The market may reverse recent gains on weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could slide 33.50 points at the opening bell. Asian stocks fell on Thursday, after minutes from the Federal Reserve's latest interest-rate meeting fed into concerns that global liquidity will fall.
Infosys after trading hours on Wednesday, 20 February 2013, announced the launch of BigDataEdge to radically simplify the complex task of analyzing Big Data to discover relevant information. By empowering business users to rapidly develop insights from vast amounts of structured and unstructured data, better business decisions can be made in near real-time, Infosys said in a statement. With Infosys BigDataEdge, enterprises can reduce the time taken to extract information by up to 40% and generate insights up to eight times faster, Infosys said.
Announcing the new platform, Vishnu Bhat, Vice President and Global Head - Cloud, Infosys said: "Enterprises today cannot afford to spend an inordinate amount of time making sense of the data deluge that surrounds them. Infosys BigDataEdge draws upon our deep research and development capabilities and proven expertise in Big Data and analytics to help clients turn data into revenues faster. This unique platform is already enabling ten global organizations to develop actionable insights in a matter of days and act on them from day one."
Tata Communications after trading hours on Wednesday, 20 February 2013, announced the launch of the world's first cloud-based policy management solution that enables mobile network operators (MNOs) to create differentiated mobile data services quickly and with significantly less capital investment. Developed in partnership with Allot Communications and Openet, Tata Communications' Hosted Policy Engine allows MNOs to move beyond flat-rate data packages to deliver targeted data service offers for new revenue streams, Tata Communications said in a statement. The Hosted Policy Engine is a pre-integrated policy management solution, which enforces traffic optimisation and monetisation policies in real-time, based on subscriber usage patterns across 2.5G, 3G, 4G and WiFi networks, Tata Communications said. This allows mobile operators to create targeted service packages to optimise network resources and revenue through tiered service plans for customers.
Commenting on the development, John Landau, Senior VP, Technology and Services Evolution, at Tata Communications said: "Mobile operators are under increasing pressure to maximise ROI on the mobile broadband solutions they deploy for their customers, but the sheer complexity of the mobile environment can mean that managing these services is overwhelming both in terms of volume of transactions and scale of investment needed. Our goal with the Hosted Policy Engine is to provide a pre-integrated best-of-breed policy engine that delivers economies of scale for MNOs thanks to our cloud-based approach. It offers the benefits of market leading solution components, but with significantly less capex investment and no support requirements, opening up this solution to a large number of MNOs currently without satisfactory policy management."
HCL Technologies after market hours on Wednesday, 20 February 2013 clarified that the latest development of bankruptcy filing by Reader's Digest Association (RDA) should not affect HCL Technologies ('HCL') relationship and engagement with RDA and HCL continues to support RDA.
CMC, a subsidiary of TCS, after market hours on Wednesday, 20 February 2013, said that the company has been assessed at Level 5 of the Software Engineering Institute's Capability Maturity Model Integration (CMMI) for Software Development and Services, version 1.3. The scope covers all delivery centres and all types of projects under software solutions and integration services, and embedded and real-time solutions and engineering services. The appraisal was conducted by KPMG, India; an SEI Partner for CMMI based services.
Commenting on this achievement, Mr. R Ramanan, MD and CEO, CMC said: "We are extremely proud to have achieved this distinction, it is a significant milestone in our ongoing journey towards excellence. This assessment underscores our commitment to delivery excellence, process maturity and service quality, ensuring timely and best-in-class solutions for our clients globally."
Developed by Software Engineering Institute (SEI), Carnegie Mellon University, USA, CMMI Maturity Level 5 is the highest level of process maturity that independently verifies an organization's capabilities to continuously enhance its processes through incremental and innovative process improvements and technological improvements. Particularly, version 1.3 of CMMI standard, ensures a stronger correlation between client's business objectives to delivery goals, thereby significantly improving the benefit clients realize from software engineering and service delivery practices.
Nestle India reported 20.8% rise in net profit to Rs 278.93 crore on 10.2% rise in total income to Rs 2173.76 crore in Q4 December 2012 over Q4 December 2011. The company reported 11.1% rise in net profit to Rs 1067.93 crore on 11% rise in total income to Rs 8373.71 crore in the year ended 31 December 2012 over the year ended 31 December 2011. The result was announced after market hours on Wednesday, 20 February 2013.
Key benchmark indices eked out marginal gains on Wednesday, 20 December 2013 as index heavyweight Reliance Industries (RIL) rose. The BSE Sensex advanced 7.03 points or 0.04% to settle at 19,642.75, its highest closing level since 5 February 2013.
Foreign institutional investors (FIIs) sold shares worth a net Rs 433.59 crore on Wednesday, 20 February 2013, as per provisional data from the stock exchanges.
PSU disinvestment and reduction of promoter stake to meet the Securities & Exchange Board of India (Sebi) mandated minimum public shareholding of 25% for private companies and 10% for state-run firms will result in supply of equity in the market over the next few months. The government has set target of Rs 30000 crore from PSU divestment for the fiscal year ending 31 March 2013. Meanwhile, as per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 13 June 2013, while the deadline for state-run firms is 13 August 2013.
Finance Minister Mr. P. Chidambaram on Tuesday, 19 February 2013, emphasized the need to meet the financing requirements of the infrastructural deficit. He said that that the government has initiated several major steps in this direction. He said that the government has set-up the Cabinet Committee on Investments (CCI) with the Prime Minister as the Chairman to expedite decisions on approvals/clearances for implementation of projects. This is likely to improve the investment environment by bringing transparency, efficiency and accountability in accordance of various approvals and sanctions, Chidambaram said. The government is also promoting Public Private Partnerships (PPPs) as an effective tool for bringing private sector efficiencies in creation of economic and social infrastructure assets and for delivery of quality public services, Chidambaram said. The Viability Gap Funding Scheme has been further strengthened by adding many new sectors like modern storage, education, health, irrigation etc.
The cost and tariff of infrastructure services are likely to go down as a result of low cost long term debt provided by Infrastructure Debt Fund (IDFs), Chidambaram said on the occasion of the launch of the first Infrastructure Debt Fund (IDF) under the NBFC structure on Tuesday, 19 February 2013. A buy-out guarantee from Project Authority will enable IDF-NBFC to maintain zero NPAs, Chidambaram said. The taking over of existing bank debts by IDFs will release an equivalent volume for fresh lending by banks to infrastructure projects, the finance minister said.
The Reserve Bank of India governor D. Subbarao said in mid-February 2013 that he sees limited room for further interest rate cuts.
The annual rate of inflation, based on monthly wholesale price index (WPI), decelerated to 6.62% in January 2013 from 7.18% in December 2012 and 7.24% in November 2012, data released by the government on 14 February 2013 showed. This is the first time since November 2009 that the inflation rate has dropped below 7%. The non-food manufacturing inflation or core inflation decelerated to 4.08% in January 2013 from 4.19% in December 2012.
Inflation based on the combined consumer price index for urban and rural India edged up to 10.79% in January 2013, from 10.56% in December 2012, another data released by the CSO on 12 February 2013 showed. Within the consumer price index, inflation in the category 'food and beverages' stood at 13.36% in January 2013.
The Reserve Bank of India (RBI) on 29 January 2013 announced a 25 basis points reduction in its key policy rate viz. the repo rate to 7.75% from 8% after a monetary policy review. The central bank also announced a reduction of 25 basis points in the cash reserve ratio (CRR) to 4% from 4.25% effective the fortnight beginning 9 February 2013.
With headline inflation likely to have peaked and non-food manufactured products inflation declining steadily over the last few months, there is an increasing likelihood of inflation remaining range-bound around current levels going into 2013-14, the Reserve Bank of India (RBI) said. This provides space, albeit limited, for monetary policy to give greater emphasis to growth risks, the central bank said in its policy guidance. This policy guidance will, however, be conditioned by the evolving growth-inflation dynamic and the management of risks from twin deficits viz. the current account deficit and fiscal deficit, RBI said. The next mid-quarter review of Monetary Policy for 2012-13 will be announced on 19 March 2013.
The central bank on 29 January 2013 also signaled that there is less room for aggressive policy rate cuts amid any negative surprise emanating from inflation and the twin deficits.
Investors' focus is now on Union Budget 2013-14 to be presented to the Parliament on 28 February 2013. Investors will focus on changes, if any, in excise duty and service tax in the Budget. It remains to be seen if the government announces measures to revive weak investment growth. It also remains to be seen if the government announces more economic reforms. A key figure to watch out is the divestment target for 2013-14. It remains to be seen if the Budget contains a clear roadmap for the implementation of Goods and Services Tax (GST). There has been some debate over taxing the super-rich. It remains to be seen if the Budget provides a clear roadmap to cap the government's subsidy bill. It also remains to be seen if there are measures to increase agriculture production to rein in food inflation.
India will have to pursue domestic policy initiatives to help achieve any near-term improvement in its current account deficit as global growth may only be slightly better in 2013 and commodity prices are unlikely to ease sharply, Moody's Investor Service said on 14 February 2013. While recent government moves to cut subsidies and woo foreign investment would help narrow the external deficit, these policies need to be persisted for any significant success, Moody's said.
Moody's said it would be watching the assumptions underlying India's budget deficit target for the new fiscal year that begins on April 1, as well as the expenditure and revenue policies announced in order to meet that goal. "Policies that trigger private investment and curb inflationary pressures in the near term are more likely to help narrow the account deficit," it said. "Deficit targets based on an assumption of accelerating growth rates are more likely to be missed, leading to higher government borrowing requirements and likely inflationary pressure, both of which have negative implications.
If funding for the current account deficit shifted away from external debt and towards foreign direct investment, the sovereign credit profile would benefit, Moody's said. Moody's has a Baa3 rating for India with a stable outlook.
The Budget Session of the Parliament begins tomorrow, 21 February 2013, and is likely to conclude on 10 May 2013. In order to enable the Standing Committees to consider the Demands for Grants of Ministries/Departments and prepare their Reports, the two Houses will adjourn for recess on 22 March 2013 to meet again on 22 April 2013.
The Railway Budget for 2013-2014 will be presented to the Lok Sabha on 26 February 2013 immediately after Question Hour. The Economic Survey of India will be laid in the Parliament on 27 February 2013.
On the eve of the commencement of the Budget session of the parliament, Prime Minister Dr. Manmohan Singh on Wednesday, 20 February 2013, said that the Budget session of the Parliament is going to transact the important financial business before the house, and that he is hopeful and confident that this session is going to be a fruitful session. "I have said this before and I repeat it again. Parliament is a forum for discussion, for dialogue, and all parties have an obligation to ensure that Parliament runs smoothly. This is a session, as I said, which is going to deal with the financial business, and our country faces many economic challenges, and it is my sincere hope that all political parties will join hands to find productive, constructive solutions to the formidable challenges facing our nation", Dr. Singh said.
The government has lined up a number of key bills for consideration and passing during the Budget session of the parliament, which include The Forward Contracts (Regulation) Amendment Bill, 2010, The Pension Fund Regulator and Development Authority Bill, 2011, The Land Acquisition, Rehabilitation and Resettlement Bill, 2011, The National Food Security Bill, 2011 and The Insurance Laws (Amendment) Bill, 2008.
Economic affairs secretary Arvind Mayaram on 9 February 2013 said that the fiscal deficit for the current financial year ending 31 March 2013 will not exceed the projected 5.3% of the country's gross domestic product. He said that the government will stick to its fiscal deficit aim and its borrowing plan. Finance Minister, P. Chidambaram on 9 February 2013 said he it confident of a 5.5% growth rate in the economy for this year. In the second half of this fiscal year, there are indications of green shoots in the economy, he said, adding it is imperative for the country to achieve a growth rate of 8%.
The Central Statistics Office (CSO) on 7 February 2013 said that the growth in India's GDP during 2012-13 is estimated at 5%, the lowest in a decade and significantly lower than the growth rate of 6.2% in 2011-12. The dimmer forecast is due to continued weakness in manufacturing and farm output growth, data from the ministry of statistics and implementation showed.
The Ministry of Finance on 8 February 2013 said that since the GDP growth is turning around, it is likely that the CSO's advance estimate of 5% GDP growth for 2012-13 will be revised upwards and the final estimate will be closer to the finance ministry's estimate of a growth rate of 5.5% or slightly more. Early sign of an upturn in the economy are evident in the year on year growth in Union Excise Duty of 16% and of 33% increase in service tax in April-December 2012.
The Purchasing Manager's Index (manufacturing) has started moving up since October 2012. This has been accompanied by a seasonally adjusted stabilization of the index of industrial production since October 2012, the finance ministry said in a statement. The finance ministry also said that lower interest rates will help support growth.
The Ministry of Finance in its initial reaction to the CSO's advance estimate had said on 7 February 2018 that the finance ministry is keeping a watch on the situation adding that it has taken and will continue to take appropriate measures to revive growth.
The Ministry of Finance on 14 January 2013 said that the government has decided to defer the implementation of the General Anti Avoidance Rules or GAAR by two years until 1 April 2016 and that it has accepted major recommendations of the Parthasarathi Shome Committee on GAAR with some modifications. The provisions of GAAR will apply to only those foreign institutional investors (FIIs) who seek to take advantage of the double taxation avoidance treaties India has with different countries. The rules won't apply to the non-resident individual investors who put money with the FIIs. Any investments made before 30 August 2010 won't be examined under GAAR. Finance Minister Mr. Chidambaram said that the GAAR provisions strike a balance between the government's need for revenue generation and investors' interests.
Commerce, Industry and Textiles Minister Mr. Anand Sharma on 9 January 2013 said that the Joint Working Group on Indo-Mauritius Double Taxation Avoidance Convention (DTAC), which is scheduled to meet in February 2013, would be able to take the deliberations forward.
Finance Minister Mr. P. Chidambaram on 31 January 2013 reiterated the commitment of the government for observing the path of fiscal consolidation and imposition of fiscal targets and policies that will make necessary fiscal correction needed for the economy and take the economy back to the path of higher growth. Chidambaram highlighted the efforts being made to turn the economy around and create a more investor-friendly climate. Chidambaram said that to encourage foreign flows into India and offer reassurance on the positive investment climate, he had recently held discussions with a cross section of international investors at Singapore, Hongkong, London and Frankfurt last month and hoped to get positive results. He was speaking at the Sixth Meeting of the Financial Stability and Development Council.
The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The deficit target is 5.3% of gross domestic product for the current fiscal year through March, 4.8% in the next fiscal year, and 3% by the end of the year through March 2017.
The government on 17 January 2013 allowed PSU OMCs to increase diesel prices by a small margin from time to time, a decision aimed at reducing the government's oil subsidy burden and fiscal deficit and improving the government's finances. Oil Minister Veerappa Moily said after a meeting of the Union Cabinet that there was an earlier proposal to deregulate diesel prices, and in pursuance of that, oil companies have been authorised to make price corrections from time to time. Finance Minister P. Chidambaram on 17 January 2013 said the government will factor in the reduction in subsidies and its impact on the deficit once the retailers say how much they intend to increase prices by.
The government on 17 January 2013 also said it has increased the limit of subsidized cooking-gas cylinders to nine per year a family from six now. Mr. Moily said that the raising of the cap will cost the government about an additional Rs 10000 crore a year.
RBI said after Third Quarter Review of Monetary Policy 2012-13 on 29 January 2013 that a staggered increase in diesel prices will percolate through to overall costs and inflation. However, these price pressures will dissipate over time, and the consequent reduction entailed in the fiscal deficit will bring about an enduring reduction in inflation and inflation expectations, the central bank said at that time.
Bahujan Samaj Party (BSP) chief Mayawati slammed the UPA government last month for its decision to deregulate diesel prices and said that it would affect prices and hit common man badly. She, however, ruled out the possibility of withdrawing BSP's support to the government, saying she did not want to destabilise it as the general election is not too far. BSP provides outside support to the Congress led UPA government which has already been reduced to a minority government after Trinamool Congress withdrew support to the government in September last year.
Asian stocks fell on Thursday, after minutes from the Federal Reserve's latest interest-rate meeting fed into concerns that global liquidity will fall. Key benchmark indices in Hong Kong, Singapore, South Korea, Japan, China and Taiwan were down by 0.47% to 1.92%. Indonesia's Jakarta Composite rose 0.34%.
US stocks fell sharply on Wednesday, retreating from multiyear highs, after minutes from the Federal Reserve's last meeting illustr
