Market May Open More

The market may open more than followed by Asian. Futures S & P CNX Nifty on the Singapore stock market indicates a gain of 26 points at the opening bell. 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 NRI Pan Card.

Data showing dismal July 2011 industrial production growth, a rebound in global stocks due to concerns about the Greek government default on its debt, and reports that the largest banks by Moody’s Investors Service may downgrade of France about their exposure to Greece, from the Indian lower index for the second consecutive day, Monday, September 12, 2011. BSE Sensex lost 365.23 points or 2.17% to 16,501.74, its lowest closing level since Aug. 29, 2011. The five weeks to close high 17,165.54 Thursday, September 8, 2011, the Sensex fell 663.80 points or 3.86% in the last two days of bargaining sessions.

Foreign institutional investors (IIE) has sold shares worth Rs 934.74 crore Monday, September 12, 2011, according to preliminary data scholarships. FIIs offloaded shares worth Rs 1362.41 crore a net in two days of bargaining sessions, 9 and 12 September 2011, according to data from stock exchanges. Before the sale of two days, FIIs had bought shares for a net amount of Rs 2986.81 crore in the past seven trading days from 29 August 2011-8 September 2011, according to data from stock exchanges NRI demat account.

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.

Although the total rainfall plays an important role in determining agricultural production, the timing and distribution of rainfall is also important to ensure a good harvest. The unusual pattern of rainfall this year could delay the harvest, which affects the yield of summer crops important as rice, oilseeds, sugarcane and cotton. Rice area from 2 September 2011 was 12% from 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 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.

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. Data must be Wednesday, September 14, 2011. Eleven of the twelve economists polled by Capital Markets expected 25 basis points (bps) increase in the repo rate, the interest of key policy in the short term, the Reserve Bank of India in its review of the medium-term policy the September 16, 2011.

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.

The report was optimistic about India’s ability to overcome an economic crisis. While not immune to a slowdown in international growth, the strength of domestic demand and economic diversity provides protection against a downturn in the exposed sectors worldwide, the report said. India noted that the foreign exchange reserves equivalent to four times its external debt.

A debt-GDP ratio of 71% is worrisome because the interest on this debt eats 25% of revenues from India every year. However, Moody’s expects continued growth incremental GDP and fiscal consolidation efforts will continue to reduce the public debt / GDP, the report said.


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