India Inflation Index Falls, Food Prices Surge

123jump.com Staff
09 Apr, 2009
New York City

Despite a plunge of 73% in foreign direct investment in February, India still managed to receive $25.4 billion in investment in the first eleven months of the current fiscal year. Inflation in the last week in March fell to 0.26% but food prices surge. Essar Oil surges on Kenyan refinery investment.

[R]10:00AM New York, 7:30 PM Mumbai - India’s FDI drops to $1.5 billion in February. India’s wholesale price inflation eases 0.26%.[/R]

Indian stocks rose marginally in volatile trading after the country’s wholesale prices index fell to a record low.

Investor sentiment was also boosted as foreign funds management companies increased buying. Foreign funds purchased shares worth 573.33 crore rupees yesterday.

In Mumbai, the BSE 30-share Sensex index gained 0.6% or 61.52 to 10,803.86, and the CNX Nifty was unchanged at 3,342.05.

Of the BSE stocks, 1,790 rose, 807 declined, and 52 remained unchanged.

Trading Statistics

Daily turnover on the BSE increased to 5,915 crore rupees from 5,437.91 crore rupees yesterday.

FDI in India Falls 73% in February

Economic Times of India reported today that foreign direct investment in India declined 73% to $1.5 billion in February from $5.7 billion in the same period a year ago.

The report says despite the 73% year-on-year decline in inflows, FDI for the 11-month period for the fiscal 2009 rose to $25.4 billion from $24.6 billion in the previous fiscal.

India''s cumulative FDI inflows from April 2000 to February 2009 are an estimated to be $88 billion.

India Annual Inflation Falls to 0.26%

India’s inflation fell by 0.05 percentage points to 0.26% for the week ended March 28 from 0.31% the previous week.

Salt, sugar, milk, cereals, pulses, manufactured food products, spices and fruits sold at higher rates in the review period.

Salt rose 10.7%, milk 6.2%, cereals 9.6%, pulses 8.5% and fruits 8%.

India’s Industrial Production Falls 1.2% in Feb

India’s industrial production dropped 1.2% in February after rising 0.4% in January.

January’s production index estimate was revised upwards to 0.4% from the previous forecast of a 0.5% decline.

Gainers & Losers

Reliance Industries gained 0.5% to 1,733.05 rupees.

Essar Oil rose 2.3% on news the company will buy a 50% stake in a Kenyan refinery.

Financial stocks increased. ICICI Bank soared 5.6% to 397.70 rupees, HDFC Bank edged up 0.02% to 1,046.05 rupees and State Bank of India increased 1.5% to 1,140.40 rupees, and HDFC fell 0.4%.

Larsen & Toubro advanced 2.8% after the company received orders of 605 crore rupees from water and steel sectors.

IT stocks declined on a strong rupee. Wipro fell 2.8%, TCS declined 0.3% and HCL Technologies plunged 1.7%.

Infosys Technologies gained 0.3%.