Rupee marks lowest level as investors flee

New Delhi, Feb 29: India’s economy expanded at its slowest pace in more than six years in the last three months of 2019, with analysts predicting further deceleration as the global Covid 19 coronavirus outbreak stifles growth in Asia’s third-largest economy.

The gross domestic product (GDP) data released yesterday showed government spending, private investment and exports slowing down, while there is a slight upturn in consumer spending and improvement in rural demand lent support.

The quarterly figure of 4.7% growth matched the consensus in a Reuters poll of analysts but was below a revised - and greatly increased - 5.1% rate for the previous quarter.

The central bank has warned that downside risks to global growth have increased as a result of the coronavirus epidemic, the full effects of which are still unfolding.

Prime minister Narendra Modi’s government has taken several steps to bolster economic growth, including a privatisation push and increased state spending, after cutting corporate tax rates last September.

In its annual budget presented this month, the government estimated that annual economic growth in the financial year to March 31 would be 5%, its lowest for last 11 years.

Modi’s government is targeting a slight recovery in growth to 6% for 2020/21, still far below the level needed to generate jobs for millions of young Indians entering the labour market each month.

The annual GDP figure for the September quarter was ramped up from an earlier estimate of 4.5%, while the April-June reading was similarly lifted to 5.6% from 5%, data released by the Ministry of Statistics showed on Friday.

Capital Investment Drop

In the December quarter, private investment grew 5.9%, up from 5.6% in the previous quarter, while government spending rose by 11.8%, against 13.2% in the previous three months.

However, corporate capital investment contracted by 5.2% after a 4.1% decline in the previous quarter, indicating that interest rate cuts by the central bank have failed to encourage new investment. Manufacturing, meanwhile, contracted by 0.2%.

“It appears growth slowdown is not just cyclical but more entrenched with consumption secularly joining the slowdown bandwagon even as the investment story continues to languish,” said Madhavi Arora of Edelweiss Securities in Mumbai.

Many economists said that the government stimulus could take four to six quarters of time before lifting the economy and the impact of those efforts could be outweighed by the global fallout from the coronavirus epidemic that began in China.

“The coronavirus remains the critical risk as India depends on China for both demand and supply of inputs,” said Abheek Barua, chief economist at HDFC Bank.

Indian shares sank on Friday for a sixth session running, capping their worst week in more than a decade. The NSE Nifty 50 index shed 7.3% over the week, while the Sensex dropped 6.8%, the worst weekly declines since the 2008-09 financial crisis.

Separately, India’s infrastructure output rose 2.2% year on year in January, data showed on Friday.

A spike in inflation to a more than 5-1/2 year high of 7.59% in January is expected to make the RBI hold off from further cuts to interest rates for now, while keeping its monetary stance accommodative.

New Delhi, Jul 7: Diesel price in the national capital on Tuesday touched an all-time high following a rate hike after a week-long hiatus.

Diesel price on Tuesday was increased by 25 paise per litre, according to a price notification of state-owned oil marketing companies.

This took the retail selling price of diesel to Rs 80.78 per litre in the national capital - the highest ever.

There was no change in petrol price for the 8th straight day, and it continues to be priced at Rs 80.43 per litre.

Rates vary from state to state depending on the incidence of local sales tax or VAT.

Petrol and diesel price were last revised on June 29.

In the last one month, diesel price has been increased on 23 occasions while petrol rates have risen 21 times.

The cumulative increase since the oil companies started the cycle on June 7, totals to Rs 9.17 for petrol and Rs 11.39 in diesel.

In Mumbai, petrol is priced at Rs 87.19 - unchanged since June 29, while diesel was hiked to Rs 79.05 a litre from Rs 78.83.

Mumbai, Jun 3: With an expected increase in wind conditions up to 120 kilometres, cyclone Nisarga is likely to make landfall on the north coast of Maharashtra later today, as per the Indian Meteorological Department (IMD) on Wednesday.

"Wind conditions will further increase up to 100-110 gusting to 120 kmph as conditions are favourable for intensification. The higher sea surface temperature and low vertical wind shear favoured the intensification of severe cyclonic circulation," said IMD in a series of tweets.

Explaining the nature of wind speed, IMD further tweeted, "Eye diameter is about 65 km as observed through Radar. thus the diameter has decreased during past 01 hours indicating intensification of the system. hence wind speed has increased from 85-95 kmph to 90-100 kmph gusting to 110 kmph."

Several National Disaster Response Force (NDRF) teams have been deployed across Maharashtra to ensure preparedness for the impending cyclone. A total of eight teams have been deployed in Mumbai, five teams in Raigad, two teams in Palghar, Thane, and Ratnagiri and one team in Sindhudurg, said NDRF.

Besides, five NDRF teams were airlifted by IL-76 from Vijaywada for Mumbai on June 2, as per the Indian Air Force (IAF)

"Around 60 per cent of people, from the coastal areas around this area, have gone to their relatives' places. The remaining ones have been sent to the evacuation centre. We have also taken into account the COVID-19 guidelines and ensured social distancing," NDRF officer Shiv Parada Rao, deployed with his team in the Dahanu area, spoke to ANI.

"From the information we have received cyclone Nisarga is likely to hit here by tonight. The exact time is not confirmed yet. We are taking all preparedness measures to tackle the situation," he added.

NDRF teams also conducted evacuation in Alibaug during the early hours on Wednesday morning, as per NDRF Director General SN Pradhan.

As per the 5 am bulletin released by IMD, cyclone Nisarga was heading towards north Maharashtra coast at a speed of 11 kmph. It was about 200 km South -SouthWest of Alibag and about 250 km south-southwest of Mumbai at 2.30 AM today, stated the bulletin.