A sharp pick-up in economic growth is visible in June 2009. Metals, capital goods, and automobiles did well. The only dull spot is stagnation in the output of items used for daily consumption.
Railways have reported a sharp increase in freight in June 2009. This is another signal of an economic recovery as basic industries seem to be hiking their output.
Basic industries like chemicals and metals rallied around to pull up production growth in May 2009. But capital goods and consumer non-durables played spoilsport
Fuel prices have been cut to ease price pressures. Industry is holding on to prices, however, to keep profitability high, which may hurt it in other ways
A populist budget worries investors who have already been spooked by weak global markets. A hike in capital gains tax and modification to STT added to the gloom
Indian markets seem happy that lower US interest rates means that funds will flow to other markets, including emerging equities. That may be so but it has consequences for the Indian economy as well
Tata Motors is seeking to make use of JLR’s rising cash flows by leveraging its balance sheet, and refinance existing debt and potentially lower interest costs too.
State Bank of India’s reaction to the credit policy was swift, in a move which will see short term deposit rates spike and all loans will become expensive.
