30 July 2013

RBI keeps key rates unchanged; cuts GDP forecast for FY-14 to 5.5%

The Reserve Bank of India (RBI) in its first quarter review of monetary policy kept both the repo rate and Cash Reserve Ratio ( CRR) unchanged. This is in line with market expectations.

Maintaining an extremely hawkish stance, RBI also cut the GDP growth forecast for FY14 to 5.5% from 5.7% earlier. RBI Governor Subbarao cited various risks that are likely to hamper economic growth. Both domestic and global uncertainty were admitted to be a deterrent for economic recovery.

On inflation, while Subbarao acknowledged the ongoing rupee depreciation would create trouble for the price rise scenario, he stressed that the RBI will use all instruments at its disposal to contain it to 5 per cent by March.

Inflation as measured by wholesale prices increased marginally to 4.86 per cent in June.

HCL Technologies expected to report strong sales growth

HCL TechnologiesBSE 1.23 % is expected to report strong revenue growth, when the Noida-based company announces financial performance for its fourth quarter on Wednesday.

HCL, India's fourth-largest software exporter is the last among tier-I IT exporters to report results for the June quarter, with the rest of its peers coming ahead of analyst estimates and signalling demand revival in the United States, their largest market that contributes over 60% of sector revenues.

Brokerages estimate HCL to say that sales reported in dollars grew by about 3% from the preceding quarter and by about 7% in rupee terms.

Tata is India's top brand followed by Reliance and Airtel

Tata tops the list in the first edition of Interbrand's 'Best Indian Brands' study, with a valuation of $10.9 billion. It is followed by Reliance at $6.24 billion and AirtelBSE -2.74 % at $6.22 billion. Tata also happens to be the brand that Jez Frampton, the global chief executive of Interbrand, is most familiar with, given that Tetley is his preferred brand of tea and he drives a Range Rover. "Technically, I drive an Indian car," he says.Frampton believes Indian firms - even those like Tata, known best overseas for global acquisitions like Jaguar Land Rover and Tetley - would do well to focus on building their master brands. This will help Indian companies when they decide to roll out other products and services, or when they choose to become global brands. "A strong master brand creates awareness that you exist, mean something and add value to a purchase," he says.

'Best Indian Brands' is the first local iteration of Interbrand's 'Best Global Brands' study, a highly anticipated measure of brand valuation. Frampton and Interbrand India's MD Ashish Mishra intend to make it a benchmark to track the health and finances of India's leading brands.

India Inc bets on seasoned CEOs to revive business in difficult conditions

Till some months ago, they were termed 'over the hill' in job market parlance. Today, companies are rushing to hire 50-plus CEOs to steer their ships in a tough market characterised by slowing consumer demand and rising prices.

About a dozen companies in the country, including Hindustan UnileverBSE -2.18 % and Cadbury India, have hired seasoned chief executives in the past few months, betting on their maturity and experience to revive slowing business in a difficult macroeconomic environment.

"I see some changes in the mindset of companies. They are not using cliched terms like 'over the hill' for 50-plus senior executives, which they used when we presented CVs of prospective candidates," says Vibhav Dhawan, managing partner at executive search firm Positive Moves Consulting.

Till some months ago, they were termed 'over the hill' in job market parlance. Today, companies are rushing to hire 50-plus CEOs to steer their ships in a tough market characterised by slowing consumer demand and rising prices.

About a dozen companies in the country, including Hindustan UnileverBSE -2.18 % and Cadbury India, have hired seasoned chief executives in the past few months, betting on their maturity and experience to revive slowing business in a difficult macroeconomic environment.

"I see some changes in the mindset of companies. They are not using cliched terms like 'over the hill' for 50-plus senior executives, which they used when we presented CVs of prospective candidates," says Vibhav Dhawan, managing partner at executive search firm Positive Moves Consulting.