Review of 2007 – India and the Global world economy, stock..

Review of 2007 Highlights – India and the Global world economy, stocks..

India & World Economy

India economy is growing strong with GDP at about 8 %, inflation about 4.5% and has seen significant foreign investment. China, Europe, Dubai and Latin America & Canada have seen improved economy during 2007. China growth rate at over 14% continues to be increasing at an alarmingly high rate.. India exports performed strongly and rose by 20% to US$123.2 Billion and imports increased by close to 25% to US$184 Billion.

GDP (Based on Purchase price parity)

America's $12.4 trillion
China - $8.9 trillion
Japan - $4.0 trillion
India – About $2.9 trillion (Down from forecasted 4.0 Trillion)

Stocks Markets

India stock market index (BES-Sensex) has seen phenomenal growth this year with the index starting the year at around 12,000 and touching 20,000 mark for the first time ever, recording a growth of over 65 %

- China’s Shangai composite Index gew by about 200 % with the index at about 6000
- US stocks – Dow jones recorded about 17 % growth with the index at about 13500
- UK stocks – FTSE 100 rose by about 16% at 6450


Foreign direct investment (FDI)

USA, UK, China are the top 3 countries this year for the FDI.

Major World Currencies

US Dollar lost against major currencies this year as follows (As of Dec 20th 2007)

1 USD = 0.6964 Euro
1 USD = 1.0014 Canadian Dollar
1 USD = 7.3783 Chinese yuan
1 USD = 39.575 India Rupess

Impact of sliding dollar on US and World Economy : In view of the fact that global prices and trends are measured in USD and considering the fact that dollar has been sliding – The Forbes riches 100 list has a number of individuals from India, South America etc.. India exports are now cheaper and the outsourcing business are seeing the impact with less margins compared to couple of years..

US Market has been shaken by the sub-prime issue and many US financial institutions have been significantly affected in the 3 qtr this year and along with the Housing bust is having a negative impact on the US economy..


That is it for 2007. Have a safe and Happy Holidays, Season's greetings and Happy New Year !

Note: The facts and stats are from the study and analysis done and published by reliable sources such as Business Week and Economist etc..

India stock’s gain over 500 % in the past 4 years.

India stock’s gain over 500 % in the past 4 years.

Oct 18th 2007,

India’s stocks are performing extremely well and the BSE (Bombay Stock Index) has touched 19,000 for the frist time ever this month in Oct 2007 before settling down around 18000 mark. The stocks gained more than 500 % since 2003 as compared to the US stocks which gained about 60 % during this same 4 year period.

The primary reason behind this growth and the rise in the stocks is significant influx of Foreign Investment in the Indian Stock Market by US & European Financial institutions. The booming Indian Economy with the consistent GDP growth of over 8% and manufacturing sector growth of over 10 per cent year after year during this period has also contributed to the rise in the stocks.

The credit crisis and the sub-prime loan issues along with the US rate cut also contributed to the rise of the Indian Stock market which has seen an increase of over 20% due to the increased foreign investment in the period.

However, the rise of the stocks is happening at an alarming pace and the Indian Government and SEBI, the India stock watch are concerned with the steep increase markets due to the heavy dollar inflow through Participatory Notes in derivatives market and compounded by the weakening of dollar against the Rupee. The Indian Rupee has appreciated by over 10% in the last one year and current hovering around 39 rupees which is the highest levels in the past 9 years.

So SEBI recently decided to calm the investors and put in regulator controls in place in market place that the Participatory Notes in derivatives market cannot exceed the 18 month limit. This announcement on Oct 16th resulted in the market crash by over 1,700 points and it soon recovered back after an assurance was made by the Finance Minister Mr. Chidambaram that there is no proposal to ban Participatory Notes.

High performing stock quotes in Rupees as of Oct 16th 2007 are as follows:

Reliance Industries - 2,710

Reliance Energy 1,810
Infosys - 1915
ICICI Bank 1135
Tata Power 1200

The US Investors can also invest in the Blue chip Indian Stocks on the NY / Nasdaq Stock exchange and these are traded as ADRs (American Depository Receipts)

Following are some of the Indian Stocks traded in the NY Stock exchange:

ADR Prices are as of Oct 17th 2007

Company Exchange USD Value
WIT - Wipro NYSE 15.10
RDY - Reddy’s lab NYSE 15.50
VSL - Videsh Sanchar NYSE 24.90
SAY - Satyam NYSE 26.80
INFY - Computers Nasdaq 49.30
HDB -HDFC Bank NYSE 108.00
IBN - ICICI Bank NYSE 54.70
REDF - Rediff Nasdaq 17.25

Investments in these blue chip Indian stocks has paid off handsomely to a number of Individual and Financial investors… We will have to wait where the Indian Stocks go from here…

D&A Consulting

http://www.daaspace.com/

Great IT revolution is here to stay!

Great Information Technology (IT) revolution is here to stay!


Information Technology has now become an integral part of personal life and a change agent to the business and people across the world. It is transforming and changing the way we live, communicate and do business not only in personal life but also in work life.

More and more business across the world are using these technology to stay competitive and productive and to compete not only in their domestic markets but also in the Global market.

In the last 10 years, IT has been improved tremendously and made the communication easier and allowed people across the world to stay connected 24 X 7. Especially Internet technology has transformed the way we do communication and opened up many ways to collaborate and network.

In the initial phase of Internet evolution and adoption period (1995 to 2000), people started to use internet as a way to make their presence in the virtual world and most of the web pages were static and it was not possible to collaborate and network easily.

In past 5 years, there has been significant improvement in the Communication Networks and technologies such as fiber optics cables between USA & Asia, advent of Voice over Internet protocol (VOIP), advancements in Computer & Cell phone technologies and this has suddenly opened up new avenues and modes of communication.

Business across the world including Third world countries are now able to communicate and trade virtually and provide service over the internet with the Developed nations such as USA, UK, Germany, Italy, Sweden etc.. New business opportunities started to arise online and Internet shopping and online Trade have surged exponentially.

Highly populated and English speaking countries like India, China, Philippines, Ireland, etc..with large number of technical and English speaking population have taken advantage of these Information technologies and tools and now able to develop and provide high quality services and products cost effectively to the developed countries in North America and Europe. New generation information technologies such as Video conferencing, VOIP, Instant Messaging etc, have made this possible and allowed new high quality services and products to be made available remotely online and in a cost effective and timely manner.

Large Corporate and business in USA and Europe see these opportunities as a mean to save costs and improve productivity and hence are able to get the services and products from the above mentioned countries in a cost effective and productive way.

The personal lives are getting transformed with these technologies and Instant messaging, text messaging on Computers, Cell Phones, Black berries is extremely common among the young generation in Asia and Europe and is now catching up in USA.

These technologies have revolutionized the way we do live and do business and is here to stay and there are many more advancements in the pipeline in the near future.

The world has now become flat and now there are no boundaries in the virtual world. Countries and Business in these countries that are able to make use of these technologies and take advantage of these online services will be able to be more productive and competitive in the Global markets and will be able to provide customers with good quality products and services in a cost effective way.

India with its large highly skilled, educated and english speaking population has been able to take advantage of these opportunites and has now become the prime driver of these technologies and is able to provide quality services and products to the world in a cost effective way.

These technologies improved the GDP of India and also helped maintain a growth rate year over year at about 8 % and is now among the top five largest economies in the world based on the Purchase Price Parity (PPP) !

India on the rise!

Tata Steel has acquired Corus in the UK and Netherlands, a European steel company, and elevates Tata Steel to the fifth largest steel company in the world and brings the capacity of nearly 19 million tonne per year.

TCS & Infosys have had some great revenues and are hitting the Billion dollar each quarter now and these companies have been adding jobs at a rapid pace.

The GDP is around 9 % and with the Purchase price party, India now stands next to USA & China and is ahead of Japan and other European countries.

However the inflation continues to rise and so does the real estate price. More needs to be done on improving the infrastructure and reducing poverty as well as improving the education levels of the rural people

IT Business & Tech updates - Jan 2007 !

Wish you all a very Happy New Year 2007 !

IT Business updates

IT & Business Out sourcing continues to boom and the Leading Indian IT companies have been making record sales based on the research info reliable sources.


TCS became the first Indian service provider to book $1 billion in revenue in a single quarter company and its third-quarter revenue for the period ended Dec. 31 and it increased by over 40% year-over-year, to $1.1 billion.


Infosys continues to ride the outsourcing boom and posted a 47% increase in third quarter revenue and a 50% increase for the period ending Dec. 31, revenue was $821 million and also adding new customers and more than 6,000 employees during the period.


Satyam's third quarter revenues increased by over 30% year-over-year and its sales grew to $375 million and added over 2000 years.


Wipro posted revenue of close to $900 million for the period ended Dec. 31 a sales increase of over 40% from the previous year.


Kimberly-Clark, HQ in Atlanta and with Manf & IT in WI, has decided to outsource its SAP business software applications, including supply chain and planning, to Cognizant Technology Solutions who operates primarily from India.

Technology updates

Salesforce.com is working on a new on-demand platform based on Apex language for constructing on-demand applications inside of its AppExchange system for the On demand apps using data models, workflow engine, user interface, Apex Web services, Mashups and integration.


Sun Microsystems is releasing Fortress,a secure programming language and will be available as an open-source programming language to runs on the JVM.