Andrew L Dcunha
Mumbai, Aug 11: BSE Sensex ended in the red as investors booked profits on every rise. Sensex closed at 17,059, down 71 points and Nifty ended at 5,138, down 23 points. The market recovered after a weak start triggered by lower Asian shares. The market weakened once again to hit fresh intraday low after moving into positive terrain for a brief period in early trade. The market trimmed losses in mid-morning trade as US index futures surged.
European stock markets surrendered early gains in volatile session today. French banks were hit by rumours that France was about to follow the US and lose its top AAA credit rating Asian share markets closed broadly lower today on a day which lacked direction. The key benchmark indices in China and South Korea rose by between 0.62% to 0.99%. The key benchmark indices in Hong Kong, Indonesia, Japan, Singapore and Taiwan fell by between 0.22% to 0.66%
Gold – all time high
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Gold surged to an all-time high of Rs 26,490 per 10 grams in the bullion market today bolstered by the precious metal's rise in overseas markets as the deepening sovereign debt crisis in the US and Europe raised demand for gold as a safe haven investment. Gold has rallied almost 25% this year as investor appetite for a safe haven grows on increasing fears of a global economic slowdown.
Inflation
India’s food inflation accelerated as food price index climbed 9.90 percent for week ended July 30 against 8.04 per cent a a week earlier. Fuel price index jumped 12.19 percent against 12.12 per cent. The primary articles index was up 12.22 percent, compared with an annual rise of 10.99 percent a week ago.
Growth in 12th Plan may be below 9%
Due to the uncertainty in global economy, the Planning Commission on Wednesday said it was likely to lower its average annual economic growth target for the 12th five-year plan (2012-17) to 8.5 to 8.7 per cent, as against the 9-9.5 per cent contemplated earlier.
Andrew L D Cunha, Managing Director, WinWin Fin Advisory Pvt. Ltd. Mangalore. finadvisoryltd@yahoo.com
