New Delhi, November 2
The Indian economy is not likely to see a quick turnaround and growth rate is expected to revive modestly from the first half of next year, says a report by Goldman Sachs.

According to the research report by the investment banking major, economic activity levels remain weak in the country, particularly investment demand, as demonstrated by still "anemic" order inflows and project starts.

"Activity is likely at a trough, as easing financial conditions and liquidity suggest a modest upturn in the first half of2013," Goldman Sachs said.

Though there is still little sign of an improvement in the investment cycle, in the trajectory of inflation, or in the trade deficit, but in order to boost economic growth rate "continued" policy focus and an improvement in external conditions are necessary.

"While reforms have started well, and arguably reduced tail risks for the economy, they need to be sustained in order to lead to a more meaningful improvement in the business cycle," the report added.

The next session of Parliament is scheduled to begin on November 22 and would take into consideration a number of important reform bills like — the Land Bill, the Pension and Insurance Reform Bills, and the new Companies Act.

"If these are implemented, they would provide some impetus to an economy which needs more than just a good start to the reform process," the report added.

It said a less-than normal monsoon is also moderating consumption demand as demonstrated by weak auto sales, among others. "Therefore, we see activity remaining weak in 4Q2012," the report said.

Moreover, Goldman Sachs said inflationary pressures are likely to stay elevated in the near term. Further the twin deficits — fiscal and current account — are likely to be a little higher than expected.

"In the near term, a quick turnaround is unlikely and we think economic growth is likely to remain below trend", it said in its Asia Economics Analyst report, focussing on India.

Goldman Sachs has revised the Wholesale Price Index forecast to 7.9% from 7.2% for this fiscal year for the country. Besides, it has also scaled up the fiscal deficit target for FY13 at 5.6% of GDP (from 5.3% earlier), and the current account deficit at 3.7% of GDP (from 3.5% earlier).

With near-term inflation remaining above the Reserve Bank of India's comfort zone, the RBI is likely to push back the timing of the next rate cut from December to March, Goldman Sachs said adding the first quarter of 2013 is expected to witness a cumulative 50 bp cut. — PTI

New Delhi, November 2
In a bid to boost sagging sales, General Motors India on Friday launched its premium hatchback Chevrolet Sail U-VA. The car developed in and received very well in China, has been priced between Rs 4.44 lakh and Rs 6.62 lakh (ex-showroom, Delhi), which is lesser than market leader Swift from Maruti Suzuki.

While launching the car, General Motors India president & MD Lowell Paddock said: "The Sail U-VA is a strong edition to our small car portfolio. With the market preferring bigger cars in the compact segment, with the Sail U-VA we’re able to balance our presence in the segment along with the Beat".

The Sail U-VA will be available in both petrol and diesel options. While the petrol version will be powered by 1.2 litre engine, the diesel variant will have a 1.3 litre engine. The petrol option will be available in four variants between Rs 4.44 lakh and Rs 5.58 lakh and will be competing directly with Maruti Suzuki's Swift, Hyundai Motor India's i20 and the Ford Figo.

While the Swift is priced between Rs 4.47 lakh and Rs 5.72 lakh, the Hyundai i20 is tagged at Rs 4.74 lakh to Rs 6.66 lakh. The Ford Figo is priced between Rs 3.85 lakh and Rs 5.01 lakh..

In diesel, the Sail U-VA comes in three options priced between Rs 5.87 lakh and Rs 6.62 lakh. The Swift diesel is priced between Rs 5.57 lakh and Rs 6.82 lakh, while the i20 diesel is available in the Rs 5.97-6.98 lakh range.

New Delhi, November 2
The government is shortly coming out with a comprehensive plan to create a “roadmap for power generation, transmission and distribution 2022”, which will spell out the policy and implementation strategy to be followed in strengthening India’s power sector.

Stating this at the Confederation of Indian Industry conference on transmission and distribution held here on Friday, heavy industries department joint secretary Ambuj Sharma said the roadmap would be unveiled before the end of the year.

Intense consultations among the stakeholders were underway and 50 per cent of the state governments had already sent in their responses to the plan.

The focus of the plan, he said, would be on implementation. There will be specific steps for time bound completion of projects in generation and transmission and distribution , automation, import of equipment, which cannot be locally sourced and exports of equipment, where India has the competitive edge.

Another important plank of the policy would be skill development in various segments of the power sector in collaboration National Skill Development Corp.

Noting that India’s power sector was faced with myriad complex problems, Sharma said the 12th Plan envisaged a quantum jump in all segments of the power sector. The growth rate set at 10% would be sufficient to take care of the backlog of the past plans and to meet the unprecedented demand expected during the plan period, he added. 

Bangalore, November 2
Wipro, India's no. 3 software services provider, topped quarterly profit estimates and forecast modest growth, sending its shares up more than 3 percent and easing fears that global economic woes will curb outsourcing spending.

The Bangalore–based IT major, which has a market value of $16.5 billion, on Friday announced a net profit of Rs 1,611 crore for the second quarter of fiscal 2012-13), posting a 24% growth year-on-year and 2% sequentially. Wipro’s scrip rose 3.19% to close at Rs 372.95 on the BSE. On the NSE the stock gained 3.23% to Rs 372.95.

India's US $100 billion IT services sector has seen a sharp slowdown in growth in recent quarters as western clients hold back on spending amid Europe's economic struggles and sluggish corporate earnings growth in the United States.

Wipro, which has invested in sales and marketing to boost orders, posted better-than-expected margins and its revenue forecast for the current quarter met market estimates, a relief to investors worried that its growth has lagged rivals in recent quarters.

"Growth is slightly subdued in comparison with peers, but they are taking all the steps in the right directions," said ICICI Securities analyst Kuldeep Koul, who has an "add" rating on the stock.

Profit for the three months ended Septemberwas well above analysts' estimates of Rs 15.37 billion, according to Thomson Reuters I/B/E/S.

The company forecast IT services revenue for the three months ending December would rise 1.3-3.2% from the September quarter to US $1.56-$1.59 billion, in line with analysts' expectations of 1% to 4% growth.

Operating margins at its IT services business fell by a smaller-than-expected 30 basis points to 20.7 percent from the previous quarter.

"Margins coming down by not even 100 basis points is definitely a positive," said.

Chandigarh, November 2
A delegation of businessmen led by CII Chandigarh Council chairman, Sameer Goel called on newly appointed Railways Minister Pawan Kumar Bansal to apprise him of the issues and recommendations relating to his ministry for improving competitiveness of industry in the northern region.

Submitting a memorandum to Bansal, Goel urged him to expedite the upgrade of the Chandigarh railway station. He noted the Shatabdi Express was an important train for Chandigarh and adjoining areas, as it connects Chandigarh to the business fraternity globally through Delhi. He also requested Bansal to extend the eastern dedicated freight corridor up to Wagah to provide impetus to Amritsar and Jalandhar industry.

CII Chandigarh Council vice chairman Man Mohan Singh urged the minister to add a Shatabdi to New Delhi in the afternoon to reduce load from morning and evening trains. Express/superfast trains are also required to cities like Mumbai, Jaipur, Chennai, Bangalore and Hyderabad, he added.

Bansal was also urged to expedite work on the Nalagarh-Baddi-Pinjore-Kala Amb-Dehradun rail link.