Wednesday, March 13, 2013

Economic Update _14th March 2013



Positive

§ Post Budget reactive  fall of INR/USD  is  settling down  gradually  .  
 
§ Better than expected IIP (Index of Industrial production) data of Jan 13 .  ( Jan IIP growth  2.4% )  ,(Dec 12  -0.73%)
 
§ Expected  Forex inflow for share sale of  few Government  Company { NALCO  & SAIL} ( size USD 1 Billion )
§ Hope for 25bps Repo rate cut by RBI on coming 19th March  to boost growth
 
§ Recovery of Equity Market with Fresh inflow of FII Money .  
 
§ Eight Months Lowest  Trade deficit  in Feb ( USD 14.9 Billion ) as against Jan ( USD 20 Billion )
 
§ US Central Bank  decision  to continue financial support  to boost its Economy
 
§ Improved  Economic indicator from USA  giving hope for faster Global recovery
 
§ Falling  Global Crude price .  Brent crude at  USD110/ bbl against  USD117/bbl on 1st Feb

Negative   

§ Rising consumer Price Inflation ( CPI ) may force RBI to delay rate cut .( Feb CPI inflation : 10.91% )
 
§ Continuing pressure to EURO due to political instability in Italy & Rating down grade by FITCH  to “BBB-” 

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