|
|
|
|
|
Business sentiment in Asia edges up, India loses steam
SAIL selloff on Friday; stock dives to year’s low
|
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Kingfisher employees demand Mallya’s prosecution, threaten to disrupt IPL
Govt says still able to pass reforms
|
|
Business sentiment in Asia edges up, India loses steam
Global economic uncertainty ranks as the chief business risk across all sectors and all countries, as it has for the past year and a half, and is mainly responsible for the cautious sentiment despite a flood of global liquidity benefiting most economies. The Thomson Reuters/INSEAD Asia Business Sentiment Index rose to 65 in March from 63 in December, when it edged up by 1 point from the September survey. A reading above 50 indicates an overall positive outlook. Business sentiment in Southeast Asia's $1.5 trillion economy was mostly optimistic, thanks to government-driven investment in infrastructure and robust domestic spending. Malaysia and the Philippines were the most positive with readings of 100 each. This was the second consecutive quarter of maximum scores for both countries. "I think the good news so far this year is just kind of consistency. We have continued to see modest upgrades to GDP forecasts for Malaysia, Philippines and to some extent, Indonesia," said Gary Dugan, chief investment officer for Asia and the Middle East at private bank Coutts. The availability of adequate funding is driving growth in Southeast Asia. "Domestic consumption across most ASEAN countries has been very robust and I think that's the key reason why the domestic businesses are confident," said Hozefa Topiwalla, ASEAN equity strategist at Morgan Stanley. Unlike in previous cycles when funding was a big constraint, there is no impact on funding for corporates, Topiwalla said. INDIA LOSES STEAM: Citing rising costs as the biggest hurdle, companies in India tempered their outlook to pull the index down to 80 from December's level of 100. EXPORT-RELIANT ECONOMIES CAUTIOUS: Companies in China, Japan and South Korea were the least positive, with index readings of 50. The result from China was a steep drop from the 64 recorded in the fourth quarter of 2012. The troubles facing major consumers such as Europe and the United States have hit export-reliant economies, with South Korean exports falling sharply last month. Across the Asia-Pacific region, rising costs were the second greatest business risk, ahead of regulatory uncertainty, political instability and foreign exchange volatility. The index for financials rose to the highest in a year, with four firms reporting a positive outlook and none a negative view. Sentiment among property companies brightened, and firms in the resources sector were also optimistic. The survey polled 100 executives in 11 Asia-Pacific economies from companies including Hyundai Heavy Industries, Toshiba Corp and PT Bumi Resources. Of the 93 that replied, nearly 69% reported a neutral outlook, about 30% were positive and 1% reported a negative outlook. The poll was conducted by Thomson Reuters in association with INSEAD, a global management and business school, between March 4 and March 15.
— Reuters BSE Sensex ends below 19,000 level over growth concerns The BSE benchmark Sensex today closed below 19,000 level for the first time in three weeks, falling by 124 points amid concerns that withdrawal of support to the government by the DMK may jeopardize the pace of economic reforms. The Sensex closed 123.91 points lower, or 0.65%, to 18,884.19, a level seen on March 1. The index had lost over 562 points in last three sessions. Similarly, the broadbased NSE index Nifty fell below 5,700 level, by losing 51.55 points, or 0.90%, to 5,694.40. Brokers said the market sentiment turned bearish after the DMK withdrew support to the Congress party-led UPA government and raised fears of halt in the ongoing economic reforms. They said the investor confidence also dampened as the RBI had on Tuesday, while cutting short-term lending rate, said that there is limited room for further monetary easing. — PTI, Mumbai
|
||
|
SAIL selloff on Friday; stock dives to year’s low
New Delhi, March 20 In early trade today, the SAIL scrip touched a year-low at Rs 64.05 on the BSE. It was later trading at Rs 65.80, up 0.53% on the BSE. At the current market price, a 10.82% stake sale could fetch the government around Rs 2,500 crore. Disinvestment Secretary Ravi Mathur later told reporters that the SAIL OFS (offer for sale) had been approved by the EGoM. “The issue will hit the market on March 22." He added details of the stake sale would be provided to the stock exchanges later in the day. The share sale is part of the government's divestment drive to help restrict the fiscal deficit to 5.2% in the year ending March 31. The government has raised over 22,000 crore through the sale of shares in state-owned companies so far this fiscal year. In the current financial year, the government has diluted its stake in NTPC (Rs 11,500 crore), Oil India (Rs 3,100 crore), NMDC (Rs 6,000 crore), Hindustan Copper (R800 crore), NBCC (Rs 125 crore), RCF (Rs 310 crore), and Nalco (Rs 630 crore). With the stake sale in SAIL, the government might be able to accumulate about Rs 24,000 crore from disinvestments in the PSUs. Reliance block okayed for oil, gas output In its first decision, the Cabinet Committee on Investment on Tuesday cleared Reliance Industries’ producing KG-D6 block and gas discovery area NEC-25 along with three other areas where the defence ministry had either barred oil and gas activity or put stringent conditions on that. In all, eight blocks including RIL’s Krishna Godavari basin KG-D6 block and gas discovery area of NEC-25 in the northeast coastal region, were declared “no-go” zones. Stringent conditions were put for another 31 exploration areas.
|
||
|
Kingfisher employees demand Mallya’s prosecution, threaten to disrupt IPL
New Delhi, March 20 "If Gopal Kanda, promoter of MDLR Airlines, can be prosecuted for the suicide of an employee, why can't the government prosecute Vijay Mallya for the suicide of family members of his employees?" asked Santosh Gautam, president of the Kingfisher Airlines Maintenance Association. They also threatened to disrupt IPL matches of the Royal Challenger Bangalore (RCB), the team owned by Mallya. "Last time, when the Formula 1 race was being organized here, the KFA management, afraid of our protests, paid a month’s salary and assured to pay the dues in installments, but they have failed to keep their promises. This time, we’ll protest wherever the RCB team plays their matches," said S.C. Mishra, another employee. The protesting employees have urged RCB players to boycott Mallya's team. They have also asked the Board of Control for Cricket in India not to allow RCB to participate in the upcoming IPL. The employees asked the government to amend labour laws making nonpayment of salaries a criminal offence and said "the Supreme Court should take suo motu cognizance of our matter in specific and in general for overall reforms required for the benefit of working class." Questioning Mallya's intention to run the airlines, the employees said, "Enough is enough. We want a clear reply from him whether he wants to run the airlines or wants to close it down. If you want to close it, then please pay our dues. Our patience now has run out and we would go to any extent to get justice," said a Kingfisher employee, who did not want to be named.
— PTI |
||
|
Govt says still able to pass reforms
New Delhi, March 20 The withdrawal of the DMK has rattled markets, who are worried that it has left Prime Minister Manmohan Singh unable to pass reforms needed to turn around the country's worst economic slowdown in a decade. The government is looking to pass a slew of bills in the current session of parliament to restore investor confidence and stave off a ratings downgrade, including opening India's insurance and pension sectors to foreign investors, and making land acquisition easier for industry. News of the DMK's withdrawal sent shares down to their lowest levels in more than two weeks. Finance Minister P. Chidambaram, speaking at the news conference in New Delhi, said the government would have enough support in parliament to pass legislation. "I am sure on the merits of reform bills, political parties will support the government," he said, adding that the pullout would not affect the government's ability to cut the fiscal deficit. In the FY2014 budget, Chidambaram had said India's fiscal deficit would fall to 5.2% of GDP in the current 2012-13 fiscal year that ends on March 31, and 4.8% in the next year, targets intended to help stave off a sovereign credit rating downgrade to "junk" status.
— Reuters |
||
|
| HOME PAGE | |
Punjab | Haryana | Jammu & Kashmir |
Himachal Pradesh | Regional Briefs |
Nation | Opinions | | Business | Sports | World | Letters | Chandigarh | Ludhiana | Delhi | | Calendar | Weather | Archive | Subscribe | E-mail | |
Singapore/Mumbai, March 20