ICRA has come out with its comments on RBI's Monetary Policy announced on August 04.
ICRA MD has come out with his comment on RBI's 25 bps Repo rate cut announcements. He continues to expect Indian economic growth to accelerate from 5.3-5.5% in 2014-15 to 6.0-6.5% in 2015-16.
If oil prices move up sharply in future, that might result in under recoveries in absence of timely pass through to consumers. In that scenario, Govt may have some flexibility to lower excise duty instead of passing on entirely to consumers, says K Ravichandran, Sr. VP, Co-head, Corporate Sector Ratings, ICRA.
ICRA expects the first Repo rate cut may be advanced to mid-March 2015, from our previous expectation of Q1FY16.
The Reserve Bank of India (RBI) on November 10, 2014 has revised the regulatory guidelines for Non-Banking Finance Companies (NBFCs) to better address the risks in the business, enhance regulatory coverage, standardize regulations and improve governance standards, says ICRA.
ICRA: Despite weak domestic demand, non-food manufactured products witnessed a broad-based month-on-month uptick in January 2014.
ICRA has revised its FY14 growth outlook (domestic + exports) for the tractor industry from 13 percent to 15 percent, with continued buoyancy in the domestic market, helped by sustained demand from agri sector as well as recent spurt in sales on account of festive demand.
The RBI is likely to continue address frictional liquidity concerns through a combination of term repos and open market operations to ensure adequate flows to productive sectors, says ICRA.
ICRA has come out with its release on the Indian tyre industry. Based on the OEM demand growth and trends observed in the industry till date, the research firm scales down its estimates for total tyre volume growth for 2013-14 to 2-4%.
ICRA has assigned the fundamental grade '5' and the valuation grade 'B' to GAIL (India) Limited. The fundamental grade "5" assigned to GAIL implies that the company has "Very Strong Fundamentals".
The correction in vegetable prices is expected to dampen food inflation in December 2013, which would ease further in subsequent months based on the expectation of a favourable rabi harvest. Expect a high likelihood of a Repo rate hike in January 2014, says ICRA.
ICRA has come out with its comment on RBI's second quarter review of monetary policy 2013-14. The research firm believes that, the RBI could increase the Repo rate again by 25 bps during the second half but provide liquidity using other monetary tools at its disposal.
ICRA expects overall subsidy for FY14 to be in the range of Rs. 650-700 billion for fertiliser sector. Demand outlook positive for FY14, but currency depreciation and subsidy delays pose challenges for Indian Fertiliser Sector, says ICRA.
ICRA expects the RBI to intervene and address tightness in systemic liquidity in the next quarter through open market operations (OMOs) as the Central Bank ruled out any further relaxation in the daily CRR requirement.
ICRA has come out with its report on Indian Hotel Industry. The research firm expects industry-wide margins for the current quarter Q2FY14 to ebb down to a five-year low of 7 % to 8 % on the back of decline in RevPAR , seasonally weak July-September quarter and inflation in consumable costs.
Leading rating agency, ICRA, expects Developers in Mumbai to increasingly find it difficult to raise property prices, owing to the increase in inventory levels, subdued demand with no immediate improvement in the near future, and uncertain macro environment.
ICRA expects the overall absolute level of subsidy dependence for power distribution companies (discoms) on an all-India basis to increase to estimated Rs. 60,000 crore for the 12 month period ending March 31, 2014.
ICRA expects the competitive intensity in the domestic steel industry to increase in the short to medium term, given the expected commissioning of large expansion projects by various producers.
ICRA expects most NBFCs to report double digit Return on Equity and maintain prudent capitalization levels in the short to medium term. Returns for gold loan companies could remain under pressure in the short term, but might see improvement once the proportion of vulnerable high LTV loans reduces.
Industrial production contracts by 2.2 percent in June 2013 on expected lines; 1.1 percent contraction in Q1FY13 led by weak performance of all categories except consumer non-durables, says ICRA.
The RBI to ease its stance in the second half of the fiscal only after visible signs of stability of the foreign exchange markets and moderation of inflationary expectations, says ICRA.
The RBI is expected to keep the Repo rate and the Cash Reserve Ratio unchanged in the upcoming policy review, to guard against further Rupee depreciation, says ICRA.
According to ICRA Volumes in the Indian Tractor Industry are expected to expand by 5 percent-7 percent in FY14, says rating major ICRA in its latest release on Indian Tractor Industry. Growth estimates could be revised upwards, contingent on the timing and spatial distribution of 2013 monsoons, and its impact on the Kharif crop.
ICRA has come out with industry update release on pharma sector. The research firm, expects the industry to revert to a growth of 10-12% in 2013-14. The impact of new DPCO though expected to be limited, could also get offset by volume expansion and efforts of industry participants to take price hike in rest of the portfolio.
ICRA has come out with its release on Indian pharma industry. According to research firm, drug formulation industry is expected to grow at 10-12% in 2013-14. Growth opportunities intact but managing industry challenges remains key for Indian pharmaceutical industry, says ICRA.