The economy is likely to grow at about 5.6 per cent in 2014-15 and fiscal and current account deficits no longer pose a threat to macroeconomic stability, India Ratings said on Friday.
'The history of Moody's India ratings tells its own story,' points out T N Ninan.
If Reliance has to pay about one percentage point more for short-term money, the bond market could be out of bounds for many lower-rated firms after some time.
The venue for Saturday's meeting was shifted at the last minute from the headquarters of the India Banks' Association in Cuffe Parade to avoid media glare.
By no means do economists see the Reserve Bank of India stop at just a 25-bp cut. Some of the economists such as Soumyakanti Ghosh of State Bank of India are of the firm view that rates have room to fall by a total of 75 bps in the current financial year, starting with 25 bps in the August 7 policy.
The agency said the move on liquidity will lead to an ease in the situation.
For the first eight months of the current financial year, the figure stood at Rs 7.17 trillion.
In the next quarter, the country will also start gearing up for various Assembly elections could put the government as well as the OMCs under pressure
Post office savings deposit, recurring deposit accounts and the senior citizen savings scheme account have shown the highest growth in the current financial year.
According to Soumya Kanti Ghosh, chief economic advisor of the State Bank of India group, a 50 bps rate cut is a possibility, but 25 bps is more likely.
Economic affairs secretary S C Garg said that all macroeconomic parameters are performing well.
Economists have said if a stimulus is needed it should be different from what was provided in 2008-09, when the economy faced the ripple effects of a global meltdown following the Lehman Brothers collapse.
While the farmers are not getting remunerative prices for their produce, at the same time they are forced to pay high prices for items they consume.
Perhaps the way forward could be the introduction of uniform rating standards - on the lines of accounting standards for the accounting profession - with a separate regulating authority for enforcing those standards, says Sudipto Dey.
The sale of fresh residential units (in square foot) by listed real estate companies has seen a downward trend in the first half of 2013-14.
The main reason was that CPI inflation would likely remain below 4 per cent till July.
Retailers in the food, grocery and fashion retail segments to be unaffected
However, if the rupee depreciates much, the economy in dollar terms would be that much smaller.
Probably in August. We can argue whether RBI is dovishly neutral or neutrally dovish but the telltale signs of at least one more rate cut are strewn all over the policy statement, points out Tamal Bandyopadhyay.
As infrastructure, power hardly deal in cash, its paucity has failed to affect their receivables
The excise duty collection grew by 81 per cent in first quarter against the budgeted 21.7 per cent.
Over 93% of the orders in the year came from the central and state governments, PSUs, and NHAI.
The country's current account deficit is likely to decline to 1.1-1.2 per cent of the gross domestic product in the third quarter, say rating agencies.
The move will to a large extent speed up the monetary transmission process--which is banks passing on the rate cuts that the Reserve Bank announces to their borrowers without much delays--something that has been missing all these while and something that the RBI has been unhappy with.
Govt squeezed capital expenditure, and also cut revenue expenditure, that does not go into creating assets, by 11% in H1
On the rupee, it expects some appreciation pressure on in the near term from greater portfolio flows.
'This solid verdict would further strengthen his resolve to drive forward the economic agenda to ensure that the fruits of the economic momentum continue to reach the poor, so visible during the last five years.'
The circular says even a day's delay in servicing loans would be now taken as a 'default'. And once in default, for loans above Rs 2,000 crore, the banks will have to arrive at a resolution within 180 days, else lenders will have to file an application under the IBC within 15 days.
The Wadia group-owned airline is building a new management team and putting in place strategies for efficient operations. Leading the change is Cornelis Vrieswijk, the airline's new chief executive officer.
The labour force at large has turned less needy, due to various government financial incentives and freebies.
In February, FPIs sold $421 mn in debt; in March they have sold $133 mn so far
For current financial year, govt plans to borrow Rs 2.88 trillion in the first half of 2018-19, out of Rs 6.05 trillion planned for entire year
The outlook for India's rating would improve if fiscal, inflation and infrastructure metrics get better, a global report said.
With India's imports exceeding exports, weak rupee does more harm than good. Analysts, however, say that rupee depriciation is positive for export-oriented sectors such as IT services, pharmaceuticals, textiles and automobiles
Onion supply in Nashik low but is expected to normalise in a couple of days
General elections are scheduled to be held sometime in the first half of 2014.
Some say the MPC will raise the rate, while others are of the view that there is already de facto interest rate tightening through rising bond yields, which might prompt the central bank to go for a pause.
The next 12 months will be quite challenging marked by uncertain political events and evolving macroeconomic scenario
State-owned banks account for more than two-thirds of the sector's assets and about 85 percent of bad debts
Government's push for Make in India which focuses on select 26 sectors and improving the 'ease of doing business' will aid the manufacturing/industrial growth.
