Thursday, October 3, 2013

Indian stock market slips out of trillion-dollar club

PTI   MUMBAI:, August 16, 2013
First Published: 20:57 IST(16/8/2013) | Last Updated: 21:13 IST(16/8/2013)

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The Indian stock market moved out of the trillion-dollar league on Friday as equities crashed, pulling down the total valuation of all listed companies to $985 billion on fresh concerns about the US stimulus withdrawal, and the rupee plunging to a historic record low of 62.

Market capitalisation of all the listed companies stood at Rs. 60,73,881.22 crore, as stocks witnessed bloodbath that dragged down the BSE 30-stock benchmark, Sensex, by 769.41 points to 18,598.18 — its biggest fall in 4 years.

The rupee also touched an all-time low of 62.03 against the US dollar. Mayhem in the stock market led the rupee to fall below 62-mark for the first time to touch an intra- day low of 62.03. It recovered some ground to record an all-time closing low of at 61.65.

Indian stock market’s valuation had earlier dropped to $985 billion on August 7, after slipping below the one trillion level a day earlier. However, it regained the level on August 8.

India had first entered the trillion-dollar club in June 2007, but moved out in September 2008, amid the global slowdown.

It again got back into the elite league in May 2009 and had largely remained there since then, except for some brief periods including once in 2012.

Weakness of the rupee has been a key force behind the dollar-valuation plunge in recent months.

Since the beginning of the current fiscal in April 2013, though the rupee valuation of Indian stock market has fallen by nearly 5%, its dollar valuation has plunged by 19.76%. The rupee has depreciated by over 13% during this period.

With India out of this league, only 13 stock markets across the world now enjoy a trillion-dollar status, led by the US (an estimated $20 trillion). Others in this club are UK, Japan, China, Canada, Hong Kong, Germany, France, Switzerland, Australia, South Korea, Nordic region and Brazil.

Markets like Russia, Spain and South Africa have also moved out of this club after enjoying a trillion-dollar status in the past, while at least three others — Brazil, South Korea and Nordic region markets — are maintaining this level with small margins. 
 
 
India's dairy market to grow by 13-15% till 2019-20: Report
PTI
Mumbai, September 10, 2013
First Published: 18:54 IST(10/9/2013)
Last Updated: 18:57 IST(10/9/2013)
The country's dairy market will continue to grow at about 13-15% annually till 2019-20, on increasing consumption of value added products and the value chain becoming more and more organised, according to a report by Rabobank.

"India dairy is emerging as a strong consumption
story, with the market growing at a pace. We expect this trend will gain momentum over the next 4-5 years driven by increasing consumption of value-added products and the formalisation of the value chain," the report said. According to the report, Rabobank expects this segment to grow at a CAGR of 13 to 15% until 2019-20.
The market share of value-added products is likely to increase to 31% from the current 21% during this time period, it pointed out.
The main factors driving growth are increased consumer interest in higher protein diets, greater affordability due to growing disposable incomes and rising awareness and availability of dairy through channels such as organised retail and food service segments, it said.
The country's total organised diary sector is about $10 billion in 2012-13, comprising cooperatives and private players who control the supply chain linkages.
"For years, the Indian dairy market has remained an enigma for global dairy players," saidd Rabobank analyst Shiva Mudgil, adding that currently, however, the market is in a transition phase.
High market growth and favourable market conditions may make now the right time for global players to engage with the Indian dairy sector, he pointed out.
India's large consumption market, its existing milk supplies and established consumer preference for dairy products, has encouraged global dairy companies to engage with India in the past, the report said.
However, the challenging environment, with its informal fragmented supply chain, raw milk quality concerns, small base for value-added dairy products and ever-changing trade regulations, proved a challenge and a strong disincentive.
Nonetheless, India's formal dairy market has shown strong growth in recent years, which is likely to accelerate due to product innovation, enabling government policies and industry consolidation.
Rabobank anticipates this acceleration will help improve industry margins by attaining greater scale, higher capacity utilisation and an increasing contribution from value-added products in total dairy revenues.
"While the dairy market in India is not for every company, considering the challenges, many global companies should now be revisiting their Indian dairy strategy," he said, adding that for some, it may prove to be the right time to join thegame, even on a small scale, through starting a strategic dialogue on Indian dairy.
 
India's dairy market to grow by 13-15% till 2019-20: Report
PTI
Mumbai, September 10, 2013
First Published: 18:54 IST(10/9/2013)
Last Updated: 18:57 IST(10/9/2013)
The country's dairy market will continue to grow at about 13-15% annually till 2019-20, on increasing consumption of value added products and the value chain becoming more and more organised, according to a report by Rabobank.

"India dairy is emerging as a strong consumption
story, with the market growing at a pace. We expect this trend will gain momentum over the next 4-5 years driven by increasing consumption of value-added products and the formalisation of the value chain," the report said. According to the report, Rabobank expects this segment to grow at a CAGR of 13 to 15% until 2019-20.
The market share of value-added products is likely to increase to 31% from the current 21% during this time period, it pointed out.
The main factors driving growth are increased consumer interest in higher protein diets, greater affordability due to growing disposable incomes and rising awareness and availability of dairy through channels such as organised retail and food service segments, it said.
The country's total organised diary sector is about $10 billion in 2012-13, comprising cooperatives and private players who control the supply chain linkages.
"For years, the Indian dairy market has remained an enigma for global dairy players," saidd Rabobank analyst Shiva Mudgil, adding that currently, however, the market is in a transition phase.
High market growth and favourable market conditions may make now the right time for global players to engage with the Indian dairy sector, he pointed out.
India's large consumption market, its existing milk supplies and established consumer preference for dairy products, has encouraged global dairy companies to engage with India in the past, the report said.
However, the challenging environment, with its informal fragmented supply chain, raw milk quality concerns, small base for value-added dairy products and ever-changing trade regulations, proved a challenge and a strong disincentive.
Nonetheless, India's formal dairy market has shown strong growth in recent years, which is likely to accelerate due to product innovation, enabling government policies and industry consolidation.
Rabobank anticipates this acceleration will help improve industry margins by attaining greater scale, higher capacity utilisation and an increasing contribution from value-added products in total dairy revenues.
"While the dairy market in India is not for every company, considering the challenges, many global companies should now be revisiting their Indian dairy strategy," he said, adding that for some, it may prove to be the right time to join thegame, even on a small scale, through starting a strategic dialogue on Indian dairy.
India's dairy market to grow by 13-15% till 2019-20: Report
PTI
Mumbai, September 10, 2013
First Published: 18:54 IST(10/9/2013)
Last Updated: 18:57 IST(10/9/2013)
The country's dairy market will continue to grow at about 13-15% annually till 2019-20, on increasing consumption of value added products and the value chain becoming more and more organised, according to a report by Rabobank.

"India dairy is emerging as a strong consumption
story, with the market growing at a pace. We expect this trend will gain momentum over the next 4-5 years driven by increasing consumption of value-added products and the formalisation of the value chain," the report said. According to the report, Rabobank expects this segment to grow at a CAGR of 13 to 15% until 2019-20.
The market share of value-added products is likely to increase to 31% from the current 21% during this time period, it pointed out.
The main factors driving growth are increased consumer interest in higher protein diets, greater affordability due to growing disposable incomes and rising awareness and availability of dairy through channels such as organised retail and food service segments, it said.
The country's total organised diary sector is about $10 billion in 2012-13, comprising cooperatives and private players who control the supply chain linkages.
"For years, the Indian dairy market has remained an enigma for global dairy players," saidd Rabobank analyst Shiva Mudgil, adding that currently, however, the market is in a transition phase.
High market growth and favourable market conditions may make now the right time for global players to engage with the Indian dairy sector, he pointed out.
India's large consumption market, its existing milk supplies and established consumer preference for dairy products, has encouraged global dairy companies to engage with India in the past, the report said.
However, the challenging environment, with its informal fragmented supply chain, raw milk quality concerns, small base for value-added dairy products and ever-changing trade regulations, proved a challenge and a strong disincentive.
Nonetheless, India's formal dairy market has shown strong growth in recent years, which is likely to accelerate due to product innovation, enabling government policies and industry consolidation.
Rabobank anticipates this acceleration will help improve industry margins by attaining greater scale, higher capacity utilisation and an increasing contribution from value-added products in total dairy revenues.
"While the dairy market in India is not for every company, considering the challenges, many global companies should now be revisiting their Indian dairy strategy," he said, adding that for some, it may prove to be the right time to join thegame, even on a small scale, through starting a strategic dialogue on Indian dairy.

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