India Services PMI rebounds strongly in June

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India Services PMI rebounds strongly in June

10th july 2018

The Nikkei India services Purchasing Managers’ Index, or PMI, rebounded to 52.6 in June from 49.6 in May, marking the sharpest rate of expansion in a year.
A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction.
Input cost inflation remained solid, but services providers were unable to fully pass on higher input costs to price-sensitive consumers.
“The service economy returned to expansion territory in June. Encouragingly, the latest performance was the strongest seen in a year,” said Aashna Dodhia, economist at IHS Markit, which compiles the survey.
“However, overall input costs rose at the strongest rate since July 2014, and amid a weak rupee and higher oil prices, inflation may remain elevated. Given these circumstances, the chances of further monetary policy tightening have heightened,” Dodhia added.
Source: NIKKEI ASIAN REVIEW

India’s eight core industries grow 3.6% in May

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India’s eight core industries grow 3.6% in May

10th july 2018

Growth of India’s eight core industries slowed to 3.6% for the month of May, down from 4.7% in April. Cumulative growth for the period ended March 2018 was 4.1%.
The eight core sectors include coal, crude oil, natural gas, petro-refinery products, fertiliser, cement, electricity and steel industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).
“It is disappointing in the sense that it is slower than the trend growth that we have observed even in the last year,” said D K Joshi, chief economist, CRISIL, and added that a single month’s data was not enough, and that he would wait for a few more months to read more into the performance of these industries.
He added that the overall automobile segment has performed well over the last four-five months and given the thrust on construction and what the GDP numbers showed, steel and cement should also be doing well.
Driven by an uptick in the manufacturing sector, the general index of industrial production rose to 4.9% in April, compared to last year, in line with the estimates from the CNBC-TV18 poll.
The IIP for the month of April rose to 123.0, from 117.3 in the corresponding period last year, the Ministry of Statistics and Programme Implementation said.
The cumulative growth for the 11-month period of April-March is at 4.3%.
Coal:
Coal production (weight: 10.33%) increased by 12.1% in May 2018 over May 2017. Its cumulative index increased by 14.0% during April to May, 2018-19 over corresponding period of the previous year.
Petro-refinery products:
Petroleum refinery production (weight: 28.04%) increased by 4.9% in May 2018 over May 2017. Its cumulative index increased by 3.9% during April to May, 2018-19 over the corresponding period of previous year.
Crude Oil:
Crude Oil production (weight: 8.98%) declined by 2.9% in May 2018 over May 2017. Its cumulative index declined by 1.9% during April to May, 2018-19 over the corresponding period of previous year.
Natural Gas:
The Natural Gas production (weight: 6.88%) declined by 1.4% in May 2018 over May 2017. Its cumulative index increased by 2.0% during April to May, 2018-19 over the corresponding period of previous year.
Fertilizers:
Fertilizers production (weight: 2.63%) increased by 8.4% in May 2018 over May 2017. Its cumulative index increased by 6.6% during April to May, 2018-19 over the corresponding period of previous year.
Steel:
Steel production (weight: 17.92%) increased by 0.5% in May 2018 over May 2017. Its cumulative index increased by 2.1% during April to May, 2018-19 over the corresponding period of previous year.
Cement:
Cement production (weight: 5.37%) increased by 5.2% in May 2018 over May 2017. Its cumulative index increased by 10.7% during April to May, 2018-19 over the corresponding period of previous year.
Electricity:
Electricity generation (weight: 19.85%) increased by 3.5% in May 2018 over May 2017. Its cumulative index increased by 2.8% during April to May, 2018-19 over the corresponding period of previous year.
Source: CNBC TV 18

Indian economy set for a surge, India to double the size of GDP to $5 trillion

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Indian economy set for a surge, India to double the size of GDP to $5 trillion

10th july 2018

President Ram Nath Kovind on Sunday said the Indian economy is set for a surge with the GDP size expected to double to USD 5 trillion probably by 2025. He was speaking after launching the platinum jubilee celebrations of chartered accountants’ apex body ICAI.
“Indian economy is set for a surge and in the next decade, probably even by 2025, India is expected to double the size of the GDP to USD 5 trillion,” Kovind said.
Emphasising that adherence to fair taxation system is much more than merely providing revenue to the government, Kovind said chartered accountants are the watchdogs of public trust and have a key role to play and are facilitators of tax payers as well as taxation system.
Speaking on the occasion, Minister of State for Corporate Affairs P P Chaudhary mentioned about Prime Minister Narendra Modi’s speech on July 1 last year, where he had described chartered accountants as doctors responsible for the economic health and well-being of the society.
“He had also said that our chartered accountants are known all over the world for their excellent financial skills.
“While mentioning various steps taken by the Union Government against the black money, he had urged the chartered accountants to introspect and weed out corrupt practices from their fraternity. He had also urged the chartered accountants to advise their clients to follow the path of honesty,” the minister said citing the Prime Minister’s speech.
The Prime Minister’s words continue to be true even to this day, Chaudhary said.
According to Chaudhary, the government’s fight against black money is continuing and that around 2.25 lakh suspected shell companies have been identified. These entities are being analysed and suitable action would be taken, he added.
Minister of State for Communications Manoj Sinha said that frauds in banks and people involved in setting up of shell companies need to be dealt with sternly.
On a personal note, the minister said that he sometimes feels that there is a need for the ICAI to work towards getting rid of those elements that have strayed away from the principles of the institution.
ICAI President Naveen N D Gupta said the world congress of accountants would be held in India in 2022. The Institute of Chartered Accountants of India (ICAI) has more than 2.80 lakh members.
Source: PTI

KATM weekly price indicators for bulk physical commodities

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KATM weekly price indicators for bulk physical commodities

10th july 2018

KATM’s indicative price listed below for various bulk commodities listed on our platform during preceding week:
Iron Ore Pellets (64%Fe) 110 US$/MT FOB ECI  
HMS (80:20) Scrap 350 US$/MT CFR ECI
Prime Hard Coking Coal (Low Vol.)            212 US$/MT CFR ECI
Thermal Coal (RB1 6000 NAR) 119 US$/MT CFR ECI
Thermal Coal (5500 NAR) 105 US$/MT CFR ECI
Thermal Coal (4800 NAR)                          86 US$/MT CFR ECI
Limestone (40-80 mm) 21 US$/MT CFR ECI

Spot iron ore moves up marginally

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Spot iron ore moves up marginally

10th july 2018

Sea borne iron ore saw some upward movement on Friday, while the week saw iron ore inching lower as the demand remained somewhat sluggish. Some uptick in buying sentiments pushed the price up latter in the week as the inventory at the major ports fell and the futures firmed up.
Looking at the benchmark for seaborne iron ore prices, Platts assessed the 62% Fe IODEX & TSI Iron Ore Fines at $62.65/dmt CFR North China on Friday. Meanwhile, TSI 58% Fe Fines, 1.5% Al, CFR Qingdao port closed the week at $52.65/dmt.
Paper trade
Iron ore futures on the Dalian Commodity Exchange climbed Friday, with the most liquid September contract last trading at Yuan 459/dmt ($69.19/dmt), up 2.50/dmt on day, and settling at Yuan 457.50/dmt, up Yuan 2/dmt over the same period.
But steel rebar futures softened, with the most actively traded October contract in Shanghai Futures Exchange last traded at Yuan 3,780/mt ($569.83/mt), down Yuan 8/mt on day, and last settled at Yuan 3,770/mt, down Yuan 4/mt over the same period.