NDTV Profit

Business Sentiment in India Dips Marginally for Q1: D&B

According to the research firm, the Business Optimism Index (BOI), which measures the pulse of the business community, stood at 129.4 for the January-March 2015, a decline of 6.0 per cent as compared to the October-December quarter of 2014.
EMAIL
COMMENTS

New Delhi: The underlying business sentiment for the first quarter of this year declined marginally amid concerns regarding industrial production, fiscal deficit and policy rates, a Dun & Bradstreet report says.

According to the research firm, the Business Optimism Index (BOI), which measures the pulse of the business community, stood at 129.4 for the January-March 2015, a decline of 6.0 per cent as compared to the October-December quarter of 2014.

Based on the responses received, it was observed that five out of the six optimism indices -- volume of sales, new orders, net profits, selling Prices and inventory levels -- have registered a decrease as against the fourth quarter of last year.

"D&B Composite Business Optimism Index during Q1 2015 declined by 6 per cent as compared to the previous quarter amid concerns surrounding the contraction in industrial production, apprehension about fiscal deficit and RBI's decision to keep policy rates unchanged," Dun & Bradstreet President and Managing Director - India Kaushal Sampat said.

"Compounding the economic weakness was the political stalemate in the Upper House, which prevented some crucial pro-reforms bills from getting passed," he added.

These developments during the survey period could have played a role in tempering business confidence with regard to the January-March period of 2015, the report said, adding that "the government's recourse to ordinances in the last two weeks underlines its resolve to break the legislative impasse and create a conducive environment for reviving investments.

"However, for business confidence to get a sustained boost, it is pertinent that these ordinances are passed as full-fledged legislation in the Budget session".

For calculating the composite BOI, each of the six parameters -- net sales, net profits, selling prices, new orders, inventories and employee levels -- is assigned a weight.

The parameter weights are then applied to these ratios and the results aggregated to arrive at the Composite Business Optimism Index.



For latest news on Business, like us on Facebook and follow us on Twitter.
ALSO READ These Factors May Drive The Market Next Week

Advertisement

Advertisement

GAINERS / LOSERS