3 June 2009 | India Economic Scan

3-June-2009

India Economic Scan

In this edition: Indian exports fall for 7th month - imports fall faster, ICICI bank plans $200m small firms investment fund, Indian stock sales to rise in 2009 says Goldman Sachs, Helios plans India "Slumdog Millionaire" stock fund, Indian stocks pullback slightly.

Top headlines

Exports fall for seventh month on weak demand

• The ministry of commerce and industry said on Monday that exports in April fell by 33.2% on an annual basis to $10.7 billion (Rs50,290 crore today). They had dropped 33% in March as well.
• Imports also declined for the sixth successive month in April by 36.6% to $15.7 billion. While oil imports fell by 58.5% to $3.6 billion due to lower crude oil prices, non-oil imports declined 24.6% to $12.1 billion as a slower economy lowered domestic demand for industrial inputs and machines for new factories. (Live Mint)

India ICICI plans $200 mln small firms fund-sources

• India's ICICI Bank is set to launch a $150 million to $200 million fund in a few weeks that will be invested in small and medium companies, two sources briefed of the plans said on Tuesday.
• The small and medium companies spans sectors such as jewellery, textiles and engineering that typically lean on founders for equity and banks for debt. These sectors usually fall below the threshold for a private equity fund, while venture capital firms focus on start-ups in software and back offices. (Reuters)

Indian Stock Sales May Jump This Year, Goldman Says

• Share sales by Indian companies may increase to $13 billion this fiscal year as a revival in the nation’s economic growth lures investors, Goldman Sachs Group Inc. said.
• Companies may raise $4 billion to $6 billion from initial public offerings in the 12 months ending March 31 and another $5 billion to $7 billion through share placements over the next two to three months, said Anshul Krishan, who heads the India Financing Group at the local unit of Goldman. Stock sales totaled $808 million in the 12 months to March 31. (Bloomberg)

Helios Plans India ‘Slumdog Millionaire’ Stock Fund

• Helios Capital Management Pte, the hedge-fund manager once backed by Tudor Investment Corp., plans to start a “Slumdog Millionaire” fund that will buy underperforming shares of Indian companies.
• “We want to find slumdogs from the Indian equity markets who have the potential of becoming millionaires,” Samir Arora, founder of Singapore-based Helios Capital, said in an interview. (Bloomberg)

Indian Stocks Fall for First Time in Four Days; DLF Declines

• The Bombay Stock Exchange’s Sensitive Index, or Sensex, fell 71.18, or -0.4%, to 14,769.45 at 2:19 p.m. in Mumbai today. The S&P CNX Nifty Index on the National Stock Exchange lost -0.8% to 4,495.40. The BSE 200 Index declined -0.6% to 1,796.70.
• Reliance Industries, the largest company by market value, slid -1.3% after authorities questioned some of its gas- field reserves claims. DLF, the biggest real estate developer, dropped -1.6%. Ranbaxy Laboratories Ltd. lost -6.8%. (Bloomberg)

Source: India Economic Scan