Onion prices Make Institutional Investors Cry & Sell India

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The decelerating trend in headline inflation was rudely reversed in December due to rising food prices both on the domestic and global front. Consequently, headline inflation rose 8.43%YoY in Dec, in line with expectations of 8.4% but higher than 7.5% levels seen in Nov.

While the base effect was expected to kick in, the rise in the Dec numbers was primarily due to primary articles which rose 16.5% YoY, 3.5%MoM) Primary food inflation jumped to 13.6% y-o-y

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Indians Pay Taxes Silently – What about High Corruption in Government ?

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Direct tax collections in the first nine months (April-December) of the current financial year increased 19.47 % to touch INR2990bn, compared with INR2502bn in the corresponding period of 2009-10. Growth in collections for December this year over the same month last year was 20 %, the Central Board of Direct Taxes (CBDT) said. Tax collections at INR2990bn are 69.53 % of the Budgeted target of INR4.3trn this year.

The growth in the April-December period was largely contributed by corporation income-tax collections. During these months,

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India’s Food Inflation 18.32% – Manmohan Should Go

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According to the data released by the ministry of commerce and industry, India’s food price index rose 18.32% on annual basis during week-ended Dec 25, substantially faster compared with 14.14% in the week-ended Dec 11. The pace of rising food prices now is once again close to year-ago levels of around 20%. On a sequential or week-on-week basis, the index for food goods rose by whooping by 2.50 % to 192.5 from 187.8 for the previous week due to higher prices of fruits and vegetables (7%) and milk and egg (2%). This was sixth consecutive week of rise in index, suggesting prices were continuing to rise despite expected

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Indians Gold Consumption in 2010

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After a short weak trend in 2009 due to the global credit crisis, India’s spending on gold has bounced back sharply in 2010. India’s gold consumption (in US$ terms) has risen by almost 100% YoY during the first three quarters ending September 2010 after declining 12%YoY in 2009. Cumulatively, India now holds over 18,000 tonnes of above-ground gold stocks worth approximately US$800bn at the current gold price – nearly 50% of the country’s GDP.

Gold Vs Bank Deposits Vs Equities:
Gold holdings among Indian households at current market value are about 2.5 times

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2G Spectrum Scam – Bank Funding – Risk Analysis

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The Honourable Supreme Court, on appeal by one of the NGO’s, has expressed concern over banks providing loans to telecom companies against licenses as collateral and has included bank’s lending to 2G license aspirants as one of the issues to be investigated by CBI in the 2G spectrum allocation case.

We Analysed the situation w.r.t the following – Banks exposure at risk due to non-roll out of 2G licenses by new players, Lapsation,

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Operators urge TRAI not to interfere in tariffs

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Telecom operators have rejected the proposal floated by the regulator that fares should be more transparent and a code of conduct towards this should be framed. In fact, operators are insisting that telecom fares in India now were the lowest in the world and there was not scope for overcharging in any segment because of the cut throat competition.

Earlier, the telecom regulatory authority of India (TRAI) had said that it might intervene to make fares more transparent in order to

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