The News International Team
12:40pm IMF on India: International Monetary Fund (IMF) said India will overtake China as the fastest growing emerging economy in 2015-16 by clocking a growth rate of 7.5 percent on the back of recent policy initiatives, pick-up in investments and lower oil prices.
“India’s growth is expected to strengthen from 7.2 percent in 2014 to 7.5 percent in 2015. Growth will benefit from recent policy reforms, a consequent pick-up in investment, and lower oil prices,” the IMF said in its latest World Economic Outlook.
China will witness a deceleration with growth rate sliding from 7.4 percent in 2014 to 6.8 percent in 2015 and 6.3 percent a year after, it added.
IMF’s growth projection of India, however, is lower than the estimates of the Finance Ministry and the RBI. The Finance Ministry expects GDP growth to be 8-8.5 percent in 2015-16, while the Reserve Bank of India (RBI) has estimated it at 7.8 percent.
12:20pm Market Expert: The Indian equity market is likely to be rangebound for the upcoming days, said Andrew Holland of Ambit Capital.
“I am feeling less gloomy, but I am neutral at the moment. We are in this trading range on Nifty between 8,500 and 9,000. On the bull side, what would take us above 9,000 would be the land acquisition bill being passed through parliament. Otherwise, there is no real catalyst at the moment. The government still has to throw money into infrastructure to kick-start the economy and get a multiplier effect. Earnings are going to take time to catch up to the market price to earnings (P/E) of 16. This is where we trade. If global markets turn down, which doesn’t look likely at the moment, then that would take us below 8,500,” he elaborated.
12:00pm Market Check
It is a big relief for the economy as Wholesale price index (WPI) inflation has come in at -2.33 percent in March against CNBC-TV18 poll of -2.07 percent. The market seems to be unnmoved with the Sensex down 61.06 points or 0.21 percent at 28983.38 and the Nifty falls 21.50 points at 8812.50. About 1440 shares have advanced, 1065 shares declined, and 166 shares are unchanged.
Sesa Sterlite, Tata Power, SBI, ITC, and ICICI Bank are top gainers while Bharti Airtel, M&M, Tata Motors , Coal India and Sun Pharma are among the laggards.