New Delhi: Exerting that food prices are still at high levels, the prime minister's economic panel today said that the Reserve Bank of India's (RBI) decision to tighten monetary policy further will depend on inflation (behaviour) in the month of December, reports PTI.
“Reserve Bank of India will decide (on monetary action) depending on behaviour of inflation in the month of December,” PM Economic Advisory Council chairman C Rangarajan told reporters here.
He further said that he expected wholesale price inflation to fall between 5.5%-6% by March 2011 from 8.62% in September this year.
Mr Rangarajan also said that there could be decline in food prices in the coming month.
In a bid to tame inflation, the RBI had earlier this month increased its short-term lending (repo) and borrowing (reverse repo) rates by 25 basis points to 6.25% and 5.25%, respectively. This was the sixth time in this fiscal that the apex bank had raised key lending and borrowing rates to cool inflationary pressures in the economy.
Don’t depend only on your bank if you want to shop for any financial product. Do your homework...
The Indian market is likely to witness a flat-to-positive opening on unsupportive global cues. Wall Street closed lower overnight as investors contemplated over the Irish bailout package, worried that concerns still exist. The Eurozone imbroglio also resulted in the Asian pack trading mostly lower in early trade today. The SGX Nifty was down 9.50 points at 5,839 against its previous close of 5,848.50.
The government is set to announce the second quarter gross domestic product (GDP) numbers, which might give some direction to the market later in the day.
On Monday, the market opened in the green despite gloomy global cues, then picked up momentum as most Asian markets recouped early losses on news that Ireland bagged an 85 billion euro aid package. Demand from all sectors, except realty, led the gains in morning trade. In the post-noon session, the indices recovered the losses suffered on Friday and touched the day's high. Range-bound trade followed as the indices inched higher and even the BSE Realty index bounced back in the late session. Finally, the Sensex settled 268.49 points (1.40%) higher at 19,405.10. The Nifty ended the session at 5,830, up 78.05 points (1.36%) from its previous close.
The US markets closed weak on Monday as lingering concerns over the lingering debt crisis in Europe weighed on investors’ minds. Besides, the European Commission said it expects weak global markets and government efforts to cut deficits to bring a “gradual and rather uneven” recovery across the region’s 27 member states. On the positive side, US retail sales during Thanksgiving weekend totalled about $45 billion, the National Retail Federation said, quoting a survey conducted by BIGresearch.
The Dow declined 39.51 points (0.36%) to 11,052.49. The S&P 500 shed 1.64 points (0.14%) to 1,187.76. The Nasdaq fell 9.34 points (0.37%) to 2,525.22.
Following the trend across Europe and the US overnight, markets in Asia were mostly lower in early trade today. Investors stayed on the sidelines on fears that the crisis in Europe might derail the global recovery process might get delayed. Meanwhile, the Seoul Composite was in the green as concerns relating to the stand-off with North Korea showed signs of easing.
The Shanghai Composite was up 0.11%, the Seoul Composite jumped 1.08% and the Taiwan Weighted surged 0.79%. On the flip side, the Hang Seng declined 0.25%, the Jakarta Composite fell 0.30%, the KLSE Composite was down 0.20%, the Nikkei gave up 0.41% and Straits Times shed 0.13%. The SGX Nifty was down 9.50 points at 5,839 against its previous close of 5,848.50.
Back home, a Sahara firm on Monday moved the Allahabad High Court challenging market regulator the Securities and Exchange Board of India's (SEBI) order barring some group entities and its promoters, including Chairman Subrata Roy, from raising funds from public for non-disclosure of information.
Taking note of the petition, filed by Sahara India Real Estate Corporation, the high court decided to hear the case on 1st December and allowed the petitioners to serve notices to SEBI and Registrar of Companies through fax or personally