Market May Open Flat To Slightly Lower

Firm Asian stocks and U.S. index futures are higher cap down on domestic exchanges. Futures S & P CNX Nifty on the Singapore Stock Exchange showed a decrease of 12 points at the opening bell. Asian stocks rose, Friday, September 9, 2011, as the Chinese consumer price index and the production showed cooling inflation in August 2011, but the results were slightly higher than expected. U.S. index futures rose Friday, September 9, 2011, after US President Barack Obama has proposed lower taxes to hit a U.S. economy he describes as a national crisis. United States is the largest economy in the world.

Extension of foreign funds to buy this month in world stocks and gains a good monsoon rains have helped Indian shares extend the recent strong growth Thursday, September 8, 2011. BSE Sensex jumped 100.54 points, or 0.59% to 17,165.54 at its highest closing since Aug. 5, 2011.

Foreign institutional investors (IIE) bought shares worth Rs 14.14 crore Thursday, September 8, 2011, according to preliminary data scholarships. FII inflows amounted to Rs 1999.71 crore in the first days of this month until September 8, 2011, according to data from stock exchanges.

The market is organized by a strong rebound after a major setback in August 2011. Sensex climbed to 1,316.71 points, or 8.3% in seven trading days during the five weeks of close up 17,165.54 on Thursday, 8 In September 2011, the closing low of 15,848.83 18-1/2-month August 26 2011.

Data for September 2011 in payment of the second quarter of advance tax by September 15, 2011 may provide clues to the Q2 September 2011 results.

Top mobile carrier Bharti Airtel India has reportedly secured the license for 2G and 3G services in Rwanda. The company reported $ 100 million investment over three years.

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 rainfall in general 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. Acreage of rice from September 2, 2011 increased 12% last year to 35.75 million hectares.

A good monsoon season can generally raise farm incomes in rural areas and has an influence on the overall economy through higher spending on consumer goods and reduced prices of food. But food prices are not necessarily decrease if delayed, and too much rain in some areas affecting crop yields.

Annual inflation in food articles group decreased to 9.55% in the week ending August 27, 2011, from 10.05% the previous week, the latest data showed. It was 14.76% during the same period last year. But inflation in primary articles group rose to 13.34% in the week, from 12.93% in the week ending August 20, 2011. It was 15.24% in the period of the previous year. Inflation in the Fuel & Power group was 12.55% in the week ended 27th unchanged from the previous week in August, the latest data show. It was 12.61% in the corresponding week last year.

Reserve Bank of India (RBI) said that the change in the anti-inflation monetary policy is motivated by evidence of a sustainable reduction in inflation. About September 12, 2011, industrial production in July 2011 and September 14, 2011, consumer price inflation in August 2011 to give clues on the likely central bank along the lines of his mid-quarter monetary policy review September 16, 2011. Reserve Bank of India increased its key rate 11 times over the past 18 months to tame high inflation.

Montek Singh Ahluwalia, vice president of the Planning Commission, Thursday, September 8, 2011, said he agrees with the opinion of the Minister of Finance on a break from the tight monetary policy in India.

Moody’s Investors Services confirmed its rating of Baa3 foreign currency debt rating of India and the Ba1 local currency debt annual credit analysis published this week. Votes for the company given the positive outlook for bonds denominated in Indian rupees, saying it is considering a rating of Baa3 uniform for all bonds if India is to improve the fiscal position and its commitment to strengthen the market inside. Currency debt outlook 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.

Services sector in India grew at its slowest pace in over two years in August 2011, nipped in the expansion of the weakness in new business areas, such as a faltering global economy and tight monetary conditions taken into consideration, a survey showed Monday, September 5, 2011. HSBC Markit activity index, based on a survey of 400 companies fell to 53.8 in August against 58.2 in July, the largest decline in the index of a month since January 2009. It was also the lowest growth since June 2009, but the index was above the 50 threshold separating growth from contraction for 28 consecutive months NRI Demat account.

The new business sub-index fell to its lowest level in three months in August to 54.9 from 59.3 in July, which dampens global economic conditions hit orders. The prospects for new business have also been revised down in August. The study also showed a decline in employment in the service sector for the second consecutive month, new business growth has slowed, while input costs and prices of production continued until March before.

Indian manufacturing activity slowed in August 2011 to 29-month low as the export has had players in the middle of a lingering uncertainty about the global economic situation, research has shown this past week. The seasonally adjusted Purchasing Managers ‘Index’, HSBC, prepared by Markit, fell to 52.6 in August to 53.6 in July. The pace of new order flows in the month of August has slowed to the slowest in 29 months, export orders fell by the strongest rate since the series began, HSBC said PAN Card for PIO.

Arrears production fell for the first time since March 2010 working pressures subsided. In addition, inflationary pressures have increased both the input and output prices rose.

Exports grew by 81.79% to $ 29.3 billion while imports grew 51.5% to $ 40.4 billion in July 2011 over July 2010, leaving a trade deficit of $ 11 billion, the data showed last week.

Asian stocks rose slightly Friday as the Chinese consumer price data allayed fears of inflationary pressures in the economy No. 2 in the world, but the mood was cautious after the Western central banks failed to offer plans fresh stimulus. The key benchmark indices in Hong Kong, China, Taiwan, Japan and Indonesia increased from 0.09% to 1.07%. The key benchmark indices in South Korea and Singapore were down 0.18% to 0.36% NRI online trading account.

U.S. index futures rose Friday, September 9, 2011, after US President Barack Obama has proposed lower taxes to hit a U.S. economy he describes as a national crisis. The U.S. index futures suggest the Dow could get 49 points at the opening bell.

U.S. stocks abruptly closed on Thursday after the Federal Reserve, Ben Bernanke gave no indication of stimulus measures to boost the faltering economy, a highly anticipated speech. An increase in jobless claims reported earlier in the day highlighted the weakness of the U.S. economy. Moreover, the government said the U.S. trade deficit fell significantly in July, a positive sign for economic growth in the third quarter after a sluggish first half.

Federal Reserve Chairman Ben Bernanke on Thursday said the U.S. central bank to increase its maximum weak growth, but to the dismay of investors with little money to dive on a large scale economic assistance. Bernanke said consumer prices this year are likely to be temporary.

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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