- S&P warns India may lose investment-grade rating
- Sensex snaps 5-day rally on S&P's downgrade threat
- Rupee ends lower at 55.74/$ after S&P warning
- GDP growth likely at 7% in FY13, says Pranab Mukherjee
- How Reliance Industries, Infosys disappointed shareholders
- Car sales rise meagre 2.8% in May | 5 things the numbers tell you
- TCS vs Infosys analyst meet: a little caution, some optimism
- Indian retailers start to scale down as reforms hopes are dashed
- Why Indian airfares are 200-300% higher than in China
- Why Greek elections can spell doom for the global economy
1) S&P warns India may lose investment-grade rating
Credit rating agency Standard and Poor’s on Monday warned that India may become the first among the BRIC—Brazil, Russia, India and China—countries to lose its investment grade rating, citing slowing GDP growth and political roadblocks to economic policymaking as some of the factors that could lead to such an action. (Read More)
Also Read: Leading indicator for India showing signs of weakening: OECD
“Setbacks or reversals in India's path toward a more liberal economy could hurt its long-term growth prospects and, therefore, its credit quality," said Standard & Poor's credit analyst Joydeep Mukerji in a report titled “Will India be the first fallen BRIC angel’. The 'BBB-' long-term sovereign credit rating on India is currently one notch above speculative grade. Here are the reasons S&P has given.
2) Sensex snaps 5-day rally on S&P's downgrade threat
The BSE Sensex snapped its five-day winning streak as ratings agency Standard & Poor's warned that India could become the first BRIC country to lose its investment-grade rating. The news hit markets in the last hour of trade and led to a sharp selloff in equities.
Markets traded with gains for most part of the session before the S&P news dented sentiments. The Sensex ended over 200 points lower from the day's high of 16,893.81, while the Nifty index closed below the 5100 level at 5,054. (Read More)
Also Read: BEML shares drop to 52-week low on chairman's suspension
3) Rupee ends lower at 55.74/$ after S&P warning
The Indian rupee weakened on Monday after S&P warned that India may be the first BRIC country to lose its investment-grade rating. It closed 0.58 per cent or 32 paise lower at 55.74 to the dollar, off the day’s low of 55.82. (Read More)
4) GDP growth likely at 7% in FY13, says Pranab Mukherjee
Finance Minister Pranab Mukherjee on Monday said he expected economic growth in fiscal 2013 to increase to 7 per cent but that a bounce-back would likely take time. He added that a Direct Tax Code Bill that aims to simplify India’s current tax regime, could be tabled in Parliament in the monsoon session. He also reiterated that there is a need to hike tax collection to drive growth. (Read More)
5) How Reliance Industries, Infosys disappointed shareholders
The annual general meeting of shareholders reviews the financial performance for the year gone by, appoints new directors or gets necessary shareholders’ approval for expansion or reduction in share capital. Shareholders look for announcements that could give them confidence about the business going forward. Last week, the two index heavyweights held their annual shareholders’ meet. Here are pointers on why last week was a bit disappointing for shareholders of the two companies
6) Car sales rise meagre 2.8% in May | 5 things the numbers tell you
Car sales in India rose an annual 2.8 per cent in May, according to data from an industry body, a seventh consecutive monthly increase but far below industry expectations, with demand hit by a hike in excise duty on the vehicles. Auto makers sold 163,229 cars in the domestic market in May, according to data released on Monday. Here’s a break-up of the numbers.
7) TCS vs Infosys analyst meet: a little caution, some optimism
The TCS management has said in the past that it is confident of beating IT lobby Nasscom's dollar revenue growth forecast of 11-14 per cent. The company reiterated the same in the analyst meet. However, Infosys, which had forecast for 8-10 per cent growth in FY13, said margins are likely to decline in the first quarter despite a freeze on salary hikes. Here is what IDFC expert on IT sector had to say. (See Video here)
Also Read: HCL Tech shares fall after Vineet Nayar sells stake
8) Indian retailers start to scale down as reforms hopes are dashed
India’s largest supermarket operator, Future Group, is having a clearance sale: its financial service business and flagship clothing brand are gone, and more deals are in the pipeline. (Also Read: 5 facts about India's retail industry)
Six months after the government backtracked on plans to allow foreign retail giants such asWal-Mart Stores and Carrefour to form joint ventures, cash-starved domestic chains are selling assets, shutting stores, and scaling back expansion plans. (Read More)
9) Why Indian airfares are 200-300% higher than in China
Air fares in India were about 300 per cent higher than those in China and some other countries because of high tax rates, Jet Airways chief Naresh Goyal said today, asserting that the aviation industry could not grow with such taxation. (Read More)
Also Read: Airlines call on EU to end carbon emissions row
10) Why Greek elections can spell doom for the global economy
Greeks will have to wrestle with a crucial dilemma when they go to the polls for the second time in as many months on June 17 to elect a new government.
The outcome could determine whether Greece sticks with the heavy budget cutting that is required under the terms of an international bailout — or rejects the so-called fiscal austerity imposed by the rest of Europe. If Greeks choose the latter, they risk expulsion from the euro, which would likely induce more pain on an economy already in its fifth year of recession.
Also Read: Why Spain's bank rescue could bring only brief respite