1. After Hazy Aug, Gloomy Sept: Factory Output Shrinks 4.3%
India’s industrial production shrank for the second consecutive month in September, its worst performance in the series that began in April 2012, highlighting the persistent structural slowdown in the economy and firming up expectations of further monetary easing next month with scant signs of a turnaround.
The decline was steeper than the 1.4% reduction seen in August, suggesting that the economy may have slumped further in the second quarter of the current financial year. Industrial production grew 4.6% in September 2018.
(Source: The Economic Times)
2. Q2 GDP Growth Could Fall Below 5%
With industrial output in the September quarter contracting 0.4% from a 3% expansion in the preceding three months, economic growth is likely to slow to less than 5% in the quarter ended September, data for which is to be released on 29 November.
The weaker-than-expected economic data emerging from India points to a deepening slowdown in Asia’s third-largest economy, where private consumption, investments and exports have all taken a hit. Economic growth rate had cooled to a six-year-low of 5% in the June quarter.
(Source: Livemint)
3. Business Confidence Dips to Lowest in 6 Years
Business confidence of India Inc declined to its lowest in six years in August-October, according to the latest survey released by Delhi-based think tank National Council of Applied Economic Research (NCAER) on Monday, 11 November.
According to the quarterly survey, the Business Confidence Index (BCI) dipped to 103.1, falling 15.3% from the quarter ended July. The BCI was at 100.4 in October 2013.
(Source: Livemint)
4. Sajjan Jindal Repays ₹342 Crore for Pledged Shares
Sajjan Jindal, promoter of JSW Steel and JSW Energy, has paid ₹342 crore to release the pledged shares of the steel and energy firms in the group. On Friday, the industrialist had ₹1.26 crore of pledged shares of JSW Steel and ₹6.98 crore pledged shares of JSW Energy released.
With this, JSW Group promoters have got released about ₹2,700 crore of pledged shares of various group companies in three tranches in the last two months.
(Source: The Hindu)
5. Glimmer of Hope for Carmakers as PV Sales See Modest Turnaround in October
India’s passenger vehicle industry barely managed to turn the corner in October after nearly a year of weak sales, buoyed by roaring demand for sport-utility vehicles and hefty discounts on several models.
Though marginal, the 0.3% growth in sales in October has raised a glimmer of hope that the world’s fourth-largest automobile market will sustain its growth momentum amid steps taken by the federal government to boost consumer confidence and improve market sentiment.
(Source: Livemint)
6. IT Spend to Touch $94b in 2020 on Wings of Software
In a forecast, the IT researcher Gartner on Monday said overall IT spending in India would grow 6.6% to reach $94 billion in 2020, from $88.5 billion in 2019. This growth would primarily be driven by spending in software.
India’s domestic technology services market, however, is expected to delay in spending for digital transformation owing to slow growth, said Gartner. “They (organisations in India) may delay those investments given the environment especially in the manufacturing sector because that is going through a very tough time, customer experience-related transformation initiatives can be put on hold or go slow. It will be harsh to say they are not going to put in money in transformation,” said Arup Roy, vice-president, research, Gartner.
(Source: The Economic Times)
7. Honda Manesar Operations Suspended Indefinitely as Talks With Workers Fail
Honda Motorcycle and Scooter India (HMSI) has indefinitely suspended operations at its plant in Manesar, Haryana. Alleging misconduct by its permanent workers, labour unions and contract staff, the plant management informed all stakeholders, through a notice, that starting Monday “normal operations” at the plant were being suspended.
The move comes after a round of negotiations on Monday, between union leaders and the plant management, failed to yield results. In a notice, addressed to the heads of labour unions, plant head Saibal Maitra wrote, “The union repeatedly asked contractual workers to continue with their illegal strike and instigated them to sit inside the company premises.
(Source: Business Standard)
8. Rupee Skids 19 Paise Amid Renewed Trade Concerns
The rupee on Monday, 11 November tumbled by 19 paise to a near one-month low of 71.47 against the US dollar as fresh concerns over US-China trade deal and Hong Kong unrest kept forex market participants edgy.
Investors also played their bets cautiously in view of India's rating outlook cut by Moody's investors Services last week. Opening marginally lower, the Indian currency dropped to a low of 71.54 to the US dollar before settling at 71.47, showing a fall of 19 paise. This is the lowest closing level for the domestic unit since October 15. Forex traders said that rupee loss was somewhat checked by lower crude prices and a weaker dollar against major currencies overseas.
(Source: PTI)
9. Makers to Sell Ornaments to Jewellers Only via PDCs
In the New Year, thousands of jewellers across India would turn over a new leaf – in their cheque books. The traditional, decades-old practice of open credit from manufacturers to jewellery retailers will likely be history in 2020, and deliveries of finished pieces to high-street outlets would accompany post-dated cheques (PDC).
This simplest mode of ‘securitization’ will likely become the norm due to concerns that alleged defaults by retailers such as Goodwin and Rasiklal Sankalchand, which ran gold investment schemes, could prompt a government crackdown on such programmes. That would put at risk the ornaments given on credit by manufacturers.
(Source: The Economic Times)
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