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instead of getting out of businesses, govt is getting into new businesses. ... today it's Unitech, tomorrow it will be Jaypee...
https://www.business-standard.com/a...gement-control-of-unitech-120012000756_1.html
https://www.business-standard.com/a...gement-control-of-unitech-120012000756_1.html
https://timesofindia.indiatimes.com...s-bottom-may-be-near/articleshow/73438382.cms
IMF lowers India growth estimate to 4.8% for 2019; cuts global forecasts too
Reuters | Jan 20, 2020, 06.58 PM IST
WASHINGTON: The International Monetary Fund (IMF) on Monday lowered growth estimate for India to 4.8 per cent for 2019, citing stress in the non-bank financial sector and weak rural income growth as the major factors for the downward revision.
India saw a sharp 1.2 percentage point cut to its 2020 growth forecast to 5.8% -- the IMF’s biggest markdown for any emerging market -- because of the domestic credit crunch. Monetary and fiscal stimulus is expected to lift India’s growth rate back to 6.5% in 2021, although this is still 0.9 percentage point lower than forecast in October.
IMF chief economist Gita Gopinath said growth in India slowed sharply owing to stress in the non-bank financial sector and weak rural income growth.
The IMF also trimmed back its 2020 global growth forecasts due to sharper-than-expected slowdowns in India and other emerging markets but said a US-China trade deal was another sign that trade and manufacturing activity may soon bottom out.
It said global growth would reach 3.3% in 2020, compared to 2.9% in 2019, which was the slowest pace since the financial crisis a decade ago. Estimates for both years were cut by 0.1 percentage point from forecasts made in October.
Growth will improve slightly to 3.4% in 2021, but that estimate, too, was cut by 0.2 percentage point from October, the Washington-based international crisis lender said.
The reductions reflect the IMF’s reassessment of economic prospects for a number of major emerging markets, notably India, where domestic demand has slowed more sharply than expected amid a contraction of credit and stress in the non-bank sector.
The IMF also said it marked down growth forecasts for Chile due to social unrest and for Mexico, due to a continued weakness in investment.
The Fund said that an easing of tensions between the United States and China, which had stunted GDP growth in 2019, had boosted market sentiment, amid “tentative” signs that trade and manufacturing were bottoming out.
“These early signs of stabilisation could persist and eventually reinforce the link between still-resilient consumer spending and improved business spending,” the IMF said. The fund has cited uncertainty over tariffs and its negative effects on business investment as the biggest factor in limiting growth.
“However, few signs of turning points are yet visible in global macroeconomic data,” the Fund added.
Boost for China, not US
The Fund’s cautious outlook assumes that there are no additional flare-ups in U.S.-China trade tensions, and that Britain executes an orderly exit from the European Union at the end of January.
The IMF upgraded China’s 2020 growth forecast by 0.2 percentage point to 6.0% because the US trade deal included a partial tariff reduction and canceled tariffs on Chinese consumer goods that had been scheduled for December. These tariffs had been built into the IMF’s previous forecasts.
But the Fund did not give a boost to its US growth forecast for China’s pledges to increase purchases of US goods and services by $200 billion over two years. Instead, the IMF said 2020 US growth would be 0.1 percentage point lower than forecast in October, at 2.0% because of the fading stimulus effects from 2017 tax cuts and the Federal Reserve’s monetary easing.
Eurozone growth also was marked down 0.1 percentage point from October, to 1.3% for 2020, largely due to a manufacturing contraction in Germany and decelerating domestic demand in Spain.
Other emerging markets saw forecast downgrades, the IMF said, including Chile, which has been hit by social unrest. Mexico will grow just 1.0% in 2020, down from 1.3% forecast in October.
Although downside risks had diminished in the wake of the US-China trade deal, the IMF said they were still considerable.
“Rising geopolitical tensions, notably between the United States and Iran, could disrupt global oil supply, hurt sentiment and weaken already tentative business investment,” the IMF said. “Moreover, intensifying social unrest across many countries - reflecting in some cases, the erosion of trust in established institutions and lack of representation in governance structures - could disrupt activity, complicate reform efforts and weaken sentiment, dragging growth lower than projected.”
IMF lowers India growth estimate to 4.8% for 2019; cuts global forecasts too
Reuters | Jan 20, 2020, 06.58 PM IST
WASHINGTON: The International Monetary Fund (IMF) on Monday lowered growth estimate for India to 4.8 per cent for 2019, citing stress in the non-bank financial sector and weak rural income growth as the major factors for the downward revision.
India saw a sharp 1.2 percentage point cut to its 2020 growth forecast to 5.8% -- the IMF’s biggest markdown for any emerging market -- because of the domestic credit crunch. Monetary and fiscal stimulus is expected to lift India’s growth rate back to 6.5% in 2021, although this is still 0.9 percentage point lower than forecast in October.
IMF chief economist Gita Gopinath said growth in India slowed sharply owing to stress in the non-bank financial sector and weak rural income growth.
The IMF also trimmed back its 2020 global growth forecasts due to sharper-than-expected slowdowns in India and other emerging markets but said a US-China trade deal was another sign that trade and manufacturing activity may soon bottom out.
It said global growth would reach 3.3% in 2020, compared to 2.9% in 2019, which was the slowest pace since the financial crisis a decade ago. Estimates for both years were cut by 0.1 percentage point from forecasts made in October.
Growth will improve slightly to 3.4% in 2021, but that estimate, too, was cut by 0.2 percentage point from October, the Washington-based international crisis lender said.
The reductions reflect the IMF’s reassessment of economic prospects for a number of major emerging markets, notably India, where domestic demand has slowed more sharply than expected amid a contraction of credit and stress in the non-bank sector.
The IMF also said it marked down growth forecasts for Chile due to social unrest and for Mexico, due to a continued weakness in investment.
The Fund said that an easing of tensions between the United States and China, which had stunted GDP growth in 2019, had boosted market sentiment, amid “tentative” signs that trade and manufacturing were bottoming out.
“These early signs of stabilisation could persist and eventually reinforce the link between still-resilient consumer spending and improved business spending,” the IMF said. The fund has cited uncertainty over tariffs and its negative effects on business investment as the biggest factor in limiting growth.
“However, few signs of turning points are yet visible in global macroeconomic data,” the Fund added.
Boost for China, not US
The Fund’s cautious outlook assumes that there are no additional flare-ups in U.S.-China trade tensions, and that Britain executes an orderly exit from the European Union at the end of January.
The IMF upgraded China’s 2020 growth forecast by 0.2 percentage point to 6.0% because the US trade deal included a partial tariff reduction and canceled tariffs on Chinese consumer goods that had been scheduled for December. These tariffs had been built into the IMF’s previous forecasts.
But the Fund did not give a boost to its US growth forecast for China’s pledges to increase purchases of US goods and services by $200 billion over two years. Instead, the IMF said 2020 US growth would be 0.1 percentage point lower than forecast in October, at 2.0% because of the fading stimulus effects from 2017 tax cuts and the Federal Reserve’s monetary easing.
Eurozone growth also was marked down 0.1 percentage point from October, to 1.3% for 2020, largely due to a manufacturing contraction in Germany and decelerating domestic demand in Spain.
Other emerging markets saw forecast downgrades, the IMF said, including Chile, which has been hit by social unrest. Mexico will grow just 1.0% in 2020, down from 1.3% forecast in October.
Although downside risks had diminished in the wake of the US-China trade deal, the IMF said they were still considerable.
“Rising geopolitical tensions, notably between the United States and Iran, could disrupt global oil supply, hurt sentiment and weaken already tentative business investment,” the IMF said. “Moreover, intensifying social unrest across many countries - reflecting in some cases, the erosion of trust in established institutions and lack of representation in governance structures - could disrupt activity, complicate reform efforts and weaken sentiment, dragging growth lower than projected.”
?? bad news for DLF tomorrow ??
Key Vadra aide Thampi in custody, ED to unravel Cyprus transactions
Read more at:
http://timesofindia.indiatimes.com/...ofinterest&utm_medium=text&utm_campaign=cppst
Key Vadra aide Thampi in custody, ED to unravel Cyprus transactions
Read more at:
http://timesofindia.indiatimes.com/...ofinterest&utm_medium=text&utm_campaign=cppst
Derivatives trading in commodity indices
SEBI has permitted trading in composite and sectoral indices.
By
Ram Sahgal
, ET Bureau|
Jan 21, 2020, 09.29 AM IST
Sebi has permitted commodity exchanges to offer derivatives trading in indices. Metals and energy bourse MCX and agri bourse NCDEX offer futures and options on single commodities and have created indices which will soon be available for trading. ET explains the basics:
1. What is an index futures contract?
A contract that facilitates the purchase or sale of an underlying index at a fixed price for delivery on a future date. In actuality, index derivatives contracts are cash settled in India.
2. What are the indices that the commodity exchanges have launched?
Of the two major commodity exchanges, MCX has launched seven indices under the MCX iCOMDEX family: one composite index, two sectoral indices and four single commodity indices. NCDEX has launched Nkrishi.
3. What is their benefit over trading single commodity futures or options ? The risk of trading an index futures contract is relatively lesser than for trading a single commodity futures contract. Some might not have the specialisation or knowledge enough for trading a single commodity futures contract but rather have a broader view on a basket of commodities. In that respect trading an index is easier than a single commodity futures contract.
It’s similar when trading Nifty and a single stock futures. Broadly the riskreward might be more favourable on trading Nifty than the other. Also, influencing an index is more difficult than a single stock futures.
4. From where do the indices derive their value? The indices derive their value from the prices of respective commodity futures contracts traded on exchanges scientifically weighted as per the published methodology.
5. When will they begin to be traded? SEBI has permitted trading in composite and sectoral indices. The exchanges will launch them after getting approval from the regulator on contract specifications and other parameters.
6. Until they become tradeable, how can participants benefit from them? The commodity indices indicate the general trend in commodity prices, and therefore reflect the fundamentals of the broader commodity economy or the commodity sector they represent. The indices can also be used for benchmarking, in order to gauge the performance of an investment portfolio consisting of the constituents.
https://economictimes.indiatimes.co...in-commodity-indices/articleshow/73470491.cms
SEBI has permitted trading in composite and sectoral indices.
By
Ram Sahgal
, ET Bureau|
Jan 21, 2020, 09.29 AM IST
Sebi has permitted commodity exchanges to offer derivatives trading in indices. Metals and energy bourse MCX and agri bourse NCDEX offer futures and options on single commodities and have created indices which will soon be available for trading. ET explains the basics:
1. What is an index futures contract?
A contract that facilitates the purchase or sale of an underlying index at a fixed price for delivery on a future date. In actuality, index derivatives contracts are cash settled in India.
2. What are the indices that the commodity exchanges have launched?
Of the two major commodity exchanges, MCX has launched seven indices under the MCX iCOMDEX family: one composite index, two sectoral indices and four single commodity indices. NCDEX has launched Nkrishi.
3. What is their benefit over trading single commodity futures or options ? The risk of trading an index futures contract is relatively lesser than for trading a single commodity futures contract. Some might not have the specialisation or knowledge enough for trading a single commodity futures contract but rather have a broader view on a basket of commodities. In that respect trading an index is easier than a single commodity futures contract.
It’s similar when trading Nifty and a single stock futures. Broadly the riskreward might be more favourable on trading Nifty than the other. Also, influencing an index is more difficult than a single stock futures.
4. From where do the indices derive their value? The indices derive their value from the prices of respective commodity futures contracts traded on exchanges scientifically weighted as per the published methodology.
5. When will they begin to be traded? SEBI has permitted trading in composite and sectoral indices. The exchanges will launch them after getting approval from the regulator on contract specifications and other parameters.
6. Until they become tradeable, how can participants benefit from them? The commodity indices indicate the general trend in commodity prices, and therefore reflect the fundamentals of the broader commodity economy or the commodity sector they represent. The indices can also be used for benchmarking, in order to gauge the performance of an investment portfolio consisting of the constituents.
https://economictimes.indiatimes.co...in-commodity-indices/articleshow/73470491.cms
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