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18th - 24th 01 FinapolisThe The · PDF file It had recorded a growth of 8.54 per cent in November, 7.1 per cent in De-cember and 7.4 per cent in January, as per the revised data. Reacting

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  • It may sound strange but with the US and its allies France and UK targeting Syria, difficult times are ahead for India. Oil prices which are on the rise will scale further highs putting the Indian economy in greater trouble. International oil prices have breached $73 a barrel – the first time to do since 2014. Though there are no clear indications about where oil prices will settle, some estimates predict that prices will go upwards for the next 2 years. Analysts safely project that global oil prices may hover upwards of $70 and below $80 over this period. If tensions escalate oil prices might go up to $100 a barrel with geo politics dominating over the demand – supply scenario. Syria is a very miniscule oil producer but is in the neighbourhood of Iraq, a major oil producing nation. Saudi Arabia and Iran – other major oil players — are in the extended neighbourhood. Moreover with Russia (another major oil pro- ducer caught in the conflict because it is siding with Syria) involved, things can turn murky and the situation could go out of control.

    82 per cent of India’s petroleum needs are import- ed, so India’s import bill will rise. But to some extent the government can step in to help consumers: this by moderating the increase in domestic oil prices by lowering the taxes on petroleum products. This is now upwards of 45 per cent and the government can help by moving petroleum products to the ambit of GST. Even if petrol and petroleum products are put on the highest bracket of GST of 28 per cent, this will lead to a sharp fall in the retail prices of petrol and diesel which is now at an all- time high. On April 12, petrol prices varied between Rs 73.94 and Rs 81.80 per litre in the metro cities of India. A decision can be taken not by the central government but by the

    GST Council that has representation from all states. With revenue objectives high on their priority, state governments (notwithstanding their lip sympathy for the masses) have been chary of reducing taxes on petroleum products. Besides central excise duty, state excise duty or VAT is also levied on petroleum products. The latest Economic Survey has pointed out that rising oil prices are one of the biggest risks to the Indian economy crimping growth and spending.

    The rupee suffered a setback in the week ended April 13 against the US counter-part after surging crude prices flagged risks from widening current account deficit and renewed inflation fears amid worsening geopo- litical environment.

    Reversing a brief recovery trend, the home currency closed the week lower by 23 paise at 65.20 against the USD.

    On April 16, the rupee plunged further 29 paise or 0.44 per cent to close at a six-month low of 65.49 against the US currency.

    The forex market witnessed extreme volatility against the backdrop of escalating geopolitical tensions with worries about Western military intervention in Syria alongside impending trade dispute between the US and China, despite bull- ish local equities.

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    18th - 24th April 2018 | 01

    Finapolis TheThe

    Finapolis Crude shoCk! Will india suffer from syrian strikes? Kingshuk Nag

    4 SENSEXY: Jilted Lover & Arrogant Investor 5 Mutual Funds May Be Sold On eCom Platforms: AMFI 6 Silver Prices Miss the Bling 7Confused About Your Risk-Taking Capacity?

    Geo political tensions strengthen case to bring petrol products under GST ambit Rupee Suffers Fresh Blow

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  • News Scan Your Personal Finance AdvisorFinapolisFinapolisTheThe 18th - 24th April 2018 | 02

    Comfort cue from IIP, inflation numbers

    India paces ahead in the Index of Economic Freedom

    Bourses, Sebi to consult on SGX listing move

    Infy kicks off result season with a bang

    15th Finance Commission’s ToR sparks protests

    Reflecting improvement in the economic situation, industrial production grew by a healthy 7.1 per cent in February while the key retail inflation slipped to a five-month low of 4.28 per cent in March.

    The uptick in industrial production has been driven largely by the robust performance of the manufacturing sector coupled with higher offtake of capital goods and consumer durables. Retail inflation based on the Con- sumer Prime Index (CPI) moderated in March due to easing food prices, including vegetables.

    The Index of Industrial Production (IIP) had grown by 1.2 per cent in February 2017.

    It had recorded a growth of 8.54 per cent in November, 7.1 per cent in De- cember and 7.4 per cent in January, as per the revised data.

    Reacting to the macroeconomic data, commerce and industry minister Suresh Prabhu said in a tweet: “The IIP for the manufacturing sector in Feb- ruary 2018 stands at 130.1 which is 8.7 per cent higher than in Feb 2017 with fifteen out of the twenty three industry groups showing positive growth. Eco- nomic indicators continue to reflect the Indian growth story! IIP in February 2018 stands at 127.7, which is 7.1 per cent higher as compared to the level in the month of February 2017.”

    Economic affairs secretary Subhash Chandra Garg tweeted: “Another very good IIP growth number came out today. For Feb 2018, IIP rose by 7.1%. Manufacturing grew by 8.7% marking fourth month of growth over 8.5%. Capital goods grew by 20% with last three months growth being over 15%.”

    The Centre has suggested to the finance commission to consider incentivising states working on population control, said Prime Minister Narendra Modi while refuting charges that the Terms of Reference of the 15th Finance Commission were biased against certain states.

    Modi’s remarks came within days after CPI-M-ruled Kerala hosted a con- ference of finance ministers of south- ern states, which was also attended by Puducherry, a union territory.

    At the conclave, Kerala, Karnataka,

    The country’s second-largest software services major Infosys reported a 2.4 per cent growth in consolidated net profit at Rs 3,690 crore for the quarter ended March 31. It had posted a net profit of Rs 3,603 crore in the year-ago period.

    Revenues of the firm grew 5.6 per cent to Rs 18,083 crore in the Janu- ary-March quarter against Rs 17,120 crore in the year-ago period. Infosys expects revenue for 2018-19 to grow in the range of 6-8 per cent in constant currency terms and 7-9 per cent in US dollar terms. Infosys rewarded its investors with a record 870 per cent ag- gregate dividend or Rs 43.50 per share of Rs 5 face value for fiscal 2017-18.

    India has jumped 13 places in the last one year to the 130th spot in the latest annual Index of Econom- ic Freedom released by The Heritage Foundation, an American conserva- tive public policy think-tank based in Washington.

    In 2017, India with a score of 52.6 points ranked at 143 among 180 countries. This year, India’s economic freedom score is 54.5.

    “Its overall score has increased by 1.9 points, led by improvements in judicial effectiveness, business freedom, gov- ernment integrity and fiscal health.

    India is ranked 30th among 43 coun- tries in the Asia–Pacific region and its overall score is below the regional and

    With the Singapore Ex-change announcing listing of new Indian equity de- rivatives products in June, the NSE said it would discuss the matter with markets regulator Sebi and other exchanges to decide the course of action.

    The National Stock Exchange (NSE) is examining the SGX’s matter and has asked for more details from the overseas bourse on the product structure.

    New Delhi

    Bengaluru

    Washington

    IDBI Bank to pay penalty for non-compliance

    The RBI imposed a penalty of Rs 3 crore on IDBI Bank for non-compliance to the Income Recognition and Asset Classification norms. The penalty would not have any material impact on the bank. The fine has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account failure of the bank to adhere to RBI’s directions.

    New Delhi

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    Andhra Pradesh and Puducherry had opined that ToR were in contradiction to the principles of federalism enshrined in the Constitution and would also result in revenue loss to performing states.

    world averages,” it added. Noting that India is developing into

    an open-market economy, the Index said traces of its past autarkic policies still remain.

    In February, leading stock exchanges -- Bombay Stock Exchange, Nation- al Stock Exchange and Metropolitan Stock Exchange of India -- announced the decision to stop providing data feeds to overseas exchanges, as part of a joint effort to stymie migration of liquidity to overseas markets.

    The NSE’s reaction comes after SGX said it would list new India equity de- rivative products in June this year.

    NSE said the bourses need to assess whether the products announced by SGX are compliant with the announce- ment made by them in February.”

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  • It said that a $10 barrel increase in oil prices reduces growth by 0.2-0.3 per cent, increases wholesale price index by 1.7 per cent and wors