Market May Edge Higher In Asian Equities Business, Inflation Data In August In The Eyes Of

The market may be set in three days loss of 4% on firm Asian markets. Futures trading S & P CNX Nifty on the Stock Exchange of Singapore, said a gain of 85 points in the opening of the market. Inflation based on wholesale prices is estimated at 9.6% in August 2011, more than a reading of 9.22% in July 2011, according to the median estimate of 13 economists surveyed by the capital market. The data is due today, September 14, 2011. Eleven of the twelve economists polled by Capital Markets expected 25 basis points (bps) increase in the repo rate, the key policy interest in the short term, the Reserve Bank of India in its review of the medium-term policy , Friday, September 16, 2011.

Investors will be eager to see the data for the second quarter of companies in September 2011 anticipated payments due by Thursday, September 15, 2011, which can give signals of Q2 September 2011 results.

India Investor Survey prepared by JP Morgan Asset Management, note values ​​refer to expect the Sensex to trade between 20,000 and 22,000 this year. According to the report, the investment climate in interest concerns such as depression, often increases in interest rates and fluctuations in domestic investment. In spite of witnessing a decline of 4.2 points in the last quarter, “Small investor confidence index,” ranks highest 137.5 points. Funds activity of small investors has improved by 11% over the previous quarter, the study said. The study was conducted from July 22 to August 4, 2011  NRI Pan Card.

The study also shows that investors are becoming more cautious about capital preservation is seen as an investment strategy popular among private investors (40%. But 40% of investors, compared to 57% in March 2011, should be transformed something aggressive in their investment strategy for the next six months.

Euro area debt worries dragged the market lower third straight day Tuesday, 13 In September 2011, BSE Sensex and the barometer index and 50 units, S & P CNX Nifty for a minimum of two weeks of closing. Sensex shed 34.30 points, or 0.21% 16,467.44 to solve its lowest closing level since Aug. 29, 2011.

Foreign institutional investors (FIIs) sold shares worth Rs 468.41 crore and domestic institutional investors bought shares worth Rs 121.19 crore on Tuesday 13 September in 2011, according to provisional data. IFI unloaded shares worth Rs 1830.82 crore net in three sessions from 9 to 13 days in September 2011, as exchanges of information. Before the two days of sales, FIIs had bought shares worth a net Rs 2986.81 crore during the seven sessions from 29 August 2011-8 September 2011, as the exchange of information.

Finance Minister, Pranab Mukherjee, Tuesday, September 13, 2011, these same central banks of emerging economies have been forced to raise interest rates repeatedly that his combat high inflation, exposing them to the volatility of capital. An immediate concern for emerging economies is to manage capital flows, he said. Big business and the volatility of emerging markets may be destabilizing, because they generate high volatility in the exchange rate and in some cases, it is to maintain a high level of foreign exchange reserves as insurance against sudden flight large international capital.

Secretary for Economic Affairs R. Gopalan Tuesday, September 13, 2011, said that the government will review the loan ceiling of foreign companies at the end of September 2011. The government currently allows foreign loans of up to $ 30 billion. However, the border should be reached quickly that companies are reluctant to the high cost of domestic borrowing costs. United States and other European countries have interest rates close to zero in an attempt to support weak economic growth.

Since the first IFI lackluster response to the government, and a strong upper limit of FII investment in corporate bonds issued by long-term infrastructure company in March 2011, the Board of Directors on Monday, September 12 In 2011, still a standard FII relaxed investment in such bonds. The Ministry of Finance said in a statement that FIIs can now invest in long-term infrastructure bonds, issue, limit the maximum of $ 5,000 million, which has an initial term of five years or more, and the remaining time duration of a year for the first time to buy IFI. These investments are subject to a lock-in period of one year. IFI can sell their bonds with each other but can not sell to domestic investors during the lock-in period of one year.

IFI can now invest in, subject to no more than $ 17 billion long-term infrastructure bonds, which have an initial term of five years or more with this and the remaining maturity is three years for the first time to buy IFI. These investments are subject to a lock-in period of three years. The three-year lock-in during the IFI can sell to each other, but can not sell to domestic investors. Securities & Exchange Board of India (SEBI) is expected to include announcements of these changes in the system no later than October 15, 2011.

Sebi had in early August 2011 has allowed qualified foreign investors (QFIs) approve the plan debt funds that invest in the sector subject to a ceiling of total global infrastructure of $ 3 billion in total budget $ 25 billion.

Planning Commission Deputy Chairman Montek Singh Ahluwalia, Monday, September 12, 2011, said at a conference that private funding must be half of the infrastructure investment target of $ 1000 billion in five years in 2012 2017. Indian Prime Minister Manmohan Singh told the conference that to overcome the crisis of the Infrastructure Fund, the government proposed to establish a funding of $ 11 billion to help finance infrastructure projects. We have also established a High Level Committee to propose the necessary measures to finance our ambitious program of infrastructure development, Singh said.

Industrial production rose 3.3% in July 2011 in a dismal from a year earlier, hurt by a sharp drop in capital goods output, government data showed Monday, September 12, 2011. Reading is significantly lower than the growth of industrial production by 8.8% in June 2011. Capital goods production in July fell 15.2% from the previous year, compared with an increase of 38% in June Industrial production, which has a weight of 75.5% in the index, rose 2.3% year on year in July, compared with an increase of 10% in June Mining output rose 2.8%, compared to a revised decrease of 1.1% in June

Prolonged rainfall in the latter part of the season helped ease concerns that the monsoon this year could fall below the average long term after a brief lull in July, when the country usually receives one third its monsoon rains. The monsoon of 3% on average in the September 7, 2011, the latest data from India Meteorological Department (IMD). Most of the country received an average of above average rainfall this year, but the season was marked by two moments of calm and periods of heavy rain in western and eastern regions.

While overall precipitation plays a key role in determining agricultural production, the timing and distribution of rainfall are also important to ensure a good harvest. The unusual shape of rainfall this year could delay the harvest, which affects the yields of major crops grown in the summer as rice, oilseeds, sugarcane and cotton. Rice acreage of September 2, 2011 increased 12% last year to 35.75 million hectares.

A good monsoon season in general, can improve farm incomes in rural areas and have an impact on the global economy through increased spending on consumer goods and lower prices for foodstuffs. But food prices are not necessarily fall if the rains and the long delay in some areas affecting crops.

Annual food inflation Articles group declined by 9.55% in the week ended August 27, 2011 from 10.05% the previous week, the latest data showed. It ‘was 14.76% in the corresponding period last year. However, inflation in primary articles group rose from 13.34% a week during the period from 12.93% in the week ended August 20, 2011. It ‘was 15.24% in the period a year earlier. Food inflation and Power Group was 12.55% in the week ended Aug. 27, the same as the previous week, the latest data showed. It ‘was 12.61% in week last year.

Reserve Bank of India (RBI) said that a change in anti-inflationary monetary policy will be motivated by evidence of a sustained decline in inflation. Reserve Bank of India raised its key rate 11 times over the last 18 months to keep inflation high.

Moody’s Investors Service confirmed the Baa3 rating for the debt of India’s foreign currency government and its debt rating to Ba1 local currency annual credit analysis published last week. The company marks a positive attitude of bonds denominated in India rupees, and said it will consider a Baa3 stop shop for all obligations that India improves its financial position and its commitment to strengthen the domestic market. The outlook for foreign currency debt is stable.

Report optimistic about India’s ability to overcome the global economic crisis. Although not immune to the slowdown in international, domestic demand and prepare for the diversity of economic slowdown in the world are exposed to the fields, the report said. He noted that India’s foreign currency reserves than four times the foreign debt.

Debt ratio of 71% is worrisome, because the interest on this debt eats 25% of annual sales in India. However, Moody’s expects continued growth and gradual fiscal consolidation reduces the debt / GDP of the government, the report said.

Merchandise exports from India grew by 44.2% in August 2011 from a year earlier, totaling $ 24.3 billion, net slowdown in the pace of the previous month, according to Commerce Secretary Rahul Khullar last week. Imports in the month just completed increased by 41.8% the previous year to $ 38.4 billion, which widened the trade deficit to 14.1 billion against $ 11.1 billion in July .

The outlook for people looking for work more gloomy in most major economies, as they are three months ago, due to weak U.S. and European economies are starting to affect the confidence of employers in other parts of the world , according to a quarterly survey by recruitment group Manpower. The company’s global services staff said the fourth quarter hiring outlook is less than 21 39 countries and regions, including the United States. The outlook is stronger than 13 families, and unchanged in comparison with the other five in the third quarter.

Manpower global study which surveyed over 65,000 employers, found evidence of slow growth in the U.S. was affecting job creation elsewhere. Employment prospects in India have fallen sharply since the third quarter, partly because its IT industry relies on U.S. sales. Employers in China is also expecting weaker recruitment in the next three months. Europe is saving programs are hurting the demand for goods produced in emerging markets, Manpower said

Most Asian stocks rose on Wednesday, 14 In September 2011, where the technology and energy companies are among the best results, although gains were more modest for the development of the debt to the saga. The benchmark indices in Indonesia, China, Hong Kong and Singapore rose by between 0.18% and 0.59%. The benchmark indices in Japan, Korea and Taiwan decreased by 0.2% and 2.2%.

Investors appeared to be much hope for progress during a conference call scheduled between French President Nicolas Sarkozy, German Chancellor Angela Merkel and Prime Minister of Greece, George Papandreou, later in the world today.

The euro zone economy and Financial (ECOFIN) held an informal meeting in Poland Friday, September 16, 2011. The Treasury secretary, Timothy Geithner, is to attend the meeting, reports suggest. Economy and Finance is one of the oldest formations of the Council of the European Union and is composed of the Ministers of Economy and Finance of the 27 Member States of the European Union as well as ministers from the budget when budget issues are discussed.

U.S. stocks gained on Tuesday as investors bought shares in recent weeks shot and the challenge of European leaders to take action soon to ease the debt crisis in Greece.

The Federal Open Market Committee (FOMC) is scheduled for a two-day policy review of U.S. interest rates 20:21 September 2011.


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