Date : Dec-19-2008 09:27 Inflation plunged below 7 per cent to 6.84 per cent for the week ended December 6 2008, from 8 per cent of previous week. Huge drop in the fuel price index of 3.7 per cent led the fall. The market is expecting more cuts from the Reserve Bank of India as bond yields have dropped to the lowest since June 2004. Bond yields on Thursday (December 18) fell to 5.54 per cent as against 5.80 per cent on Dec 17. The decline in fuel prices was also supported by a drop in manufacturing and primary goods indices. The index for manufacturing was down 0.3 per cent on week-on-week basis while that of primary articles, which includes food prices, fell 0.4 per cent.
Thursday, December 18, 2008
Commodities outshine equities in the year 2008
Date : Dec-18-2008 17:57 New Delhi: During the whole year of 2008, where equity market lost more than 50%, Commodity market substantially outperformed equities in 2008. According to ETF Securities, the equity market fell drastically in the wake of the credit crisis. The DJ All commodities Index remains high at 14% and 107% over 5 and 10 year horizons, the firm told in its Commodities Review 2008 report. On the equity front, the S&P 500 is decline at 7% and 11% over the last 5 and 10 years respectively. The bullion, Gold has capitalized strongly on increasing risk aversion over 2008, up by nearly 37% and 18% in the terms of GBP and Euro respectively over the 12 months to November 2008. Gold is flat in USD over the same period, despite nearly 13% appreciation in the USD value.
Overall, the year 2008 is worst hit by the financial crises across the globe. During the first six month of the year strong emerging market demand, supply bottleneck and significantly rising investor demand pushed the prices of many commodities to historically high levels.
Overall, the year 2008 is worst hit by the financial crises across the globe. During the first six month of the year strong emerging market demand, supply bottleneck and significantly rising investor demand pushed the prices of many commodities to historically high levels.
IDBI Fortis Life unveils new product
Date:Dec-18-2008 10:55
Spreading the product portfolio, IDBI Fortis Life Insurance Company has launched a new product offering life insurance group to cover micro finance institutions, self-help groups and NGOs. The product is known as ''Microsurance'', which would insure the lives of the group members as well as their families, and also providing protection from loan liabilities in the event of the death of the main working member.
Spreading the product portfolio, IDBI Fortis Life Insurance Company has launched a new product offering life insurance group to cover micro finance institutions, self-help groups and NGOs. The product is known as ''Microsurance'', which would insure the lives of the group members as well as their families, and also providing protection from loan liabilities in the event of the death of the main working member.
Markets open marginally lower and turned choppy.
Date : Dec-19-2008 10:41
The markets today open marginally lower on the back of weak cues from the global markets. The crude has slipped below the 4 year low to $36 per barrel in NYMEX. The selective buying is seen among the Realty, Consumer Durables, Metal, Pharma and Auto stocks,. However, the Oil & Gas and IT stocks are facing the selling heat in the early trade. The BSE Mid Cap and the Small Cap are also trading higher with a gain of around 1% each in the opening trade.
The BSE Sensex is now trading above the 10,000 mark and the NSE Nifty trading around the 3,050 mark.
The Asian markets are also trading mixed as Shanghai Composite, Strits Times and Seoul Composite index are trading higher by (0.05%), (1.05%) and (0.53%) while Hang Seng and Nikkei index are trading lower by (0.77%) and (0.40%) respectively.
The US stock market on Thursday closed lower on the back of sharp decline in the energy-related shares, after the price of crude fell to four-year lows. The crude prices have tumbled below the $37 per barrel. Further the statement from two of the nation''s Big Three automakers about the halting of production also added to the sentiments. The Dow Jones Industrial Average (DJIA) dropped by 219.35 points to close at 8,604.99. The NASDAQ Composite (RIXF) index decreased by 26.94 points to close at 1,552.37 and the S&P 500 (SPX) fell 19.14 points to close at 885.28.
Tata Steel reported a top gainer among the BSE Sensex pack up by (4.50%) at Rs. 232.10 while ONGC the top loser down by (4.76%) at Rs. 698.
The overall market breadth remains positive as 966 stocks are advancing while 417 stocks are declining on BSE.
At 10.33AM, the BSE Sensex was down by 12.38 points at 10,064.05 and the Nifty was marginally up by 0.75 points to 3,061.50.
The BSE Mid Cap increased by 40.14 points to 3,244.70 and the BSE Small Cap advanced by 31.80 points to 3,743.75.
BSE Realty index is trading higher by 74.42 points or (3.26%) to trade at 2,358.41. The top gainers are Unitech increased by (6.56%) to Rs.40.60, Sobha Developers up by (5.14%) to Rs.113.50, Ansal Infra inclined by (4.52%) to Rs.37 followed by Parsavnath grew by (4.51%) to Rs. 48.65.
BSE Metal index is trading higher by 112.57 points or (2.07%) to trade at 5,540.76. The major gainers are JSW Steel inclined by (5.68%) to Rs. 240.90, Tata Steel up by (4.48%) to Rs.232.05, Jindal Saw increased by (4.47%) to Rs.247.95 followed by Sterlite Industries grew by (3.84%) to Rs.281.30.
The markets today open marginally lower on the back of weak cues from the global markets. The crude has slipped below the 4 year low to $36 per barrel in NYMEX. The selective buying is seen among the Realty, Consumer Durables, Metal, Pharma and Auto stocks,. However, the Oil & Gas and IT stocks are facing the selling heat in the early trade. The BSE Mid Cap and the Small Cap are also trading higher with a gain of around 1% each in the opening trade.
The BSE Sensex is now trading above the 10,000 mark and the NSE Nifty trading around the 3,050 mark.
The Asian markets are also trading mixed as Shanghai Composite, Strits Times and Seoul Composite index are trading higher by (0.05%), (1.05%) and (0.53%) while Hang Seng and Nikkei index are trading lower by (0.77%) and (0.40%) respectively.
The US stock market on Thursday closed lower on the back of sharp decline in the energy-related shares, after the price of crude fell to four-year lows. The crude prices have tumbled below the $37 per barrel. Further the statement from two of the nation''s Big Three automakers about the halting of production also added to the sentiments. The Dow Jones Industrial Average (DJIA) dropped by 219.35 points to close at 8,604.99. The NASDAQ Composite (RIXF) index decreased by 26.94 points to close at 1,552.37 and the S&P 500 (SPX) fell 19.14 points to close at 885.28.
Tata Steel reported a top gainer among the BSE Sensex pack up by (4.50%) at Rs. 232.10 while ONGC the top loser down by (4.76%) at Rs. 698.
The overall market breadth remains positive as 966 stocks are advancing while 417 stocks are declining on BSE.
At 10.33AM, the BSE Sensex was down by 12.38 points at 10,064.05 and the Nifty was marginally up by 0.75 points to 3,061.50.
The BSE Mid Cap increased by 40.14 points to 3,244.70 and the BSE Small Cap advanced by 31.80 points to 3,743.75.
BSE Realty index is trading higher by 74.42 points or (3.26%) to trade at 2,358.41. The top gainers are Unitech increased by (6.56%) to Rs.40.60, Sobha Developers up by (5.14%) to Rs.113.50, Ansal Infra inclined by (4.52%) to Rs.37 followed by Parsavnath grew by (4.51%) to Rs. 48.65.
BSE Metal index is trading higher by 112.57 points or (2.07%) to trade at 5,540.76. The major gainers are JSW Steel inclined by (5.68%) to Rs. 240.90, Tata Steel up by (4.48%) to Rs.232.05, Jindal Saw increased by (4.47%) to Rs.247.95 followed by Sterlite Industries grew by (3.84%) to Rs.281.30.
Inflation hits 9 month low, fuels down to 6.84 pc
New Delhi: Declining fuel prices pushed down inflation sharply for the sixth consecutive week to 6.84 per cent, the lowest in nine months, a development that could prompt the Reserve Bank to take more bold steps to boost economic growth.
Inflation dipped by 1.16 percentage points from 8 per cent in the previous week, primarily on account of reduction in prices of petrol and diesel announced by the government in the first week of the month.
It was 6.21 per cent in the week ended March 1, 2008. The rate during the corresponding period last year was 3.84 per cent.
Fuel prices curb price spiral
The government reduced the per litre prices of petrol and diesel by Rs 5 and Rs 2 respectively with effect from December 6 in the wake of falling prices of crude oil in the international market.
Also, the prices of those items which are not decided by the government came down during the week. The index of 'fuel, power, light and lubricants' fell by 3.7 per cent, as prices of petrol, jet fuel (Aviation Turbine Fuel), naphtha and furnace oil declined by 10 per cent, 7 per cent, 23 per cent and 15 per cent respectively.
Edibles cost less
In addition to fuel items, the prices of fruits and vegetables, various pulses steel, pig iron and certain metals too declined during the week.
RBI has taken a host of measures releasing as much as Rs 3,00,000 crore to fuel growth and with the inflation coming down further, it might take more steps to boost industrial output. Apart from fruits and vegetables, prices of imported edible oil, rice bran oil and coconut oil also declined. The index for chemicals and chemical products group declined by 0.6 per cent and transport equipment and parts declined by 0.5 per cent during the week.
However, the prices of non-food articles group rose by 0.1 per cent due to higher prices of fodder, groundnut seed, gingelly seed and raw cotton.
In the manufactured products category, atta (by 2 per cent), groundnut oil and ghee (by one per cent) and cotton seed oil became dearer during the week.
The inflation data of the week does not capture the impact of four per cent excise cut across the board announced last week on December 7 as a part of the stimulus package to revive the slowing Indian economy. The inflation for the week ended October 11 stood at 11.30 per cent, up from the provisional estimates of 11.07 per cent.
Source: http://news.in.msn.com/National/article.aspx?cp-documentid=1717889
Inflation dipped by 1.16 percentage points from 8 per cent in the previous week, primarily on account of reduction in prices of petrol and diesel announced by the government in the first week of the month.
It was 6.21 per cent in the week ended March 1, 2008. The rate during the corresponding period last year was 3.84 per cent.
Fuel prices curb price spiral
The government reduced the per litre prices of petrol and diesel by Rs 5 and Rs 2 respectively with effect from December 6 in the wake of falling prices of crude oil in the international market.
Also, the prices of those items which are not decided by the government came down during the week. The index of 'fuel, power, light and lubricants' fell by 3.7 per cent, as prices of petrol, jet fuel (Aviation Turbine Fuel), naphtha and furnace oil declined by 10 per cent, 7 per cent, 23 per cent and 15 per cent respectively.
Edibles cost less
In addition to fuel items, the prices of fruits and vegetables, various pulses steel, pig iron and certain metals too declined during the week.
RBI has taken a host of measures releasing as much as Rs 3,00,000 crore to fuel growth and with the inflation coming down further, it might take more steps to boost industrial output. Apart from fruits and vegetables, prices of imported edible oil, rice bran oil and coconut oil also declined. The index for chemicals and chemical products group declined by 0.6 per cent and transport equipment and parts declined by 0.5 per cent during the week.
However, the prices of non-food articles group rose by 0.1 per cent due to higher prices of fodder, groundnut seed, gingelly seed and raw cotton.
In the manufactured products category, atta (by 2 per cent), groundnut oil and ghee (by one per cent) and cotton seed oil became dearer during the week.
The inflation data of the week does not capture the impact of four per cent excise cut across the board announced last week on December 7 as a part of the stimulus package to revive the slowing Indian economy. The inflation for the week ended October 11 stood at 11.30 per cent, up from the provisional estimates of 11.07 per cent.
Source: http://news.in.msn.com/National/article.aspx?cp-documentid=1717889
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