Foreign Direct Investment In India Rises

123jump.com Staff
18 Mar, 2009
New York City

The Planning Commission of India suggested that economic growth in India is likely to reach as high as 7% on stimulus. Stocks gained on the report that foreign investors increased their purchase of stocks and direct investment in India surged in January.

[R]11:40AM New York, 8:10 PM Mumbai – The Planning Commission of India suggested that economic growth in India is likely to reach as high as 7% on stimulus. Stocks gained on the report that foreign investors increased their purchase of stocks and direct investment in India surged in January.[/R]

The benchmark stock index rose 1.3% but closed below 9,000 amid anxiety over the outcome of the U.S. Federal Reserve interest rate decision meeting.

Stocks gained on the provisional data indicating foreign institutional investors bought shares worth 415.12 crore rupees yesterday.

Also, foreign direct investment in India gained 55% to $2.7 billion in January from $1.8 billion in the same period a year ago.

Market Sentiment

In Mumbai, the BSE 30-share Sensex Index increased 1.3% or 112.86 to 8,976.68, and CNX Nifty edged up 1.4% or 37.25 to 2,792.90.

Of the stocks traded on the BSE, 1,570 increased, 949 fell, and 60 were unchanged.

Trading Statistics

Daily turnover on the BSE increased to 4,134 crore rupees from 3,974.95 crore rupees yesterday.

India’s Inflation to Hover Around 2%

The International Monetary Fund said in an annual review of the country’s inflation will hover around 2% during 2009-2010 on falling commodity prices and slowing global demand as global economic conditions worsen.

Inflation is projected to drop 3% by March 2009 and 2% on average in 2009 to 2010.

IMF notes that inflation will average 8.8% during the current fiscus on back of increasing crude oil and commodity prices.

Economy Expected to Rise 6.5% to 7%

Economic Times of India reported that Abhijit Sen of the Planning Commission said today the country’s economy is forecasted to rise 6.5% and 7% in the year to March 2010 and the stimulus measures are estimated to increase growth by 1.5 to 2 percentage points.

Sen said the next government that will be formed after the elections in April might need to frame further stimulus measures to sustain economic growth.


“We have done a worst-case calculation on the basis of no effect of the stimulus and what we know currently about the world economy. On that basis, the worst case scenario is about 5 per cent growth,"" said Sen.

Gainers & Losers

Reliance Industries increased 2.4% to 1,333.60 rupees.

Financial stocks advanced. HDFC Bank increased 2.1% to 842. 65 rupees, State Bank of India gained 1.2% to 960.95 rupees, and ICICI Bank soared 3.4% to 335.20 rupees on news that the lender is considering unloading its automated teller machines and point of sale terminals.

IT stocks gained as fears over the health of the global economy were offset by a rising rupee, which increased to 51.30 against the dollar from 51.40 yesterday. TCS increased 1.9% to 506.60 rupees, HCL Technologies rose 1.3% to 102.45 rupees, Wipro increased 1.5% to 230.65 rupees, and Infosys Technologies edged up 0.9% to 1,277.45 rupees.

Larsen & Toubro advanced 3.4% to 638 rupees as the company''s advance tax payment rose 61.8% to 275 crore rupees in fourth quarter ending March 31 from the same period a year ago.

Mahindra & Mahindra dropped 4.1% and Tata Motors rallied 2.6%.

Sesa Goa rose 2% on reports India''s iron ore exports climbed 21.5% to 13.9 million tons in January 2009 against 11.5 million tons a year ago.