RIL Easier To Deny Rumors Of Discussions With Valero Energy Acquisition

Market may extend losses on Monday on weakness in Asia. Trading S & P CNX Nifty on the Singapore Stock Exchange indicating a decrease of 9 points in the opening of the futures market. Shares of auto and cement sectors cover both the presentation begins the volume of sales data for October 2011 from today, November 1, 2011.

Asian stocks traded mostly lower Tuesday to start the new month on a relatively pessimistic note, with raw materials companies and steelmakers posting significant losses.

Two closely watched measures of manufacturing operations in China released Tuesday showed a growth industry in October, albeit slowly. Index of China’s official purchasing managers ‘production’ (PMI) fell to 50.4 in October, slowing from the previous month reading of 51.2, but still above the 50 level that separates contraction of the expansion. However, the result was well below market expectations. Privately translated version of SMEs published by HSBC, 51 prints, rising slightly to reduce the reading of 49.9 in September. Both PMI surveys showed the height of fall in input prices, inflation in China to ease concerns.

Fresh concerns about the debt crisis of Europe has emerged as Greece Monday the Prime Minister said that the referendum would be held to the most recent support projects for the country.

Group of 20 leaders will meet Nov. 3 to 4 in Cannes, France, one week after authorities in the euro zone has promised to expand the capacity of their rescue fund to € 1 billion ($ 1.4 trillion), and look beyond their borders to help the fight against the tumult of the debt that the greatest threat to world economic growth. Europe is able to overcome its difficulties, said Chinese President Hu Jintao at a conference in Vienna yesterday.

Global stocks rose last month after the European Agreement on Greece has strengthened the confidence of the sovereign debt crisis in the region would be contained, U.S. economic growth has accelerated and China suggested to ease monetary policy .

Closer to home, the RBI has announced a 25 basis point rate policy is the key. the interest rate to 8.5% after mid-year monetary policy review October 25, 2011. The central bank has cut its GDP growth forecast for the fiscal year through March 2012 to 7.6% vs. 8% previously. However, it maintained its forecast for March to the end of inflation of 7%. RBI said that the inflation forecast trajectory indicates that inflation will start to decline in December 2011 (January 2012 version), then continue on a stable path of 7% in March 2012. It is expected to fall further in the first half of 2012-13. This reflects a combination of movements in prices of raw materials and the cumulative impact of monetary tightening. Furthermore, the rate of inflation is likely to moderate the impact of positive expectations.

RBI said that economic growth is slowing due to the cumulative effects of past monetary policy actions and other factors. The central bank said that the probability of a share of the rate in mid-December quarter review is relatively low. Apart from this, that if the path of inflation consistent with the projected rate increases not justified even the central bank said in a statement. But as always, actions depend on the evolution of the macroeconomic environment, he added.

Although the monetary impact of past actions is still developing, there are still the anti-inflationary, said RBI. Stance of monetary policy is to maintain the level of interest rates to curb inflation and anchor inflation expectations. Stance of monetary policy is also intended to promote investment in activities to support the increasing growth trend. Stance of monetary policy is also designed to manage liquidity, so that it stays within a reasonable deficit, consistent with the efficient transmission of monetary policy.

RBI said that several factors – structural imbalances in agriculture, infrastructure bottlenecks and distorted in administered prices in several key commodities and the pace of fiscal consolidation – have combined to keep inflation in the medium-term risks in the economy high. These risks can be mitigated through concerted policy actions on several fronts, RBI said. In the absence of progress on these in the medium term, the monetary policy of the RBI should consider the risk of rising inflation, even in response to a resumption of moderate growth.

Food inflation accelerated to a maximum of six months, driven by rising prices of vegetables and highlight the limits of the reserve currency intervention in India increased interest rates for the 13th time in 19 the recent months. Data published by the Government last week showed that food inflation rose to 11.43% year to year the week to October 15, compared with 10.6% the previous week, boosted by a jump 25% vegetables, while food prices rose 0.25%.


Comments are closed.