The market may extend last steep slide, weak Asian stocks

BSE Sensex lost 6.3% over the last six sessions to solve 16,461.71 is Thursday, November 17th, 2011, its lowest close since October 7, 2011 from a peak recently 17,569.53 November 8, 2011, a weak Q2 results moistened with emotion. Sensex lost 314.16 points or 1.87% on Thursday, November 17, 2011.

Foreign institutional investors (IIE) sold shares worth Rs 195.20 crore Thursday, November 17, 2011, according to preliminary data scholarships. Their output amounted to Rs 1093.86 crore in the business of the session three days 17 to November 15 th 2011

Corporate profits have been low. Total net income for 3675 companies fell 35.9% to RS 67,507 crore on 20.6% sales growth in RS 1135022 crore in the September 2011 second quarter over the second quarter, in September 2010. Q2 winning season came on Tuesday, November 15, 2011.

Oil exploration companies, JI and PSU stocks of aircraft will be in action when oil prices fell on Thursday, with U.S. crude falls nearly 4% as investors saw profits after a strong rebound in the latter. U.S. Light, sweet crude for December delivery, which expires on Friday, November 18, 2011, totaled $ 98.82, $ 3.77 by, or 3.67% of the highest one-day percentage loss for the front month crude the New York Mercantile Exchange since September 28, 2011.

At the same time a new group meeting of ministers (EGoM) in November to check prices of diesel and cooking, has been reportedly postponed. The meeting was to take place before the winter diet, which begins November 22, 2011. The government controls the prices of diesel, kerosene and cooking fuel to keep the lid on inflation.

The government raised the ceiling on foreign investment in government and corporate bonds with $ 5 billion each. The movement aims to raise capital inflows abroad, who have remained weak so far this year, and is likely to support the Indian currency has shed nearly 13% against the dollar during the current fiscal year with first began in April. Thomas Mathew, Joint Secretary of the capital, told reporters Thursday, November 17, 2011 that the additional limit of $ 5 billion may be invested in securities regardless of maturity.

In what appears to be a setback to economic reforms, the government proposed the introduction or consideration and approval of key laws such as land acquisition Bill, the draft Tax Code, Banking and insurance bills during the session Parliament’s winter. The winter session is scheduled for November 22, 2011. The bank bill was referred to the Standing Committee in March, when the insurance bill was sent to the commission in 2009. Provide details of the activities of the proposed meeting, Minister of Parliament Affairs, Mr Pavan Kumar Bansal Wednesday, November 16, 2011, said the Rural Development Standing Committee needs more time on the proposed acquisition of land.

Bansal announced a list of 31 bills for consideration and adoption during the winter session. The government also intends to introduce 23 new bills during the 21 meetings of the session. The Ministry of Finance will also seek parliamentary approval for additional spending.

The Union Board is Wednesday, November 16, 2011, removed from the pension bill, but decided not to limit foreign direct investment in the sector, maintaining the flexibility to impose or to change the border of the executive committee of a decision . The government appoints the Pension Fund Regulatory and Development Authority Bill 2011 in the winter diet.

Price Index rose 10.63% food and the rate of fuel prices increased 15.49% in the year to November 5, 2011, as published by the government Thursday, November 17, 2011, showed. In the previous week, food and fuel inflation stood at 11.81% and 14.50% respectively. The price index of primary articles rose by 10.39% compared with an annual increase of 11.43% a week earlier.

The Reserve Bank of India (RBI) announced its first redemption of government bonds in open market operations of the program this year, in an attempt to ease liquidity problems in the banking system. The plan to buy up to Rs 10,000 crore of government bonds November 24, 2011 is that banks have lent Rs 80,000 crore from Rs 3.1 lakh crore and the day of last week, highlighting the lack of liquidity in the banking system. The Reserve Bank of India said it will buy bonds through an auction of several levels of security using multiple price method. It will announce details of its obligations will buy at auction soon, he said.

RBI announced an increase of 25 basis points at its policy rate 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. In addition, moderate inflation can positively influence expectations.

Emerging markets like India should take measures to promote long-term foreign direct investment to blunt the volatility of exchange rates, and all major controls must be selective and temporary, a senior official of the Asian Development Bank , said Monday the 14th November 2011. While capital flows and exchange rates should be volatile in the short term among the current concerns of debt in the euro area, India is focusing on improving the investment climate by providing better infrastructure for establish a policy of making consistent and financial market development, Director General Rajat M. Nag said on the sidelines of India Economic Summit.

Asian stocks fell for a fourth day Friday, November 18, 2011, driven by fresh worries about the plight of Europe’s future debt obligations after award of a Spanish concern. Key benchmark indices in China, Hong Kong, Japan, Indonesia, South Korea, Taiwan and Singapore were down 0.86% to 1.73%.

Losses came after the auction Thursday, November 17th, 2011, has seen average yields are 10 years of Spanish bonds, the euro has reached a great age for the weekend before the election is, sending European and U.S. stocks sharply lower .

Meanwhile, the new Italian government announced sweeping reforms in response to a European debt crisis on Thursday, pushed borrowing costs in France and Spain much higher. Italy new technocratic prime minister, Mario Monti, announced sweeping reforms to dig the country out of crisis and said that the Italians had to face a serious emergency.

Investors dumped U.S. stocks Thursday, frightened by the sudden drop in the market through a key technical level caused by more concerns about debt problems in Europe. New claims for U.S. unemployment benefits reached a seven-month high last week and weak permitted for housing future rebounded strongly in October, the latest data suggest that the economy was gaining momentum.



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