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Tentative recovery in investment activity in Q2: ICRA | Mint – Mint

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NEW DELHI: Investment activity recovery in India remained unstable in the second quarter of the current fiscal, with new project announcements dipping for the second straight quarter amid elevated uncertainty owing to geopolitical tensions, weakening external demand and concerns around the sustainability of domestic demand, according to a note by ICRA.

However, it said that capacity utilisation is expected to rise in the third quarter led by robust demand for goods during the festive season. It added that a significant step-up in the states’ capex would be crucial to support investment demand and thereby, the GDP growth, given the large fiscal space available with major states.

“Elevated uncertainty owing to the Russia-Ukraine conflict, tightening global financial conditions, expectations of a recession in advanced economies, weakening external demand (as evinced by a decline in non-oil merchandise exports in Q2 FY2023) and concerns around the sustainability of domestic demand post the festive season, are likely to have impacted sentiments and discouraged capex announcements,” said ICRA. Most of the indicators pertaining to investments witnessed a moderation in their year-on-year growth in Jul-Aug 2022 relative to Q1 FY2023 on account of base normalisation, it added.

The value of new project announcements dipped to 3.4 trillion in the second quarter of the current fiscal from 4.4 trillion in the previous quarter but was in line with the levels seen in Q2 of FY2020 and FY2022 (at 3.5 trillion each).

Private sector project announcements declined for the second consecutive quarter in Q2 FY2023, while exceeding the average quarterly levels seen during FY2022.

It pointed out that the sustenance of demand post-festive season will influence the pace of private capex.

“While softer commodity prices augur well for corporate margins, aiding business sentiment and supporting investment demand, the slowdown in external demand, sustainability of domestic demand beyond the festive season and rising borrowing costs are the key risks to remain watchful of, going forward,” it said.

 

 

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Economy

S&P/TSX up more than 200 points, U.S. markets also higher

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TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

S&P/TSX composite little changed in late-morning trading, U.S. stock markets down

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TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.

The S&P/TSX composite index was up 0.05 of a point at 24,224.95.

In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.

The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.

The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.

The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.

This report by The Canadian Press was first published Oct. 10, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

S&P/TSX composite up more than 100 points, U.S. stocks also trade higher

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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in the technology and base meta sectors, while U.S. stock markets also climbed higher.

The S&P/TSX composite index was up 106.70 points at 24,179.21.

In New York, the Dow Jones industrial average was up 280.87 points at 42,361.24. The S&P 500 index was up 26.51 points at 5,777.64, while the Nasdaq composite was up 69.52 points at 18,252.44.

The Canadian dollar traded for 73.08 cents US compared with 73.22 cents US on Tuesday.

The November crude oil contract was down 67 cents at US$72.90 per barrel and the November natural gas contract was down eight cents at US$2.66 per mmBTU.

The December gold contract was down US$2.30 at US$2,633.10 an ounce and the December copper contract was down five cents at US$4.41 a pound.

This report by The Canadian Press was first published Oct. 9, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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