India's GDP forecasts

Goldman Sachs said it was cutting its gross domestic product forecast to 6.6 percent from 7.2 percent for the fiscal year ending in March 2013.

Goldman Sachs said it was cutting its gross domestic product forecast to 6.6 percent from 7.2 percent for the fiscal year ending in March 2013

Morgan Stanley's earlier this week, which cut its fiscal 2012-13 growth forecast to 6.3 per cent. 

Petrol price up by Rs 7.50/litre

In the steepest ever increase, petrol rates were on Wednesday raised by a massive Rs 7.54 per litre.The depreciation in rupee had necessitated an immediate increase in fuel prices.

April CPI food inflation increases to 10.18%

Inflation as measured by India's benchmark wholesale price index accelerated to 7.23% in the year to April as price pressures for food, fuel and manufacturing items all picked up.Consumer price inflation accelerated in April to 10.36%

Rupee hits new 5-month low of 54.26

The rupee today fell to a five-month low by losing 47 paise to 54.26 against the US dollar on the Interbank Foreign Exchange market in early trade on increased capital outflows amid strong demand for the greenback.

Monsoon likely to set in over Kerala around the normal date

The India Meteorological Department on Tuesday predicted that the monsoon is likely to set in over Kerala on June 1, with a model error of plus or minus four days.

RBI's 'massive' intervention sparks rupee gains

The rupee strengthened on Tuesday from a near record low against the dollar after the central bank stepped in with what various dealers described as "massive" intervention, signalling an intent to defend the beleaguered domestic currency.

Disappointing March IIP numbers

India's industrial output unexpectedly contracted 3.5% in March from a year earlier.

GAAR delay

Key benchmark indices rebounded in late noon deals and ended in the green after the Finance Minister announced the deferment of General Anti-Avoidance Rule (GAAR) by one year. The BSE Sensex ended at 16,913, up 82 points and the Nifty ended at 5,114, up 27 points.

S&P cuts rating outlook of 21 companies to negative

State Bank of India, ICICI Bank, HDFC, NTPC, SAIL, TCS, Infosys, Wipro and IIFCL are among the companies whose rating outlook has been slashed to negative from stable by S&P. S&P has also revised downwards the rating outlook of Export-Import Bank of India, Indian Railway Finance Corp, Power Finance Corp, NHPC, Axis Bank, Bank of India, IDBI Bank, Indian Overseas Bank, Indian Bank, Syndicate Bank, Union Bank of India and IDFC. 

S&P has also warned of downgrading India's rating in two years if there is no improvement in the fiscal situation and the political climate continues to worsen. 

S&P lowers India's outlook to negative

Ratings agency Standard & Poor's on Wednesday cut India's outlook to negative from stable, citing slow progress on its fiscal situation, as well as deteriorating economic indicators. Stating that India's investment and economic growth have slowed, Standard & Poor's (S&P) revised its outlook for the Indian Economy to negative and gave it a rating of BBB(-) from stable.

RBI surprises with 50 bps rate cut

India's central bank cut interest rates on Tuesday for the first time in three years by an unexpectedly sharp 50 basis points to give a boost to flagging economic growth. The RBI cut its policy repo rate to 8.00 percent.

The RBI raised rates 13 times between March 2010 and October 2011.

February IIP grows at 4.1%

IIP announced by the government has been lower than the market expectation. For the month of February 2012 IIP number stood at 4.1% as against a market expectation of 6.6 %. The numbers clearly show a slowdown in almost all fronts in the economy.

Nifty ends above 5,350

Markets ended today's trading session on a strong note on buying interest across sectors. The Sensex and Nifty gained 1.7%. The Sensex added 285 points to shut shop at 17,602 and the 50-share Nifty surged 90 points to close at 5,365 levels.

To look at oil, GDP for April decision: RBI

"There are oil prices, there is the growth story. All of these things will be taken into consideration when we make a decision on what we will or will not do on 17th of April" said RBI's deputy governor Subir Gokarn on Friday in a post-budget media interaction.

BUDGET 2012:Missed opportunity

What can we expect after drama happened after railway budget ? I have never seen so defensive budget in last 10 years. Nothing for common man. Tax benefit which is given by increasing tax slab is nullified by increase in service tax & excise duty. This will help inflation to move upward.

There is no word on banking, insurance reforms. Decision on FDI in retail, aviation sector, DTC, GST implementation will be done after consultation with allies, so there will be delay. No decision on reducing oil & gas subsidy.

There are some positives like reduction in STT on cash delivery transaction. New ELSS tax deduction in the name of Rajiv Gandhi, but details are not yet clear. Duty on energy savings lamp & bicycle is reduced.

I think this was the last chance for Congress to deliver something on economic front before 2014 elections which they have lost. It will be difficult to take tough decisions in 2013 budget.

Market need to wait for next move from RBI's decision on interest rate which is depend upon inflation data. This budget has not anything to worry but it has disappointed by not taking big decisions.

Tax exemption limit raised to Rs 2 lakh

he Finance Minister raising the tax exemption limit from the curent level of Rs 1.8 lakh to Rs 2 lakh. For income upto Rs 2 lakh, the tax deduction will now be nill. For those with an income between Rs 2-5 lakh the tax deduction would be 10%. For income between Rs 5-10 lakh the tax bracket will be 20%. Income above Rs 10 lakh will now come under the 30% tax bracket.

FM introduces tax exemption scheme

The scheme, named Rajiv Gandhi Equity Savings Scheme will allow 50% tax deduction for those whose annual income is below Rs 10 lakh and who invest up to Rs 50,000 in stocks subject to a three -year lock in.

EPF to fetch only 8.25 per cent in 2011-12

The government has cut the interest rate on EPF savings for 2011-12 to 8.25%.

The EPFO is the only formal social security scheme for workers and employees in the country. Workers earning up to Rs 6,500 per month, in companies with over 20 employees, are statutorily covered under the scheme while those earning more can join it voluntarily. Twelve per cent of an employee's monthly basic salary with a matching contribution from his employer is remitted and accumulated in this fund till retirement.

Budget 2012

Yesterday's inflation data put break on RBI's decision to cut repo rate, reverse repo rate. Last week it took bold step by cutting CRR by 75 basis points which has improved liquidity by Rs.48000 cr with banks. CRR cut has enabled more funds for banks. RBI will wait for may be 1-2 months or till monsoon for reduction in interest rate.

Railway budget was bold as in the last 8 years its first time any Railway minister dare to hike passenger freight. But ultimately economics is overshadowed by politics.

There are certain steps are required from FM to curb rising fiscal deficit like reduction in subsidy on diesel & gas, discourage gold import.

Today nifty closed at 5380 level. If govt. fails to take any bold measures to reduce fiscal deficit or due to pressure from allies it rollbacks reforms, it will send negative signals to FIIs. Unless nifty crosses 5700, I think we are still in bear market.

Diesel price needs to be revised upward or taxed higher

Diesel price needs to be revised upward, or subjected to higher taxes, as misuse of subsidised diesel was adding to pollution and public health cost.