Indian Inflation Contained, Indian Hotels Net Up

123jump.com Staff
29 Jan, 2009
New York City

The latest read on monthly inflation at the end of previous week in India edged higher, however inflation remains subdued. India is likely to announce third stimulus package. Stocks in Mumbai trading fell after rising 6% for the week. Indian Hotels profit surged 38% and BHEL rose ahead of earnings.

[R]10:00AM New York, 7:30 PM Mumbai - India likely to announce third stimulus package soon. The latest monthly read on inflation edged higher but remain subdued.[/R]

Stocks in Mumbai fell in choppy trading after rising nearly 6% for the week.

In Mumbai, the BSE 30-share Sensex index fell 0.2% or 21.19 to 9,236.28, and the CNX Nifty declined 0.9% or 25.55 to 2,823.95.

Of the stocks traded on the BSE, 1,166 rose, 1,271 declined, and 60 were unchanged.

Trading Statistics

Daily turnover on the BSE increased to 3,814 crore rupees from 3,606.74 crore rupees yesterday.

Government Likely to Announce Third Stimulus Package

Economic Times of India reported today that the minister of state for industry Ashwani Kumar said that the government is likely to announce a third stimulus package very soon.

Kumar said the recently announced monetary and fiscal policy could impact the economy in the next six months.

“There will be sector-specific packages announced very soon to boost consumption. There will be some packages for the infrastructure sector as well as for exporters,” commented Kumar.

Fiscal Growth Rate Estimate Lowered

India’s acting finance minister Pranab Mukherjee reported yesterday that the economic policy of the government will be in line with the guide lines laid out by Reserve Bank of India. He also said that the economy will still grow but at a slower pace of 7%.

The central bank, during the monetary policy presentation, slashed its growth estimate from as high as 8.9% to 7%.

The acting finance minister Mukherjee said, “Even at this stage, the projection of the growth, though it will not be 8.9-8.8 percent, but it would be around 7 percent.”

Annualized Inflation Rises 5.64%

India’s annualized wholesale price index advanced 5.64% in the twelve months at the end of the week on January 17, 2008. The previous read for the inflation was 5.6%.

Gainers & Losers

Reliance Industries, with nearly 30% stake in the benchmark index Sensex, fell 0.4% to 1,268.05 rupees

ONGC fell 0.5% to 639.15 rupees after third quarter profit slipped 43.3% to 2,474.81 crore rupees from a year earlier.

BPCL gained 1.3% after its net profit rose 175% in the third quarter ending December.

BHEL fell 3.1% ahead of its third quarter results today.

Tata Motors rose 2.6% on news that the British government guaranteed £2.3 billion of loans to help the troubled auto firms in the UK.

Maruti Suzuki India gained 4.7%.

HDFC Bank edged up 1% to 921.70 rupees, but State Bank of India declined 1.2% despite third quarter profit net profit rising 37% to 2,478.42 crore rupees.

ICICI Bank rose 0.01% to 408.40 rupees.

Satyam Computer Services plunged 10.1% notwithstanding the reports that the company is finalizing a new chief executive.

Indian Hotels rose 0.4% after its net profit rose 38% in the December 2008 from the third quarter a year ago.