PREVIEW - India factory index likely hit 11-month high in Oct


BANGALORE  - India's industrial production index rose at its fastest annual pace in nearly a year in October, after unexpectedly contracting in September, aided by a statistical spurt in infrastructure-related output, a Reuters poll found.

The index of industrial production (IIP) probably grew 4.5 percent annually in October, after contract

ADB trims Asia's growth prospects on slack global demand



By Paul Carsten

BANGKOK  - The Asian Development Bank slightly lowered its 2012 and 2013 growth estimates for developing Asia on Friday as frail global demand drags on the region despite indications that China's economy has bottomed out.

The ADB's update to its Asian Development Outlook pared b

Goldman Sachs predicts turn in gold bull cycle

By Jan Harvey

LONDON
  - Goldman Sachs said on Wednesday gold's current price cycle will likely turn next year as a rise in real interest rates on the back of improved growth offsets any further balance sheet expansion from the Federal Reserve.

Goldman cut its three, six and 12-month forecasts for gold prices - currently near $1,700

CREDIT SUISSE CUTS INDIA FY13, FY14 GROWTH FORECASTS ON DELAYED RBI RESPONSE

MUMBAI - Credit Suisse has lowered India's economic growth forecast marginally to 5.9 percent from 6 percent for the fiscal year ending March.

The investment bank also reduced its growth forecast for FY14 to 6.9 percent from 7.2 percent, it said in a research note.

"This largely reflects the delayed RBI rate response, although we co

Rupee could rise to 52/dollar by end-2013: Credit Agricole

Market Eye - Rupee could rise to 52 per dollar by end of 2013 and is Credit Agricole's top pick among the emerging markets, it says in a note.

The government winning the vote on foreign direct investment in multibrand retail will continue to help the rupee despite questions on whether the reform will be approved by the upper house and concerns about its

How Wal-Mart got a foot in the door of retail market

By Nandita Bose

MUMBAI  - Wal-Mart Stores Inc  prepared its entry into India's supermarket sector in 2010 with a $100 million investment into a consultancy with no employees, no profits and a scant $14,000 in revenue.

The company, called Cedar Support Services, might have been a more obvious selection four months earlier: it be

Expectations from Government and RBI may lend support to interest rate sensitive and investment-led sectors, in the short term. - Dipen Shah, Kotak Securities

MARKET STRATEGY

The month of November ended on a positive note for the markets and the Sensex crossed the calendar highs, settling comfortably above the 19300 mark. Markets rose on renewed hopes of reform initiatives by the Government, as the deadlock on FDI in multi-brand retail seemed to have ended. Action from international lenders to reduce Greek debt and opti

BofA downgrades Hero MotoCorp; cuts target to 1,650 rupees

Market Eye - Bank of America Merrill Lynch downgrades Hero MotoCorp to "underperform" from "buy" and cuts its target price to 1,650 rupees from 1,980 rupees.

The bank expects the company's domestic sales to remain muted and in 'single digits.' This is primarily due to heavy dependence on 100cc bikes where better options are available with comp

Outlook for banking system remains negative: Moody's

MUMBAI  - Moody's said its outlook on the Indian banking system over the next 12 months to 18 months remains negative due to a challenging operating environment which is likely to pressure banks' profits.

"This environment is characterized by slow economic growth, high inflation, high interest rates, and a weak local currency," Vineet

Gold futures seen in range of 31,600-32,850 rupees: India Infoline

Brokerage India Infoline expects a trading range of 31,600-32,850 rupees for gold on the Multi Commodity Exchange, it said in a report.

Gold could move in the range of $1,700-1,790 an ounce till the year end, according to the broker, as the market has been roiled by conflicting comments from Washington about the U.S. budget negotiations.

Global gold has reco

BlackRock bullish on India, pins hopes on reforms

By Nishant Kumar and Vikram Subhedar

HONG KONG 
- BlackRock is aiming to go overweight on India, its top fund manager in Asia said on a day the country's economic growth headed for a decade low.

Andrew Swan, who manages about $3 billion as the head of Asian equities for the world's biggest money manager, told the Reuters Global

Analysis: Chinese stocks may sink further

By Pete Sweeney

SHANGHAI
  - Chinese retail stock investors once believed domestic equities markets were a chance to cash in on the economic growth miracle of the century, but now fear they are pouring their savings into a bottomless money pit.

The country's key stock market indices slid to a four-year low in November, ignoring impro

Citi expects Sensex to hit 20,800 by Dec 2013

Market Eye - India in 2013 will be cacophonous; a mix of politics, impending elections, reforms and economic revival expectations, Citigroup said in report.

The investment bank expects Sensex to reach 20,800 by December 2013, based on premise of 9.6/12 percent earnings growth for FY13/FY14 and a valuation multiple of 14.5 times - a slight discount to its 15-

Expert views: Economy grows 5.3 percent in September quarter

MUMBAI - India's economy grew at a lower-than-expected 5.3 percent in the quarter ending in September, against an analysts' forecast of 5.4 percent, government data showed on Friday.

The manufacturing sector grew an annual 0.8 percent during the quarter while farm output rose 1.2 percent, the data showed. In the quarter ending in June economic growth

Going global: Mahindra races for Aston Martin

By Sumeet Chatterjee and Tony Munroe

MUMBAI  - Sports car maker Aston Martin may look like a shiny trophy that makes an awkward fit for Mahindra and Mahindra , the world's biggest tractor maker, but it would help the Indian group realise a long-standing ambition to be a global player.

Despite its efforts, Mahindra has had a hard tim

Goldman Sachs upgrades India to 'overweight'


MUMBAI  - Goldman Sachs raised India to 'overweight' from 'market-weight', citing growth recovery and inflation moderation ahead.

The investment bank pegged December 2013 Nifty target at 6,600 points.

"Reform initiatives and changes in government leadership this fall have created a sense of optimism among t

JET, SPICEJET LINE UP FOREIGN INVESTMENT

By Anurag Kotoky

 
NEW DELHI- Jet Airways India Ltd and SpiceJet Ltd , battling hot competition and high operating costs, are in talks to sell minority stakes to foreign investors, said a senior government official with knowledge of the discussions.
 
Abu Dhabi's Etihad Airways and Malaysia's AirAsia
Domestic politics to drive India rupee: HSBC

Market Eye - Domestic politics will increasingly drive the fate of the Indian rupee, much like the Japanese yen or the euro, HSBC says in a note on Friday.

HSBC says its base case scenario is for the government to maintain its reform agenda, but warns the parliamentary process is "fraught with downside risks."

"This debate wil

Subbarao overruled advisors to keep rates steady

MUMBAI - Reserve Bank of India Governor Duvvuri Subbarao went against the suggestion of most external members of an advisory panel to keep the key repo rate steady on October 30, minutes of the quarterly meeting released on Wednesday showed.

Of the six external members of the RBI's Technical Advisory Committee (TAC) on monetary policy who attended the meeting, five sugge

Reform drive could hit rocks in stormy parliament session

By Ross Colvin and Satarupa Bhattacharjya

NEW DELHI  - The government, reduced to a minority for the first time since coming to power in 2004, is scrambling for support ahead of a parliament session that will severely test its economic reform agenda, and its chances of success look bleak.

For the moment, there is no threat of the govern