`UNLEVEL FIELD IN CAPITAL GOODS SECTOR'

Article Abstract:

The capital goods sector has posted a negative growth of 1.8 percent in 1997-98 compared to 7.2 percent of 1996-97. The budget for 1998-99 has increased the customs duty from 25 percent to 30 percent on cold rolled coil used in electrical equipment and machines. It has also levied a eight percent non Modvatable countervailing duty on imports to equate with the sales tax on domestic goods. Excise duty on diesel engine sets (of power 10 HP) and effluent treatment plants have been brought down to eight percent from 13 percent. Excise duty on milking machinery, dairy machinery has been increased to eight percent from zero percent. The capital goods industry feels that it did not get the level playing ground from the Budget. The Budget has not eased the disparities in the customs duty structure for cement, sugar, and plastic machineries, boilers, machine tools, transformers, electric motors, generators and switchgears. (rk)

Comment:

India: Capital goods sector posts negative growth of 1.8% in 1997-98, as against 7.2% in 1996-97

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WILL THEY BANK ON THE GROWTH PATH SOON? - OVERVIEW

Article Abstract:

The scrips of various banks have been underperforming due to various factors - economic slowdown, disappointing budget, poor asset quality and high overheads. During 1997-98, the banking sector posted a fall in net interest margin and a rise in the income from investments. During the period, eight banks posted 335 percent rise in income from investment on a year-on-year basis. The banks were able to write back huge investment provisions made during 1996-97 due to lower interest rates. This sector reported a 0.2 percent rise in its credit during April- July 1998 (0.3 percent during April-July 1997). During this period, the non-food credit and non SLR investment were around 0.2 percent (0.2 percent). The future for the sector looks bright as two expert committees have suggested major changes like decreasing government holding, autonomy for state owned banks and closure of weak banks. (ag)

Comment:

India: Banking sector posted a fall in net interest margin & rise in income from investments during 1997-98

Commercial Banks, Commercial Banking

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GMM MAY NOT UPGRADE PUBLIC OFFER FOR NILE SHARES

Article Abstract:

Gujarat Machinery Manufacturers Ltd (GMM) is unlikely to enhance its public offer of Rs40 per share in Nile Ltd although the scrip is being quoted at the same rate at the bourses. The public offer is scheduled to open on June 4, 1998, and closes on July 3, 1998. GMM says that although the share price has risen to Rs40, it need not increase its open offer price as the share volumes traded are very low. Both the companies manufacture glass-lined equipment. (khr)

Comment:

Is unlikely to enhance its public offer of Rs40 per share in Nile subsidiary though scrip is quoted at same rate at the bourses

Organizational history, Parent-to-subsidiary activities, Nile Ltd., Gujarat Machinery Manufacturers Ltd.

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