FROM THE VICE PRESIDENT’S DESK
Volume 5
Issue 5
Jun 2014
Greetings from mjunction! The new financial year seems to have begun on positive notes. Propelling India into the world’s 10 biggest stock markets, the stock market cap crossed 1.5 trln. India's forex reserves rose by close to $11 billion- The reserves stood at $314.92 billion as of May 16, the highest since October 2011. With a gain of about 5.3% since the start of the year boosted by capital inflows and euphoria around the new government, the rupee’s surged to a 11-month high making it the best performing currency in Asia-Pacific region against the US dollar. mjunction also began the new financial year with a new mission- to make the world a better place by creating robust and sustainable supply chains by bringing in efficiency, transparency through innovation and delivering the desired outcomes to the stakeholders. Our vision for the next five years reads, “mjunction will be customerfocused, technology driven and innovative as it charts its progress over the next five years. It will seek to create value for its customers whilst constantly achieving a YoY growth of over 25%.” I am happy to let you know that financejunction connect with this issue has turned a year old. My team and I hope that you have enjoyed reading financejunction connect as much as we have enjoyed working on this. I would encourage you all to send in your valuable feedback to the editor, Shruti, at shruti.sanskriti@mjunction.in so that the next issue onwards it is able to satisfy all your requirements. We look forward to a fruitful year working together to achieve the goals we have set ourselves. Wish you all the best! Regards,
PART 1 ECONOMY & MARKET REVIEW
Vinaya Varma, Vice President, mjunction services limited
GLOBAL ECONOMIC OUTLOOK The global economy is expected to pick up speed as the year progresses and is projected to expand by 2.8% this year, strengthening to 3.4% and 3.5% in 2015 and 2016, respectively. High-income economies will contribute about half of global growth in 2015 and 2016, compared to less than 40% in 2013.
of 5.3%. However, signs point to strengthening in 2015 and 2016 to 5.4% and 5.5%, respectively. China is expected to grow by 7.6% this year. The Euro Area is on target to grow by 1.1% this year, while the United States economy, which contracted in the first quarter, is expected to grow by 2.1% this year. Growth in India is projected at 5.5% in FY2014-15, accelerating to 6.3% in 2015-16 and 6.6% in 2016-17.
The World Bank lowered its forecasts for developing countries and is now expecting them to grow at 4.8% this year, down from its January estimate
THE GLOBAL ECONOMY Got off to a bumpy start this year but is expected to pick up speed up broadly in line with earlier expectations 4.8% 4.8% 4.8%
2.5% 2.4% 2.8%
5.4% 5.5%
3.4% 3.5% 1.5% 1.3%
2012 2013 2014
2014
2015
2016
2.8%
2012 2013 2014
2014
2015
2016
4.8%
1.9%
2012 2013 2014
2014
2.4% 2.5%
2015
2016
1.9%
Global Growth
Developing Countries
Higher Income Countries
is projected to pick up from 2.4% growth in 2013 to 2.8% in 2014, before gradually accelerating to about 3.5% by 2016.
are headed for a third year of relatively muted growth, as capacity constrains, stalled domestic reforms, and political strife in middle-income economics offset a strengthening global environment.
A reduced drag on growth from fiscal consolidation, improving labor market conditions and a steady release of pent-up demand are projected to lift highincome GDP growth.
1