Economy+Policy Archives - Page 8 of 8

The inflation-IIP double whammy

July 15, 2008August 20, 2014Editor

The week has begun on a somber note. The political developments in Delhi, with the Left exiting the UPA and the Samajwadi party making an entry, will mean some changes ahead, some of them could affect business. Then, on Friday, inflation inched ever so closer to 12%. This was not as much a surprise but a confirmation that high levels of inflation won’t go away in a hurry. Indeed, if RBI’s level of 5.5% is taken as a benchmark, we have a long way to go before we can relax.

India’s monsoon forecast upgraded: good for farm and economy

June 30, 2008August 20, 2014Editor

The Indian weather bureau has updated its initial forecast for the Southwest Monsoon. In April 2008, the bureau had predicted that rainfall would be 99% of its long term average, plus or minus 5%. The long term average refers to a rainfall of 89 cms. The updated forecasts suggests rainfall to be near normal, and will be 100% if its long term average, plus or minus 4%.

Ouch! India’s Inflation index at 11.42%

June 27, 2008August 20, 2014Editor

India’s wholesale price index (WPI), the widely watched inflation number, moved up a notch to 11.42%. This is a provisional number and it would be safe to assume that the actual figure would be closer to 12% (WPI for week ended April 19 was revised to 8.23% from 7.57%).

Funds become costlier, demand will get hit

June 25, 2008August 20, 2014Editor

Indian companies would have expected some action from the RBI to hike lending rates, but the pace of change must have left them worried. The RBI has hiked the repo rate –the rate at which RBI lends in the interbank market- by 50 basis points to 8.5% and has hiked the cash reserve ratio –the portion of deposits kept in reserve by banks- also by 50 basis points.

India’s inflation: reining in the government

June 22, 2008August 20, 2014Editor

Already, inflation is resulting in the government taking steps that don’t seem logical. The Finance Minister has for long been cheering the growth story and cautioning the central bank taking any monetary steps, which might hit growth. And, he has helpfully been ‘requesting’ public sector banks not to increase interest rates, for good measure. Though the RBI is an autonomous body, the pressure on it to ignore the warning signals of rising inflation was evident.

India’s Budget pleases janata but investors can’t see the light still

March 4, 2008August 20, 2014Editor

India’s Union Budget 2008-09 has been greeted by three successive days of stock market declines, including the day it was announced. Some of the negative sentiment is more global in nature. But the Budget proposals do not seem to have gladdened investors. It tries to give a boost to demand by giving more cash for people to spend, taking a leaf from George Bush’s largesse, including farmers whose debt has been waived.

Here’s a look at what the Budget has really done.

What is the problem with the Indian corporate debt market?

January 3, 2008August 20, 2014Editor

Sebi too has pitched in to try and revive the corporate debt market. The lack of a vibrant secondary debt market has been one of the biggest cribs of the financial services industry. The primary market is not rocking, either. So, everyone from the finance ministry, the stock exchanges, RBI and Sebi have been putting on their thinking caps, trying to change things, over many years.

Short-term profits not for insiders, Sebi proposes US-style legislation

January 2, 2008August 20, 2014Editor

Sebi plans to introduce short-swing insider trading regulations in India too. The draft note put up on its website traces its origins to US securities’ law. The proposal seeks to define insiders for the purpose of this regulation.

Lower US interest rates = Good times for India?

September 24, 2007August 20, 2014Editor

The week that went by saw the Fed cut rates by 50 basis points, more than what anyone anticipated. That sparked off rejoicing in global and Indian equity markets, and the local benchmark, the BSE Sensex crossed the 16,000-mark.