7 June 2009 | India Economic Scan

7-June-2009

India Economic Scan

In this edition: Calyon says Indian economy to grow 6% in 2009/10, Indian monsoon to revive in 2 days - boost cotton and rice, ICICI Bank to diversify funding and revenue streams, Indian Rupee to rise 10% says Calyon, Indian stocks rise.

Top headlines

India's economy to grow at 6 pct in 2009/10 - Calyon

• Indian economy is likely to grow at 6% in 2009/10 fiscal year and 7% in 20010/11 as the new government is expected to unveil new pro-growth measures, Calyon said.
• It has raised its estimate from its previous forecasts of 5.5% for 2009/10 and 6.5 percent for 2010/11. Calyon's 2009/10 growth estimate matches the Reserve Bank of India's growth forecast.

India Monsoon to Revive in Two Days, Move to Cotton, Rice Areas

• India’s monsoon, which accounts for 4/5ths of the nation’s annual rainfall, may revive in 2 days, improving prospects of its progress towards the main rice and cotton growing regions, the weather bureau said.
• Timely rain helps boost yields of crops including rice that are planted after the onset of the monsoon. Increased production will help Prime Minister Manmohan Singh’s government to keep its promise of distributing grain to the poor at below market prices.

ICICI Bank to diversify funding, revenue streams: Kochhar

• "Looking ahead, we see favourable prospects for the Indian economy.... India has weathered the global storm with a high degree of resilience and we expect the Indian economy to return to a robust growth path ahead of other economies that are experiencing recessionary conditions," ICICI Bank Managing Director and Chief Executive Officer Chanda Kochhar has said.
• "We have demonstrated our success over a long period of time. In fiscal 1985, we had a networth of Rs 1.75 billion, assets of about Rs 21 billion and profits of Rs 0.36 billion. In fiscal 2009, we had a networth of about Rs 500 billion, assets of about Rs 3,800 billion and profits of Rs 37.58 billion. This represents over 20% compounded annual growth over a 24-year period. (Business Standard)

India Rupee to Rise 10 Percent in a Year, Calyon Says

• India’s rupee, which posted its best month on record in May, is set to rally 10% to 43 per dollar by mid-2010 as fund inflows from abroad pick up and lower oil prices improve the nation’s trade balance, Calyon said.
• “With risk appetite coming back gradually, and against the post-election backdrop, we believe the rupee should benefit from the oil-induced improvement in the trade balance,” wrote Barbe at the investment-banking unit of France’s Credit Agricole SA.

Indian Stocks Rise, Longest Weekly Winning Streak Since 2005

• The Bombay Stock Exchange’s Sensitive Index, or Sensex, climbed 94.87, or +0.6%, to 15,103.55. The S&P CNX Nifty Index on the National Stock Exchange added +0.3% to 4,586.90. The BSE 200 Index increased +0.4% to 1,848.04.
• Sterlite Industries (India) Ltd., the nation’s biggest copper and zinc producer, added +2.1%, while Hindalco Industries Ltd., the largest aluminum maker, climbed +3.5%.

Source: India Economic Scan