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.
NEW DELHI, June 4 (Reuters) – There is little respite seen
for Indian equity 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.
“81 rupees?” asked an astonished TV anchor when an irate Bengaluru-based consumer called in after the recent 7.5-rupee hike in petrol prices. Perhaps cars that run on milk are now needed, the anchor suggested — when the caller said the dairy product costs around 30 rupees a litre.
While milk-powered automobiles might be a distant dream, the reality remains that those relying on petrol vehicles will now need to do their budgeting again. If a falling rupee and high inflation were not enough, this steepest-ever rise in petrol prices will surely pinch.
India is going through a rough patch. The common man knows it, foreign investors know it and so does our government.
Finance Minister Pranab Mukherjee, who is also one of the contenders for the post of president, has been trying his best to clear the air and restore the confidence to get the economy back on track.
Slowing growth, a falling rupee, sliding stock markets, a rising current account deficit, drying foreign inflows and policy paralysis at the centre. Things certainly don’t look rosy for India.
With the rupee down 22 percent in the last 10 months and a 6 percent drop in stock markets so far in May (as of Friday’s close), is it time for the government to seriously rethink its strategy ahead of the 2014 general elections?
NEW DELHI (Reuters) – Indian equity funds focusing on consumer goods and healthcare companies topped the performance charts in April, and the country’s struggling economy is set to drive more investors to the defensive sectors.
Growth in Asia’s third largest economy has been slowing, fiscal and trade deficits have widened sharply and the inability of the government to push key reforms such as cutting subsidies and opening up the economy have dented investor confidence.