New Delhi: Investor sentiments is up on the hope that the new government will take business friendly decisions along with some improvement in basic macro indicators.
CII Business Confidence Index (CII-BCI) for April-June 2014 quarter has moved up to 53.7 from 49.9 in the previous quarter. The number 50 is the dividing line on the index between positive and weak business confidence.
“The expectation that the stable government at the Centre would bring growth back to India, along with a mild upturn in some economic indicators in form of recovery in exports, decline in twin deficits, buoyant foreign capital inflows, strengthening rupee and moderating inflation has provided a big boost to business sentiments in the country. We expect the index to gather momentum in the coming days, riding on improved sentiments and business confidence,” said CII director general, Chandrajit Banerjee.
The 87th Business Outlook Survey is based on the responses from over 150 industry members.
As high as 56 per cent of the respondents expect their sales and new order to increase in the first quarter of 2014-15.
This is much higher than the previous quarter wherein only around 35 per cent respondents expected a rise in sales.
