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S&P cuts India’s outlook to negative from stable

Feb 242009
 

S&P cuts India’s outlook to negative from stable

The Standard & Poor’s Ratings Services (S&P) has revised India’s long-term rating outlook to negative from stable and has affirmed BBB-rating on India.

India’s weak fiscal profile is the largest negative factor which is likely to remain high at 11.1% in FY10, is unsustainable in the medium term. Also Fiscal deficit could widen if next govt. announces another stimulus package.

The rupee reacted immediately and went down as banks bought dollar.

Government reduces service tax, excise duty by 2 percent

Feb 242009
 

Government reduces service tax, excise duty by 2 percent

In order to help industry reeling under the impact of slowdown, the govt. today announces several relief measures in service tax and excise duty, effective from today.

  1. Excise duty reduced from 10% to 8%
  2. Service tax cut from 12% to 10%
  3. 4% excise duty cut announced earlier in stimulus package will continue beyond March 31.
  4. Excise duty on bulk cement has been reduced from 10% to 8%.

Launching of CNBC-TV18’s Boston Analytics Consumer Confidence Index

Feb 242009
 

Launching of CNBC-TV18’s Boston Analytics Consumer Confidence Index

According to ACNielsen’s recent report India’s consumer confidence highest in world.

Now, India’s No.1 business news channel CNBC-TV18 along with research firm Boston Analytics, will introduce the CNBC-TV18 Boston Analytics Consumer Confidence Index(CCI), with an objective of providing, policy makers, market participants , researchers , corporate, industry leaders and trend watchers , an in depth insight into the minds of Indian consumers.

CCI is a crucial tool that enables the user to understand the consumer’s mindset and make an informed assessment about the future course of economy. The index will be constructed on a sample size of 10000 respondents spanning 15 cities in India, thus making it largest Consumer Confidence Index in the world , will be based on the consumer confidence level according to various parameters like current and future Expectations , Inflation , Spending , Savings , Employment , Real Estate.

Manufactures, banks, retailers and the government monitor changes in the CCI to factor in the data in their decision-making processes.

CCI less than 5% are often dismissed as inconsequential, but index changes to 5% or more indicate a change in the direction of the economy.

A month on month decreasing data indicates that consumers have negative view on their ability to secure and to retain good jobs. So, banks can assume decrease in lending activity, mortgage applications and credit card use. Manufactures can expect consumers to avoid retail purchases, especially large ticket items that require financing.

Sentiment indicators can carry a lot of weight as the happiness and spending ability of consumer is the most important factor in expanding economy.