Indian Economy: News and Discussion

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Liberalization in those times meant allowing Western capital and companies to flood India. At that time we had just achieved freedom from these colonial Allied powers. Again allowing them to come back in to invest their colonial wealth in the name of liberalization would be like inviting them to re-colonize us.
By liberalisation, here I don't mean to let west flood us again but creating a liberal eco system within country and reduce state ownership and probably even use tariffs to barr foreign companies.

We just need any kind of economic measures to achieve more & more control on Indian and other economies gradually.
Where she messed up is not allowing meritocracy to flourish within India, the way German and Japan did after WW.
That's what I wish to say.
 

Why so serious?

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Morgan Stanley Sees $7.1-Billion Inflows Into India On MSCI Rejig
Darshan Mehta
@darshanvmehta1
Apr 07 2020, 9:16 AM IST Apr 07 2020, 10:28 AM IST


Indian stocks are expected to see an inflow of more than $7 billion on account of a likely increase in their weights on the MSCI Index.

Morgan Stanley expects MSCI Inc.—the world’s biggest index compiler with about $12 trillion in assets benchmarked to its products—to rebalance India weights to reflect the change in sector-wise limits for investment in stocks by overseas investors over the next few months.

As a result, “MSCI India’s weight in EM is expected to rise by 55 basis points and India’s foreign inclusion factor to rise from 0.39 to 0.42, which would imply passive inflows of $1.3 billion and active inflows of $5.7 billion”, Ridham Desai, equity strategist at the research firm, said in the report.

From April 1, 2020, India moved into a new regime on foreign limits whereby the foreign investment limit has been increased to the sector threshold. This change is an attempt to fix MSCI India’s low float compared to global markets, the report said.

On March 31, MSCI in a media statement had said it would wait for the practical implementation of these changes and the systematic publication of the new sectoral limits applicable to Indian securities before making any changes to the MSCI indices. Also, MSCI will maintain the current foreign ownership limit for Indian companies and will defer changes to the foreign inclusion factors resulting from foreign ownership limit and foreign room changes as part of the May 2020 Semi-Annual Index Review and Corporate Events, the statement said.

On April 2, National Securities Depository Ltd. published the data in order to expedite this implementation.

Who May Benefit The Most
According to Morgan Stanley, the top five beneficiaries of these regime changes are:

  • Larsen & Toubro Ltd.
  • Asian Paints Ltd.
  • Bajaj Finance Ltd.
  • Nestle India Ltd.
  • Divi’s Laboratories Ltd.
That’s because these stocks could see the highest increase in their weights in the index, the research firm said.


On a relative basis, large-cap stocks such Reliance Industries Ltd., HDFC Ltd. and Infosys Ltd. are likely to see the biggest reduction in weights, given the upward rebalancing of beneficiaries.

Likely New Entries
Stocks like Kotak Mahindra Bank, Biocon Ltd., Indraprastha Gas Ltd., Torrent Pharmaceuticals Ltd., Abbott India Ltd. and Procter & Gamble Hygiene will be in focus as the change in foreign limits creates an opportunity for more stocks to be included in the index.

The billionaire Uday Kotak-led lender could see the highest inflows of $450-910 million depending on headroom for FIIs. To be sure, the current foreign investment limit in Kotak Mahindra Bank is up to 55 percent. The inflow is subject to the lender opening up the limit to 74 percent.

The two stocks that could see weight reductions due to removal of depository receipts are ITC Ltd. and Bajaj Auto Ltd., Morgan Stanley said.

 

Sanatani

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Avanti feeds lelo debt free company hai. He he he..

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I was speaking to a person who says he knows ppl who have prawn business.
According to him with each passing day the expenditure is becoming high because of the cost of feed . Further if any of the ponds get infected ,it can't be used for prawn culture again for 3 seasons . So if the government doesn't allows export it will mean a very big loss for them.
Again I have written what I heard. It may or may not be correct.
 

MrPresident

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I was speaking to a person who says he knows ppl who have prawn business.
According to him with each passing day the expenditure is becoming high because of the cost of feed . Further if any of the ponds get infected ,it can't be used for prawn culture again for 3 seasons . So if the government doesn't allows export it will mean a very big loss for them.
Again I have written what I heard. It may or may not be correct.
At this point in time there is risk, but good thing with company is it's debt free and no comes knocking the door when there is no revenue. Most of Avanti s revenue is export, it's just matter of time before it recovers. Companies with good management would be able to survive this and one who survives this will be a winner in future.

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sorcerer

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India February IIP rises to 4.5%
Asit Ranjan Mishra
4 minutes
NEW DELHI : India’s factory output rose to a seven-month high of 4.5% in February, before the government imposed a nationwide lockdown in March that has crippled normal economic activity.

Mining and manufacturing grew at 10% and 3.2%, respectively during the month, while electricity generation rose 8.1%. Data released earlier showed India’s eight infrastructure sectors which contribute over 40% of the Index of Industrial Production (IIP) touched an 11-month high of 5.5% in February.
 

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