India's Current Account Deficit (CAD) has shot up in Q3 due to a fall in remittances from Indian living abroad. The CAD rose to USD 7.9 billion, which is up from USD 3.4 billion in the previous quarter. Latha Venkatesh of CNBC-TV18 has more details.
Imports of the precious metal were on a decline since February this year till September. It recorded positive growth in October and November.
The current account deficit (CAD) narrowed sharply to just USD 300 million, or 0.1 percent of GDP, in the June quarter, driven by lower trade deficit on deeper import contraction, the Reserve Bank said today.
The prices have been declining at global as well as domestic markets. However, the higher import impacts the country's current account deficit (CAD).
The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing. It is normally revised on a fortnightly basis.
Jaitley, who got a slew of reform measures approved in the just-concluded Budget session of Parliament, said the focus of the Narendra Modi-led government in the second year would be increasing spending on rural infrastructure, including irrigation and social sector schemes.
Govt cuts import tariff on gold andDuring the first fortnight of the month, the tariff value on imported gold was fixed at USD 393 per 10 grams and on silver at USD 549 per kg. The import tariff value is the base price at which customs duty is determined to prevent under-invoicing. silver
As per data released by the Commerce Ministry this month, the gold shipments in February jumped 48.78 percent on a year-on-year basis. India is the largest importer of gold, which is mainly utilised to meet the demand of the jewellery industry.
R Sreesankar, Head - Institutional Equities of Prabhudas Lilladher advices buying on every dip in the market.
According to Johanna Chua, Chief Economist, Asia Pacific, Citi, the worst is over for India and growth is going to rebound gradually.
Everyone knows that CAD and FII exits are the starting points for triggers in the forex markets. This is also the time when importers start to panic.
January gets its name from Greek God Janus who has two faces; one looking forward and the other looking back. Since it is that time of the year, and given that job creation is India‘s most important challenge, it is as good an opportunity as any to reflect on 2013 and look ahead at 2014.
"At this point, it will be premature to withdraw these restrictions for a variety of reasons," RBI Governor Raghuram Rajan told analysts on a conference call after announcing the mid quarter review of the monetary policy wherein he left all key rates unchanged.
Arnab Das of Das Capital says, |"The equity market in US will continue to be reasonably strong, but probably not go up a lot. The rest of the world may suffer relative to the US."
C Rangarajan, Chairman of Prime Minister‘s Economic Advisory Council (PMEAC) said current account deficit (CAD) for this fiscal is likely to be USD 55 billion.
Manish Wadhawan, MD & HD -Interest Rates, HSBC sees the 10-year yields would hover between 8.50-8.75 percent for time to come till normalisation of rates happens.
Siddhartha Sanyal, Chief India Economist, Barclays Capital sees the rupee trading at 61/USD in the next three-six months.
Ranjan Dhawan, ED, Bank of Baroda agrees with C Rangarajan‘s comments that inflation is likely to come down because we had good monsoon and the granaries are full.
Herald Van Der Linde, Head of Equity Strategy, Asia-Pacific, HSBC maintains a cautious approach towards Indian market and expects it to correct.
Bhaskar Bhat, MD, Titan feels that the bigger problem is availability of gold (raw material) and by putting a curb on that is affecting a thriving industry - an industry which not only serves huge number of customers but also employs large number of people.
Guidance given by the new RBI governor would hold a lot more importance than any change in existing measures, says Rohit Arora,Rohit Arora, EM Asia Rates Strategist, Barclays, Barclays.
Commenting on the Ultratech Cement and Jaiprakash Associates deal, Rakesh Arora, Macquarie Capital Securities feels from a long-term perspective the deal is positive for Ultratech.
RBI circular is going to seek to further tighten these measures and it is going to be amplificatory in that nature, because the Finance Ministry is concerned about the fact that gold prices are hiking.
International Monetary Fund (IMF) spokesman Gerry Rice, said the combination of large fiscal deficit and Current Account Deficit (CAD), reliance on portfolio inflows, among other things, have affected market confidence.
Global liquidity and the mood leading up to expiry could probably strike out a few more points on the Nifty, said CNBC-TV18's managing editor, Udayan Mukherjee.