INDIAN PREMIER’S 100-DAY STOCK RALLY BEST SINCE 1991
Indian stocks rose more in the first 100 days of Prime Minister Manmohan Singh’s leadership than under any new government since 1991. Investors predict more gains as he opens up the world’s second-fastest growing economy.
The Bombay Stock Exchange’s Sensitive Index climbed 16 percent since Singh started a second term on May 22 as international investors bought $4.9 billion more shares than they sold, data compiled by the bourse show. The advance is the biggest since the 40 percent rally after Prime Minister P.V. Narasimha Rao came to power, and compares with the 8.4 percent increase for the Standard & Poor’s 500 in the first 100 days of U.S. President Barack Obama’s administration.
Bloomberg
Showing posts with label Global Recession. Show all posts
Showing posts with label Global Recession. Show all posts
Monday, August 31, 2009
Monday, April 27, 2009
FDI: DESTINATION INDIA
India continues to enjoy a high level of confidence among overseas investors who have invested about $24 billion during the first 10 months of the financial year 2008-09, up 66% compared to the corresponding period last year. In contrast, worldwide, foreign direct investment (FDI) fell 21% last year to $1.4 trillion, estimates the United Nations Conference on Trade and Development (UNCTD).
In the month of January 2009 alone, FDI inflows worth $2.74 billion represented a rise of about 55% year-on-year. China, by contrast, saw a 33% drop in FDI compared to the same month last year as it’s manufacturing-based economy was more negatively affected by tightening global credit, recession and falling corporate profits.
India is expected to close the financial year ended March 31, 2009 with $28 billion of FDI against inflows of $24.5 billion in the previous year. If reinvested earnings of foreign companies are taken in to account, that figure is expected to increase to about $38 billion, up from $34.3 billion in the previous fiscal year.
India continues to enjoy a high level of confidence among overseas investors who have invested about $24 billion during the first 10 months of the financial year 2008-09, up 66% compared to the corresponding period last year. In contrast, worldwide, foreign direct investment (FDI) fell 21% last year to $1.4 trillion, estimates the United Nations Conference on Trade and Development (UNCTD).
In the month of January 2009 alone, FDI inflows worth $2.74 billion represented a rise of about 55% year-on-year. China, by contrast, saw a 33% drop in FDI compared to the same month last year as it’s manufacturing-based economy was more negatively affected by tightening global credit, recession and falling corporate profits.
India is expected to close the financial year ended March 31, 2009 with $28 billion of FDI against inflows of $24.5 billion in the previous year. If reinvested earnings of foreign companies are taken in to account, that figure is expected to increase to about $38 billion, up from $34.3 billion in the previous fiscal year.
Monday, January 26, 2009
INDIA CHALLENGED AS MUMBAI TERROR STRIKES & SATYAM LIES
At a time when the world’s second-fastest growing economy is seen by many economists to be pivotal in reversing the global recession, two events negatively rocked India. The country’s commercial capital Mumbai was attacked by terrorists on November 26, 2008. That was followed on January 7, by a shocking revelation of a $2 billion fraud by the founder of India’s fourth largest IT Services company, Satyam Computer Services Ltd.
Mumbai is one of the world's top 10 centres of commerce and contributes about 5% of India's GDP, 25% of industrial output, 40% of maritime trade and 70% of capital transactions to the economy. Its per-capita income is almost three times the national average, though wide disparities exist among its 14 million population.
Each time the city has been targeted, however, it rebounds strongly and resolutely. Some view this as an apt representation of India’s underlying strength as a culturally-rich democracy and increasingly capitalist economy. On the first day of trading after the attacks, the Bombay Stock Exchange’s benchmark Sensex Index closed three quarters of a percent higher at 9097.92.
The Satyam incident, involving the misreporting of accounts, has put a dent in an otherwise widely acknowledged and respected corporate governance, quality and value of Indian companies. While India has a well-knit regulatory framework and institutions to ensure compliance, it is clear that they have been insufficient in preventing what is being dubbed as “India’s Enron.”
At a time when the world’s second-fastest growing economy is seen by many economists to be pivotal in reversing the global recession, two events negatively rocked India. The country’s commercial capital Mumbai was attacked by terrorists on November 26, 2008. That was followed on January 7, by a shocking revelation of a $2 billion fraud by the founder of India’s fourth largest IT Services company, Satyam Computer Services Ltd.
Mumbai is one of the world's top 10 centres of commerce and contributes about 5% of India's GDP, 25% of industrial output, 40% of maritime trade and 70% of capital transactions to the economy. Its per-capita income is almost three times the national average, though wide disparities exist among its 14 million population.
Each time the city has been targeted, however, it rebounds strongly and resolutely. Some view this as an apt representation of India’s underlying strength as a culturally-rich democracy and increasingly capitalist economy. On the first day of trading after the attacks, the Bombay Stock Exchange’s benchmark Sensex Index closed three quarters of a percent higher at 9097.92.
The Satyam incident, involving the misreporting of accounts, has put a dent in an otherwise widely acknowledged and respected corporate governance, quality and value of Indian companies. While India has a well-knit regulatory framework and institutions to ensure compliance, it is clear that they have been insufficient in preventing what is being dubbed as “India’s Enron.”
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