India Economic Scan | 7 May 2009

7-May-2009

India Economic Scan

In this edition: Indian economy to grow 8% says Chief Statistician, Tata Housing starts low-cost housing project, India sugar imports in 2009 nearly complete, Indian banks raise 13.05 bln rupees via CDs, Indian stocks drop on Wednesday.

Top headlines

Indian Economy Likely To Grow 8% This Year- Chief Statistician

• Indian economy is likely to grow 8% in the current fiscal, according to chief statistician, Pronab Sen. The finance ministry projected a growth of 6% while RBI put it at 5.7% this year. IMF estimated it pessimistically below 5%.
• ABN AMRO PMI for April, released on Monday, showed India expanded after months of contraction while the output index for 6 core sectors for March released last week showed a growth of 2.9%, the highest in the last 6 months.
• Sen estimates Indian economic growth close to 6.7% for the year ended March 31, 2009 following an average growth of 8.5% for 5 consecutive years.

Tata Housing to build low-cost housing near Mumbai

• India's Tata Group launched a low-cost housing project near Mumbai, joining a spate of Indian developers that have moved to the affordable housing segment, as demand dries up for more expensive homes.
• Unlisted group firm Tata Housing Development Co said it will invest up to 1 billion rupees in a 1,200-unit township at Boisar, in the outskirts of Mumbai, and will sell apartments at prices ranging between 390,000 rupees and 670,000 rupees.
• The company will hold a lottery to allot flats and will sell application forms at 200 rupees each. The flats will be delivered in about 2 years.

India sugar imports in 2009 nearly complete

• "The bulk of the imports have already been completed," Narendra Murkumbi of Shree Renuka Sugars Ltd said at the third annual International Sugar Organization/Datagro sugar conference in New York.
• Murkumbi said "no more than 400,000 tonnes" of sugar will be brought into India in Q3 2009.
• India's sugar production is forecast to rise to 20.8 million tonnes in 2009/10, from 14.7 million to 15.0 million tonnes the previous season. Consumption is seen at 23 million tonnes.

Indian banks raise 13.05 bln rupees via CDs

• Indian banks raised 13.05 billion rupees via Certificates of Deposit (CDs) on Wednesday, Thomson Reuters data showed.
• United Bank of India (UBI) raised 4.5 billion rupees by selling 6-month notes carrying a coupon rate of 4.49%. Andhra Bank sold 2.3 billion rupees of 4.4% 6-month notes. Punjab & Sind Bank, Central Bank of India, State Bank of Patiala, IndusInd Bank, IDBI Bank, also sold CDs.
• The yield on the Reuters benchmark three-month CD fell to 3.4% from Tuesday's close of 3.65%, and volumes in the secondary CD market fell to 2.15 billion rupees from 4.5 billion rupees on Tuesday.

Indian Stocks Drop for a Second Day; ICICI, HDFC Bank Fall

• The Bombay Stock Exchange’s (BSE) Sensex, fell -1.5% to 11,952.75. The S&P CNX Nifty Index on the NSX slid -1% to 3,625.05. The BSE 200 Index declined -1.5% to 1,401.81. Nifty Index Futures for May delivery fell -0.7% to 3,640.50.
• The BSE’s 18-member banking index has advanced +68% since March 9, when the benchmark index fell to its lowest level this year. In comparison, the Sensitive index has gained 46%.
• Havells India +36% to 222 rupees, HBL Power Systems +19% to 174.20 rupees, Siemens India +2% to 332.65 rupees, Tulip Telecom +25% to 595.50 rupees.

Source: India Economic Scan