Ratings agency S&P has warned that the chances of India’s sovereign credit being downgraded to junk is more than one in three, as the economy battles with unsustainable current account and fiscal deficits.
But foreign institutional investors (FIIs) see reasons for cheer as growing inflows send Indian equity markets soaring. On Monday, India’s benchmark Nifty index surged 31 points to 6,229.45, its highest since November 2010. The Sensex too gained 163 points to 20,443.62, its highest since January 2011. Both indices have gained in every session in the past week. What’s going on? And will this rally last? Continue reading »
The wholesale price index (WPI) – India’s main measure of prices – was just 6.62 per cent year-on-year in January, slowing from the December rate of 7.18 per cent from and 7.23 per cent in January 2012. Continue reading »
The central bank said in its mid-quarter policy review that it was leaving the policy repo rate unchanged at 8.0 per cent. Nor was there any change to the 4.25 per cent cash reserve ratio for banks. Continue reading »
There are fewer sights that central bankers like more than inflation coming down, but that might not be enough for the Reserve Bank of India to cut rates.
While India’s WPI inflation figure eased beyond most economists’ expectations (of 7.6 per cent) to 7.2 per cent for November, down from October’s 7.5 per cent, analysts are sticking to the prediction for a hold in rates next week. Continue reading »
Indian industry continued to disappoint in June, according to data released on Thursday by the ministry of statistics. It doesn’t augur well for the GDP growth print for the quarter ended in June. But those hoping for an interest rate cut will likely need to wait a while longer.
Indian industrial activity contracted 1.8 per cent in June, down from 2.4 per cent growth in May and well below the 1 per cent growth consensus. While there was a base effect (activity grew by 9.5 per cent last June), economists said the data boded ill for the beleaguered Indian economy. For the quarter ended in June, activity contracted 0.1 per cent compared to 6.9 per cent growth during the same period last year. Continue reading »
The Reserve Bank of India kept benchmark interest rates on hold on Tuesday, in a widely expected bid to contain persistently high inflation, while leaving the growth revival agenda in the hands of the government.
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