Projected growth 8.5 pc in FY09: ASSOCHAM
Kavit Sharma 04 Apr 2008 | : Business News - India
Some positives at last
The Indian investor has reason to cheer-the economy is expected to grow by 8.5 percent in 2008-09 and recent fiscal steps will help check price rise, ASSOCHAM said on Friday.
Inflation raced to its highest in more than three years to 7.0 percent in the 12 months to March 22, pulling down the stock market and sending bond yields higher.
“Government has taken sufficient corrective measures to contain inflation….the measures would yield results and bring down prices of essential commodities to manageable limits in next few days,” the Associated Chambers of Commerce and Industry (ASSOCHAM) said in a statement.
ASSOCHAM said the growth in gross domestic product for the current fiscal would exceed 8.5 per cent, compared with an estimated 8.7 percent in the previous fiscal year.
Inflation touches 7%, markets lose 2%
Kavit Sharma 04 Apr 2008 | : Business News - India
After data revealed that India’s annual inflation rose to a three year high at 7 per cent, two whole percentage points higher than the RBI’s comfort level, stocks tumbled further. At around noon today, the Sensex was down 373 points or 2.36 per cent at 15,459.12, the low point of the day. The Nifty was down 96 points or 2.02 per cent at 4675.30, near the low of 4668.90.
This fall could be attributed to doubts in the investor’s mind about what new steps would be taken to curb inflation. While fiscal measures have already been taken, there is fear that monetary steps, in the form of hiking the CRR hike could be taken as soon as today, which is making investors even more jittery. Capital goods, technology, auto and banking shares were worst affected.
BHEL, HDFC , Mahindra & Mahindra , Larsen & Toubro and ITC were the biggest Sensex losers.
Ranbaxy Laboratories, Tata Steel and Hindustan Unilever were the only index gainers.
Again, Commerce Minister Kamal Nath maintained that the rise was primarily on account of supply side constraints.
Steel prices slashed to ‘arrest’ inflation
Kavit Sharma 04 Apr 2008 | : Business News - India
THE country’s top steel producers, including Tata Steel, SAIL and Jindal Steel, on Thursday decided to roll back the prices of long steel products, including construction-grade TMT bars by Rs 2,000 per tonne. The price cuts would be implemented immediately.
The reduction in prices of steel products is part of the measures introduced by the Finance and Steel ministry to lower inflation rates and provide relief to the common man directly using these products.
Accordingly, the steel companies have also agreed reduce the price of galvanised corrugated (GC) sheets use as roofing material for low-cost housing.
