I/II. http://epaperbeta.timesofindia.com/Article.aspx?eid=31818&articlexml=Market-Squall-Refuses-to-Blow-Away-Battered-Sensex-13052015001029
May 13 2015 : The Economic Times (Mumbai) Market Squall Refuses to Blow Away, Battered Sensex Loses 630 Mumbai: Our Bureau ***Indian stocks tumbled on Tuesday as the government's inability to get moving on its reforms agenda brought back unwelcome memories of the policy paralysis that was the bane of the previous government.*** [Emphasis added.] This came amid a global slump as Greek assurances on debt repayment didn't seem to inspire much confidence -equities across the world took a hit while bonds plunged in most markets. ***The BSE Sensex fell 2.29% to close at 26,877 points on Tuesday*** [emphasis added], as the solace provided by Finance Minister Arun Jaitley on minimum alternate tax (MAT) late last week seemed to wear off.The index, which had risen 908 points in the previous two trading sessions, succumbed to profit-booking on Tuesday . The Nifty fell 2.38% to end at 8,126 points, below its key 200-day moving average (DMA).The drop erased two-thirds of the gains made on Friday and Monday . The rupee weakened again, ending at 64.20 against the dollar on concerns over foreign investors pulling out of India. Shares fell across the board with crucial legislation getting delayed due to opposition in Parliament. The government has failed to avoid bills related to the proposed goods and services tax (GST) and changes in the land acquisition law being referred to House committees for review. "The referral of land acquisition and GST bills to committees made markets suffer," said Ajay Bodke, head, investment strategy and advisory, Prabhudas Lilladher. "Investment community sentiments are adversely impacted due to delays in crucial economic reforms solely led by the Opposition's obstruction in Parliament." Market participants remained cautious ahead of vital economic numbers, which were released after the close. Consumer price inflation (CPI) eased to a fourmonth low of 4.87% in April, while indus trial output growth slowed to 2.1% in March. Investors also fretted about Greece's precarious financial condition, which weighed on global financial markets, despite the country preparing to pay 750 million euros to the International Monetary Fund (IMF). "Bond yields have hardened across the global markets. Concerns regarding payment by Greece, worries over the effectiveness of European quantitative easing and the possibility of the US Fed hiking interest rates earlier than expected hurt sentiments," said Sanjay Kumar, head of investments at PNB MetLife Insurance. The land acquisition Bill has been referred to a joint committee of Parliament, while the GST bill has been referred to a select committee of the Rajya Sabha. Analysts said the government has been forced to make the compromises, delaying reforms. "If the GST bill is not passed in the Rajya Sabha and gets delayed, the markets will obviously be disappointed," said Sanjay Dongre, fund manager at UTI Asset Company. "GST (when implemented) will add almost 1-2% to India's GDP." Foreign institutional investors (FIIs) seemed to be unmoved by the government saying that the MAT levy would be reviewed by a committee and tax officials being instructed to avoid the overzealous pursuit of demands on this count. Overseas investors have been switching to greener pastures with India losing sheen. "FIIs, which were long on India and short on China and South Korea, are seen reversing their market trade, while making adjustments to the portfolio," said Nilesh Shah, managing director and CEO at Kotak AMC. Click To Enlarge Click To Enlarge II. http://indianexpress.com/article/business/business-others/iip-at-5-month-low-on-manufacturing-woes-retail-inflation-eases-to-4-87/ IIP at 5-month low on manufacturing woes, retail inflation eases to 4.87% While RBI Governor Raghuram Rajan did not criticise the move, RBI Deputy Governor SS Mundra had expressed concern. By: ENS Economic Bureau | New Delhi | Published on:May 13, 2015 2:17 am In what could give the Reserve Bank of India (RBI) greater room to slash key interest rates, retail inflation softened further to a four-month low of 4.87 per cent in April compared to 5.25 per cent in March. On the other hand, factory output growth slowed to a five-month low of 2.1 per cent in March as against 5 per cent registered in February. ***The index of industrial production (IIP) data, which gauges the economic activities of the country, released on Tuesday showed that the lower growth was mainly due to falling consumption demand and moderation in electricity generation. The data showed that the manufacturing sector grew 2.2 per cent in March compared to 5.2 per cent in the previous month and -1.3 per cent in March 2014. Electricity generation grew 2 per cent during the month as against 5.9 per cent registered in February 2015 and 5.4 per cent, respectively during March 2014.*** [Emphasis added.] With regards to the consumer price index (CPI), prices of food items, vegetables and fruits moderated. The price rise in fruits and vegetables stood at 5.08 per cent (compared to 7.41 per cent in March 2015) and 6.63 per cent (compared to 11.26 per cent in March 2015), respectively. Similarly, the rate of price rise in cereals and products was 2.15 per cent compared to 2.32 per cent in March, while inflation in milk and its products was at 8.21 per cent compared to 8.35 per cent in the previous month. Concerned over the tepid growth, industry urged the RBI to slash interest rates while it seeking government's intervention in removing infrastructure bottlenecks. "While it is reassuring to see the positive growth in manufacturing for 2014-15 but the growth remains tepid. Critical constraints for the sector like high interest rates, infrastructure bottlenecks, low domestic and export demand are an area of concerns for the sector and may continue to impact the growth of the sector in coming months," Jyotsna Suri, president, Ficci, said. -- Peace Is Doable -- You received this message because you are subscribed to the Google Groups "Green Youth Movement" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. 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