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UBS lowers India’s GDP growth to 6.6 per cent for FY18

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New Delhi, Sep 4: Global brokerage firm UBS has lowered India’s GDP growth forecast from 7.2 per cent to 6.6 per cent for this fiscal  earlier.

The brokerage said that the growth is expected to pick up in coming quarters as the economy normalises post implementation of the GST.

Notwithstanding the downward revision in growth forecast, the global financial services major said the structural growth story of the country remains intact thanks to the ongoing reform push by policymakers and and consumption demand.

“We are revising down our forecasts for India’s GDP growth to 6.6 per cent year-on-year and 7.4 per cent year-on- year in 2017-18 and 2018-19, respectively (as against our earlier estimates of 7.2 per cent and 7.7 per cent),” said Tanvee Gupta Jain, an economist with UBS.

According to data, due to demonetisation India’s economic growth slipped to a three-year low of 5.7 per cent in April-June and amid a slowdown in manufacturing activities.

The report said reforms like implementation of GST, a new bankruptcy code, liberalisation of FDI, measures to curb black money and encouraging digitisation would help in improving the productivity dynamics of the country.

“We believe India needs continuous policy reforms to stay on a sustainable growth path. Any increase in populist spending in the run-up to the 2019 general elections would likely support consumption but delay the investment cycle recovery, thus lowering the potential growth outlook, in our view,” Jain added.

She further said that though the implementation of GST has resulted in temporary disruption in economic growth momentum.

Wefornews Bureau

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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.

WeForNews

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Maharashtra: Collector orders closure of 7 govt accounts in SBI

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Mumbai, June 16: In an unprecedented move, Yavatmal district collector ordered the closure of seven government accounts in the State bank of India (SBI) due to failure in achieving targets of disbursal of crop loans to farmers in the district.

According to the Times of India report, Collector Rajesh Deshmukh issued orders to this effect on Thursday.

Yavatmal made the headlines of being the epicenter of farmer suicides in Maharashtra. Between January 1 and April 30, 68 farmers reportedly claimed their lives.

Deshmukh told TOI, that he undertook the action as the bank had failed to achieve the target of releasing loans to farmers.

“I had no option but to close the state government’s accounts with SBI. I had a long meeting with high-ranking SBI officials on June 2 and 3. However, when there was no progress I made clear it to the SBI administration that the government’s accounts would be closed,’’ he said.

SBI was anticipated to release Rs 571 crore crop loans and the maximum disbursement was to be done before the commencement of sowing season.

“I was told that against the target of Rs 571 crore, SBI had disbursed only Rs 51 crore. We were expecting that SBI, through its 45 branches in the district, would disburse at least 50% of the loan amount. Under such circumstances, we will not be able to tackle the agrarian crisis owing to non-cooperation,” the collector stated.

As per Deshmukh, the response of the district central cooperative bank and other nationalised banks was much better.

So far, the district central cooperative bank has disbursed 42% of the target amount, Union Bank of India and Central Bank of India released 28% and 20%.

The collector informed that “For Yavatmal district, we have set a target of Rs 2,078 crore”.

Citing the loan amnesty scheme, the collector said Rs 1200 crore loans of 2.8 lakh farmers had been waived.

WeForNews 

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