US investment bank Morgan Stanley, sees the Sensex rising to 34,000 by June 2018. To the question, where do the Indian markets go from here, the answer was unequivocal: Up another 9 per cent, said Jonathan Gartner, the bank’s Chief Asia and Emerging Markets Equity Strategist. Gartner cited the upbeat corporate earnings outlook and strong economic growth as reasons for the optimistic forecast.
Last week, the benchmark 30-stockSensex closed at 30,190. 6 points, the gauge rising 17.14 per cent since January. We’re bullish on the Indian market. In fact, we are overweight on India in relative to our coverage,’ said Gartner, speaking from Hong Kong. If you look at the situation for equities globally, it is characterized by strong earnings growth.’ Gartner said he expected the Sensex to register 18 per cent earnings growth for fiscal year 2018 ending March 31., on the back of of synchronized growth in India’s infrastructure and consumption sector.
Optimistic outlook
‘There is increasing support from exports, while global trade growth is recovering. We also think corporate capex spending will be rising globally,’ he said. Foreign investors have bought $7.81 billion in Indian stocks this year, betting on Indian growth prospects. This optimism has ridden out the dip in Indian growth to 6.1 per cent in the fourth quarter of fiscal 2017, ending March 31.
‘Now, actually we are close to a situation where the economy will be firing on all cylinders and strong earnings growth will come through, said Gartner. ‘Inflation is well contained here, the current account is in balance , bond yields have been trending down. All these are quite constructive.’ (Mint June 7)
More optimism on economy
NITI Ayog Vice Chairman Arvind Panagriya issued a tocsin of optimism on India’s economic prospects, saying the economy would grow 7.5 per cent in the current fiscal ending March 31`, 2018, and outperform this with 8 per cent by 2018-19. ‘The full impact of the economic reforms and changes in governance being undertaken at present is yet to be realized,’ he said. Panagriya was a professor of economics at Columbia University before taking charge of at NITI Adyog in 2015. NITI Adyog is the government’s think tank, replacing the planning commission, which had operated in the decades following India’s independence. Panagriya said the ‘Reforms will lead to accelerated growth with a lag,’ citing the experience of reforms between 1991-1996 by the Congress government of Narasmha Rao, and by the BJP government of Atal Bihari Vajpayee between1998-2004. (Mint June 3)
IT firms need fewer H-1B US visas
Indian IT companies made fewer applications for US H-1B visas for its professionals in 2015 when the Obama administration was in the final lap – a trend that has accelerated with the new Trump Administration. Stephen Yale-Loehr, Professor of Immigration Law Practice at Cornell Law Schoo, said that technological change was promoting many India-based companies to file fewer H-1B visa petitions, and not by Congressional legislation. Professor Yale-Loehr said: ‘The rise in artificial intelligence is and cloud computing mean fewer people are needed to perform certain jobs.’ (Times of India June 7)
Infosys to hire 20,000 this year
India’s second-largest IT company, Infosys, has said it would hire 20,000 people, adding that reports of job losses were exaggerated. ‘I think all the news about job losses is really overstated. In Infosys itself last year, we recruited more than 20,000 people, and this year we are likely to recruit similar numbers. In fact, in the first half itself – first and second quarters - we will be recruiting more than 10,000, said Pravin Rao, Chief Operating Officer, Infosys. ‘So we are actually creating more jobs and letting go a miniscule amount of people, purely from a performance-related perspective. I am very optimistic about the future and opportunities in this sector,’ he said (Business Line June 3)
Indian start-ups going global
Established in 2016, Bangalore-based PropUrban is set to jet the world in search of clients, be they foreign or Non-resident Indians. ‘Apart from our overseas centres at Dubai and London, we now plan to go to Hong Kong and Singapore by July-end. And we will have around a dozen cetres overseas by the end of 2017,’ says Mir Ali Jaffer, Founder-CEO.
Done deals
‘We have done 14 major global transactions in India, originating in Dubai and London with a gross value of transaction worth $2 million,’ he said, pointing out also that his company expected 75 per cent of its revenues to come from abroad in the next fivers or so. He attributed this potential inflow to India’s consumer-friendly policies, increasing transparency, GST. and ongoing correction as the seed-bed of his optimism.(Business Line June 8)
Green light for Adani’s Australian project
Following seven years struggling environmental hurdles, Adani Enterprises Ltd has emerged with the Queensland state government’s permission to begin work on its $16.5 billion mega Carmichae coalmine and rail project , said Chairman Gautam Adani in Ahmedabad. ‘I am proud to announce the official start of one of the largest single infrastructure and job-creating developments in Australia’s recent history.’ He called it a historic day for Queensland and for Indian investment in Australia. Adani has invested $3.3 billion in the project, including t buying the bulk coal handling port at Abbot Point. Investors cheered the news. Adani Enterprises shares rose 8.63 per cent. (Mint June 7)
Terror attack in Kashmir foiled
Thanks to a key intelligence input several weeks ago, and the alertness of two sentries a jihadi terror attack on a paramilitary outpost on the Line of Control in Kashmir was repulsed, with four of the assailants killed in the exchange of fire. The paramilitary battalion has been in action in a number of counter-insurgency operations and have distinguished themselves by their courage and resourcefulness (Times of India June 6)
More Pinakas for Army
The Defence Ministry is shortly to place a fresh order for Pinaka rocket launchers to equip six regiments of the Indian Army. Each regiment will have 18 systems. The Pinaka has been designed and developed by private sector companies, Tata and Lasen & Toubro, with the aid of the state-owned Defence Research & Development Organization (Business Line May 8(
NIA raids on separatists
The National Investigation Agency conducted a number of raids recently at 26 locations in Kashmir, Haryana and Delhi in a case involving the funding of jihadi terrorist activities operating out of Pakistan. Four NIA teams, along with paramilitary and police support , fanned out across Srinagar and raided 14 premises housing separatists and businessmen. DDuring the raids the NIA sleuths recovered Rs 1.15 crore in cash, property-related documents and incriminating evidence such pen drives, laptops, hard discs. They also discovered numbers of bank accounts and lockers (Hindu June 4)
Heavy toll
Seven jihadi terrorists were killed by Indian security forces , as they attempted to infiltrate Kashmir. They were intercepted. One Indian soldier lost his life in these encounters. The mounting jihadi death toll tells of the heavy cost their organizations are paying (Telegraph, Times of India June 9)
Army Chief unfazed
A man named Partha Chatterjee ((not to be confused with the Bengal State minister) claiming to be a political theorist, is a voluble poseur, a paid-up member what may best be described as the proto-Maoist tendency of the pretentious, self-obsessed babu class, has compared the Army Chief General Bepin Rawat to General Dyer of ages past, who ordered the Jalianwalabagh massacre of April 1919.
What say the they, let them say
When this was brought to General Rawat attention, the Army Chief reacted with superb aplomb: He had not the slightest objection to anything said of him by anyone. More importantly, the Army was equipped and ready for wars on two-an- a-half fronts against Pakistan and China externally, and another domestically. However, there had been no conflict with China for over 50 years and he hoped to keep it that way. (Times of India June 6, 9)
Passage to India for Jeep Compass
When the first Jeep Compass rolled out of the Ranjangaon plant assembly line last week, it was a proud moment for the team that had worked tirelessly for this triumph. As Chief Executive Officer of the Fiat India Automobiles, Tata Motors and Fiat Chrysler Automobiles joint venture, Gurpratap Boparal, was especially pleased at the outcome. ‘As a manufacturing facility, we are right there with other plants on efficiency and quality. We are are one of the unique automobile facilities, which also has a fully fledged power-main unit in a single complex.’ The Ranjangaon plant now has a special place in the Fiat Chrysler global map. Small wonder that Kevin Flynn, President & Managing Director of FCA India Automobiles is so delighted by the performance (Business Line June 9) .
Landmark GSLV satellite
The Times of India in justifiable excitement, devoted most on inside page on the impending landmark launch of the Indian Space Research Organization’s (ISRO) GSLV Mark-III on June 5. Neither the launch nor the preparation merited a single line in the Telegraph, so credit to the Times of India.
