India's Services Sector Grows At Its Fastest Pace Since July 2011 (03-Feb-2012)
The Indian services sector has grown at its fastest pace in January, as compared to the last six months. The growth has been led by financial intermediation, hotels and restaurant sub-sectors. The expansion has been due to the improvement in the global economic scenario which led to a rise in new work orders. With investor sentiment improving due to improving global growth and easing of liquidity by the central bank, the services sector is likely to benefit more in the coming months. January's jump in new orders has pushed expectations for the future to their highest level since June 2011, consistent with the double-digit output growth of the service sector. Even though input prices in the services sector rose at their slowest pace since October, firms increased their prices charged at a faster rate.
These findings were reported by the economists of HSBC. The HSBC Business Activity Index, compiled by Markit and based on a survey of around 400 firms, has bounced to 58.94 in January from 54.2 in December. This was the third month the index has been above the 50-mark separating growth from contraction. Before that, it had shrunk for six months, hitting a trough of 40.3 in February last year.
India’s manufacturing sector has also expanded despite the Eurozone crisis. December recorded India's biggest monthly factory output, resulting in the fastest growth in eight months for the manufacturing sector.
Wholesale inflation, which has remained stubbornly high in India, slowed to a two-year low in December as food price pressures decreased substantially. The Reserve Bank of India (RBI) also seems to have shifted its focus to reviving growth instead of battling inflation. The RBI in its latest monetary policy review has cut the cash reserve ratio (CRR) by 50 basis points and has left the interest rates untouched after nearly two years of successive hikes. This is expected to inject $320 billion rupees into the banking system.
Top News Today
 National Thermal Power Corporation (NTPC) will be signing the fuel supply agreements' (FSA) with Coal India for 4,300 megawatts on 2009 terms. In these FSAs companies have change trigger level, which has
 After cellular market leader Bharti Airtel launched its 4G services, now Reliance Industries is reportedly gearing up to launch the services soon and has accordingly partnered with Himachal Futuristic
 Wipro's IT, consulting and outsourcing business Wipro Technologies is likely to introduce India Gateway internship programme for UK university students in July 2012. This internship program consists of
|
International Stock News
 US markets got a good bounce back on Monday with all major indices gaining more than 1%, it was one of the best session of the month. There was some M&A activity along with report that Chinese government
 US markets declined further on Friday, making it the worst week for the markets in 2012, as the most awaited Facebook (FB) IPO was only able to muster a slight gain in its public debut, while the eurozone
 Thursday proved another bad day for the US markets with major indices losing over one to two percent as eurozone debt contagion worries continued, coupled with disappointing economy news. A read on manufacturing
|
|
|