Food inflation dips to 16.91%

NEW DELHI: Snapping the five week rising trend, food inflation softened to 16.91 per cent for the week ended January 1, 2011, although vegetables, onions and protein-based items continued to remained costly.

Food inflation fell by 1.41 percentage points from 18.32 per cent recorded in the previous reporting week.

Even as the index of food inflation showed a meagre decline, vegetable prices soared by 70.73 per cent on an annual basis in the wholesale market, official data showed.

Also onions continued to pinch the pocket of the common man as the prices went up by 70.70 per cent on a year on year basis.

Among the individual items in the food inflation index, egg, meat and fish became costly by 16.70 per cent, milk by 13.20 per cent and fruits by 17.71 per cent annually.

However, prices of pulses declined by 14.84 per cent, wheat by 4.87 per cent, potatoes by 1.67 per cent and cereals by 0.12 per cent on an annual basis.

Meanwhile, in the non-food category, the prices of fibres and minerals have climbed up by 36.71 per cent and 16.70 per cent, respectively.

Food inflation has remained high for the entire month of December. The rising food prices will get reflected in the monthly inflation data for December, scheduled to be announced tomorrow.

The headline inflation in November had come down to 7.48 per cent from 8.58 per cent a month ago.

Read more: Food inflation dips to 16.91% - The Times of India http://timesofindia.indiatimes.com/business/india-business/Food-inflation-dips-to-1691/articleshow/7275116.cms#ixzz1AucHCe5f

Sensex slips by over over 300 points

MUMBAI: The markets on Thursday witnessed selling pressure across the board. Below expectation result of Infosys dampened the sentiments. Banks, technology and pharmaceutical stocks further dragged the markets in the negative zone.

At 3.30 pm, Bombay Stock Exchange benchmark Sensex was down 338.75 points at 19195.35 and National Stock Exchange index Nifty was down 105.65 points at 5757.60.

The markets continued to be in the negative zone. At 2.10 pm, Sensex was down 310 points to be at 19223.31. Nifty also slipped 107.50 points to be at 5755.75.

All sectoral indices were in red. SBI, ICICI Bank, HDFC Bank, PNB and Axis Bank plunged 3-3.5%.

At 11.55 pm, the Sensex was in the negative zone. It was down 36.45 points down at 19497.65. Nifty was also in the red. It was down 12.50 points at 5850.75.

In the opening session, Sensex slipped by nearly 117 points, as IT stocks suffered setback after the industry bellwether Infosys Technologies posted third quarter earnings lower than the market expectations.

The 30-share barometer, which had gained 337.76 points in the previous session, declined by 116.95 points at 19,417.15 points.

Similarly, Nifty declined by 32.15 points to 5,831.10 level.

Brokers said market turned bearish after Infosys Technologies declared lower-than-expected third quarter earnings, triggering massive selling of IT companies shares.

However, they said, firming trend in global markets restricted losses on the domestic bourses here.

Infosys Technologies on Thursday reported 14.17 per cent growth in its consolidated net profit at Rs 1,780 crore for the third quarter ended December 31, 2010.

The company share was trading at Rs 3257.65, which was down by over three per cent since its closing price Wednesday.

Meanwhile, in other markets in Asia, Japan's Nikkei was 0.56 per cent up while Hong Kong's Hang Seng index rose by 0.71 per cent in the morning trade today.

In the US, Dow Jones Industrial Average ended 0.72 per cent higher in Wednesday's trade.

Read more: Sensex slips by over over 300 points - The Times of India http://timesofindia.indiatimes.com/business/india-business/Sensex-slips-by-over-over-300-points/articleshow/7274285.cms#ixzz1Aubwzu5y