Daily Econnomic News - 2 May 2014
RBI needs to buy $80 billion by March 2016 to keep 8 months import cover: BofA-ML
According to the latest RBI data, forex reserves stood at $ 309.41 billion for the week ended April 18, which can cover about eight months of imports. between September 2011 and May 2013, the forex reserves fell by a whopping $ 31.6 billion, and since May 2013 and December it lost $ 9.3 billion but by December 2013 it rose by $ 2.3 billion and since March this year, it rose by over $ 12 billion, including the forex swaps with oil companies.
An 8-10 month import cover is a must for the rupee stability, with FII investment in equities has risen to 80 per cent of forex reserves now from under 30 per cent in 1997, which will strengthen the rupee on one hand but can also weaken it if they withdraw heavily.
(Source: The Economic Times)
PE investment during January-March rose 30% to $ 2.09 billion: Grant Thornton
The top sector in PE both in terms of value & volume was IT & ITeS which witnessed 34 per cent ($ 717 million) of overall deal value and 41 per cent (54 deals) of overall deal volume. In the month of March, as seen through the last two months, PE investment continued to show an upward trend at $ 597 million (47 deals) against $ 589 million (27 deals) in 2013.
(Source: The Economic Times)
India's gem and jewellery imports drop 9 pct in 2013-14
India's imports of gems and jewellery fell by 9 per cent to Rs 1, 85,883 crore in 2013-14 on a sharp decline in shipments of gold bars and jewellery due to government curbs, the industry body said. Gold is the second-largest import item for India after petroleum. The government had taken several measures to curb gold shipments to address the high current account deficit. The measures included raising import duty on the metal to 10 per cent and making it mandatory for traders to export 20 per cent of imported gold.
(Source: The Financial Express)
Factory activity steady in April, demand tepid: PMI
The HSBC Manufacturing Purchasing Managers' Index (PMI), compiled by Markit and which gauges business activity in Indian factories but not its utilities, was at 51.3 in April, identical with the March level. The survey also showed both input and output prices rose at their slowest pace in about a year. That is likely to provide some respite to policymakers after wholesale inflation hit a three-month high in March.
(Source: Business Standard)
Thaiindianet. Team
2 May 2014
