Weekly Pulse 5
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8/8/2019 Weekly Pulse 5 http://slidepdf.com/reader/full/weekly-pulse-5 1/3 WEEKLY PULSE ISSUE - 5 Tata Motors profit rises 100 fold on Jaguar Land Rover Sales Tata Motors Ltd., the owner of Jaguar Land Rover, posted a more than 100-fold gain in second- quarter profit as the global economic recovery and growing demand in China and the U.S. boosted sales of luxury vehicles. Net income rose from Rs. 22 crores in the previous quarter to Rs. 2,200 crores. Jaguar Land Rover returned to a profit in the quarter, with sales up 43 percent on rising demand for $72,000 Jaguar XJ sedans in the U.S. and China. Default Swaps Drop as RBI Tackles Housing Bubble India’s decision to tighten limits on home loans is boosting confidence that regulators are addressing asset bubbles, cutting the cost to protect bank debt from default and supporting a rally in government bonds. The RBI seeks targeted controls on investment in overheated areas, such as property and stocks, instead of slowing the whole economy by raising borrowing costs. The central bank will take pre-emptive action on sectors that have potential to fuel speculation and eventually inflation. Turmeric Tops Stocks With 64% Gain as Inflation in India Flares Falling stockpiles and speculation have also pushed up the price of the curry ingredient 64 percent this year on the National Commodity & Derivatives Exchange, three times the gain of India’s benchmark stock index, boosting food costs in a country where 7 out of 10 people live on less than $2 a day. This yellow spice is used
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Transcript of Weekly Pulse 5
8/8/2019 Weekly Pulse 5
http://slidepdf.com/reader/full/weekly-pulse-5 1/3
WEEKLY PULSE
ISSUE - 5
Tata Motors profit rises 100 fold on Jaguar LandRover Sales
Tata Motors Ltd., the owner of Jaguar Land Rover,posted a more than 100-fold gain in second- quarterprofit as the global economic recovery and growingdemand in China and the U.S. boosted sales of luxuryvehicles.Net income rose from Rs. 22 crores in the previousquarter to Rs. 2,200 crores. Jaguar Land Roverreturned to a profit in the quarter, with sales up 43percent on rising demand for $72,000 Jaguar XJ sedans in the U.S. and China.
Default Swaps Drop as RBI Tackles Housing Bubble
India’s decision to tighten limits on home loans is boosting confidence that regulators
are addressing asset bubbles, cutting the cost to protect bank debt from default andsupporting a rally in government bonds. The RBI seeks targeted controls oninvestment in overheated areas, such as property and stocks, instead of slowing the
whole economy by raising borrowing costs. The central bank will take pre-emptiveaction on sectors that have potential to fuel speculation and eventually inflation.
Turmeric Tops Stocks With 64% Gain as Inflation in
India Flares
Falling stockpiles and speculation have also pushed up the price of the curryingredient 64 percent this year on the National Commodity & Derivatives Exchange,three times the gain of India’s benchmark stock index, boosting food costs in a
country where 7 out of 10 people live on less than $2 a day. This yellow spice is used
8/8/2019 Weekly Pulse 5
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in cooking, cosmetics and has medicinal properties, but this time, becomes acatalyst in the rising inflation of the country. Inventories of turmeric in India,which produces as much as 94 percent of world supply, may fall this year to a recordlow as production declines for the fourth straight year, hence making the price jumpto a record 15,905 rupees per 100 kilograms.
Obama to Ease Export Rules for Indian Defense
Companies
U.S. President Barack Obama has announced a relaxation inexport controls for India today to reduce barriers to commerce andalign the countries’ trade regimes to reflect their strategic alliance,
an administration official said.
As part of the agreement, the Obama administration will supportIndia’s full membership in multilateral nuclear non- proliferationregimes and remove India’s defense and space organizations fromthe U.S. “entities list,” which restricts them from doing business
with the U.S.
GM Will Take on Suzuki in India with SAIC’s China
Cars
General Motors Co., the largest overseas carmaker in China, has failed to replicatethat success in India. To crack the market, the Detroit-based carmaker is enlisting itspartner in China, SAIC Motor Corp.
The alliance produces the best-selling vehicle in the world’s biggest car market,
where it has a 13 percent market share. GM has struggled in India since entering in1994, with its Chevrolet models accounting for only about 5 percent of car sales inAsia’s second-fastest growing major economy.
GM and Shanghai-based SAIC will start selling models in India next year that are
similar to those now sold in China, Kevin Wale, GM’s China president, said in aninterview. The alliance will challenge Maruti Suzuki India Ltd., the nation’s largest
carmaker with a 41 percent market share, and Tata Motors Ltd., maker of the world’s
cheapest car, the Nano.
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Industrial Growth Slows Down to 4.4%
Industrial growth declined the most in 16 months to 4.4 per cent in September Quarter,reflecting a slowdown in demand across sectors, as interest rates rose in response toRBI's tight monetary moves. As industrial growthalmost halved from 8.2 per cent in September 2009,Finance Minister Pranab Mukherjee expressedconcern at the sluggish pace of factory output, butreserved detailed comments for want of in-depthanalysis.
Economists partly attributed the decline in growthnumbers to rising interest rate cycle, however, manyexperts remained positive for industrial growth numbers for next few months due to
festive season and prospects of better farm produce.
RBI Deputy Governor hinted at rate hikes because of this drop in IIP numbers.
For any comments and/or suggestions, please write to us at
Chirag Jain
(Organising Committee, FinX)
