27 Feb 2015
Wholesale prices have gone into reverse now, the WPI print for January was -0.4%; the major drivers were fuel and power but declines were fairly broad-based. This week though, the prices of petrol and diesel were increased for the first time since last August. Service exports were 11% higher year on year in December at $14.3bn. PM Modi repeated his encouragement to domestic defence industries, promising that domestic products would be given preference in procurement programmes. He added that the tax code would be used to ensure that domestic producers would be on a level playing field with importers.
Pidilite has taken advertising slots during the current ICC Cricket World Cup for its Dr. Fixit and Fevikwik products having found the audience numbers compelling. Infosys has acquired Panaya, a US software service company for $200mil; Panaya provides cloud-based software automation services for users of the likes of SAP and Oracle software. Infosys also announced a new multi-year contract from ABN AMRO to provide IT services in retail and commercial banking. Lupin is launching a new version of its asthma delivery device in the US in cooperation with InspiRx, a respiratory R&D company. Lupin has also contracted with Celon Pharma of Poland to develop and market a generic version of GSK’s Advir Diskus asthma treatment in global markets. ONGC has signed a MoU with Super Wave Technology to jointly develop and alternative to hydraulic fracturing for extracting shale oil and gas.
26 Feb 2015
Global liquidity as well as domestic reform, with the prospect of more to come, support the market for now. The market valuation stands at 16.8 times twelve month forward earnings, compared to a long-term average of 15.6 times. The implementation of nationwide GST, successful auctions of coal mine licenses and mobile spectrum and the probability of continued monetary easing should provide a basis for further rerating over the next couple of years.