Profit Top 10: April's IIP number shocks; global airlines shun India

• April IIP flat at 0.1%, worse than expected
• IIP figures disappointing, need to give positive signals: Pranab
• Markets overlook weak IIP, Rupee recovers from one-week low
• S&P not transparent, says R. Gopalan while Pranab receives flak
• As an Indian, I feel very sad: Narayana Murthy on economy
• Confident about itself but not the world: Wipro to analysts
• Maruti, Suzuki Powertrain set to merge, job cuts ruled out
• For global airlines, it is madness to invest in India
• US set for big tax hike, Republicans call it "Taxmageddon"
• How the US regulator could pursue a case against JPMorgan

1) April IIP flat at 0.1%, worse than expected

India’s index of industrial production (IIP), the key measure of industrial output, grew at 0.1 per cent in April 2012 from the same period in the past fiscal. This is against an expectation of 1.7 per cent. The industrial output fell 3.5 per cent in March 2012. (Read More)

Meanwhile, the low industrial output has led to more expectations of a steeper rate cut and has piled pressure on policymakers to revive the economy. "There is a case for a sharp move from the Reserve Bank of India, and I would not be surprised if RBI goes for a 50 basis points repo rate cut or a combination of 25 basis points cut in both repo rate and the cash reserve ratio,” said Abheek Barua, Chief Economist, HDFC Bank. (Read More)

Also See: Experts reaction video here

2) IIP figures disappointing, need to give positive signals: Pranab Mukherjee

Expressing disappointment over dismal 0.1 per cent industrial growth rate in April, Finance Minister Pranab Mukherjee today said the government would take steps to give positive signals to the industry. "I am disappointed. Industry has not yet picked up. Negative sentiments are there... We have to take steps to give positive signals (to the industry)", he told reporters. (Read More)

Also Read: Hike diesel car prices by up to Rs 2.55 lakh, Jaipal Reddy asks Pranab

3) Markets overlook weak IIP, Rupee recovers from one-week low

Hopes of a rate cut after dismal industrial output data for April drove stocks higher Tuesday. The Nifty index closed above the 5,100 mark for the first time since May 07, 2012. The rupee, too, recovered from the day's low to end at 55.80 against the dollar. It had earlier breached the 56 mark. The Sensex rose 194.79 points or 1.22% to 16,862.80, while the Nifty index advanced 61.80 points to 5,115.90. (Read More)

Also Read: Just what and where is the stock market bottom

European shares and the euro were flat on Tuesday, with investors nervous over reports of official preparations for a Greek exit from the euro zone and after details of the Spanish bank bailout plan renewed worries about the region's debt crisis.     Meanwhile, Italy could be next in line for bailout, warned the Austrian finance minister. (Read More)

4) S&P not transparent, says R. Gopalan while Pranab receives flak

Accusing Standard and Poor's of not being "transparent", the finance ministry on Tuesday said India's economy was in a much better shape than what is being perceived by the global rating agency. "You cannot judge us on a few parameters. We think we are in a much better condition than they think we can be," secretary, department of economic affairs, R Gopalan said. (Read More)

Meanwhile, Finance minister Pranab Mukherjee has drawn sharp criticism for rubbishing the S&P report that warned that India may be the first BRIC country to lose investment-grade rating. (Read More)

Also Read: Political risks to watch in India

5) Confident about itself but not the world: Wipro to analysts

Wipro, India's third largest IT services company met with analysts on Monday. The company maintained its cautiously optimistic view of the demand scenario and indicated a weakness in the banking and financial services vertical, said a report by Kotak Mahindra. (Read More)

Shares of Wipro were down 1.89 per cent in early morning trade on Tuesday. Post the analyst meet, Elara Capital has given the stock a ‘Reduce’ rating with a target price of Rs 410 while Kotak Mahindra reiterated its cautious stance on the sector as a whole. However, Kotak gave Wipro an 'Add' rating with a target price of Rs 460. (Read More)

Also Read: How Reliance Industries, Infosys disappointed shareholders

6) Maruti, Suzuki Powertrain set to merge, job cuts ruled out

Diesel engine supplier Suzuki Powertrain India (SPIL) will merge with India’s biggest car maker Maruti Suzuki India (MSIL). Maruti holds 30 per cent stake in the company, while the remaining is held by Suzuki Motor Corporation (SMC), Japan. Analysts were positive on the merger as it implies better margins for Maruti, whose earnings per share might be upgraded by 3-4 per cent post the deal. (Read More)

Also See: No job reductions post Suzuki powertrain merger, assures Maruti

7) As an Indian, I feel very sad: Narayana Murthy on economy

N R Narayana Murthy, chairman emeritus of Infosys, the second biggest software services firm, is concerned about the setback to India’s image over the past three to four months. “As an Indian, I feel sad we have come to this state,” he said to Morgan Stanley, a global bank, according to a research report dated 11 May 2012. The bank has sent this report to its clients on Monday. (Read More)

8) For global airlines, it is madness to invest in India

With a potential air market of hundreds of millions of people, airlines ought to be hammering on India's door - yet global airline executives say it would be madness to invest in a domestic carrier there, even if they were allowed to.

Although India's economy is not the investor darling it was some years ago, the 1.2 billion population includes a sizeable middle class with increasing disposable income and the desire to go places. It's a sprawling nation, trains are packed and their safety record is poor, so the potential for air travel is huge. But there was little enthusiasm for India at a major airlines summit in Beijing this week. (Read More)

Also Read: International Air Transport Association warns of trade war over EU carbon tax on aviation

9) US set for big tax hike, Republicans call it "Taxmageddon"

Republicans are calling it "Taxmageddon," the big tax increase awaiting nearly every American family at the end of the year, when a long list of tax cuts is scheduled to expire unless Congress acts. It would be, GOP leaders in Congress say again and again, "the largest tax increase in American history."

Except it wouldn't be, not when you take into account population growth, rising wages, and most importantly, the size of the U.S. economy. (Read More)

Also Read: The Great Recession shrank US wealth to 1992 levels

10) How the US regulator could pursue a case against JPMorgan

JPMorgan Chase's failure to timely disclose a major change in how it measured risk could become the centerpiece for an enforcement action by US securities regulators as they probe the bank in connection with its multibillion dollar trading loss. By omitting the change from its earnings release in April, the bank disguised a spike in the riskiness of a particular trading portfolio by cutting in half its value-at-risk number. (Read More)