Archive for December 5th, 2009

ECONOMIC INDICATORS… “Leading the World” Final Part

Hello Friends here we come up with an extension of our previous blog,

ECONOMIC INDICATORS… “Leading the World” Part 2.

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Economic Indicators - Leading the World Final Part

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In previous Blog, we had touched upon the classified categories of Economic indicators in details and about Time Era.

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Now in this final part we would know what major economic indicators are!!

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Major Economic Indicators :

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· Gross Domestic Product (GDP):


Indicates the pace at which a country’s economy is growing or shrinking.

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· Industrial Production:


Measures the change in the production of the nation’s factories, mines and utilities, industrial production also measures the country’s industrial capacity utilization.

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·Purchasing Managers Index (PMI):


This index includes data on new orders, production, supplier delivery times, backlogs, inventories, prices, employment, export and import orders.

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·Producer Price Index (PPI):


Measures average changes in selling prices received by domestic producers in the manufacturing, mining, agriculture, and electric utility industries.

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The PPIs most often used for economic analysis are those for finished goods, intermediate goods, and crude goods.

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Consumer Price Index (CPI):


Measures the average price level paid by urban consumers (80% of the population in major currency countries) for a fixed basket of goods and services.

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Durable Goods:


Measures new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods.

This figure is a useful measure of certain kinds of customer demand.

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Employment Cost Index (ECI):


ECI counts the number of paid employees working part-time or full-time in the nation’s business and government establishments.

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Retail Sales:


It is the indicator of broad consumer spending patterns and is adjusted for normal seasonal variation, holidays, and trading-day differences.

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Housing Starts:


Measures the number of residential units on which construction is begun each month.

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Thus to conclude,

Economic indicators is a tool for an investor..

for knowing the economic world & simultaneously smartly making money out of the sensitive movements of the financial & commodities market.

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please click here

Company Insiders Sold Shares Worth Rs.15K Crores

Company Insiders Sold Shares Worth Rs.15 K Crores

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Company insiders, including top management and promoters, have sold shares in their firms worth about Rs.14,950 crore in the past three months.

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This was most perhaps done to cash in on the steep rise in prices during the recent rally and signaling that the market may be fully valued.

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“Insiders are cashing out some part of their shares.

That shows the market is no longer undervalued,” says Jagannadham Thunuguntla, head of research at SMC Capital Ltd.

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Since the Bombay Stock Exchange’s benchmark hit a low of 8,160 points on 9 March earlier this year,

the 30-stock Sensex, India’s most widely tracked index, has risen 103.81%

as foreign investors injected $15.42 billion (Rs 72,165 crore) into the markets, enticed by the prospect of economic growth.

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While major Western economies are barely emerging from a deep recession,

India’s economic output is expected to expand at least 6%, according to estimates by the Reserve Bank of India (RBI), making it the second fastest growing major economy.

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Insider sales include those by promoters, top management such as chief executive officers and chief financial officers, as well as sales of treasury stock.

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While insider trades are reported to the stock exchanges, only the number of shares is disclosed.

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Often, such sales take place over a period of time.

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SMC Capital has played a role in the compilation of the data.

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Insider transactions also include share purchases.

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On an overall basis, company insiders bought shares worth around Rs 5,194 crore during the same period, or around one-third of the Rs 14,950 crore of shares sold.

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A large part of these have happened in the last six months because people are still sceptical about the sustainability of the recovery.

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“No one has any conviction on how long this bull market will last,” said SMC’s Thunuguntla.

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Indeed, with the pace of economic recovery in the West still under question, a potential debt default by Dubai government-promoted entities rocked global markets last week,

sending the Sensex down 3.3% in just two days of trading.

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SEA Demands More Curbs on Oilseed Futures

Hello Friends here we come up with the Latest Agri Commodities updates from various parts of the country.

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SEA demands more curbs on oilseed futures


SEA demands more curbs on oilseed futures:


The Solvent Extractors’ Association (SEA) has asked the government to raise margins and impose more curbs to prevent the misuse of futures trading in oilseed contracts.

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In a pre-budget memorandum to the finance ministry and the consumer affairs secretary (who regulates futures trade),

SEA asked, “the margin money required for oilseeds futures be enhanced to a level that will discourage pure speculative activity.”

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To curb this, oil seeds contracts should be restricted to one month, against six-monthly contracts currently, he said.

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“Existing futures contracts for the next six months should be squared off on the date of settlement of next month contract,” Sethia added.

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SEA has also said a percentage of the total traded volume by any trader be compulsorily settled by delivery so that it corresponds to prices in the physical market.

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These elements were using futures trade to build big positions and manipulate prices even at the time of harvesting, the official said.

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In Other major Commodities Update, there is news of 75 per cent of the local crushing capacity being remain unutilised even after two months of the beginning of the season.

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Three-fourth veg oil crushing capacity unutilized

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At a time when vegetable oil companies are worried over the growing dependence on imports due to stagnant domestic output,

about 75 per cent of the local crushing capacity remains unutilised even after two months of the beginning of the season.

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Generally, the Indian vegetable oil industry consisting of oil mills, solvent extraction units, vegetable oil refineries and vanaspati units commence the season during early to mid October.

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During this time, harvesting of soybean and arrivals in the mandi increase.

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Small to medium farmers commonly sell their produce to local traders (arhatiyas) who bring the seeds to mandis.

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But, big farmers are holding back their produce in anticipation of higher prices.

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Therefore, mandi arrivals in totality have declined by over 25 per cent so far this season from the normal 2.5-3 million bags during previous seasons.

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Also, crushers are not willing to take up their business due to price disparity.

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please click here