seoul Composite, Taiwan Weighted losing 0.5% each.
Back home, among the top Sensex gainers in the opening trades are Reliance Communications up 1% followed by RIL, ITC and NTPC adding in the range of 0.2-0.7%
Maruti Suzuki, Cipla, Hero Honda, Hindalco, Sterlite Industries and Reliance Infrastructure down 1% each are the top losers among the Sensex scrips.
The market breadth is negative. Of the total 1451 stocks traded on the BSE, 952 stocks declined while 434 advanced.
CaratLane bags $6-mn funding
CHENNAI: Diamond jewellery portal CaratLane received an investment of $6 million from Tiger Global, a New York-based investment management firm. The stone retailer earned revenues of Rs 50 crore in the last financial year with solitaires accounting for 80% of its business.
"Solitaires is one of our fast-moving categories. This is because the inventory cost of holding such stones is 10-25 % lower than in retail stores and we are able to pass on the benefits to customers," says CEO Mithun Sacheti.
The fund proceeds would be utilised for strengthening the company's backend operations and also augmenting its customer base. CaratLane has units in Chennai and Mumbai, which are able to execute 100 orders a day. "We are looking to increase this to 500 orders a day," says Sacheti. CaratLane would also be utilising the money to introduce a gold jewellery line in six months.
"Solitaires is one of our fast-moving categories. This is because the inventory cost of holding such stones is 10-25 % lower than in retail stores and we are able to pass on the benefits to customers," says CEO Mithun Sacheti.
The fund proceeds would be utilised for strengthening the company's backend operations and also augmenting its customer base. CaratLane has units in Chennai and Mumbai, which are able to execute 100 orders a day. "We are looking to increase this to 500 orders a day," says Sacheti. CaratLane would also be utilising the money to introduce a gold jewellery line in six months.
Tuesday, June 21, 2011
India’s Nifty Stock Futures Climb on Optimism Greece to Avert Debt Default
By Santanu Chakraborty - Jun 21, 2011
India’s stock-index futures gained, signaling an advance in benchmark indexes, after Greek Prime Minister George Papandreou won a parliamentary confidence vote, moving the nation closer to avoiding a default on its debt.
SGX S&P CNX Nifty Index futures for June delivery climbed 40.5 points, or 0.8 percent, to 5,316 at 9:43 a.m. in Singapore. The futures are derived from the 50 stocks on the underlying S&P CNX Nifty Index on the National Stock Exchange of India, which rose 0.3 percent to 5,275.85 yesterday. The benchmark Bombay Stock Exchange Sensitive Index rose 0.3 percent to 17,560.30.
A total of 155 lawmakers supported the motion in the 300- seat parliament in Athens, bolstering Papandreou’s chances of pushing through austerity measures to secure international financial aid for Greece. The International Monetary Fund, contributor of a third of the bailout money for the nation, has warned EU leaders that a failure to take decisive action on the debt crisis risks triggering “large global spillovers.”
“The Greek prime minister winning his confidence vote has removed an uncertainty for markets, including India,” said Gavin Parry, managing director of Parry International Trading Ltd. in Hong Kong.
India’s benchmark stock index rebounded yesterday from the lowest close in four months amid speculation the recent decline was excessive and as investor concern over a possible Greek debt default eased. The MSCI Asia Pacific Index advanced for a second day today, rallying from the longest series of weekly losses in seven years.
‘Dead-Cat Bounce’
“Markets will see a dead-cat bounce on good news from Greece but it will not sustain in the long term,” Gaurang Shah, assistant vice president at Geojit BNP Paribas Financial Services Ltd. (GBNP), said yesterday.
The Sensex has lost 14 percent this year, the most among Asian benchmark indexes tracked by Bloomberg, on concern rising borrowing costs will hurt corporate profits. Sensex stocks are valued at 14.2 times estimated earnings, compared with 10.9 for the MSCI Emerging Markets Index.
Monsoon rain in India will be below normal for the second time in three years, the weather office said yesterday, potentially lowering farm output and accelerating inflation that is the fastest among Asia’s major economies, prompting the Reserve Bank of India to raise rates 10 times since March 2010.
“A weak monsoon will lead to a further spike in inflation, which is being driven by rising commodity and crude oil prices,” Shah said yesterday. “Policy reforms are not coming through, inflation refuses to come down.”
Rural Incomes
Prime Minister Manmohan Singh is relying on adequate rainfall to harvest record quantities of food grains and oilseeds for a second year and cool inflation. Agriculture makes up almost 14 percent of the economy and reduced farm production can also lower rural incomes, hurting sales of tractors and cars.
The government ruled out scrapping curbs on exports of wheat and rice as the world’s second-biggest producer preserves grains to supply food to consumers at below market prices and combat rising prices. A government report on June 14 showed that the wholesale-price index rose 9.06 percent in May from a year earlier, after an 8.66 percent jump in April. Food inflation data for the week ended June 11 is released tomorrow.
“We have seen food inflation cooling down all the way from 20 percent to 8 percent year-on-year and if rains disappoint then obviously that trend can reverse very quickly,” Anubhuti Sahay, a Mumbai-based economist at Standard Chartered Plc., said yesterday. Inadequate rainfall “is likely to damp rural demand, which in our view was extremely important in the overall economic activity” in the last fiscal year, she said.
Indian Oil Corp., the nation’s biggest refiner, may be active after Finance Director P.K. Goyal said the company plans to raise $500 million by selling dollar bonds next month.
The government plans to allow state-run refiners like Indian Oil to increase diesel tariffs. A panel of ministers will meet “shortly” to consider raising fuel costs, Oil Minister S. Jaipal Reddy said June 13. The refiners had a revenue loss of 450 billion rupees ($10 billion) in the first quarter from selling fuel below cost, Reddy said.
To contact the reporter on this story: Santanu Chakraborty in Mumbai at schakrabor11@bloomberg.net
To contact the editors responsible for this story: Darren Boey at dboey@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
India’s stock-index futures gained, signaling an advance in benchmark indexes, after Greek Prime Minister George Papandreou won a parliamentary confidence vote, moving the nation closer to avoiding a default on its debt.
SGX S&P CNX Nifty Index futures for June delivery climbed 40.5 points, or 0.8 percent, to 5,316 at 9:43 a.m. in Singapore. The futures are derived from the 50 stocks on the underlying S&P CNX Nifty Index on the National Stock Exchange of India, which rose 0.3 percent to 5,275.85 yesterday. The benchmark Bombay Stock Exchange Sensitive Index rose 0.3 percent to 17,560.30.
A total of 155 lawmakers supported the motion in the 300- seat parliament in Athens, bolstering Papandreou’s chances of pushing through austerity measures to secure international financial aid for Greece. The International Monetary Fund, contributor of a third of the bailout money for the nation, has warned EU leaders that a failure to take decisive action on the debt crisis risks triggering “large global spillovers.”
“The Greek prime minister winning his confidence vote has removed an uncertainty for markets, including India,” said Gavin Parry, managing director of Parry International Trading Ltd. in Hong Kong.
India’s benchmark stock index rebounded yesterday from the lowest close in four months amid speculation the recent decline was excessive and as investor concern over a possible Greek debt default eased. The MSCI Asia Pacific Index advanced for a second day today, rallying from the longest series of weekly losses in seven years.
‘Dead-Cat Bounce’
“Markets will see a dead-cat bounce on good news from Greece but it will not sustain in the long term,” Gaurang Shah, assistant vice president at Geojit BNP Paribas Financial Services Ltd. (GBNP), said yesterday.
The Sensex has lost 14 percent this year, the most among Asian benchmark indexes tracked by Bloomberg, on concern rising borrowing costs will hurt corporate profits. Sensex stocks are valued at 14.2 times estimated earnings, compared with 10.9 for the MSCI Emerging Markets Index.
Monsoon rain in India will be below normal for the second time in three years, the weather office said yesterday, potentially lowering farm output and accelerating inflation that is the fastest among Asia’s major economies, prompting the Reserve Bank of India to raise rates 10 times since March 2010.
“A weak monsoon will lead to a further spike in inflation, which is being driven by rising commodity and crude oil prices,” Shah said yesterday. “Policy reforms are not coming through, inflation refuses to come down.”
Rural Incomes
Prime Minister Manmohan Singh is relying on adequate rainfall to harvest record quantities of food grains and oilseeds for a second year and cool inflation. Agriculture makes up almost 14 percent of the economy and reduced farm production can also lower rural incomes, hurting sales of tractors and cars.
The government ruled out scrapping curbs on exports of wheat and rice as the world’s second-biggest producer preserves grains to supply food to consumers at below market prices and combat rising prices. A government report on June 14 showed that the wholesale-price index rose 9.06 percent in May from a year earlier, after an 8.66 percent jump in April. Food inflation data for the week ended June 11 is released tomorrow.
“We have seen food inflation cooling down all the way from 20 percent to 8 percent year-on-year and if rains disappoint then obviously that trend can reverse very quickly,” Anubhuti Sahay, a Mumbai-based economist at Standard Chartered Plc., said yesterday. Inadequate rainfall “is likely to damp rural demand, which in our view was extremely important in the overall economic activity” in the last fiscal year, she said.
Indian Oil Corp., the nation’s biggest refiner, may be active after Finance Director P.K. Goyal said the company plans to raise $500 million by selling dollar bonds next month.
The government plans to allow state-run refiners like Indian Oil to increase diesel tariffs. A panel of ministers will meet “shortly” to consider raising fuel costs, Oil Minister S. Jaipal Reddy said June 13. The refiners had a revenue loss of 450 billion rupees ($10 billion) in the first quarter from selling fuel below cost, Reddy said.
To contact the reporter on this story: Santanu Chakraborty in Mumbai at schakrabor11@bloomberg.net
To contact the editors responsible for this story: Darren Boey at dboey@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
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