Archive for February 1st, 2010

Weekly Update of The Market (1st – 5th February) Part 1

Hello Friends, here, we bring you the weekly overview of the Indian as well as of the Global economy and along with the latest global business and industry updates.

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Weekly Update of The Market (1st - 5th February) Part 1

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A bout of volatility was witnessed in the domestic market throughout the week due to

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1.  F&O expiry,

2.  unfavorable global cues because of gloomy earnings forecast,

3.  anxiety about China‘s monetary tightening,

4.  the deteriorating finances of countries ranging from Greece to Japan and

5.  India’s central bank‘s decision to raise the CRR to 5.75.

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🙂

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But on later days of the week, US Federal Reserve’s decision to keep interest rates unchanged boosted sentiments of global markets.

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Closer home, investors also heaved a sigh of relief as the central bank kept key interest rates unchanged at the quarterly policy review indicating that it would maintain a balance between price stability and growth and raised its GDP growth projection for the current fiscal to 7.5 %.

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The RBI at its quarterly monetary policy review raised CRR by 75 basis points to suck out excess liquidity from the banking system to the tune of Rs 36000 crore.

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On the flip side, the challenges that RBI foresees for the economy is fiscal consolidation.

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The central bank lifted its wholesale price index inflation forecast for the end of the fiscal year in March 2010 to 8.5% from its earlier forecast of 6.5%.

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RBI also said it expected inflation to moderate starting in July 2010, assuming a normal monsoon and global oil prices holding at current levels.

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Moreover, US Federal Reserve too maintained interest rates at near zero levels and vowed to do so for an extended period of time.

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Additionally, it also signaled its intention of unwinding the massive monetary stimulus that it had undertaken during the peak of the crisis.

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🙂

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Stay Tuned for More on weekly updates.

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

Rajasthan Exempts VAT on Sugar

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

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Rajasthan exempts VAT on sugar

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Rajasthan exempts VAT on Sugar:

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Now sugar would be cheaper by Rs 2 in Rajasthan.

Rajasthan government has decided to exempt VAT on imported sugar in the state till June 30.

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This will help in reining the spiralling sugar prices in a week’s time.

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“The state imposes 4% VAT on sugar. With this exemption, the prices will go down by Rs 160 per quintal,’ says a government official.

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According to Indian Sugar Mills Association, the world sugar economy is facing significant gap between world consumption and production for the second consecutive year.

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The first revision of the world sugar balance for October 2009 to September 2010 puts world production at 159.887 million tonnes, raw value, up by 6.911 million tonnes or 4.5% from the last season.

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The global use of sugar is expected to reach 167.134 mn tonnes.

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Therefore, the world statistical deficit is expected to reach 7.247 million tonnes as against 8.404 million tonnes projected in September 2009.

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Sugar Trade Association of Rajasthan secretary Ballabh Kabra said that this decision can make way for sugar mills to buy imported sugar. “This is the first step to cool down the prices.

We are waiting for government’s nod for importing sugar on our own.

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Sugar prices in Rajasthan are hovering around Rs 41- 43 a kg.

Apart from 4% VAT, sugar attracts mandi tax of 1.6% and an entry tax of 0.25% in Rajasthan,” he said.

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In Other major Commodities Update, we have news about the easing of food prices in coming days as signaled by the Food and Agriculture Minister Sharad Pawar.

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Food prices to ease next fiscal: Pawar

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Food prices are expected to decline in the next fiscal on the back of higher farm output and the only worry then for the government would be on storage, Food and Agriculture Minister Sharad Pawar has said.

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He, however, said that the country would remain import dependent when it came to pulses and edible oils for the next 10 years.

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On the possibility of prices coming down in the next financial year beginning April one, Pawar told in an interview to a news channel: “100 per cent”.

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In 2011-12 the problem which the government of India will have to worry about (is) what to do and where to store”.

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Food inflation touched 17.40 per cent for the week ended January 16 on account of high prices of vegetables and pulses.

On controlling prices of pulses, the minister said.

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🙂

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