Week in Review for 15 October 2010

Week in Review for 15 October 2010

New Delhi: Confusion is king when it comes to India’s economic numbers. Figures released this week show growth in industrial output has slowed down to its lowest on 15 months. The index of industrial production for August gained a mere 5.6% on a year on year basis. Meanwhile, other figures are complicating the picture. India’s wholesale price index sped up to 8.62% in September after slowing down the previous four months. The latest figures are expected to deepen the RBI’s dilemmas when it meets next month to review monetary policy. On the one hand a slowdown in industrial output would nudge it towards postponing further rate hikes. But the rise in inflation will prompt it to do the exact opposite. The RBI has already increased policy rates five times this fiscal.

Loading video...

Infosys Technologies beat all expectations with its second quarter numbers. Net profit shot up 13.2% to Rs1,740 crore. And revenues climbed 24.4% to Rs6,960 crore. Infosys CEO S. Gopalakrishnan said it was the first quarter in which the company had grown organically by more than a hundred million dollars. He added that the growth occurred despite tough economic conditions in clients’ countries. Still, Infosys hiked up its revenue forecast for the fiscal on expectations of a better economic outlook in the days ahead.

Also this week, Kalanithi Maran and his company Kal Airways are closer to taking control of SpiceJet. On Wednesday, Sebi approved their open offer to pick up another 20% of the airline. The offer is at just under Rs58 a share. It will start on 18 October and continue till 6 November.

Meanwhile Maran and Kal Airways also increased their stake in Spice through an off-market transfer. This week they reported they bought an extra 7.42% stake in SpiceJet. Together Maran and Kal now control 52.69% of the airline.