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India’s industrial output lowers in June

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Manufacturing sector

New Delhi, Aug 11 : A decline in the manufacturing sector brought down India’s factory output in June, official data showed on Friday.

The factory output, as per the new Index of Industrial Production (IIP) with revised base year of 2011-12, declined by (-)0.1 per cent during June from a rise of 2.80 per cent reported for May, 2017.

The factory output had expanded by eight per cent in the corresponding month of the previous year.

On a year-to-date basis, the output rose by 2 per cent during April-June, 2017.

As per the IIP data released by the Central Statistics Office (CSO), last month’s contraction was mainly on account of a (-)0.4 per cent deceleration in manufacturing output, which has the maximum weight in the overall index.

Besides manufacturing, the output of other two major sub-indices — mining and electricity — slowed during the month under review.

The mining output inched-up by 0.4 per cent and that for electricity generation edged higher by 2.1 per cent.

Among the six use-based classification groups, the output of primary goods contracted by (-) 0.2 per cent, (-) 0.6 per cent in intermediate goods, consumer durables declined by (-) 2.1 per cent and capital goods’ was lower by (-) 6.8 per cent.

In contrast, the output of consumer non-durables edge-higher by 4.9 per cent and 0.6 percent in infrastructure or construction goods.

“In terms of industries, fifteen out of the twenty three industry groups in the manufacturing sector have shown negative growth during the month of June 2017 as compared to the corresponding month of the previous year,” the “Quick Estimates of IIP” for the month of June 2017 said.

“The industry group ‘manufacture of electrical equipment’ has shown the highest negative growth of (-) 20.1 percent… On the other hand, the industry group ‘other manufacturing’ has shown the highest positive growth of 28.1 per cent.”

India Inc expressed grave concern over the fall in manufacturing sector’s output and urged for more reforms.

Commenting on the IIP data for June, A. Didar Singh, Secretary General, Ficci said: “The fall in manufacturing which is more broadbased this time is a cause for concern and underlines the need for more reforms especially at the state level. This is important to improve the investment climate further.”

“Besides reforms at the state level, we need to ensure faster development of our infrastructure which is a major enabler of growth and instrumental in reducing the cost of doing business in the country to make our manufacturing competitive.”

Another key industry body Assocham said that latest estimates of IIP point to negative sign towards the growth cycle of industrial activity.

“Considering the need for creating conducive environment for investments, capacity utilisation and augmentation of industrial production on priority basis the Government of India must initiate more effective short term revival measures,” said D.S. Rawat, Secretary General, Assocham.

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Key Indian equity indices open flat

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SENSEX-

Mumbai, June 18: The key Indian equity indices on Monday opened on a flat note.

The 30-scrip Sensitive Index (Sensex), was trading 17.56 points or 0.05 per cent lower soon after opening.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) was also trading 7.60 points or 0.07 per cent lower at 10,810.10 points.

The Sensex of the BSE, which opened atA35,698.43 points, was trading at 35,604.58 points (at 9.19 a.m.), lower 17.56 points or 0.05 per cent from the previous day’s close at 35,622.14 points.

The Sensex touched a high of 35,721.55 points and a low of 35,585.73 points in the trade so far.

IANS

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Market Review: Higher industrial output, Kim-Trump meet lift equity indices

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Sensex Nifty Equity

Mumbai, June 16: Healthy industrial production data and an encouraging geo-political scenario aided the key Indian equity indices to rise for the fourth consecutive week.

The gains in the week ended Friday, however, were limited by a number of global factors including the interest rate hike in the US, and US President Donald Trump’s approval to tariffs on $50 billion of Chinese exports.

Additionally, domestic factors such as a rise in retail and wholesale inflation also arrested the gains.

Index-wise, the barometer 30-scrip Sensitive Index (Sensex) of the BSE rose by 178.47 points or 0.50 per cent to close at 35,622.14 points on a weekly basis.

The wider Nifty50 of the NSE closed the week’s trade at 10,817.70 points — up 50.05 points or 0.46 per cent — from its previous close.

According to analysts, market breadth was positive in only two of the five trading sessions.

“Markets ended the week with modest gains after a sharp bounce back from the lows of 10,755 points (Nifty50),” said Deepak Jasani, Head of Retail Research at HDFC Securities.

Hem Securities’ Director Prateek Jain said: “Last week indices extended their winning streak to the fourth consecutive week. The upswing was seen despite retail inflation rising to 4.9 per cent for the month of May compared to the previous month.”

According to Rahul Sharma, Senior Research Analyst at Equity99, “It was an eventful week on the global front too, with US President Donald Trump and North Korean leader Kim Jong Un signing a joint agreement for the denuclearisation of the Korean Peninsula.”

“Further, the Fed (US Federal Reserve) has again done what it was expected to do as it raised benchmark interest rates hinting at a little more aggression in tightening monetary policy this year,” Sharma said.

“Another event, which kept investors sentiments on the toe was reports that President Donald Trump’s administration has cleared tariffs on tens of billions of dollars’ worth of Chinese goods”

On the currency front, the rupee closed at 68.02 against the US dollar depreciating by 51 paise from its previous week’s close of 67.51 per greenback.

In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors sold scrip worth Rs 5,294 crore, while the domestic institutional investors purchased stocks worth Rs 4,014.25 crore during the week.

Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested equities worth Rs 3,071.85 crore, or $455.4 million, in the week ended on June 15.

Sectorally, the top gainers were the pharma, IT, energy and PSU bank indices and the top losers were metal, infrastructure and realty indices, Jasani told IANS.

The top weekly Sensex gainers were Dr Reddy’s Lab (up 13.97 per cent at Rs 2,351.10); Sun Pharma (up 8.11 per cent at Rs 571.05); Tata Consultancy Services (up 5.33 per cent at Rs 1,841.45); IndusInd Bank (up 4.01 per cent at Rs 1,965.85); and Reliance Industries (up 3.10 per cent at Rs 1,013.85 per share).

The major losers were Tata Steel (down 5.60 per cent at Rs 565.95); ONGC (down 4.64 per cent at Rs 165.45); Coal India (down 3.74 per cent at Rs 279.05); NTPC (down 3.40 per cent at Rs 156.05); and Tata Motors (DVR) (down 3.30 per cent at Rs 180.05 per share).

IANS

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Despite overflowing godowns, Modi Govt allows pulses import

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Pulse price rise

New Delhi, June 16: Despite overflowing godowns, the central government has allotted quotas for import of pulses and is enforcing an additional import agreement with Mozambique.

The development comes at a time when domestic stocks are at their peak, domestic production is expected to be high and prices are reducing.

According to the Hindu report, Farmers and millers are unhappy with the situation, but the government says it is balancing the needs of Indian consumers and commitments to foreign trade partners on the one hand and the interests of Indian peasants on the other.

On the related note, the Directorate-General of Foreign Trade (DGFT) held a meeting on Monday, during which the final allocations of import quotas — totalling two lakh tonnes of tur or arhar dal, and 1.5 lakh tonnes each of moong and urad — were made.

Those amounts show a quantitative restriction that was imposed on pulses imports in August last year in response to a glut in domestic supply and decreasing prices, which continues this year.

“The government has stock, traders have stock, millers have stock, and farmers have stock, so there is a surplus. We don’t understand why the government is insisting on import…we may be able to meet only 40-50% of our quotas”. A senior official at the DGFT insisted that according to the terms of the allocation, import quotas must be met by August end.

As a good monsoon forecast is expected, the Agriculture Commissioner predicts domestic pulses production of 24 million tonnes in 2018-19.

However, earlier in May,  the DGFT issued a notice exempting pulses imports from Mozambique from the restrictions.

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