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Exports grow by 10.8% in October, lowest in two years

From a peak of 82% in July, export growth has slipped to 44.25% in August, 36.36% in September and 10.8% in October, mainly due to the declining demand in the US and Europe

New Delhi: India’s exports grew by just 10.8% to $19.8 billion in October, the lowest in the last two years, mainly due to the declining demand in the US and Europe, reports PTI.

The growth rate has been the lowest since October 2009, when it contracted by 6.6%.

Imports grew at a faster rate of 21.7% to $39.5 billion leaving a trade deficit of $19.6 billion, the highest ever in any month in the last four years, which is also due to expensive crude oils and vegetable oils, according to the commerce ministry data released on Thursday.

From a peak of 82% in July, export growth has slipped to 44.25% in August, 36.36% in September and 10.8% in October.

In October, oil imports grew by 20.73% to $10 billion whereas non-oil imports rose by 22% to $29.4 billion over the year-ago period.

But, for the cumulative April-October period, exports aggregated $179.7 billion showing a handsome growth of 45.9%, thanks to sterling trend witnessed in the previous months of the current fiscal.

A steady rise of 30.9% in imports for the seven-month period to $273.4 billion has left trade gap widening to $93.7 billion.

Commerce secretary Rahul Khullar has expressed concerns over the increasing balance of trade and said that at this rate, it may breach $150 billion mark during 2011-12.

During April-October, oil imports stood at $81.9 billion, an increase of 40%. Non-oil imports rose by 27.1% to $191.5 billion.

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FIIs pull out Rs3,200 crore from Indian securities market in Nov

Market analysts believe the heavy selling by foreign institutional investors (FIIs) was triggered by the debt crisis in the Eurozone. Weakening of the rupee also contributed to the sell-off

Mumbai: Foreign funds withdrew over Rs3,200 crore from the Indian securities market in the month of November amid concerns over the worsening debt crisis in the Eurozone, reports PTI.

According to the data available with market regulator Securities and Exchange Board of India (SEBI), overseas investors purchased stocks and debt securities worth Rs62,296.10 crore and sold securities valued at Rs65,559.20 crore during the month. This translated into a net outflow of Rs3,263.20 crore.

Market analysts believe the heavy selling by foreign institutional investors (FIIs) was triggered by the debt crisis in the Eurozone. Weakening of the rupee also contributed to the sell-off.

“Eurozone worries have pushed the Indian market into risk aversion mode and other emerging countries are performing better than India, so FIIs are staying from our market,” Destimoney Securities managing director and CEO Sudip Bandyopadhyay said.

He further said, “We witnessed a similar situation in August and September, now we are seeing a repeat of those conditions.”

In November, FIIs withdrew Rs4,198 crore from the equity market and pumped Rs935 crore into the debt market.

With this, total FII withdrawals from the equity market in 2011 so far amount to Rs2,812.10 crore, while their investment in debt has reached Rs14,112.30 crore.

Overall, FIIs have pumped Rs17,480.50 crore into the stock and bond market so far this year, compared to about Rs1,79,674 crore in the whole of 2010.

Mirroring the volatility in the global economy, FIIs were not very consistent while investing in Indian securities. Last month, they invested a hefty sum of Rs3,079 crore, while they withdrew Rs ,866 crore in September.

In August, foreign funds pulled out nearly Rs8,000 crore, or $1.8 billion, from the Indian stock and debt markets—their highest monthly withdrawal since October 2008.

The continuous withdrawal of funds by foreign investors is one of the major factors for the sustained decline of the stock market in recent weeks. The BSE benchmark Sensex plunged by 1,581.55 points, or 9%, last month to close at 16,123.46 on Wednesday.

The number of FIIs registered with SEBI stood at 1,743 as of November this year, while the number of sub-FIIs was 6,187.

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