Stock Watch

Anand Sharma, Union Commerce and Industry Minister voiced that labor-intensive sectors like engineering goods, leather and garments which are on the verge of improvement, would be provided with stimulus package. He also added that the Finance Minister Mr. Pranab Mukherjee is quite willing to retain stimulus for such sectors in the upcoming Budget.

Prime Minister Manmohan Singh, himself an economist of international repute, hoped double digit GDP growth rate for the economy in next couple of years given to potential and enormous opportunities present in India.

Urging NRIs at the Pravasi Bharatiya Divas, Dr. Singh expressed government’s commitment to provide investment friendly environment in the country by reducing all hurdles for setting up project in India. His assurance came a day after steel tycoon LN Mittal counted challenges for executing mega projects in the country.

In November, India’s exports reached the record breaking height of 18.2 percent, the highest in 14 months, amounting to $13.2 billion. This decreased the trade deficit of the country by $9.69 billion in November 2009 from $12.33 in November 2008.

Imports reduced by 2.6 percent as for November 2009 at $22.88 billion, while for the same month in 2008 they were $23.48 billion.

Government is all set to extend helping hand to the ailing handloom sector in line with its plans to provide sustenance and facilitate growth to the small and medium scale industry, suffering major challenges due to decline in demand in the traditional export destinations.

The Reserve Bank of India has been keeping close eye on the economic scenario and is expected to come up with some changes in the key economic parameters after observing the inflation figures for December.

The Union Government itself wants the Apex bank to be cautious regarding any change in interest rates especially on the Cash Reserve Ratio (CRR).

Government has declined to impose any tax on foreign capital inflows to the stock market adding that there is no necessity at the moment as the market has been working normally. The finance minister added that there is no cause of any worry.

As indicated by the refinery gate prices, the major public sector oil marketing companies (OMCs) are expected to incur huge losses as the companies have projected to book under-recovery of Rs. 45,478 crores on the four petroleum products including, petrol, diesel, domestic LPG and PDS kerosene during the 2009-10 period.

Acting as one more sign for the economic recovery, industrial output has been lifted up by 10.3% in the month of October as compared to the growth rate of 9. 6 %, during the last month.

The Reserve Bank of India (RBI) may possibly order banks to limit their exposure in mutual funds and also prescribe norms for such investments, in order to tighten exposure and deploying funds indirectly in sectors or companies to which banks cannot lend directly due to exposure limits.

NDTV, the New Delhi Television Ltd., has decided to sell major part of its indirect holdings in its NDTV Imagine Ltd. for a whopping $117 million. The stakes were held by the subsidiary of NDTV, the NDTV Networks plc. NDTV is to sell about 76 per cent for about $67 million and an additional fresh issue of $50 million worth of equity shares. It has been reported that NDTV was to retain about 5 per cent stake of the channel ahead of issuing the fresh shares as per the agreement with the company Turner Asia Pacific.