13 November 2008

Inflation falls to 8.98%

Inflation falls to 8.98%

India's wholesale price index rose 8.98% in the 12 months to November 1, sharply below the previous week's annual rise of 10.72 percent, government data showed on Thursday. Inflation slipped to single digit after 21 weeks. ( Watch ) The fall was mainly on account of a 3.4 per cent dip in fuel and power prices. Aviation turbine fuel prices dipped by 18 per cent, while naphtha prices fell by 33 per cent. Earlier a Reuters poll showed that the inflation rate was expected to have eased to around 10.4 per cent in early November. The median forecast of 11 economists was for a 10.37 per cent rise in the wholesale price index in the 12 months to November 1, compared with 10.72 per cent a week earlier. Inflation, which was 9.32 per cent on May 31, had surged into double digits in the first week of June after a hike in retail fuel prices.

Last week's marginal increase in the wholesale price index (WPI)-based inflation was mainly due to upward movement of prices in primary articles, which has a weightage of 22% in the index. Despite the marginal increase, however, economists expect the downward movement in inflation to continue. Their expectations are rooted in the prices of primary articles dropping after kharif produce enters the market. They also do not expect the liquidity infusion and the cut in interest rates to have any impact on inflation in short term.


Inflation falls to 8.98% for week ended November 1
13 Nov 2008, 1234 hrs IST, Economictimes.com and Agencies
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NEW DELHI: India's wholesale price index rose 8.98% in the 12 months to November 1, sharply below the previous week's annual rise of 10.72 percent,


government data showed on Thursday. Inflation slipped to single digit after 21 weeks. ( Watch ) The fall was mainly on account of a 3.4 per cent dip in fuel and power prices. Aviation turbine fuel prices dipped by 18 per cent, while naphtha prices fell by 33 per cent. Earlier a Reuters poll showed that the inflation rate was expected to have eased to around 10.4 per cent in early November. The median forecast of 11 economists was for a 10.37 per cent rise in the wholesale price index in the 12 months to November 1, compared with 10.72 per cent a week earlier. Inflation, which was 9.32 per cent on May 31, had surged into double digits in the first week of June after a hike in retail fuel prices. Last week's marginal increase in the wholesale price index (WPI)-based inflation was mainly due to upward movement of prices in primary articles, which has a weightage of 22% in the index. Despite the marginal increase, however, economists expect the downward movement in inflation to continue. Their expectations are rooted in the prices of primary articles dropping after kharif produce enters the market. They also do not expect the liquidity infusion and the cut in interest rates to have any impact on inflation in short term.
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Oil plunges to 22-month low of $55 a barrel"Inflation is expected to come down further due to the lower fuel and steel prices, largely all commodity prices were lower in that week," said Anjali Verma, economist with MF Global. Data released on Wednesday showed industrial production recovered in September from its slowest pace in a decade as consumers spent for the festival season. But analysts said the rebound would be short-lived after the global credit crisis turned on India in October, paralysing money markets and pushing up firms' borrowing costs. Industrial production rose 4.8 per cent in September from a year earlier, well above August's 1.4 per cent. In early August, the inflation rate had hit 12.91 per cent, the highest reading since annual numbers in the current data series became available in April 1995.

Inflation dips to 8.98%
Source:ET

8 stocks you must buy in small quantities today

8 stocks you must buy in small quantities today

The two most respected names of corporate India, Tata and Birla, failed to raise money from the stockmarket through their respective rights issues (a rights issue is when a listed company offers shares to existing shareholders at a price, which is usually less than the market price of the listed stock).
Eventually, underwriters had to buy the majority of shares. Hindalco Industries, an Aditya Birla Group company, saw just half its Rs 5,000-crore rights issue subscribed to. Tata Motors of Tata Group, too, had the same fate.
The reason? Market prices of these stocks fell much below their offer price in the rights issue, removing the investor incentive of buying. Tata Motors and Hindalco are not the only companies to have seen such a battering.
As we go to press, about 380 out of 600 companies with a market cap of over Rs 250 crore (Rs 2.5 billion), have lost more than 50 per cent of their value since January. The Sensex and the Nifty have also lost close to 60 per cent. It is carnage on markets. But, in the rubble, you will find some gleaming diamonds, available at a quarter of what they were worth until a few months ago.
The Indian market has become a victim of a global meltdown. What started as credit crisis in the US has spilled over to the global financial market. Bears are out in full force, with their usual weapon of panic and fear, and have virtually captured every market--from Wall Street to Dalal Street.
If all you saw over the last four years was unbridled enthusiasm, now all you can hear is negativity. The Indian market started witnessing selling pressure from January this year. As the credit crisis started deepening in the West and liquidity became scarce, foreign institutional investors (FIIs) started selling stocks in all the markets, including India.
Anticipation of heavy selling from the FIIs prompted domestic investors to get out. FIIs continue to dump Indian stocks--they have sold stocks worth Rs 52,000 crore, or $12.90 billion, in our markets since January. Apart from the FII play, expectation of slower growth of the economy and corporate earnings, due to deteriorating global outlook and high domestic interest rates, contributed to the market's downfall. Read on. . .

What next? International Monetary Fund (IMF), in its October 2008 report, World Economic Outlook, said that the world economy is entering a major downturn in the face of the most dangerous shock in mature financial markets since the 1930s. It has marked down global growth to 3 per cent for 2009, the slowest since 2002.
The Indian economy is also expected to slow down. The Reserve Bank of India (RBI), in its mid-term review of marcoeconomic and monetary developments, published a professional forecasters' survey, which suggests that the Indian economy will grow at 7.7 per cent in FY09, compared to 9 per cent in FY08. Earnings growth has also started to show a declining trend.
Earnings guidances are being revised downwards, liquidity has become scarce, markets have fallen above 60 per cent, and FIIs continue to sell. In short, the overall condition has turned against equities. So, should you be out of equities?
Outlook Money advised caution when the market was on a dizzying ride--the Sensex was up at around 21,000. Now, as the Sensex crashes to 9044.51, we are breaking out of the pessimistic babble to tell you that this is a good time to start buying stocks.
The current crisis is being termed as once-in-a-lifetime by the Western press. If the crisis is once in lifetime, so are the challenges and opportunities. And as an investor, you should grab the opportunities.
The question you may ask is whether the market will fall further? It surely can. But you need to remember that it's always difficult to catch the bottom. The market may fall further before stabilising, but start buying now. Investors entering at this stage need to hold on to their stocks for the long term.
If you are a short-term investor, stay out of the market at this stage. Buying long-term assets with short-term capital is never a good idea.
Valuations have come down significantly, even for fundamentally sound companies. We are giving you eight such options--take your pick and invest for at least three years. Invest systematically to take advantage of any further price fall.
Methodology: The companies that have been considered for selection are the ones with a market capitalisation of at least Rs 250 crore. Among them, companies with year-on-year (y-o-y) net sales and net profit growth of more than 10 per cent for the last three years and the last two quarters were retained. From this list, only companies that were able to maintain or increase their operating profit margin (OPM) and operating cash flow in the last three years were kept.
The remaining stocks were examined individually based on qualitative and quantitative measures.

Click here to check out the 8 stock picks. . .

Source:Rediff.com

Asia's top 10 shopping destinations

Asia's top 10 shopping destinations

1. Hong Kong
November 7, 2008
F rom posh malls to the biggest hawking zones, from the most expensive stuff to the cheapest, you get it all in Asia. So it's not surprising that Asia is a paradise for shoppers.
Any guesses for the No.1 shopping hotspot in Asia? It's Hong Kong! It is followed by Bangkok and Singapore in the second and third positions among the best shopping destinations.
Hong KongHong Kong is the land of some of the biggest and impressive shopping malls. From posh malls to open air markets and streets lined with hawkers, Hong Kong offers a huge variety for shoppers. Festival Walk, Harbour City, Times Square and The Landmark.
Pacific Place, The Landmark, The Galleria, Prince's Building, Alexandra House and the IFC mall are the main shopping centres. Admiralty is known for luxury goods.
And for those of you looking for some street shopping, two parallel streets called Li Yuen Street East and Li Yuen Street West have clothing, watches, jewellery, luggage, shoes at cheap rates. Hong Kong also has amazing sales during summer (July to September) and winter (late December to February).
Causeway Bay is also popular with local shoppers and tourists. Check out the other shopping hotspots that make it to the top 10 list in a survey by SmartTravelAsia.com.

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2. Bangkok, Thailand
November 7, 2008
Bangkok is the second best shopping destination in Asia. Bangkok is a shopper's haven, a place that offers great discounts.
Towering malls and bustling street markets, Bangkok has great avenues to make your shopping an unforgettable experience. From antiquities, designer jewellery, clothes, CDs, electronic goods, Bangkok has an elaborate fare to attract all types of buyers. Central World Plaza is the biggest mall in Bangkok.
Thailand Emporium is an excellent shopping centre. Siam Discovery, Gaysorn Plaza, Amarin Plaza Bangkok, MBK Shopping Centre, Siam Paragon, Pantip Plaza on Petchaburi Road are some favourites among shoppers.
Chatuchak Weekend Market is the place to go for anything related to computers. Bangkok Patpong Night Market offers a wide range of fake goods such as watches, clothes, bags etc.

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3. Singapore
November 7, 2008
It's a delight to shop in the lively city of Singapore . With designer boutiques, local and international department stores, speciality shops and bargain counters, cafes and restaurants, shopping is truly a pleasure here.
With over 250 malls, the shopping avenues in Singapore are endless. Orchard Road is a favourite among shoppers with malls selling clothes, shoes, electronics goods, furniture, rugs, cosmetics.
Kampong Glam & Arab Street, Bugis, Geylang Serai, Marina Bay, Little India, North Bridge Road, Raffles Place Riverside are must-visits. The Riverside area by River Valley Road houses the newest and oldest shops in Singapore. Raffles Place and Shenton Way are crowded shopping areas for a variety of stuff.
Also look out for unique arts, antiques, handicrafts and carpets. Singapore organizes a mid-year sale, which is the best time to go for shopping.

For more ranks, visit:http://specials.rediff.com/money/2008/nov/07sd3.htm

Source:Rediff

Mukesh Ambani pips Mittal in Forbes India Rich list

Mukesh Ambani pips Mittal in Forbes India Rich list

Reliance Industries' Mukesh Ambani has overtaken NRI steel tycoon Lakshmi Mittal as the richest Indian in the world, with a net worth of $20.8 billion, Forbes said in its annual rich list for the country. Mittal, who has moved to second position with a net worth of $20.5 billion (rpt) $20.5 billion, is followed by Mukesh's younger brother Anil Ambani, whose wealth stood at $12.5 billion. Telecom czar Sunil Mittal and realtor K P Singh are ranked fourth and fifth with net worth of $7.9 billion and $7.8 billion, respectively.

The magazine said that the combined net worth of India's 40 richest has declined by 60 per cent due to weak stock markets amid depreciating rupee against the greenback. Their total wealth is now $139 billion, down from $351 billion just a year ago, according to Forbes India Rich List. "These are painful times for India's tycoons. The country's once soaring stock market fell 48 per cent the past year, the rupee depreciated 24 per cent against the dollar, and GDP growth is expected to slow by at least a percentage point, in part owing to double-digit inflation," Forbes Asia said in a statement.

While all 40 tycoons listed last year were billionaires, only 27 have 10-figure net worths now. A net worth of 760 million dollar was needed to make to the list this year, 840 million dollar less than last year.

The Ruia brothers were ranked at sixth position with a net worth of $7.6 billion, followed by Wipro Chairman Aziz Premji, worth $7 billion. The magazine states that the combined net worth of brothers Malvinder and Shivinder Singh increased by $550 million, thereby grabbing 13th place on the list. Their combined net worth stood at $2.8 billion after they sold their stake in Ranbaxy Laboratories to Daiichi Sankyo. The list says the major loser was property tycoon Ramesh Chandra, whose net worth dropped by 91 per cent to $1 billion. Among the new entrants in the list are retailer Micky Jagtiani at 16th position with a net worth of $2 billion, followed by Divi's Laboratories' founder Murali Divi at 36th place with a net worth of $870 million. Also Akruti City's Hemant Shah stood at 37th place with a wealth of $830 million.

Source:ET