Adani ports SEZ gets environmental clearance. Positive for the company from medium to long term perspective.
Adani Ports & SEZ (APSEZ) has received environment and coastal regulation zone clearance from the central government for its special economic zone (SEZ) at Mundra Port. The company had faced a major setback in January this year when the Gujarat High Court ordered 12 out of 21 units in Mundra SEZ to shut down, in response to a public interest litigation filed by some villagers who had claimed that construction activities at the SEZ were affecting their livelihood. We believe to be very positive for Adani ports in the medium to long term as the overhang has been removed and the SEZ can attaract more investments going forward.
National economic News
India’s Q1 trade deficit down 31% to $33.1 bn
Driven by growth in exports and a sharp fall in gold imports, India’s trade deficit for the first quarter of the current fiscal came down by 31% YoY to $33.1 billion. Continuing the healthy pick-up in exports, shipments from the country rose 10.22% in June, even though a sharp 65.13% rise in gold imports whittled the otherwise healthy set of numbers. However, June a saw sharp spike in the inward shipment of the metal.
World Economic News
U.S. Industrial Production Inches Up 0.2% In June, Less Than Expected
Industrial production in the U.S. rose by less than expected in the month of June. The industrial production edged up by 0.2% in June compared to economist estimates for an increase of about 0.4%. While the report also said production growth in May was downwardly revised to 0.5% from 0.6%, the 0.3% drop in production reported for April was upwardly revised to unchanged.
U.K. Unemployment Lowest Since 2008
The U.K. unemployment rate declined to the lowest since 2008 as employment hit record high, but earnings growth remained weak squeezing consumers’ purchasing power. The ILO jobless rate for March to May fell to 6.5% of workforce, the lowest since the last quarter of 2008. The rate was in line with economists’ expectations. This was down from 6.9% seen in December to February and 7.8% in the same period last year.