The Indian economy is expected to grow by 9.2 percent in 2010-11 following impressive growth in the manufacturing and services sectors, Centre for Monitoring Indian Economy (CMIE) said here.
"We maintain that the Indian economy will grow by 9.2 percent in 2010-11, as we expect impressive growth in the manufacturing and services sectors as well," CMIE said in a statement.
The Index of Industrial Production (IIP) dropped dramatically to 5.6 percent in August, after growing by 13.8 percent in July. It had recorded a growth of 11.2 percent in the June quarter, but we believe that the growth was much higher than 11.2 percent, CMIE said.
This is because sales revenues of the manufacturing companies rose by 23.8 percent, while the rate of inflation in manufactured products (including petroleum products) was 8.2 percent, implying that sales volumes grew by about 14.4 percent.
The IIP has a very old base year (1993-94), outdated weights and a fixed frame of products and companies, and had miscalculated industrial growth for the preceding two years (2008-09 and 2009-10) as well. It is therefore imperative that the index is corrected at the earliest to enable meaningful analysis, CMIE said.
In August, the rate of inflation touched a six-month low of 8.5 percent. It was calculated as per the new series released on 14 September with 2004-05 as the base year. A moderation in the prices of primary food articles, manufactured food products and paper & paper products helped keep inflation in check.
We expect WPI-based inflation to moderate to 7.9 percent in 2010-11, as compared to our earlier projection of 8.5 percent based on the old series, it said.
CMIE expects that the agricultural production to grow by 7.2 percent pc in 2010-11.
The withdrawal of the southwest monsoon has been delayed this year, and the plentiful rain across large parts of the country has encouraged farmers to bring more land under cultivation.
As of October 7, kharif sowing was completed across 1,022 lakh hectares, which was 64 lakh hectares more than the acreage reported in the corresponding period of 2009.
Cumulative rainfall for the season (June-September) is 102 percent of the long period average, according to the India Meteorological Department's end-of-season report.
Agricultural production is therefore expected to grow by a healthy 7.2 percent in 2010-11, after recording a 6.6 percent decline in the preceding fiscal, CMIE said.
Showing posts with label india growth story. Show all posts
Showing posts with label india growth story. Show all posts
Thursday, October 14, 2010
Tuesday, September 21, 2010
Sensex scales 20K peak after 32 months; FIIs fuel rally
Upbeat foreign investors Tuesday pushed the stock market benchmark Sensex above the 20,000 points-mark for the first time in 32 months, as they bet on companies that are driving the India growth story.
The barometer closed 95.45 points, or 0.48 percent, up at 20,001.55 - its best closing since January 15, 2008, when the index ended at 20,251.09 points.
Similarly, the 50-share National Stock Exchange benchmark Nifty breached the psychological 6,000 mark and ended at 6,009.05, up 28.6 points, or 0.48 percent.
Some brokers, however, feel that a short-term correction may be round the corner, but would nonetheless provide good investment opportunities.
Happy with the market milestone, Finance Minister Pranab Mukherjee told reporters in New Delhi: "We all know that the Sensex is always a little bit unpredictable. (But) I am happy that for the first time after January 2008, it has crossed 20,000."
Analysts said the rally in Indian market is propelled by strong inflows from overseas fund houses, which have made a net investment of over Rs 71,000 crore in local stocks so far in this year.
"Sensex gushing past 20,000 mark, stands testimony to the attractiveness of India as a preferred investment destination.
With Indian economy structurally well placed for an 8 to 9 percent GDP growth over a long period, domestic equities are in a structural bull run," Angel Broking CMD Dinesh Thakkar said.
Tuesday's close marked the third straight session of gains.
Significantly, the Sensex has completed its journey from 17,971 points on August 31 to 20,000 in just 15 trading days.
Tuesday's gain was fuelled by a smart gain in blue-chips like L&T, HDFC, HDFC Bank, TCS, Infosys and BHEL.
Infosys rose 0.9 percent, TCS 2.5 per cent and Wipro 2.7 percent. Equity analysts said IT stocks rose after IBM Corp announced a USD 1.7 billion takeover.
L&T zoomed 2 percent, Cipla 1.92 per cent and BHEL 1.73 percent. With a net gain of 2.93 percent, Tata Power was the best performer in the Sensex pack.
In the BSE-30 pack, 16 stocks ended with gain, while rest 14 closed in the red.
Even in the broader market, 2,123 stocks declined against 883 advances.
Reliance Industries Ltd, which holds the maximum weight in the Sensex, acted as a drag, closing 0.60 percent lower at Rs 1,033.5.
ITC plunged 2.58 percent and led the losers' pack. Other major losers include Jaiprakash Associates 1.52 percent, DLF 1.38 per cent and Hindalco 1.22 percent.
Asian stocks rose after US homebuilder Lennar Corp posted better-than-estimated profit, boosting optimism in the economic recovery worldwide.
US stocks advanced on Monday, sending the S&P 500 Index to a four-month high on Lennar Corp's profit forecasts and IBM Corp announcing a USD 1.7 billion takeover.
The barometer closed 95.45 points, or 0.48 percent, up at 20,001.55 - its best closing since January 15, 2008, when the index ended at 20,251.09 points.
Similarly, the 50-share National Stock Exchange benchmark Nifty breached the psychological 6,000 mark and ended at 6,009.05, up 28.6 points, or 0.48 percent.
Some brokers, however, feel that a short-term correction may be round the corner, but would nonetheless provide good investment opportunities.
Happy with the market milestone, Finance Minister Pranab Mukherjee told reporters in New Delhi: "We all know that the Sensex is always a little bit unpredictable. (But) I am happy that for the first time after January 2008, it has crossed 20,000."
Analysts said the rally in Indian market is propelled by strong inflows from overseas fund houses, which have made a net investment of over Rs 71,000 crore in local stocks so far in this year.
"Sensex gushing past 20,000 mark, stands testimony to the attractiveness of India as a preferred investment destination.
With Indian economy structurally well placed for an 8 to 9 percent GDP growth over a long period, domestic equities are in a structural bull run," Angel Broking CMD Dinesh Thakkar said.
Tuesday's close marked the third straight session of gains.
Significantly, the Sensex has completed its journey from 17,971 points on August 31 to 20,000 in just 15 trading days.
Tuesday's gain was fuelled by a smart gain in blue-chips like L&T, HDFC, HDFC Bank, TCS, Infosys and BHEL.
Infosys rose 0.9 percent, TCS 2.5 per cent and Wipro 2.7 percent. Equity analysts said IT stocks rose after IBM Corp announced a USD 1.7 billion takeover.
L&T zoomed 2 percent, Cipla 1.92 per cent and BHEL 1.73 percent. With a net gain of 2.93 percent, Tata Power was the best performer in the Sensex pack.
In the BSE-30 pack, 16 stocks ended with gain, while rest 14 closed in the red.
Even in the broader market, 2,123 stocks declined against 883 advances.
Reliance Industries Ltd, which holds the maximum weight in the Sensex, acted as a drag, closing 0.60 percent lower at Rs 1,033.5.
ITC plunged 2.58 percent and led the losers' pack. Other major losers include Jaiprakash Associates 1.52 percent, DLF 1.38 per cent and Hindalco 1.22 percent.
Asian stocks rose after US homebuilder Lennar Corp posted better-than-estimated profit, boosting optimism in the economic recovery worldwide.
US stocks advanced on Monday, sending the S&P 500 Index to a four-month high on Lennar Corp's profit forecasts and IBM Corp announcing a USD 1.7 billion takeover.
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