Energy stocks have hit a bottom — here’s why: Trader

t’s been a tough year for energy investors. The S&P 500 energy sector ETF, the XLE, has lost more than 20 percent of its value in 2015 as crude and other commodities have tumbled to multiyear lows. But for investors fishing for a bottom, one contrarian trader says we may have just witnessed a very bullish pattern on the charts. ... Read More »

Desperate Dow-DuPont megamerger bad for stocks

Dow Chemical and DuPont are in advanced discussions for a megamerger, a tie-up that sent shares of companies in the materials sector soaring. But these gains may be short lived, if history is any guide. Big deals in older, more basic industries normally spell doom for the other companies in that space. What’s more, this deal may signal that these ... Read More »

Biocon shares get a leg up from hepatitis-C drug launch

Biocon’s shares rose 5.36% on BSE on Thursday, a move attributed to the company’s announcement that it is launching Cimivir-L, a drug to treat hepatitis-C. The drug is for the treatment of hepatitis-C genotype 1 patients who represent one-fourth of 18 million such patients in India, according to a company statement. Biocon and a clutch of other Indian pharmaceutical companies ... Read More »

Vizhinjam trans-shipment port sets sail

On 5 December, India’s shipping minister Nitin Gadkari announced the government’s decision to ease a so-called cabotage law for the new container trans-shipment port being developed by Adani Ports and Special Economic Zone Ltd (APSEZ) at Vizhinjam near Thiruvananthapuram in the southern state of Kerala. The announcement, made at the auspicious ground-breaking ceremony of the new port, was totally unexpected ... Read More »

The state of the Indian economy

Is the economy expanding? Is manufacturing growing? Is consumption-driven growth back? Is investment demand back? These are important questions. They should also be questions to which there can only be one correct answer. Let’s then try to answer them: 1. Yes. According to the latest gross domestic product (GDP) data, the economy expanded by 7.4% in the second quarter of ... Read More »

AP port policy: A pragmatic approach to port development

Endowed with a coastline stretching 974km—the second longest in India—and strategically located on the country’s eastern seaboard, Andhra Pradesh knows the importance of developing seaports. The port policy that was announced by the state government led by chief minister N. Chandrababu Naidu last week is pragmatic while treading cautiously on many critical issues that have a bearing on the success ... Read More »

Manufacturing PMI: In country of blind, one-eyed man is king

The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) has dropped to over a two-year low in November at 50.3. Although soft demand is weighing on India’s manufacturing activity, the PMI data shows its manufacturing sector is doing far better than other countries in Emerging Asia (see chart). Weak demand is weighing on manufacturing and production activity in most of the ... Read More »

Shipping indices, trade and what’s in store for India

World trade has remained subdued this year. Not surprisingly, shipping indices across the board have performed miserably. The Shanghai (Export) Containerized Freight Index (SCFI), which reflects spot rates for container transport from Shanghai to the rest of the world, has declined as much as 47% so far this year. The China Containerized Freight Index (CCFI), which is considered a broader ... Read More »

Divergent trend in export volumes

The chart, from the CPB Netherlands Bureau for Economic Policy Analysis, shows an index of global exports volumes, seasonally adjusted over the 12 months to September 2015. Note that world exports are up a minuscule 0.28% year-on-year (y-o-y) in September 2015. The chart shows volumes, not price; so, lower commodity and oil prices are not to blame. However, we also ... Read More »

Weak rabi prospects cloud Bayer CropScience outlook

Compared with a 4% loss in the S&P BSE 500 index, Bayer CropScience Ltd has lost 11% since its September quarter results announcement. Revenue fell 5% due to weak demand in India and abroad. Though revenue increased 5% in the first half of the current fiscal year, the growth is far slower than the 20% rise the company reported last ... Read More »