Professional Documents
Culture Documents
Monetary Measures
On the basis of the current macroeconomic assessment, it has been decided to: Keep the cash reserve ratio (CRR) unchanged at 6 per cent Keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.5 per cent. Consequently, the reverse repo rate under the LAF will remain unchanged at 7.5 per cent and the marginal standing facility (MSF) rate at 9.5 per cent.
y Domestic economy
Growth GDP growth moderated to 6.9 per cent in Q2 of 2011-12 from 7.7 per cent in Q1 and 8.8 per cent in the corresponding quarter a year ago. y The deceleration in economic activity in Q2 was mainly on account of a sharp moderation in industrial growth.
significant slowdown. y Overall, during the first half (April-September) of 2011-12, GDP growth slowed down to 7.3 per cent from 8.6 per cent last year. y Corporate margins in Q2 of 2011-12 moderated significantly as compared with their levels in Q1. The decline in margins was largely on account of higher input and interest costs. y Pricing power is evidently declining.
further in the coming weeks due to the announcement of liquidity-easing measures by the Reserve Bank in its mid-term policy review last Friday, bank officials say. y Other treasury officials said though yields will ease, they will not ease to a great extent, as the market has already factored in the positives of the monetary policy announcement.
determine the yields on government bonds. y The government said it would borrow an additional Rs 53,000 crore from the market over-and-above the Rs 4.17 lakh crore estimated earlier, which will translate into a higher flow of government securities for subscription during this period.
its history in early trade against dollar, but staged a smart recovery, possibly on RBI's intervention, to settle seven paise higher at 53.64/65 after a highly volatile trade. y The local currency swung wildly between 54.30 and 53.64, after slipping to sub 54-level in the opening trade itself at the Inter-bank Foreign Exchange here.
markets, the rupee reversed the trend to break the seven-day long losing streak on the back of sudden selling of dollars from banks and exporters. y Rupee has slided in early trade owing to weak IIP(Index of Industrial Production) numbers and high current account deficit in the economy.
market dragged the yellow metal three per cent in the domestic market. y Standard gold (99.5 per cent purity) that is used in making jewellery dropped by Rs 775 to Rs 27,685 for 10 gm. y In the global market, gold initially gained $1.40 in the US at $1,588.30 as the euro strengthened but then nosedived to $1,578.
stockists here. y With gold price falling below 200 day moving average, it could slip further. y Deliverable ratio on the NSE for Gold BEES jumped 52 per cent against 44 per cent, signaling more genuine buyers.
worst performing.
advance corporate tax paid by the top 100 Mumbaibased companies for this fiscal has remained almost flat.
companies were the worst performers and cement makers sprung a surprise. y At the current pace, it is unlikely that the tax department will be able to meet the revised direct collection target of Rs 5.85 lakh crore against Rs 4.46 lakh crore achieved for FY11. y Oil marketing company HPCL, which paid a tax of Rs 107 crore last year, has skipped payment this time around.
y Reason:
The slowdown in credit off take on the back of rising interest rate and rise in loans under stress has hit the banking sector's performance. y The country's largest public sector bank SBI's payment was lower by eight per cent at Rs 1,700 crore (Rs 1,850 crore), while private sector major ICICI's remained flat at Rs 450 crore.
crore), while Union Bank's was down 37 per cent at Rs 220 crore (Rs 350 crore). Central Bank tax outgo was down 44 per cent at Rs 100 crore (Rs 180 crore). y Advance tax payment is a clear reflection of the health of a company in particular and the economy in general and a lower payout indicates their lower profitability.
the current quarter, they are bound to pay up 30% of their annual tax liability. y Oil companies normally do not pay advance taxes in the initial quarters, but in the last quarter, when the government pays them the subsidy compensation.
y The Indian economy is firmly on the recovery path. y Exports have been expanding, a trend that is expected
to continue. y The industrial sector recovery is increasingly becoming broad-based and is expected to take firmer hold going forward on the back of rising domestic and external demand.
services sectors on the back of rising domestic y external demand, for policy purposes the baseline projection of real GDP growth for 2010-11 is placed at 8.0 per cent with an upside bias and for 2011-12 it is placed at 7.70 per cent with a downside bias.