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India
decides 2014
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New govt’s action, agenda to determine rating: S&P
Adani buys Dhamra Port for Rs 5,500 cr
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Verdict to spur growth: India Inc
Terms decisive mandate for BJP is welcome sign, seeks bold reforms, stable policy network Sanjeev Sharma Tribune News Service
New Delhi, May 16 The CII complimented the BJP on its strong performance in the General Election. “The outcome of the election reaffirms India’s vibrant and dynamic democracy and will have a major role in reviving growth and investors’ sentiments,” said Ajay Shriram, president, CII. The industry hopes that the mandate will trigger growth and employment. “Ficci hopes that this mandate will help the leadership restore much-needed investors’confidence, attract higher investments and generate employment, especially in the manufacturing sector,” said Sidharth Birla, president, Ficci. Birla said the nation awaits an era of minimum government and maximum governance. “The industry must be seen as a key factor in the nation's advancement by enabling an efficient provision for goods and services and creation of jobs,” he said. Rana Kapoor, president, Assocham, said, “Sentiments are extremely positive, the new government now must take all measures towards securing economic, social and national mandates for the nation.” India's growth story will depend on inclusive job creation, and income and wealth creation models, he said. Prathap C Reddy, chairman, Apollo Hospitals Group, said the people were looking for an accelerated pace of change and had huge expectations from the new leadership. Industry captains say the mandate is for action and good governance. Harsh Pati Singhania, director, JK Organisation, said, “The historic mandate given to the BJP is the mandate for action. It clearly signals the nation’s desire for good governance and development.” Singhania said the focus must be on improving Indian business’ competitiveness, especially in the manufacturing sector and making India an easier place to do business in. The formation of the new government may also revive consumer sentiments and sales. P Balendran, vice-president, General Motors India, said, “Customer sentiments are expected to improve in the medium to long-term period with a new government at the Centre. We expect the excise duty cuts to be retained in the June's Budget and interest rates to fall or remain at current levels for any chance of the recovery for the automobile sector during the second half of the year.” The big mandate is being seen as one that will provide political and economic stability. GVK Reddy, founder chairman and managing director, GVK Group, says the people's confidence and the mandate for stability have ensured that there will be economical and political stability in the times to come. “We are confident that with a strong mandate, the new government will do well and implement economic policies that will benefit the country’s people and its industry," he added. The real estate industry is looking for policies that boost demand. P Sahel, vice-chairman, Lotus Greens Developers, says the Indian real estate industry awaits a robust government, which will make the market viable for sellers and buyers. The industry has been advocating for a single window clearance system, transparency in government proceedings and reduced cost of borrowing from banks for many years. ‘Govt with clear mandate will reduce uncertainty’ With the BJP-led NDA scoring a landslide victory in the elections, rating agency Fitch today said a government with a clear mandate would reduce uncertainty and take decisive policy actions to address economic challenges. “A government with a clear mandate reduces uncertainty and increases chances of decisive policy action to address the economic challenges that India faces. We will see whether the new government takes those chances,” Fitch said. The rating agency further said the new government should focus on bringing growth back to higher sustainable levels, which would require a strong pick-up in investments. Outlining the steps to strengthen investment climate, Fitch said a clear strategy for fiscal consolidation, enhancing fiscal credibility and creation of a low-inflation environment would be essential to restore confidence. Further, a new structural reform push that could include reforms related to governance, infrastructure bottlenecks and reduction of red tape would also be key issues which need to be looked upon, it said. — PTI
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D-Street welcomes Modi with 216-point salute
New Delhi, May 16 The BJP’s victory today lifted the rupee to an 11-month closing high of 58.79 against the US dollar, adding 50 paise in the third straight day of gains as exporters sold the US currency. In the initial phase, the market vaulted past the 25,000-mark but sold off later to close at a record 24,121 points, a gain of 216.14 points. The 30-share bluechip index, which had gained over 1,560 points in the previous five sessions, surged 1,470 points to hit a new life-time high of 25,375 points in early trade, fuelled by hopes that the BJP government would fast-track reforms and accelerate economic activity. In terms of market capitalisation, investor wealth rose by Rs 1 lakh crore to end at Rs 80.64 lakh crore. The 50-scrip Nifty of the NSE also crossed the 7,500-mark for the first time in history to a high of 7,563 points, up 440 points or 6.18 per cent. However, like Sensex, it came down at the fag-end to settle at 7,203 and showed a rise of 79 points or 1.12 per cent. Ashishkumar Chauhan, MD & CEO, BSE, congratulated the investors as the Sensex crossed the 25,000 milestone for the first time in the history of Indian stock markets today. He said the regulators and exchanges had been coordinating over last few weeks to ensure smooth functioning of the markets on the counting day. Amar Ambani, Head of Research, IIFL, said, "India has seen the strongest election mandate in 30 years since the era of single party governments. A near perfect marketing campaign by the BJP, a pro-development perception about Modi, combined with a potent anti-incumbency and slow GDP growth, soaring price levels and corruption charges against the UPA, have put the BJP decisively in the driver's seat." Nilesh Sathe, CEO, LIC Nomura MF, said the robust inflow of foreign capital could be expected, the rupee would become stronger, current account deficit (CAD) to go down, double digit growth in GDP, softening of interest rates ,reduction in inflationary pressure and thereby cheaper money being made available to the small medium enterprises and industrial sector for expansion of their business. Anup Bagchi, MD & CEO, ICICI Securities, says a strong tally guarantees flexibility, agility and relative ease of decision making to a reasonable extent. Adani Group stocks on a roll
Stocks of three listed firms of Gujarat-based Adani Group on Friday ended as much as 6% higher on the clear mandate given by voters to the BJP-led NDA. Adani Enterprises’ stock that gained 16.87% to ~585 -- its 52-week high in intra-day trade, finally ended at ~530.90, up 6.06% at the BSE. |
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New govt’s action, agenda to determine rating: S&P
New Delhi, May 16 It said the National Democratic Alliance (NDA), led by the Bharatiya Janata Party (BJP), had won the lower house of Parliament with a wider margin than expected and it indicated that it would have a reasonably good political platform to tackle structural issues. “What the next government says and does in the coming months is crucial to boosting confidence in the policy settings and the economy,” said Standard & Poor's credit analyst Takahira Ogawa.
“If confidence rises, investment and consumption in India could strengthen, after being held back by the uncertainty surrounding the election.” However, S&P said the government would face hurdles in sustaining growth in the medium to long term. The hurdles include reviving investors’ confidence, managing fiscal consolidation, regaining fiscal prudence, improving the current account balance, and boosting the banking sector's financial strength. The agency says investments, particularly in infrastructure and the mineral resources sector, face slow approval processes at the central and state government levels. This has reduced economic growth potential. "In our view, the challenge for the next government is to regain fiscal prudence in a sustainable way," it said. The implementation of a goods and services tax could help stabilise government revenues, while potentially improving the country's growth prospects, by promoting inter-state transactions, and general efficiency of the economy. "If the next government fails to lift confidence, its task of turning the economy around will get heavier," Ogawa said. Five challenges for new govt
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Adani buys Dhamra Port for Rs 5,500 cr
New Delhi, May 16 An equal joint venture between L&T IDPL and Tata Steel— Dhamra Port Company Ltd (DPCL) — was commissioned in May 2011 with an 18-km approach channel and a dedicated 62.7-km rail link to Bhadrak. The port handled 14.3 million tonnes of cargo in the previous financial year. The operator (DPCL) had been awarded a concession by the Odisha Government to build and operate the port on the Dhamra river in Bhadrak district for 34 years, including four years for construction. The concession period may be extended by two additional terms of 10 years each. The first phase of construction, at an investment of Rs 3,200 crore, was started in March 2007.
— PTI |
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