Indian indices among best performers even as global economic growth slows

The Indian economy may well be under the scanner of global rating agencies, but that has not stopped the benchmark equity indices from featuring among the best performers for the year. Analysts attribute the returns to the recent fall in global crude prices and a slight pause in the fall of the Indian currency that has made valuations attractive.

The 30-share Sensex has given returns of 9.3% in the current calendar year, which is second only to that of Thailand, which has generated returns of 14.4% this year. The returns of the Indian index, however, is only 3.2% when seen in dollar terms. This is significantly lower compared with its Asian and emerging market counterparts.

From “The Financial Express”

Read more: The Financial Express

Salaries rose by up to 27 percent in FY12 amid high inflation

Salaries of employees at India Inc rose between 12 percent and 27 percent in the fiscal ended March 2012, as companies adopted an inflation-hedged approach to increments. Of 22 companies in the BSE 100, salaries and wages grew 12 percent or higher for more than 19 companies, according to data from the Centre for Monitoring Indian Economy (CMIE). HDFC Bank’s wage cost was 20.79 percent higher from 2010-11 at Rs 3,209.61 crore for an 18.5 percent increase in employee headcount, CMIE data showed. “When the fiscal began, companies talked about high single-digit wage hikes. But, when they realised the consumer price index-based inflation was in double digit, many companies rewarded its employees 100 to 200 basis points over inflation,” E Balaji, CEO of Ranstad India, a staffing firm, said. With the Indian economic growth sputtering, companies may dole out less increments in 2012-13.

Read more:  The Times of India | The Economic Times 

India, China bilateral trade set to hit $100 billion by 2015

In their 13th meeting in eight years, Prime Ministers Manmohan Singh and Wen Jiabao on Wednesday decided to take the India-China relationship to the next level by giving a boost to trade and priority to resolving the border dispute between the two countries. Going into a huddle on the first day of the Rio+20 conference here, the Indian Prime Minister, who calls Wen his ‘close friend’, and his Chinese counterpart agreed to take steps to ensure that the bilateral trade between the two emerging economies reaches $100 billion (about Rs 5,60,000 crore) by 2015. The two-way trade between the two countries reached $74 billion in 2011, with China becoming one of the largest trade partners of India and vice versa. With the delegates and officials of almost all 190 countries present here keeping an eye on the India-China bilateral, the prime ministers of two emerging economies of Asia emerged from their 40-minute meeting after agreeing to boost trade and also give top priority to defence and security dialogue between the two countries.

Read more:  The Times of India 

Real Estate News

Brush up your knowledge

If you are planning to buy a house any time soon, you will do well to know the exact meaning of these terms, as they are very important. Since most people are ignorant, they end up paying more than what they are actually supposed to pay while buying a property. For instance, carpet area is the effective area available for use within an apartment, excluding the area occupied by the walls. It also includes the areas of balconies if they are within the main door. It is measured from wall to wall within a house or apartment and is the actual floor area, which can be carpeted, if required. An owner has the exclusive rights over the carpet area, including the right to sell it. This meaning applies to both residential and commercial units. Remember, the floorspace index (FSI) is applicable to carpet area. Built-up area or plinth area refers to the entire carpet area along with the thickness of the external walls of the apartment. It obviously includes the thickness of the internal walls and the columns, if any, lying within the four walls of an apartment. The commercial space is not taken into account in calculating the plinth area.

Read more:  The Economic Times

NRIs jump on to realty bandwagon

With the equity market exhibiting volatility and dollar gaining supremacy over rupee with the exchange rate hovering around Rs 56, Non Resident Indians have renewed their interest in the Bengaluru realty market. Overall the realty market is witnessing an upward trend after a three-year slump. Sources in the realty market said that in the last two quarters there is a sudden surge in the vacant property transactions as investors are showing keen interest in picking up land parcels in the Central Business District which is actually in scarce. “While the market for apartment is flat as the apartment units are in surplus in pan Bengaluru, the vacant plots have gained significantly in terms of value. Realtors are at crossroads as over 35,000 apartment units are left unsold. Majority of them in and around Sarjaopur Road, Hosur Road, Mahadevpura, Bannerghatta Road and Nelamangala Road. Only premium projects by top builders and units with novelty and realistic pricing have been sold,” said a realty pundit.

From Page 2 of Deccan Chronicle (Bangalore edition)

Ireo Uptown, Sector 66, Gurgaon

With sky-high property rates, Tricity residents opt for rented accommodation

 The Indian Express 

With property rates touching sky-high limits, a staggering number of Tricity residents are opting for rental accommodation. Rates of property has been on the rise for the past couple of years and as a result, renting houses is fast becoming a way of minting money. While rates at Panchkula and Mohali are on par, Chandigarh continues to be expensive and sought-after when it comes to rentals. Keeping true to the divide sweeping over the northern and southern sectors of the city, price of houses available on rent in the northern sectors are considerably high than the ones in south. “Northern sectors continue to be ‘privileged’. These sectors do not experience power cuts. Also, standard of living of people residing in these sectors is high, which makes customers prefer such surroundings while searching for rental accommodations. Southern sectors such as 40 and beyond are very crowded, and are generally avoided,” said Vishal Rawat, property consultant at Bhagwati Associates.


Ikea announces plans to invest Euro 1.5 billion in India for opening 25 stores

Swedish homeware company Ikea has announced its plans to invest Euro 1.5 billion in India for setting up 25 retail stores as wholly-owned subsidiaries following months of clarificatory discussion with the government on the compulsory clause of domestic sourcing of inputs from local small companies.

A formal proposal was submitted to the foreign investment promotion board or FIPB on Friday requesting it to grant approval to Ikea India to hold 100% FDI in 25 stores across the country. The proposed investment in the stores would be to the tune of Euro 600 million in the first stage and Euro 900 million in the second stage.

Operations will include import, export, marketing, distribution, warehousing, manufacture, production and retail trade of single brand products.

Read more: The Economic Times

Online shopping sees more clicks, volumes

The initial jitters seem to have gone. Online shoppers have not only doubled their average bill value in three years, but are also shopping more frequently than before.

E-commerce sites such as Myntra, CaratLane, Indiaplaza, Buytheprice and are all reporting higher transaction bills now than in 2009.

At Myntra, the average value per transaction has gone up from Rs 700 two years ago to Rs 1,300 now. People are also buying 1.5 items per transaction compared to one per cent earlier and are buying 3-4 times a year.

Read more: The Hindu Business Line

McDonald’s to open 250 new outlets in 3 yrs

Leading food service retailer McDonald’s India plans to open about 250 new restaurants at an investment of Rs 750 crore in the next three to five years across India and increase procurement of potatoes from Gujarat from the existing 30,000 metric tonnes (MT) to 50,000 MT as a key ingredient for outlets across the country.

Opening a new McDonald restaurant costs nearly Rs 3 crore, a senior official said. By 2014, the company’s total investment in India so far would be around Rs 1,500 crore.

“Through our partner Mc Cain, a Canadian company that supplies us potatoes for French fries and other products, we have provided latest technologies and new seeds to potato growers in Deesa (North Gujarat) and Kheda (Central Gujarat), mainly contract farmers,” Mr Amit Jatia, Vice-Chairman, McDonald’s India (West and South), told Business Line here on Tuesday.

Read more: The Hindu Business Line

NRI News

Indian population booms in Australia

Latest official census data in Australia has found a boom in Indian population especially with number of Punjabi speaking people rising by over 200 per cent.

Australian Bureau of Statistics today released the snapshot of the country from information collected in the census on August 9 last year.

The census is conducted every five years to gather information on populations for electoral purposes and guide government spending on new infrastructure, community services and facilities such as schools, hospitals and roads.

Read more: The Economic Times

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