MUMBAI/NEW DELHI, Oct 3 (Reuters) – Fund managers have
responded quickly to New Delhi’s economic reform drive, selling
expensive consumer stocks in favour of the construction-related
shares they expect to benefit most from new government
initiatives to bolster India’s sagging infrastructure, a Reuters
Fund managers are also increasing their allocations to
financial companies on expectations the central bank will lower
interest rates after India recently announced fiscal and
economic reforms, the survey found.
It wasn’t unexpected. After more than three long years of association with the UPA II coalition government, key ally Mamata Banerjee is taking her name off the lease, packing up her things and getting ready to move out. Whether she has taken Congress’ chances for holding power in India with her depends on how strong — and willing — the party’s other friends are.
This move, precipitated by her anger at urgent government moves to fix India’s economy, is a case of better late than never. There is no point being part of a coalition if you don’t like how it works or the decisions that it makes.
Sometimes the government does what it promises. India raised diesel prices by 5 rupees per litre on Thursday in a move guaranteed to alienate the common man, but please foreign investors, oil marketing companies and ratings agencies.
Opposition parties and key government ally Mamata Banerjee expressed their expected disappointment with the decision. The BJP called it a “cruel joke” and “mortal blow,” while West Bengal Chief Minister Banerjee planned a street rally on Saturday and said she was “shocked“.
Is Duvvuri Subbarao, governor of the Reserve Bank of India, considering an alternative career in stand-up comedy? In July, Subbarao tried to lighten the usually grey world of central banking with a self-deprecating wisecrack, linking rising prices and his receding hairline.
“I must admit that even at a personal level, I do not know how to interpret inflation. Twenty years ago when I had a thick mop of hair, I used to pay 25 rupees for a haircut … and now, when I have virtually no hair left, I am paying 150 rupees for a haircut,” he said at a conference.
NEW DELHI (Reuters) – India’s diversified stock funds posted their strongest gains in five months in June, reversing a bleak performance in May on improving global sentiment and domestic reform hopes, scoring big gains in the capital goods and financial sectors.
Fresh measures to ease the euro zone crisis, signs the government may revisit economic reforms and efforts to provide clarity on a tax proposal that had panicked foreign investors helped push the benchmark BSE Sensex up 7.5 percent in June to a near two-month closing high.
NEW DELHI, July 3 (Reuters) – India’s diversified stock
funds posted their strongest gains in five months in June,
reversing a bleak performance in May on improving global
sentiment and domestic reform hopes, scoring big gains in the
capital goods and financial sectors.
Fresh measures to ease the euro zone crisis, signs the
government may revisit economic reforms and efforts to provide
clarity on a tax proposal that had panicked foreign investors
helped push the benchmark BSE index up 7.5 percent in
June to a near two-month closing high.
However, the way the election process panned out might be the boost the Congress party needed ahead of the 2014 general elections, not only politically, but even for the economy.
‘Deferred’ — Excessive use of this word is something that India cannot afford at this stage. Amid economic turmoil, reforms are desperately needed to signal the government’s resolve to fix the current situation.
But in yet another postponement on Thursday, the cabinet deferred the pension reform bill which proposed to open the sector to foreign investors, after key ally Mamata Banerjee, chief minister of West Bengal and Trinamool party chief, opposed it.
Planning to buy a car? Seeing petrol prices head northwards, chances are high you would have changed your mind and now intend to buy a diesel-powered vehicle. That might be a smart move given the government’s reluctance to tinker with diesel prices in the face of stiff opposition. But there are plans afoot to deter you.
After considering raising diesel prices at one point, the government is now mulling a proposal of higher duty on diesel vehicles and even thinking of increasing diesel prices only for cars and sports utility vehicles (SUVs) — something that has been debated earlier.
NEW DELHI (Reuters) – There is little respite seen for equity mutual funds in the near term, with government inaction to tackle a sharp slowdown in domestic growth and a shaky global economy driving investors away from risky assets.
India’s diversified stock funds fell the most in six months in May, pulled down by banks and automobiles among others, and any chance for a rebound is unlikely after March-quarter gross domestic product growth fell to its slowest pace in nine years.