Industrial growth at 7.1% in July

Industrial growth at 7.1% in July

Sensex tanks 323 pts as bears strike again 

Industrial growth recovered to 7.1 per cent in July from the dismal performance in previous two months of the current fiscal, even though it moderated compared with 8.3 per cent recorded a year ago.

The improved data may give some breather to the Government and RBI, struggling hard to check the double-digit inflation through tightening monetary policy, which hampers the growth process.

While the manufacturing, which contributes about 80 per cent to IIP, grew by 7.5 per cent in July, compared with 8.8 per cent a year ago, electricity generation was up by 4.5 per cent, against 7.5 per cent.

Mining output growth, however, was quite higher at 5 per cent from 3.2 per cent a year ago. The growth in industrial production, as measured by the Index of Industrial Production (IIP), was low at 3.8 per cent in May and 5.4 per cent in June.

In April, however, industrial growth stood at 7 per cent, more or less same as in July. As such, industrial growth turned out to be 5.7 per cent in the first four months of this fiscal, against 9.7 per cent a year ago.

The data came close to first quarterly economic growth figures at 7.9 per cent and would play a crucial role for the GDP figures for the next quarter. If, this trend continues and other sectors like agriculture and services also contribute, GDP figure ma y be quite higher for the second quarter, analysts said. - PTI 

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IIP data: July industrial output up 7.1% year/year

Source:ET,BS,BL.

Mkt shrugs off IIP, fear of slowdown weighs, Sensex dn 323 pts

Mkt shrugs off IIP, fear of slowdown weighs

SENSEX	14000.81	-323.48
NIFTY	4228.45	-61.85

Markets tumbled in late trade on Friday as players frenziedly sold frontline IT, realty and oil & gas stocks. The BSE 30-share Sensex closed weaker by 2.26 per cent at 14,000 and NSE's Nifty ended down 1.44 per cent at 4228. 

“The upbeat cues from global markets, better than expected IIP data and easing inflation failed to lift investor sentiment as weak data from Europe and China increased concerns over global economic slowdown," said Sachin Advani, analyst with Raxson Wealth Management. 

Top losers from the Sensex were, Reliance Infra (-6.32%), Infosys (-6%) and ICICI Bank (-4.89%). Top gainers were Maruti Suzuki (3.61%), BHEL (1.92%) and Hindustan Unilever (0.83%). The index advance-declines ratio was 1:5. 

Though the rupee depreciated to a 2-year low against the dollar, IT stocks tumbled on investment bank UBS saying a sharp appreciation in the dollar against the British pound and euro would hit IT firms' revenue in dollar terms by 1-2 per cent and following the collapse of Lehman Brothers. 

As per the European Union Statistics, output in the 15-nation euro area fell 0.3 per cent in July, its third consecutive drop, and employment growth eased to 0.2 per cent in the second quarter from 0.3 per cent in the first. 

China's industrial production grew at the slowest pace in six years. The industrial output rose to 12.8 per cent in August against 14.7 per cent in July. 

IIP Data 
India’s Index for Industrial Production grew by 7.1 per cent in July compared with 8.3 per cent a year ago. Capital goods grew 21.9 per cent compared with 12.3 per cent in the same period previous year. 

“IIP numbers for July have come as positive surprise. The figures are encouraging and supported by growth across sectors. The robust growth in capital goods segment by 21.9 per cent (on higher base of 12.3%) support the fact that though there have been some signs of slowing in investment, it has not been severely impacted. However, perhaps the biggest surprise came from consumer durable goods segment which grew by 11.2 per cent against negative growth of 2.7 per cent last year. The 22 month high growth in consumer durables suggests that in spite of higher interest rate regime there has been demand growth from consumers," said, Krupresh Thakkar, research analyst at India Capital Markets. 

Inflation Cooling 
Wholesale price index based inflation fell--for the straight third week--to 12.1 per cent for the week ended August 30, from 12.34 per cent a week ago. 


“Though the headline inflation number - WPI has been lower at 12.10 per cent compared to 12.34 per cent in previous week, it is owing to the higher base effect (last year, for the same period the inflation index had gone up by 0.42 bps or 9 ticks on weekly basis). When we look at the weekly numbers, we observe that there has been rise in weekly inflation numbers by 0.29 bps. Going forward, we feel that inflation concerns would continue for some more time (especially in manufacturing group) before it starts to cool down from end of third quarter," Thakkar added.

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Industrial growth at 7.1% in July

Source:ET

Google's amazing journey

Google's amazing journey

The $19 billion search giant Google is just ten years old , but it has outclassed its competitors - namely Microsoft and Yahoo! - in the online world.
The company today has a host of enviable offerings - Google search, Gmail, Page Rank, Adsense, Google Mobile, Google Earth, Google Maps, Google Docs, Orkut, Blogger, YouTube, Android (a platform for mobiles), Cloud Computing initiatives, and now Chrome.

Text: Business Standard

Image: This is where it all started 10 years ago. This is the house where Google co-founders Larry Page and Sergey Brin rented the garage to set up Google Photograph: Justin Sullivan/Getty Images

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It even has a patent for a "floating data centre". Moreover, it is learning how to monetise these; the figures do the talking. Google has a market value of over $130 billion and cash reserves of around $13 billion.
It employs 20,000 people worldwide, including in India. Its co-founders, Larry Page and Sergey Brin - both 35 now - are worth nearly $19 billion apiece.

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Google's start, though, was not smooth. Mr Page and Mr Brin did not hit it off immediately.
In fact it is said that they often had arguments while they were students at Stanford University, which they set aside to grow the company.

For more Visit:Google's amazing journey

Source:ET