Month: April 2010

Banks may raise rates after April RBI review

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Ever since the Reserve Bank of India (RBI) hiked policy rates in a mid-cycle move in second half of April 2010, expectations of increase in pace of normalisation of the monetary policy stance have picked up. In case the RBI continues to tighten things aggressively in the forthcoming policy review scheduled for April 20, there is strong possibility that market rates too will start inching upwards.

India’s central bank, in line with most of its global counterparts, cut down policy and reserve rates sharply in a series of moves

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RBI will have to act strong as inflation fails to ease

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India’s inflation continues to dupe government and the monetary authority alike and just when it seems that prices are easing, they begin to rise again. Latest reported data of food inflation shows that the pace of rise in food commodities’ prices increased by more than a percentage-and-a-half within a week. Fuel price inflation too continues to remains at higher levels. Manufacturing inflation has already been seen rising sharply in last couple of months. All this is likely to result into a significant jump in headline inflation for March.

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Impact Analysis of MphasiS acquiring Fortify Infrastructure services

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MphasiS is to acquire Fortify Infrastructure Services, a provider of offshore-based remote IT operations and management (ROM) services via an all-cash deal. MphasiS would be paying US$15.5m (upfront consideration) + earn-outs (over a period of two and a half years if certain financials are attained).

The acquisition should provide MphasiS access to Fortify’s accounts, an experienced management team (average

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Punj Lloyd bags EPC contract worth Rs 232 crore

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Punj Lloyd has bagged EPC contract worth Rs 232 crore from Public Health Engineering Department of the Government of Bihar for turnkey implementation of 850 solar- water treatment plants. The solar- water treatment plants will resolve the serve groundwater contamination, resulting in many types of diseases including skin and lung cancer.

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FICCI calls for reduction in luxury and service taxes on tourism

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In order to enhance the country’s inbound tourism sector, industry body FICCI (Federation of Indian Chambers of Commerce and Industry) has suggested a slew of measures. Foreign tourist arrival in 2009 was down by 3.3% to 5.11 million against 5.28 million in 2008 on the back of the Mumbai terror attack in November 2008 which caused a 15% decline in the number of inbound tourists.

It has suggested for a reduction in luxury

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365 MN Indians Reach Employment age by 2025

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By 2025E, 365 mn people would have reached employment age. We anticipate 11 mn people will look for employment every year. India has historically created employment to the tune of 6.5-7 mn per year, implying India can face significant challenges in employment creation should growth derail even slightly. India will be young for long, relative to most countries.

Educated yes, employable no – Despite India’s investment in education beginning to pay off, we worry about educated

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