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Wednesday,
December 19, 2001, Chandigarh, India
  
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India’s growth projected at 4.8 pc ANALYST’S DIARY PNB Gilts
to market govt securities to corporates Why Indian spirits do not soar? |
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HSIDC allotment camps
Haryana delivers 4 lakh tonne
rice to FCI
Ballarpur Ind gets award
LIC to
link 1500 branches
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India’s growth projected at 4.8 pc New Delhi, December 18 According to a Morgan Stanley projection, Indian economy will grow at 4.8 per cent this year as compared to China’s 7.4 per cent. The Asian Tigers like Hong Kong, Korea, Malaysia and Singapore, which had posted over 8 per cent growth last year, will fall way behind India’s growth during 2001-02, the global financial powerhouse said. “India’s growth projections was pegged down by 1 per cent after September 11 incidents to 4.8 per cent during January-December this year and 5.3 per cent this fiscal,” JM Morgan Stanley Securities Vice-President Chetan Ahya told reporters on the sidelines of a FICCI seminar. The Indian economy was likely to grow at 5.2 per cent in 2002 and 5.4 per cent next fiscal. The growth rate of over 5 per cent is on the assumption that the services sector will grow by 7.7 per cent while manufacturing, construction and electricity by 5.5 per cent and agriculture by 2.7 per cent. “India’s fiscal deficit is likely to be marginally higher at 5.1 per cent as against budgeted 4.7 per cent,” Ahya said, adding the overall deficit of the Centre and states was likely to be 9.3 per cent. Diluting fears of a higher deficit, he said tax shortfall would be compensated by lower expenditure, as it was done in the last fiscal. Morgan Stanley said India’s inflation rate based on consumer price index would be lower at 3.6 per cent this year and 4 per cent in 2002 as against 4.2 per cent in 2000. The investment banking major also expects the average bank rate to be at 6.9 per cent next year and decline to 6.2 per cent in 2003. India is likely to end the year with current account deficit, measured in terms of difference between exports and imports, of 1.1 per cent of GDP and is likely to go up further to 1.3 per cent in 2002 as against 1.1 per cent last year. India is perhaps the only Asian nation which will have a current account deficit. India’s exchange rate is, however, likely to stabilise at Rs 49 a dollar this year and go up marginally to Rs 51.20 a dollar in 2002, Morgan Stanley said. |
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ICRA pegs at 5 pc ICRA today projected a lower 5 per cent growth in GDP for this financial year and said the Centre’s fiscal deficit was likely to be 0.3 per cent higher at rs 1,23,910 crore. “Clearly with half of the financial year behind us and no wild expectations of 7-8 per cent growth in second half, the law of averages makes for the relevant number being one at the bottom of the range, that is, around 5 per cent,” ICRA said in its latest report ‘Money & Finance’. ICRA’s growth projections fall short of the RBI’s estimates of 5-6 per cent after the September 11 incidents in the USA as against an earlier estimate of 6-6.5 per cent. The Centre’s fiscal deficit was likely to be at Rs 1,23,910 crore or 5 per cent of GDP, as against the Budget target of 4.7 per cent. The higher fiscal deficit was on account of Rs 18,250 crore shortfall in tax collections this fiscal even as expenditures are expected to shrink by Rs 25,000 crore, according to
ICRA. Net tax revenue was pegged at Rs 1,44,775 crore this fiscal as against the budgeted Rs 1,63,031 crore while total revenue collections were pegged down to Rs 2,06,149 crore as against the target of Rs 2,31,745 crore. Total expenditure is likely to be Rs 3,35,059 crore as against the budgeted Rs 3,60,059 crore, it added. Primary deficit is estimated at a much higher amount of Rs 23,910 crore as against the budgeted Rs 4,014 crore this fiscal, ICRA said.
PTI |
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ANALYST’S DIARY TILL around a month ago, investors, and more specifically, fund managers, were hesitant to touch technology stocks. But going by the buoyancy the markets displayed over the past fortnight, software is back in the reckoning. The software sector has been on the receiving end owing to inflated valuations during the tech bubble. The economic downturn in the US sent investors scurrying from the tech sector. The September 11 events were the final straw, or so it seemed at that point of time. However, it is said there is light at the end of every tunnel. That is why we, at Team Lotus, decided it was time for our investor clients to return to equities. In fact, we continue to indicate good trading opportunities in our daily investment newsletter “Lotus Stock Flash.” Among the stocks we had recommended during the dark days of September, purely as a momentum play included Zee TV at Rs. 87 and GTL at Rs. 74. Our long term pick at the Rs. 85 level was Aventis Crop Science. The sensational returns hitherto at these counters have vindicated the faith our clients place in us to unerringly call the markets right, time and again. Now, if the secondary market has begun to show strong signals of a revival, is it any wonder that the primary market route, too, will be rediscovered? Kicking off this time around will be the public issue of South Asian Petrochem Limited, which is scheduled to enter the market on December 20 with an FCD cum equity offering. In the meanwhile SEBI has operationalised the book building route for public issues. Under the norms, 60 per cent of the issue will be reserved for institutional investors and 15 per cent for non-institutional investors applying for more than 1,000 shares. The remaining 25 per cent will be allotted to small investors on pro rata basis. Companies making initial public offering would have to open bidding centres in every city that has a stock exchange. Margins will be uniform and a floor price would have to be indicated at the end of each day of bidding. One can expect the one time bidding for IPOs to save costs for the issuers as compared to the earlier norms involving separate book building and market issue parts. Uniform margining and the indication of a floor price at the end of each day of bidding could boost confidence. With these changes, the institutional investors will value the issues and drive demand among retail investors. But the moot question here is — are institutional investors necessarily better than retail investors? Some of their track records sadly suggest otherwise. |
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PNB Gilts to market govt securities to corporates Chandigarh, December 18 We will distribute government securities through 26 branches of Punjab National Bank spread over 16 cities across the country . The Sector-17 branch of the bank and another branch in Ludhiana will distribute the G-secs in Punjab and Haryana, said he. Talking about the company’s performance, Mr Amit Aggarwal, Assitrant Vice-President, PNB Gilts said, “Being one of the most aggressive dealers in government securities, our total turnover for the first six months of this financial year was more than Rs 50,000 crore and the company recorded a profit of Rs 45.59 crore”. The company is endeavouring to expand its client base from banks and financial institutions to co-operative banks, regional rural banks, provident funds and pension trusts and corporates. “The company is a trader in the government securities market and deals in products like dated government securities, treasury bills, state and Central Government bonds, purchase of government securities issued by the Reserve Bank of India and bonds issued by public sector undertakings”, he said Stating that the falling interest rates have contributed to the growth of this industry, Mr Sharma said, “declining interest rates, which are likely to come down even further , and increase in the number of participants in the debt market have thrown up better opportunities for this industry”. |
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Why Indian spirits do not soar? New Delhi, December 18 They claim to produce one of the best whiskies in the world, but say a host on non-tariff barriers in Europe and the USA are restricting their exports on the one hand, while high duties and production ceilings are proving to be a limitation on the domestic front. Even as importers are crying hoarse for reduction in import duties for higher consumption, Indian “whisky” cannot be exported to the European Union, the USA and Canada simply because it is made of molasses and not a cereal grain. Thus Indian alcoholic beverages that generally originate from molasses are not being sold in the Western world, as they are not categorised as “whisky” but as “other spirits” which attract very high duty and are thus uncompetitive. Mr L. N. Batra, General Secretary of the All-India Distillers Association (AIDA), says the European Union adopted this move in the wake of popularity of Indian brands that had threatened their domestic products a couple of years ago.
PTI |
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HSIDC allotment camps Panchkula, December 18 With most of the industrial estates developed by
HSIDC, failing to attract entrepreneurs for setting up their businesses, the officials have now decided on aggressive marketing strategies by means of organising instant allotment camps for these industrial estates. According to information available, such camps will be held in industrial estates of Barhi in Sonepat district and Bawal in district Rewari during the beginning of next year. This follows the success achieved by the authorities in a similar camp organised in its industrial estate of Manakpur in district Yamunanagar. Mr Jeevan Bhardwaj, Additional General Manager of HSIDC informed that the camp in Manakpur was held last month. “As many as 40 plots were sold off to allotees during this day long camp, as compared to a meagre 21 plots being allotted during the past three years.” It may be noted that Manakpur Industrial Estate was developed about five years ago. But because of the government policy of selling these plots only after developing the industrial estate and providing all infrastructure, the rates of the plots soared and there were no takers. Another reason for the success of this instant allotment camp was the fact that price of the plots was 20 per cent less than the original price. “With the momentum having finally picked up, we are planning to hold another camp in Manakpur,” informed Mr. Bhardwaj. It is learnt that a camp in Barhi will be held on January 2002. This industrial estate was conceived as an instant sell out by HSIDC when it was developed few years ago. Entrepreneurs from Delhi and Panipat, engaged in handloom and textile business, had been interested in the site, which houses the Textile and Handloom Park. But for a policy decision of HSIDC of not allowing the digging of individual tubewells. HSIDC is also planning to a similar marketing strategy for Bawal, where the instant allotment camp will be held in February. A senior official informed that they were now scouting MNC’s and other Indian concerns for setting- up shop in this industrial estate. However, he confessed that they were unable to do anything about the Integrated Infrastructure Development Centre at Sirsa. "With the ginning industry in this cotton growing belt facing a closure because of poor cotton crop for consecutive years, this industrial estate has not picked up.” |
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Haryana delivers 4 lakh tonne rice to FCI Chandigarh, December 18 While stating this here today, a spokesman of the Food and Supplies Department said out of this, more than 1.60 lakh tonnes of levy rice had been contributed by millers, over 95,000 tonnes by
Hafed, 68,188 tonnes by the Food and Supplies Department, 27,918 tonnes by the Haryana Warehousing Corporation, 28, 449 tonnes by the Haryana Agro Industries Corporation and 23,876 tonnes by
Confed. Over 31.72 lakh tonnes of paddy had arrived in the mandis of Haryana till yesterday as against 30.14 lakh tonnes during the corresponding period last year. |
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Ballarpur Ind gets award Yamuna Nagar, December 18 Mr Suresh Prabhu, Union Minister of Power, gave away the awards on Energy Conservation day at New Delhi on December 14 Mr S.C. Paruthi, Vice President (Operations) and Mr Neehar Aggarwal, Chief General Manager of the unit received the award. |
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Ford Mondeo launched Ludhiana, December 18 He further said the fully imported car would be available in 13 cities including Delhi, Kolkata, Bangalore and Hyderabad through a network of 20 dealers. |
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Hafed oil
Chandigarh, December 18 |
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Stonesoft Ebony Monte Carlo Joshi Autozone GNFC Barista |
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