Expert views: Budget raises spending for 2013/14

MUMBAI  - India must make tough spending choices, Finance Minister P. Chidambaram said on Thursday, even as he unveiled a bigger-than-expected outlay for the coming fiscal year in one of the most highly anticipated Indian budgets of recent years.

Total budget expenditure will hit 16.65 trillion rupees in the fiscal year that begins on April 1, Chidambar

Expert views: Jan inflation eases to 6.62 percent

MUMBAI - The annual wholesale price inflation slowed to 6.62 percent in January, government data showed on Thursday, below than 7 percent expected in a Reuters poll of economists.

COMMENTARY

A PRASANNA, ECONOMIST, ICICI SECURITIES PRIMARY SECURITIES DEALERSHIP, MUMBAI

"This shows that f

Expert views: industrial output shrinks 0.6 percent in December

MUMBAI  - India's industrial production contracted an unexpected 0.6 percent in December from a year earlier weighed down by manufacturing, government data showed on Tuesday, extending a period of gloom in Asia's-third largest economy.

(Read full story http://in.reuters.com/article/2013/02/12/india-industrial-output-idINDEE91B01V20130212)

Rupee set to rise modestly if reforms stick: Reuters poll

By Rahul Karunakar

BANGALORE  - The rupee will strengthen slightly over the next 12 months, building on recent gains following a series of reforms by the government aimed at bringing its finances under control, a Reuters poll showed.

Those long-awaited reforms were welcomed by investors and revived capital inflows that have helped the c

Factory output slump likely over: Reuters poll

By Rahul Karunakar

BANGALORE  - The worst is probably over for flagging Indian factories but production was likely subdued in December as global demand remained weak, a Reuters poll showed.

India's industrial production (IIP), which includes output at factories, mines and utilities, likely rose an annual 1.1 percent in December afte

Expert views: FY13 GDP growth estimated at 5 percent

MUMBAI - India's gross domestic product (GDP) is estimated to grow an annual 5.0 percent in the 2012/13 fiscal year, a government statement said on Thursday, citing provisional estimates.

The latest estimate is the worst of all growth projections issued by the government and the RBI.

COMMENTARY

RUPA REGE NITSURE,

Expert views: RBI cuts rates by 25 bps as expected

MUMBAI  - The RBI reduced its policy interest rate by a widely expected 25 basis points on Tuesday, taking comfort from cooling inflation as it made the first cut in nine months to support an economy headed for its slowest growth in a decade.

The Reserve Bank of India (RBI) cut its key repo rate to 7.75 percent, as forecast by a Reuters poll.

India remains a “very good” investment destination: Kamal Nath

News Details

Urban Development Minister Kamal Nath has said that India is still a "very good" investment destination, and promised that government would roll out more policy reforms in the next couple of months. Speaking at the World Economic Forum (WEF) annual meet at the Davos, Kamal Nath, who is also a Parliamentary Affairs minister, said &ldquo

India Inc benefits from lower expenses and higher price realizations in Q3: Assocham

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Industry body Assocham, on Wednesday, said that Indian companies have benefited from higher price realizations and lower cost of raw materials during the October-December 2012 quarter while sales continued to be sluggish amid global economic slowdown. The study revealed that industry has registered an increase in profits level which were recorde

Reforms to help economy gather pace: Reuters Poll

By Yati Himatsingka

BANGALORE  - India's economy will pick up steam this year after its worst performance in a decade as a slew of reforms take hold and the central bank eases policy to spur growth, a Reuters poll found.

But the poll also showed inflation will remain persistently high, preventing the Reserve Bank of India from cutti

Interview: Mark Mobius sees bumper 2013 for riskier assets

By Krista Hughes and Michael O'Boyle

MEXICO CITY  - Veteran emerging markets investor Mark Mobius sees a bumper year ahead for riskier, high-yielding assets as hundreds of billions of dollars flows off bank balance sheets and back into markets.

While banks had so far used ample central bank liquidity to bolster balance sheets and bu

Government pushes banks to go rural, but will it pay?

By Swati Pandey and Rajendra Jadhav

RANCHHODPURA, India
- Working out of a tiny rented room furnished with a wooden table, small biometric authentication machine and shelf stacked with passbooks, Ganesh Dangi is a one-man bank for a village of 650 people in northwestern Rajasthan.

A business correspondent, or local representative, for State

Why consensus is wrong on India's deposit fall - BofA

 Market Eye - The 0.4 percent fall in Indian bank deposits in December has been pinned to various reasons including negative real interst rates and a preference for higher-yielding gold assets, all of which are "completely off the mark," says Bank of America Merrill Lynch.

Instead, the fall has more to do with a statistical quirk: the RBI coun

Rally in state-run oil firms overdone: Nomura

MUMBAI - Nomura said the rally in India's state-run oil companies on Friday, spurred by the government's announcement to allow higher diesel prices, was excessive and the action would not lead to any improvement in the bottom line of these companies.

"We reiterate that yesterday's actions are not a big reform, and there may not be much reduc

Hero MotoCorp to underperform Sensex - Morgan Stanley

Market Eye - Morgan Stanley says Hero MotoCorp's  shares will fall relative to the Sensex over the next 60 days on the back of "disappointing" Q3 earnings.

India's largest motorcycle maker missed estimates for the fourth straight quarter as net profit fell 20.4 percent on rising costs and falling sales that battered margins.

RBI seen cutting repo rate by 25 bps: Reuters Poll

By Shamik Paul and Neha Dasgupta

MUMBAI 
- The Reserve Bank of India is expected to reduce its policy interest rate by 25 basis points in a policy review on January 29, making its first cut in nine months on the back of slowing inflation and weak economic activity, economists polled by Reuters said.

Thirty of 40 economists surveyed said

PREPARING FOR THE UNTHINKABLE: COULD MARKETS HANDLE A U.S. DEFAULT?

By Karen Brettell

NEW YORK - Squabbling in Washington over the debt ceiling is again raising the specter that the United States may be forced to delay payments on its debt. While the stigma of a default would be damaging enough to investor sentiment, the chaos from a breakdown in financial markets' systems that might result would be even scarier.

A failu

Expert views - Government allows state oil firms to raise diesel prices

MUMBAI (Reuters) - State-run Indian oil marketing companies can now raise diesel prices in line with increases in global crude oil prices, Oil Minister Veerappa Moily said on Thursday, a move that could help the government reduce its vast subsidy bill.

COMMENTARY

VIVEK RAJPAL, STRATEGIST, NOMURA, MUMBAI


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Macquarie raises Sensex target to 22,200, says 'elephant' to turn 'tiger'

Market Eye - Macquarie says Indian 'elephant' to turn 'tiger' in 2013; ups BSE Sensex target to 22,200 versus 21,600 earlier and Nifty target to 6,900 points as against 6,600 previously.

Investment bank expects reforms push would take India to 8 pct per annum growth over the next three years, improving to 6.7 percent in FY14 from 5.6 percent

Investors stick to India, but look at China: BofA-ML

Market Eye - Emerging market investors have adopted "a modest overweight" position on Indian shares for the first time since July 2010, according to Bank of America-Merrill Lynch's survey of fund managers, which was out on Wednesday.

However, among Asia-Pacific investors, I

Macquarie joins the 'short USD/INR' trading calls

Market Eye - The "short USD/INR" recommendations are piling up, with Macquarie the latest foreign bank to issue the call.

The impact of expected rate cuts on economic growth and continued government policy reforms are turning analysts more optimistic about the rupee.

"We acknowledge India's lingering longer term risks from

Interview: TCS says demand in U.S. strong across segments

By Aradhana Aravindan and Harichandan Arakali

MUMBAI/BANGALORE 
- India's top software services provider Tata Consultancy Services Ltd (TCS) said demand in the key U.S. market is strong across its business segments, with regional banks stepping up spending on technology.

The Mumbai-based company said on Monday that profit jumped 23

BSE Sensex to rise to 21,700 by year end: Nomura

Market Eye - Nomura expects the Sensex to touch 21,700 by the end of 2013. The investment bank says positives include potential rate cuts, easier domestic liquidity and reform momentum.

However, Nomura warns risks include "a broken" capex cycle, weak government finances, and a