Indian Economy for the week 3-July-2010 to 9-July-2010

• IMF says that India’s growth is expected to accelerate to 9.5% in 2010, as robust corporate profits and favourable financing conditions fuel investment, and then settle to 8.5% in 2011.
• Trade Minister says that GDP growth is expected to return to 9% plus this year, led by strong corporate performance and rising savings levels.
• World Bank’s lending to India for the financial year ended June touched $9.3bn, an increase of over 320% compared to last year.
• FM says the RBI would decide on a further hike in its lending and borrowing rates at the quarterly review meeting on July 27; the FM to meet the RBI governor before the review on July 23.
• India’s primary articles inflation rate for week to June 26 shot up to 16.08% from 14.75% a week earlier; food articles inflation rate fell to 12.63% from 12.90% a week ago.
• India's fuel group inflation rate surged to 18.02% for week to June 26 from 12.90% a week earlier on account of hike in prices of petroleum products during the week.
• Finance Secretary says the headline inflation will ease to around 6% by December.
• A senior government official says that the inflation rate based on wholesale prices may climb to around 10.50% for the month of June from 10.16% in May.
• Moody’s says that government needs to play greater role in taming inflation by reining in spending, as the RBI's tightening of its policy rates will have little impact on checking price rise.
• Government ended the first quarter of FY11 with a direct tax collection of Rs.68675 cr, up 15.5% from Rs.59465 cr a year ago; corporate tax mop up for the quarter grew 21.6% to Rs.43439 cr.
• India’s forex reserves rose $1.29 bn to $278.27 bn for the week ended July 2.

Source - Crisil Weekly Market Update, Reliance Mutual Fund.

Posted By - Chintan Dedhia