Industrial output up 6% in Haryana

• Industrial production in Haryana during 2011-12 has recorded a growth of 6 per cent over 2010-11. 
• The index of industrial production for registered manufacturing and electricity sectors for 2011-12 stood at 165.9 and 230.4, respectively, with the corresponding growth rate of 3.9 per cent and 27.3 per cent, as compared to the 2010-11, a spokesman of Economic and Statistical Analysis Department, Haryana, said here on Tuesday. 
• The general index for the year 2011-12 stood at 171.2, he added. He said as per use-based classification, the growth rate during 2011-12 was 18.7 per cent in basic goods, 3.4 per cent in capital goods and 9.2 per cent in intermediate goods. 

‘Digitisation must for financial inclusion’

• Financial inclusion can be achieved only through digitisation, according to Mr B. Sambamurthy, Director, Institute for Development and Research in Banking Technology.
• Speaking at a workshop on ‘Digitisation of Identity and the Financially Excluded’ here on Tuesday, he said only 40,000 habitats of 6.20 lakh villages were on the radar of financial inclusion.
• The cost and operational feasibility of digitisation would make financial inclusion possible, he added.

• There was a difference between business model and operating models in field, he said, adding: “How do we stitch an operational model for financial inclusion is important.”
• The last-mile connectivity, security and co-creation of viable technologies and methods were important issues, the IDRBT Director said.
• Mr Reddy Subrahmanayam, Principal Secretary, Department of Rural Development, Government of Andhra Pradesh, said it was important to arrive at an optimum cost of maintaining financial services in the villages.
• The digitisation of identity and financial inclusion might not always be the same and could have different implications based on the objectives.
• Financial inclusion should be made more comprehensive with regard to services being offered, Mr Subrahmanyam said.
• The apex cooperative credit society set up by AP Government, Sthreendhi, was making use of technology for all-levels of loan disbursals, the official added.
• The workshop was conducted by the Centre for Study of Culture and Society, Bangalore as part of a Ford Foundation-funded study on grassroots-level social impact of digitisation process of Aadhaar project in seven States.

Rupee faces hurdle at 54

Rupee faces hurdle at 54

• Buoyancy generated by change of guard at the Finance Ministry and resumption in foreign portfolio flows could only take the rupee up to 54.17. Sentiment in global forex market turned negative after the Chinese Central Bank and the European Central Bank cut policy rates last week and the Bank of England resorted to monetary easing; sending fears of slower global recovery through financial market.
• Concerns about Spain resurfaced too with Spanish bond yields rising above 7 per cent. Slowing import growth in China and weak jobs data out of US have also impeded the rupee’s progress over the past week. This is despite very strong foreign portfolio flows this month. FIIs have net purchased more than $1.1 billion so far in July. The rupee declined to 56 on Monday but recovered slightly in the next session.
• Resurging risk aversion made the dollar index rise higher to 83.4 on Monday. This index faces key long-term resistance at 83.5. Strong close above this level can take the index to 88.7 over the coming weeks.

Rupee outlook

• The rupee made a significant trough at 57.3 on June 22 against the dollar. The rally from this level however halted just below the key resistance at 54. This resistance occurs at 38.2 per cent retracement of the down-move from 48.6 peak. If rallies halt below this level, it would mean that the medium-term trend continues to be down. The rupee could fluctuate for few more weeks in the band between 54 and 57.4. The risk of a break below 57.3 remains open in such a scenario. Target on a firm close below 57.3 would be 59.6. Medium-term trend will turn positive only on a strong close above 54. Subsequent resistances will be at 52.9 and 51.9. Short-term support for the currency is at 56.1. Close below this level will pull the rupee back towards 57.3. Short-term resistance for the rupee would be at 54.

USD-INR futures: 

• This contract faces short-term resistance at 56.2. Reversal from this level implies that it can now move lower to 54.4 or 53.4.

Short-term view will turn positive on close above 56.2. Next resistance for the contract is at 57.3.

EUR-INR futures: 

• This contract is also declining since the peak of 71.8 recorded on June 22. Key medium-term support for the contract is at 68.7. This level was breached on Tuesday. The contract can now decline to 67.8 or 67 over the medium-term.

Resistances for the contract are at 69.6, 70 and 70.4.

Merger of Welspun Global Brands into Welspun India approved

Merger of Welspun Global Brands into Welspun India approved

 

The Competition Commission of India has approved the proposed merger of Welspun Global Brands Ltd (WGBL) into Welspun India (WIL). The anti-monopoly watchdog has also given its nod to hiving off of the marketing business of WIL into another group firm, Welspun Retail Ltd (WRL). “... the Commission is of the opinion that the proposed combination is not likely to have an appreciable adverse effect on competition in India and, therefore, the Commission hereby approves the proposed combination under the Act,” it said. In May, WGBL had approved the merger of the company into group firm WIL