In this blog we will not just discuss money but we will keep it sprinkled with the spices of variety and all that is important to know. So Money and things are your way.
The weekend kept Shashi Tharror in the news this time for commenting on the Nehruvian Foreign Policy. But in a democratic country we must look beyond these incidents not as a controversy but as an Individuals point of view. Well Freedom of Speech is the basic right in the idea of Democracy.
Last week indices all over the world ended on a positive note. Indian benchmark index, the BSE Sensex closed with the gains of 0.4%. It remained amongst the lowest gainers the reason was the uncertainty surrounding the interest rates and the Indian government’s anticipated policy actions to curb the menace of inflation. The bells ringing at nine did not turn out to be so merry for the Indian stock markets. For the year the midcaps are expected to keep up the stakes rolling. Looking at the Global Markets Brazil and Japan was amongst the highest gainers this was led by positive US retail sales data. The Crude and the cold performed better than the stock markets this week giving a return of 4.3 and 4.2 respectively.
With the pressure mounting on the centre to curb inflation the data stills boggles the general public’s common sense that even when the sugar prices rose to a record breaking 42.5/Kg in wholesale market the onus of inflation now has shifted from agriculture to commodities like metals, etc. The latest news of increasing demand of metals from the core sector was welcome news but the weakening loan demands from the banks are worrisome. It’s probably the time to withdraw some of the measures to tighten the rein on money supply as the loan demand is being met by the Commercial paper, it will simultaneously help in managing inflation.
The last week China pipped Germany to become the world’s largest exporter. One reason for the same was its ability to prevent any gains in the local currency and its economic stimulus package. Though its exports fell by 17% in 2009 it managed to be higher than Germany. The Indian economy surviving the growth story got the news industry rolling by the Finance Minister Declaring that Budget will be presented on 26thFebruary.
There was something more that the week had with the Vice President touring Africa, India Ranking second in Neilsen’s Consumer Confidence Index and SEBI ordering Operational Audit of the credit rating agencies. I think if we go like this we will require an operational audit of the bodies doing the audits. We are just creating a never ending loop. SEBI also approved the equity investors to lend and borrow shares for 12 months now (one month limit till now). The new norms will also allow a lender or a borrower to close his position before the agreed-upon expiry date. The direct tax collections increased by 24.48% in December owing to increase in corporate tax receipts.
The new restrictions on the imports of machinery for power from China gave a all needed fuel to BHEL and L&T, but then these two facing the resource and manpower constrains the power sector might once again miss the targets set.
While the Auto expo in the NCR concluding where the ‘small is beautiful’ became the mantra. The auto companies entered the bandwagon of Nano as if it was not enough there is Hero Honda with Hero cycles planning a low cost motorcycle. Chinese automakers took a good benefit of the same by looking forward to joint venture to set up a manufacturing base and after sales service operations. As the history has shown though all I would say is that when there is too much of something it’s time to exit the same but we dot learn from our mistakes and history is bound to repeat itself.
The week has a lot in store with rupee expected to remain strong and markets are expected to remain on the low with expected hike in CRR.
In this blog we the members of FORE Economy Forum will be keeping you updated with the news going around and giving a view of how we look at the same. So keep coming to the blog hope it adds value to all of us. Do comment we strive to improve and give you the best. So keep coming to the link and help us spread the knowledge. I would now end with a quote:
“Finance is the art of passing currency from hand to hand until it finally disappears.” Robert W. Sarnoff
E&OE
i think shashi sir sud exercise some restraint while commenting on the policies of its own govt. No doubt freedom of speech is a right in a democracy but such comments are not expected from a member of the ruling party. This not only spoils the image of the party but also undermines the credibility of the govt.
ReplyDeleteIf he is not in sync with the views of its own party then he should resign from his post and then express all his views instead of undermining the credibility of his post and the party..