Economy & Business   

Forex reserves down by 
1.25 billion dollars

What is India News Service, August 07, 2004, 2000 hrs IST

Less than 24 hours after soothing inflation worries, food articles and metallic minerals pushed the WPI to a two-year high of 7.51 per cent for the week ended July 24, 2004. Factor in the oil price hike hike effected at the month end and the hike in price of steel and polyester and the final figure could well end up closer to 8 per cent. 

For the second week in a row, India\92s foreign exchange reserves fell by a whopping $1.25 billion to $118.31 billion for the week ended July 30. The sale of dollar by the central bank to check slide in the value of the rupee, demand for US dollar to make import payments and revaluation of the US dollar against other international currencies led to the sharp drop in reserves, analysts said. Last week, the foreign exchange reserves had declined by $1.53 billion. 

Crude prices soar despite OPEC's promise: Crude futures soared to new heights on Friday as jumpy markets dismissed reassurances from the Organization of Petroleum Exporting Countries (OPEC) that it has prepared to raise oil output by more than one million barrels a day.

Factors behind inflationary spiral: Prices of diesel and petrol are likely to rise further in the coming weeks as international crude prices are on the upward march, crossing $44.70 a barrel today. This will push up inflation in the coming weeks. 

Moderation likely after mid-August, says Lahiri: The Government today said inflation, which shot up to over two-year high of 7.51 per cent, is expected to decline after middle of August. 

Inflation surges to 7.51 pc: Just a day after the Chief Economic Advisor, Dr Ashok Lahiri, told presspersons that inflation had peaked and the "worst is behind us", precisely the opposite has happened. 

Chidambaram calls for national model on delivery systems: The Finance Minister, Mr P. Chidambaram, today said that a national model on delivery systems should be evolved based on the best practices followed by the State governments in various fields. 

Bond prices crash as panic grips market: Bond dealers were seized with a sense of panic on Friday as the market witnessed the highest inflation rate in three-and-a-half years, which dragged down bond prices by over a rupee across medium term maturities. 

TRAI proposes cut in annual licence fee: The Telecom Regulatory Authority of India (TRAI), on Friday, proposed an across-the-board reduction in the annual licence fee from a high of 15 per cent to 6 per cent.

SBI dumps exit option for `de-motivated' staff: The proposed `exit option' prepared by State Bank of India (SBI) to rid itself of its "frustrated and de-motivated' staff has itself been shown the exit door. 

Inflation number deflates market sentiment: Equities ended the week on a tepid note, with widespread losses in Friday's trading. Higher-than-expected inflation numbers triggered the decline; stock prices had been flat till the headline inflation number of 7.5 per cent popped up.

 Plastic money gaining currency fast: Financial cards witnessed a robust growth in India in 2002-03. The number of cards in circulation increased by almost 50 per cent. The growth in transaction value, at 95 per cent, was even more spectacular. 

TCS price band may be at Rs 850-875: Tata Consultancy Services' IPO was oversubscribed by 10 times, according to data from the stock exchanges. Bids for 57.18 crore shares were received. Over 5.5 crore shares were on offer from the company. 

Monsoon revival cuts deficit by 5 pc: Things are looking quite promising now. All available weather data suggest that the strong phase of the monsoon will sustain through the month of August. 

 Diamond trade gets ready for face-off: Synthetic diamonds are so tacky, right? You wouldn't, for instance, want to give your fianc\E9e a synthetic diamond, would you?