Financial focus Weekly Newsletter InFINeeti ISSUE 6
VOLU ME 1
20 13
TOP STORIES….…........1 MARKET ACTIVTY ECONOMICS
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TERM OF THE WEEK TRADING CALLS
….4
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MONTHLY RETURNS…..6
Financial focus
A one stop guide to know about all the recent happenings in the finance world
TOP STORIES : INDIA
GOVT EASES FDI NORMS IN RETAIL SECTOR Union cabinet eased investment rules for the retail sector on Thursday in a renewed attempt to attract foreign supermarket operators such as Wal-Mart Stores Inc. and Tesco. According to the proposed norms, Govt. is likely to expand the definition of micro, small and medium enterprises (MSME) by allowing retailer to procure from them even if they have exceeded total investment of $2 Mn. in plant and machinery. Under the new policy 50% investment in backend infrastructure will be "restricted" only to the first tranche of $100 Mn. while subsequent investments into backend will be decided by the retailer. HSBC PMI, JULY AUTO SALES DATA WEIGH DOWN MAR-
KETS Sensex fell 153 pts. to end at 19164.1, Nifty at 5677 as M&M fell 4% on weak July sales, & PMI shrank the most in 4 yrs. to 50.1. Meanwhile, automobile sales in India have been slow for more than a year now. However, utility vehicles saw strong growth for much of FY13, helped by increased price differentiation between petrol and diesel and new launches like M&M's XUV500 and Quanto, Renault's Duster and Maruti Suzuki's Ertiga. However, even SUVs have now hit speed bumps since last few months following a hike in excise duty by the government, and partial de-regulation of diesel prices. RBI KEEPS KEY RATES UNCHANGED; GDP FORECAST
CUT TO 5.5% RBI Governor, D. Subbarao, kept policy rates unchanged at the quarterly monetary policy review on July 30, but took a dovish stance. Consequently, the key repo rate remains at 7.25%, reverse repo at 6.25% while cash reserve ratio remains at 4%. Lowering the GDP growth projection for the current fiscal to 5.5% from 5.7%, the central bank said the external sector is the "biggest threat" to economic stability. It also said that the recent liquidity tightening measures, taken to support the rupee, will be rolled back in a calibrated manner as stability is restored to the foreign exchange market, enabling it to revert to the policy of supporting growth with continuing vigil on inflation.