NEW DELHI, June 23: The downturn in India’s business sentiment seems to have bottomed out as listed firms reported significant improvement in production levels, domestic as well as export orders this month, a survey said today.
Deutsche Boerse’s MNI India Business Sentiment Indicator, a gauge of current sentiment among BSE-listed companies, rose by 7.7 per cent to 67.1 in June from 62.3 in May.
Results of the June business survey provide a tentative sign that the downturn in overall sentiment may have bottomed, it said.
“It would be unwise to read too much into one month’s data but the brighter tone of the June survey provides an early signal that the trend decline in sentiment since peaking in September last year may have run its course,” MNI Indicators Chief Economist Philip Uglow said.
As per the report, the June interest rate cut seems to have contributed to the rise in business confidence. Moreover, the depreciation in rupee stimulated exports orders.
In the policy review meet on June 2, RBI had cut interest rate by 0.25 per cent for the third time this year to spur investment and growth but hinted that there may not be any more cuts in the near-term.
“Exporters have been benefiting from the rupee’s depreciation and demand for labour is at the highest for a year,” Uglow added.
Having acted as a dampener on sentiment for months, there was finally an up-tick in demand from abroad as the export orders indicator rose 13.2 per cent in June. Moreover, firms also anticipated that the weaker rupee would help support external demand over the coming months.
On inflation, the report said though companies’ input costs have risen sharply in 2015, they were reluctant to pass on rising costs to customers.
MNI Indicators, part of the Deutsche Boerse Group, offers macroeconomic data and insights into businesses and investment community. (PTI)
Indian biz sentiment boosted by June rate cut: Study
Volkswagen India to launch 5 products in next two years
NEW DELHI, June 23: German auto major Volkswagen will launch five products, including the iconic Beetle and its popular SUV Tiguan, in India in next two years to strengthen its presence here.
The company kicked off the programme with the launch of a new version of its mid-sized sedan Vento priced between Rs 7.85 lakh and Rs 11.87 lakh (ex-showroom Delhi).
“India is an important market for Volkswagen. In the next 24 months we plan to launch five products,” Volkswagen Passenger Cars Director Michael Mayer told reporters here.
The company plans to enter new segments with the launches, he added.
“We will be launching a sub-4 meter compact sedan next year. We also plan to bring Beetle into India,” Mayer said.
Further, the company plans to launch the 8th generation of Passat sedan and brand new sports utility vehicle Tiguan, he added.
“These launches will widen our product portfolio and enhance our presence in the country,” Mayer said.
On the Vento launch, Mayer said: “The Vento has always been among our best received products in the market and with the changes made…We are confident that the product will continue to appeal to our customers.”
The company had first launched Vento in 2010 and since then has sold around 1.10 lakh units of the sedan.
The new Vento comes in both petrol and diesel engines.
Volkswagen is planning to make India a low-cost manufacturing hub, which will cater to emerging and developed markets.
The company plans to invest Rs 1,500 crore on localisation and producing cost-effective products. It also plans to increase the production capacity at the Chakan and Aurangabad units in the next two years.
Volkswagen plans to increase its production to two lakh units by 2018 and add more new models from the Chakan plant.
In India, Volkswagen group has five brands —- Audi, Volkswagen, Skoda, Porsche and Lamborghini. (PTI)
horoscope
Wednesday June 24-2015
Aries : You feel lost and thoroughly depressed today. This will make you turn towards spirituality, says Ganesha. You will devote more time to meditation and will pray a lot. Despite the adverse circumstances, Ganesha says you will make a good deal of material headway.
Taurus : In all probability, you will discuss certain sacred issues with your beloved today, predicts Ganesha. In the evening, you will be possibly visiting holy places. You had better make up for the lost time to finish pending work in the afternoon. Think twice before you act, warns Ganesha.
Gemini : The day will be dedicated to spending quality time with children, predicts Ganesha. You will be overloaded with household responsibilities and will find it tough to deal with them. However, you will manage to do well and will be satisfied with the outcome. Avoid getting too sentimental if you are a parent; also, you may have to act tough with your kids, suggests Ganesha.
Cancer : A shopping spree with your darling is likely to be the highlight of the day, even though you will be paying for almost everything. Though you have decided to be this lavish out of sheer love, your sweetheart will more than return the favour with a sweaty thank you ‘return gift’ in the evening.
Leo : Don’t expect you’ll be handed everything on a silver platter. Especially today, you must put such expectations on the back burner, says Ganesha. Today, you would do better to dig deep into your resources of persistence, as a somewhat less productive day awaits you. But do not let this momentary glitch upset you; stick to your plan and slog it out. Efforts made today will have a major bearing on the fruits you receive in the future.
Virgo : The time today is ripe to venture into a new business. Projects that have been put-off will finally be completed. Looking into the week ahead, you are most likely to give yourself an energy zap. Parties will be all fun and entertainment. Your kids will bring home joy and pride and this will brighten the mood even more, says Ganesha.
Libra : The Bhagavad Gita says, “Do your duty without expecting the fruit.” Remember this important lesson and strive hard to put in extra efforts to finish off whatever you undertake to do. Worrying about results will only hamper your progress. Go with the flow and let results come to you. You may want to discuss some urgent matters with your close friend today, says Ganesha.
Scorpio : If you have recently started a joint business venture, today you may take your first step towards sealing a profitable deal. However, you should buy some time before signing any contract today; also, be cautious that you do not get the short end of the stick. The best thing is to go through the finer prints of the deal in order to avoid any misgivings in the future, suggests Ganesha.
Sagittarius : You will enjoy the magic of the Midas touch today, feels Ganesha. In business, sheer brilliance will help you derive the best possible results in productivity and clinching new contracts. Your approach, in general, will be methodical, disciplined and systematic for most part of the day.
Capricorn : Your power of reasoning will be strong today, says Ganesha. Those of you beginning your career will show a disposition to take up a job in television or print media. The spiritual side of you may also come to the fore and make you feel at peace, especially when visiting a holy place.
Aquarius : Listen to your inner voice, follow what your heart says and you will not need anyone else guiding you on your path. At work, you will have a smooth sailing today, as superiors will be supportive of your actions and decisions. Go on a romantic date in the evening, and mark a perfect ending to the day, feels Ganesha.
Pisces : You set irreproachable standards for yourself, but what keeps your subordinates from grumbling about it is the efforts you make to help them achieve perfection in their endeavours, says Ganesha. You inspire, they aspire.
L&T to list its IT services unit by Dec
NEW DELHI, June 23: Engineering and construction giant Larsen & Toubro (L&T) will list its IT services unit L&T Infotech by year-end.
The company will list its IT services unit L&T Infotech by December, Chairman AM Naik said in an interview to CNBC TV18.
The conglomerate will sell 10 per cent stake in the IT services and solutions provider, Naik said.
A wholly-owned subsidiary of company, L&T Infotech, with nine delivery centres, is expanding into new geographies even as it consolidates its client facing organisation in North America and Europe.
The clients of the unit include Chevron, Freescale, Hitachi, Sanyo and Lafarge, among others.
The company has been looking to exit non-core business for long.
Naik also said the company will look at listing other businesses, including its hydrocarbons and transmission and distribution units over the next few years.
L&T Hydrocarbon Engineering, also a wholly-owned subsidiary of the company, is dedicated to serving the oil and gas sector around the world and delivers turnkey engineering and construction solutions across the hydrocarbon spectrum — Upstream, Mid and Downstream and Pipelines.
L&T is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services with over USD 15 billion in revenue. It operates in over 30 countries worldwide.
The shares of the company were trading at Rs 1761.70, up 1.77 per cent on the BSE at about 1300 hours. (PTI)
A man rides bicycle as clouds hover over Jammu City on Tuesday.— Excelsior/Rakesh
A man rides bicycle as clouds hover over Jammu City on Tuesday.— Excelsior/Rakesh
Ashok Leyland wins USD 82 mn bus contract from Senegal
NEW DELHI, June 23: Hinduja Group’s flagship company Ashok Leyland today said it has received orders worth USD 82 million (approx Rs 521 crore) from Senegal to supply 475 buses.
The company in a statement said it has bagged orders worth USD 82 million from Senegal towards building their comprehensive and integrated transportation system.
Dakar Dem Dikk, a public transport organisation under the aegis of the Ministry of Transport, Senegal, has commissioned a comprehensive logistics programme with Ashok Leyland that comprises supply of 475 buses, genuine spares, assistance in development of workshops, training and consultancy on fleet management and structuring of vehicle tracking and monitoring systems.
“This order is build on our momentum in the African region and we are very proud to not just supply buses but be partners in progress, contributing to the restructuring of Senegal’s transport sector,” Ashok Leyland Managing Director Vinod K Desari said.
Desari added the company’s in-house expertise and ability to offer customised solutions has helped it to win this order amid stiff global competition.
Shares of Ashok Leyland were trading at Rs 71.70 per scrip on the BSE during afternoon trade, up 1.85 per cent from its previous close. (PTI)
Pacific trade pact returns to US Senate for second test
WASHINGTON, June 23: US President Barack Obama’s signature Pacific trade pact faces another test in the Senate on Tuesday as legislation needed to close the deal returns for a second run through the chamber.
The legislation has already endured six weeks of congressional wrangling and two close brushes with failure after revolts by Obama’s own Democrats, many of whom believe trade deals will threaten U.S. jobs.
The bill, which would establish a fast track through Congress for trade deals, needs support from 60 senators to clear a procedural hurdle. Although the measure passed the Senate a month ago on a vote of 62-37, including backing from 14 Democrats, some may withdraw support.
Fast-track legislation gives lawmakers the right to set negotiating objectives for trade deals such as the 12-nation Trans-Pacific Partnership, or TPP, but restricts them to a yes-or-no vote on the final agreement.
Trading partners say they want fast-track legislation enacted before finalizing the TPP, which would be the biggest trade deal since the North American Free Trade Agreement liberalized commerce between the United States, Canada and Mexico two decades ago.
It took two attempts to pass this same procedural hurdle on the legislation’s first run through the Senate last month, after Democrats successfully demanded the measure be bundled with three other trade bills.
Opposition in the House of Representatives, where Democrats refused to renew a previously uncontroversial program providing aid to workers hurt by trade, has forced the measures apart again.
Senators will vote Tuesday on limiting debate on fast-track and – if that vote succeeds – on the actual bill on Wednesday, before tackling a second bill extending trade benefits to African nations. That bill now also contains the worker aid program.
Republicans want both measures to pass this week before Congress goes on a week-long break so that Obama can promptly sign them into law.
“If we simply vote the same way we did a couple of weeks ago, we won’t miss this opportunity,” Senate Majority Leader Mitch McConnell said on Monday.
The top Democrat on the Senate Finance Committee, Ron Wyden, backed the plan but several others would not reveal their stances to reporters as unions intensified their opposition campaign.
The TPP, a potential legacy-defining agreement for Obama, would open markets for U.S. exporters like Intel Corp and Caterpillar Inc, extend monopoly periods for Pfizer Inc and rivals’ medicines and cut import costs for companies like Wal-Mart Stores Inc.
(AGENCIES)
Zinc futures up 0.69% on overseas trend, spot demand
NEW DELHI, June 23: Supported by a firming trend overseas and pick up in domestic demand, zinc futures prices today edged up by 0.69 per cent as participants built up positions.
At Multi Commodity Exchange, zinc for delivery in July gained 90 paise, or 0.69 per cent, to Rs 130.55 per kg with a business turnover of 37 lots.
The metal for delivery in June month contracts rose 85 paise, or 0.66 per cent, to Rs 130.55 per kg in a business turnover of 622 lots.
Traders said fresh positions created by speculators on the back of improved demand in the spot market and gains in base metals in global market, helped zinc futures to trade higher. (PTI)
Lupin gets Board’s nod to raise funds up to Rs 7,500 crore
NEW DELHI, June 23: Drug major Lupin today said its Board of Directors have given in-principle approval for raising funds of up to Rs 7,500 crore.
“The Board of Directors at their meeting held on June 22, 2015, approved in principle the raising of funds up to Rs 75,000 million through issue of Securities i.E., equity shares, GDRs, ADRs, convertible bonds, equity linked instruments, etc. As may be appropriate,” Lupin said in a filing to BSE.
Enabling approval of the shareholders to the above will be sought at the Annual General Meeting scheduled for July 23, 2015, it added.
The filing, however, did not disclose the purpose of raising the funding.
Shares of Lupin were trading at Rs 1,790.15, down 1.16 per cent from its previous close on BSE. (PTI)
Copper futures rise on firm global cues
NEW DELHI, June 23: Buoyed by a firm global trend and increased domestic demand, copper prices rose 1.55 per cent to Rs 365.90 per kg in futures trade today as participants created speculative positions.
In futures trading at Multi Commodity Exchange, copper for delivery in June traded higher by Rs 5.60, or 1.55 per cent, at Rs 365.90 per kg in a business turnover of 2,200 lots.
Metal for delivery in far-month August contracts spurted by Rs 5.55, or 1.52 per cent, to Rs 371.30 per kg in a business volume of 222 lots.
Globally, copper for delivery in three months rose 1.9 per cent to USD 5,760 a tonne on the London Metal Exchange (LME) while in Shanghai, the metal advanced 0.3 per cent to 41,950 yuan (USD 6,756) per tonne.
Analysts said a firming overseas trend after copper and nickel led metals higher as manufacturing in China showed signs of stabilising and amid speculation a deal is near between Greece and its euro-area creditors, mainly influenced copper prices here. (PTI)