slowing industrial output likely to hurt share prices
Last Updated : GMT 02:09:47
Arab Today, arab today
Arab Today, arab today

Slowing industrial output likely to hurt share prices

Arab Today, arab today

Arab Today, arab today Slowing industrial output likely to hurt share prices

Mumbai - Arabstoday

Factories in India are churning out more goods than a year earlier but the pace of growth in output is losing momentum, a trend that is unlikely to change over the next few months with the central bank set to raise interest rates again this week. Equity investors are cutting their positions and moving into cash, or bonds, which look a better bet in the near term for steadier returns. Combined with government\'s inability to push key reforms and long delays in building large infrastructure projects, there is every reason for investors to be cautious. \"The huffing and puffing is getting louder,\" said equity salesman Kevin D\'Souza. \"There is a risk of growth slowing to a trickle in some sectors, and probably shrinking in others.\" Industrial output in April grew an annual 6.3 per cent, data released on Friday showed, the weakest pace in three months and below March\'s 8.8 per cent rise. It was the first data using 2004-05 as the base year. Under the old series with the base year more than a decade earlier, the output expanded just 4.4 per cent compared with 7.8 per cent in March, the government said. The figures were the latest to reaffirm growth was slowing in Asia\'s third-largest economy, thanks to aggressive rate increases by the central bank to douse consumer spending and cool high inflation. India\'s GDP in the three months to March had expanded at the slowest rate in five quarters, while the services sector that makes up little over half of GDP grew at its slowest pace in 20 months in May. The latest data showed growth in output of consumer durable goods, including automobiles, fell sharply to 3.8 per cent in April from 14 per cent a month earlier, consumer goods production expanded just 2.9 per cent from nearly 12 per cent in March. Clearly, companies face a daunting task to maintain earnings growth, but the central bank is widely expected to hike rates by a quarter point on Thursday when it announces mid-quarter policy. The Reserve Bank of India has already raised rates by a total of 250 basis points in nine moves starting March last year. Still, headline inflation is running at well above 8.5 per cent and the data for May due tomorrow should be around 8.6 per cent, Kaushik Basu, the chief adviser to the finance ministry, said on Friday. The central bank is worried about the upside risk to inflation posed by the inadequate pass-through of high world oil prices, rising global commodity prices and volatile food items potentially troublesome for a nation of more than 1.3 billion people. State-controlled fuel prices in India are pegged low, and the government mired in a series of corruption scandals that has dented its image is unable to gather the courage to raise prices of diesel and cooking gas which have remained unchanged for a year even as global oil prices surged. \"The RBI is nowhere near the end of the tightening cycle. At most, it will eschew the sledgehammer like the 50 basis point hike in May,\" D\'Souza said. The top-30 Sensex slipped 0.6 per cent last week, its third weekly loss in four weeks, to 18,268.54, and analysts expect a 7-10 per cent downside as brokerages continue to slash their target price for stocks. Last week, British bank RBS lowered its price target for aluminium leader Hindalco Industries to Rs277 from Rs315, citing delays and high costs at the company\'s overseas unit Novelis. \"We revisit our volume assumptions and scale back our 2012-13 aluminium volumes by six per cent-13 per cent to factor in delays,\" the bank said in a note. JPMorgan slashed its earnings per share forecast for construction firm Punj Lloyd by 72 per cent in 2011-12 and cut the price target to Rs68 from Rs116, saying slow-moving orders and sluggish execution of project were concerns. From / Gulf News

arabstoday
arabstoday

GMT 11:50 2017 Tuesday ,21 November

European stocks shrug off Germany's political woes

GMT 03:59 2017 Tuesday ,21 November

Weekly inflation decreases by 0.88%

GMT 23:50 2017 Monday ,20 November

Bahrain Bourse daily trading performance

GMT 14:54 2017 Sunday ,19 November

Bahrain Bourse daily trading performance

GMT 03:16 2017 Saturday ,18 November

Asian markets head for positive end to volatile week

GMT 11:57 2017 Friday ,17 November

US stocks boosted by solid Wal-Mart, Cisco earnings

GMT 06:51 2017 Friday ,17 November

Bahrain Bourse daily trading performance

GMT 03:57 2017 Thursday ,16 November

Stock markets retreat as oil slides
Arab Today, arab today
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

slowing industrial output likely to hurt share prices slowing industrial output likely to hurt share prices

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

slowing industrial output likely to hurt share prices slowing industrial output likely to hurt share prices

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Visit Jamaica for more than just sun

GMT 09:45 2017 Tuesday ,21 November

Visit Jamaica for more than just sun
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today UN warns of conflict in Gaza

GMT 08:39 2017 Tuesday ,21 November

UN warns of conflict in Gaza
Arab Today, arab today Missouri problem mirrors woes

GMT 06:46 2017 Tuesday ,21 November

Missouri problem mirrors woes
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Fedra happy for “Between Two Worlds” success

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 00:54 2017 Monday ,20 November

Mideast in danger as London explores

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday