Mumbai: Concerns about economic recovery in India have deepened with factory output contracting for the second consecutive month, by 2.2% in June while retail inflation decelerated marginally to 9.64% in July. For the June quarter industrial production contracted 1.1% and is likely to have an impact on GDP growth. Asian indices were trading mostly higher led by recovery in Nikkei Stock Average, up 1.3%. Hong Kong’s Hang Seng gained 0.5% led by gains in property shares and energy producers. China’s Shanghai Composite was also up 0.2%. Overnight, Wall Street indices ended flat as investors turned cautious ahead of retail sales data for July and reading of producer prices, reports Financial Times. The Dow Jones Industrial Average closed flat, while the S&P 500 declined 0.1% and the Nasdaq Composite gained 0.3%. State Bank of India shares may continue to remain under pressure after bad loans surged to their highest level in the past decade indicating that there is sharp deterioration in the health of companies. Gross non-performing assets rose to 5.56% from 4.99% a year ago while net profit fell 14%. Finance minister P. Chidambaram laid out a blue print on Monday to improve the external sector by imposing restrictions on select imports and liberalizing fund raising through external commercial borrowing. Oil India shares will be in the limelight as it plans to raise $900 million to finance the purchase of Videocon Mauritius Energy’s 10% stake in Mozambique’s Rovuma 1 offshore block, reports Mint. DLF Ltd shares will be in focus after it reported a 38% fall in net profit to Rs.181 crore for the June quarter, while net sales rose 5.2% to Rs.2,314 crore. Tech Mahindra Ltd stock will see some action as it reported 3.7% increase in revenue to $724 million after completing its long drawn merger with Satyam, beating investor estimates. Tech Mahindra expects growth momentum to continue as it targets $5 billion in revenues by 2015. Infosys Ltd chairman Narayan Murthy in a note to investors last week said that Infosys would aggressively focus on winning large deals and maintaining its market share while continuing its focus on high-value projects, reports Business Standard. Lastly, following the controversial suspension of Durga Shakti Nagpal who took on illegal sand mining near Delhi, property prices in the national capital region may go up 10% because of shortage of raw material, reports Economic Times.
Posted on: Tue, 13 Aug 2013 03:34:07 +0000
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