Editor's Desk

Industrial production rose 16.7% yoy, higher than our expectations, but broadly in line with consensus. Growth, which initially started picking up in Jun 09, gathered momentum post August and has averaged 12.7% since then v/s 1.9% in the same period last year. On a fiscal year basis (Apr-Jan), growth was 9.6% v/s 3.3% in the same period last year.

The strong numbers are reflective of (1) the base effect (2) the impact of the stimulus measures and (3) the economy

Investors remain worried about shifting macro risks in India, despite the majority of actual economic outcomes being better than expectations. Indian policymakers have done a good job of cushioning the economy from the global credit crisis and positioning it for a strong rebound.

Investors continue to generally misinterpret the broader policy framework and the likely course of policy moves in India.

India’s leading auto maker, Maruti Suzuki’s Japanese parent — Suzuki Motor Corporation (SMC) — is believed to have increased its stake in the company by 0.8% to 55%, as indicated in some media reports.

As per the Securities and Exchange Board of India’s (SEBI) Takeover code – if any entity raises its stake in another company beyond 55%, the former will be required to launch an open offer for additional 20% stake in the latter.

Punj Lloyd obtained the takeover certificate of the engineering & construction of the bio ethanol plant at Teeside , England for its clients Ensus ltd. UK.

The company will pay the liquidated damages of GBP 23.1 million (~ INR 160 Cr) due to delay in achieving the completion of the project. The original completion date for the said project was January 2009. Out of the total penalty of GBP 23.1 million (~ INR 160 Cr), the company has already booked a loss of GBP 13.5 million ( INR 104 Cr) in Q2 FY10.

India’s steel demand is likely to increase by 10% in the next fiscal year ending March 2011 riding on the increasing spending on the infrastructure development, said the Union Steel Secretary Atul Chaturvedi on Wednesday.

‘Steel demand will continue to rise because a lot of emphasis has been put in the budget on infrastructure development,’ he said on the sidelines of a conference. Indian steel industry has remained much buoyant compared to its global peers after the global financial crisis surfaced, thank to the monetary-fiscal stimulus which pushed overall domestic demand and consumption.