Posts Tagged ‘indices’

ECONOMIC INDICATORS… “Leading the World” Part 1

Hello Friends here we come up with our another write up on “SMC Gyan Series”.

 

Topic is ECONOMIC INDICATORS… “Leading the World”.

Here, we would go through the Brief of like what are Economic Events & Indicators and important sources of data provider for calculating & determining economic indicators.

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ECONOMIC INDICATORS… “Leading the World”

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Economic Events & Indicators are statistics that precede an economic event.

 

The goal is to track the economy & derive a forecast for future performance.

 

Economic indicators have tremendous potential to generate volume and to move prices of commodities futures as well as the financial markets including Forex.


Tools of Construction: This would include separate sections of statistical methods including

– Calculating indices and re-basing them,

– Differences between arithmetic and geometric averages,

– Standard deviations,

– Regression analysis,

– Correlation and causation,

– Margins of error in statistics calculations and

– What this means for interpretation, subsequent revisions and why they happen.

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Economic indicators include various indices, earnings reports, and economic summaries.

 

Examples : unemployment rate,  housing starts,  Consumer Price Index (a measure for inflation),  Consumer Leverage Ratio,  industrial production,  bankruptcies,  Gross Domestic Product,  broadband internet penetration,  retail sales,  stock market prices,  money supply changes etc;

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The important sources of data provider for calculating & determining economic indicators are like:

– Bureau of Labor Statistics,

– Census of Construction Industries,

– Bureau of Economic Analysis &

– Reserve Bank.

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The value of the indicator data is considered important if it presents new information, or is instrumental to drawing conclusions which couldn’t be drawn under other reports or data.

 

Each indicator is marked with “H”-“M”-“L” (High-Medium-Low), according to its level of importance, as commonly considered.

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Next Blog we would try to know about the classified categories of Economic indicators in details and what is Time Era.

Stay Tuned for more and more on this 🙂

 

However For More latest Industry,Stock Market and Economy News Updates, Click Here

Foreign Investors Poured $9 Billion in Indian Stock Market :)

Foreign_Investment


Foreign investors have poured Rs 43,837 crore (USD 9.05 billion) into the country’s stock markets so far this year, reflecting confidence of foreign funds in the Indian equity markets.

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At the close on Wednesday, overseas investors were gross buyer of shares worth 4,17,121 crore and gross sellers of stocks valued at Rs 3,73,283 crore, resulting in a net flow of Rs 43,837 crore into the stock markets so far this year.

This latest data has been announced by the market regulator Securities and Exchange Board of India (SEBI).

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Significantly, the Bombay Stock Exchange benchmark Sensex has gained nearly 73 per cent so far this year.

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The National Stock Exchange barometer Nifty – composed of 50 shares — has also advanced fairly and for the first time in more than a year it touched 5,000 level on Thursday.

(Read more about that on previous blog).

Global fund houses have made a total net investment of Rs 3,564 crore so far in September, according to the SEBI data.

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After pulling out a huge sum of Rs 52,986 crore (USD 11.9 billion) from the local stock markets, foreign investors are now moving their money towards emerging economies like India.

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However in debt market segment, overseas investors have not turned net investor so far this year.

FIIs were net sellers of debt instruments worth Rs 527 crore (USD 49 million) in 2009 so far according to the latest data received from the market regulatory body,SEBI.

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Nifty Hit the Level of 5,000 :)

nifty-climb-5000k

Nifty hit the significant level of 5,000, first time since May 23, 2008, taking 326 trading sessions while, the standard index prepared early gains to close flat after hitting 5,003 at its day’s high.

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However, nifty closed slightly higher at 4,965, up 7 points whereas another standard Sensex also ended flat at 16,711, up 34 points, off its day’s high of 16,820 while both the indices were lower by over 4.4% decline in heavyweight RIL.

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Moreover, RIL stated that it has raised around Rs 3,188 crore through sale of 1.50 crore equity shares of the company and selling pressure in RIL weighed down on the oil & gas index, down 2.8%.

Additionally, the BSE realty index slid 0.9%, Unitech lost 3% and Phoenix Mills declined 2.4% while IT and auto stocks increased.

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Similarly, the BSE IT index gained 1.9%, Patni Computer and HCL Tech rose over 6% while the auto index on the BSE was also up 1.5% and Amtek Auto increased 14.6%.

On the other hand, in the Sensex pack, ACC emerged as the biggest gainer while the stock advanced 3.6% to Rs 827 however, Hindalco, JP Associates, Bharti Airtel and Maruti Suzuki gained over 3% each.

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Further, RIL was declared the top loser in the group followed by Tata Steel and ITC.

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A correction is expected and likely to take place in markets at current levels. But it is unlikely to be a sharp one.

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European and Asian stock markets extended the week’s rally on Thursday, hitting new highs for the year, as investors became increasingly confident that the U.S. economy , the world’s largest , is growing again.

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Note : For More latest Industry,Stock Market and Economy News Updates, Click Here

2004-05 to be new base yr for WPI: FM

2004-05 to be new base yr for WPI: FM

Finance minister Pranab Mukherjee has said the wholesale price index (WPI) series, which is used to calculate inflation in the country, will have 2004-05 as the base year.

“The WPI series is being upgraded with base year 2004-05 in lieu of the existing one with base year 1993-94,”

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With the advancement of the base year and probably a revision of commodities in the index and their weights, it is expected that the index would provide a better picture of the current scenario of prices.

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The WPI will now become more representative of today’s reality. It will come along with the revision in commodities and weights.

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Though the wholesale price index will become a better measure, but there are doubts like if the government would include services in the index and people will have to continue depending on other indices like the consumer price index.

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“The wholesale price index price data collection completely excludes the services sector,” Mukherjee said, replying to whether the current system of collecting data for monitoring prices is faulty.

The finance minister said information on weekly prices of manufactured products is highly meager.

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Finance minister also added that the data collection for calculating the consumer price index (urban) has already started.

It may be recalled that the National Statistical Commission, 2001, had recommended that the Central Statistical Organisation compile a single national consumer price index by computing the CPI (Urban) and CPI (Rural) separately and then combining them together into an all-India index.

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