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India Brand Equity Foundation CXIII
June 08, 2009

Foreign institutional investors (FIIs) have pumped in Rs 20,117 crore (US$ 4.3 billion) into the Indian equity markets in the month of May 2009 — the highest in 19 months.

Significantly, at US$ 1.04 trillion, India's market capitalisation (m-cap) has emerged as the ninth largest in the world.

Meanwhile, the Indian economy is steadily moving towards a revival with core infrastructure sectors registering a growth of 4.3 per cent in April 2009, as per Ministry of Commerce and Industry data.

Warm regards,

Aparna Dutt Sharma
India Brand Equity Foundation
Focus: Indian Equity Markets
India's market capitalisation (m-cap) has touched the US$ 1 trillion-mark, propelling it back among the top-ten in the world m-cap rankings. At US$ 1.04 trillion, India's m-cap is the ninth largest in the world and in equivalent rupee terms, it is closer to the country's gross domestic product (GDP) of Rs 5,332,753 crore (US$ 1.13 trillion).

While the assets under management (AUM) of mutual fund houses crossed the Rs 6 lakh crore (US$ 127 billion) mark in May this year, 27 fund houses have gained 16.84 per cent over April this year.
Focus: Infrastructure
The six core infrastructure sectors in India—power, crude oil, refinery products, coal, cement and finished steel—clocked the fastest growth in 10 months at 4.3 per cent in April 2009, according to data released by the Ministry of Commerce and Industry. Economists too forecast that the revival in cement and steel production will pick up further post April on the back of increased public spending.

Giving a fillip to investments in the infrastructure sector are states such as Orissa and Karnataka, which are opening up new avenues of investment.
Interview: Stephen S Roach, Chairman, Morgan Stanley Asia, says India could actually outperform the Asia region by a margin

"For the first time, I am optimistic on prospects for India than for China and the reason is that India has made good improvements in macro developments, especially in its higher savings rate, increased FDI and a modest improvement in infrastructure's share of the GDP. India has got a large collection of world-class companies, extraordinary entrepreneurs, well-developed markets and an educated workforce that will act in its favour."

"...India story has come out very nicely. Wouldn't it be ironic that when the world has completely embraced the Chinese miracle, the real surprise in Asia could be India. India could actually outperform the Asia region by a margin."

Interview: Matt Bannick, Managing Partner, Omidyar Network, reveals the company's plans to set up India's first philanthropic investment firm
"We look for firms that are experiencing success, but are not yet large organizations. Organizations that are pretty big and rolling don't really need our venture mentality. What we do is to look at firms that we think have massive social impact, and we will invest in them significantly."

"We have looked at entrepreneurship in India, and we are interested in organizations that serve the bottom of the pyramid. We may or may not directly invest in Indian microfinance institutions.... We have not decided on any figures yet, but it would be more than a few million dollars a year, certainly. Agriculture, energy, water, healthcare, education, mobile technology would be interesting."
Policy/Corporate Briefs
Govt to cut transaction costs for services exports
Services exports from the country may get a fillip with the new government providing relief to certain service providers in terms of reduced transaction costs.
FIIs invest Rs 20,000 cr, Sensex shoots up 28%
As an endorsement of the country's new-found political stability and initiation of the reforms process, FIIs pumped in Rs 20,117 crore (US$ 4.3 billion) into the equity market in the month of May 2009 - the highest in 19 months.
Post-PTA, India-Mercosur trade to touch $10 bn
With the Preferential Trade Agreement (PTA) with the Mercosur group coming into effect from June 1, 2009, the combined trade between India and the South American bloc is expected to more than double to US$ 10 billion in the next five years.
Bharti Wal-Mart to invest $100 mn within 3-4 years
Bharti Wal-Mart Pvt Ltd, the joint venture between Bharti Enterprises and retail giant Wal-Mart, opened its first cash-and-carry (wholesale) store in India at Amritsar in Punjab on May 30, 2009.
Pepsi to double India investment this year
PepsiCo is doubling its investment to US$ 220 million in its Indian beverage business for calendar 2009.
Renault-Nissan JV has big India plans
Renault-Nissan Automotive India, a 50:50 joint venture floated for a passenger car project in Chennai, is eyeing a 5.7 per cent market share in India by 2012.
Swiss Re, Religare tie up for health insurance
In order to increase its presence in the insurance segment, financial services provider, Religare, has entered into an agreement with global reinsurer, Swiss Re, to set up a 74:26 joint venture for health insurance.
Norwest Venture buys 2.11% in NSE for Rs 250 cr
US-based Norwest Venture Partners has bought a 2.11 per cent stake in National Stock Exchange of India (NSE) from IL&FS Securities Services for Rs 250 crore (US$ 53 million), valuing the exchange at Rs 11,848 crore (US$ 2.5 billion).
Marriott to add 24 new hotels by 2012
Luxury hotel chain, Marriott International, will open 24 new properties in India over the next three years and has sealed the deal for the properties with real estate developers.
Bosch says no plans to scale down investments in India
Global autocomponent maker, Bosch, will maintain its India focus with a Rs 128 crore (US$ 27 million) commitment to set up manufacturing units for electronic control units (ECUs).
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