New Delhi: The biggest change the financial crisis of 2008 has brought in the Asian debt market is that Asian investors have significantly increased their exposure to dollar-denominated bonds issued by Asian companies, Jai Rajpal, senior managing director, head of fixed income, Asia ex-Japan, Nomura International(Hong Kong) Ltd, said.
“Investments from Asian investors make up more than 40% of the dollar- denominated bonds (now) from about 25% prior to the crisis,” Rajpal said.
Also Read WEF India Economic Summit (Full coverage)
According to Rajpal, Asian investors had large exposure to US mortgage bonds prior to the crisis. After the slowdown, the bonds underperformed, which, in turn, led to Asian investors building expertise in-house to evaluate and invest in Asian paper.
Another trend visible in Asia post-crisis is that “corporates want to rely less on loans”, Rajpal said. “There’s a push away from loans into public debt markets,” he added.
Bhatt: liquidity, loan growth to push rates
New Delhi: Tight liquidity conditions combined with loan growth could push interest rates skyward in the coming days, State Bank of India chairman O.P. Bhatt said on Monday.
“Interest rates have a slightly upward bias...(due to) liquidity combined with some more credit offtake, which is going to take place. So these two together may push up interest rates,” Bhatt said on the sidelines of the India Economic Summit organized by the World Economic Forum in the Capital.
Asked about current liquidity conditions, he said the situation is comfortable.
Liquidity has come under pressure owing to the huge public issue of Coal India Ltd a few weeks ago, besides a surge in spending during the festival season.
GE India looking for acquisitions
New Delhi: General Electric Co.’s Indian unit is looking to buy companies to grow its businesses in the rapidly expanding economy, its chief executive for India said on Monday.
“Mergers and acquisitions, we are always looking for that,” John Flannery said in an interview on the sidelines of the World Economic Forum’s India summit here. “We would like to do that. That could be a sizeable number as well.”
“The (acquisition) opportunity for us is across the board. We have hired a team just for that specific activity,” he said, adding the company could do more than one acquisition in India and was looking at “small to medium” size companies.
“There is always something in the harbour,” he said when asked if they are currently in talks for acquisitions.
Dupont targets $1 bn revenue from India
New Delhi: The third biggest US chemical maker DuPont Co. said it expects annual revenue from India to increase more than 40% to around $1 billion (around Rs4,500 crore) by 2012, aided by agriculture, infrastructure and automotive products.
Sales in the nation this year may climb to about $700 million from $500 million in 2009, chief executive officer Ellen Kullman said on Monday in an interview, while attending the World Economic Forum summit. Spending on a local research laboratory will be boosted by Rs50 crore and the expansion will be completed by the middle of next year, she had said on Sunday.
Religare scouting for AMC acquisition
New Delhi: Financial services firm Religare Enterprises Ltd said on Monday it is looking at acquiring an US-based asset management company with focus on emerging markets.
“We are looking at foreign acquisitions for expanding our asset management business. We are talking to some US asset management companies with presence in emerging markets,” Religare Enterprises group CEO Sachindra Nath said on the sidelines of the India Economic Summit here.
However, he declined to divulge the financial details or other partnership details related to the acquisition.
Manufacturing policy soon: Scindia
New Delhi: With the aim of increasing manufacturing sector’s share in the gross domestic product (GDP), a manufacturing policy is likely to be unveiled in the next couple of months, minister of state for commerce and industry Jyotiraditya Scindia said on Monday.
“Manufacturing sector’s contribution to GDP is 16% and that is just not enough,” Scindia said at the India Economic Summit. Manufacturing sector in developed and other emerging economies contribute about 25-26% to their GDP.
The industry ministry is in process of formulating a national manufacturing policy with an aim to increase the share of manufacturing in GDP to 25% by 2022.
Scindia said that the national manufacturing policy is currently being discussed with ministry of labour, finance and environment.