Andrew L Dcunha
Mumbai, Aug 12: BSE Sensex slipped by 220 points and closed on disappointing note at 16,840 and Nifty closed at 5,073, down 65 points despite better than expected Industrial output numbers. Investors remained cautious over increasing global uncertainty and and expectations that the Reserve Bank of India would continue to hike rates. .All the sectoral indices ended lower with technology, banks and realty space worst hit. Recovery in the European markets also failed to lift sentiment back home.
Japan’s Nikkei stocks dipped below the 9,000 line on Friday, extending hefty losses sustained during the most volatile week since the March 11 earthquake. Yen's strength prompted foreigners to sell carmakers, pulling Toyota Motor to its lowest level this year.
Nikkei down by 18.22 points closed at 8964, Hang Seng marginally up by 25 points.
Europe is trading significantly in the green.
Exports in July jumped a record high at 81.8%
Exports in July grew by an astonishing 81.8 per cent to $29.3 billion, according to provisional data released by the Commerce Secretary, Dr Rahul Khullar, on Thursday. The drivers of this growth - the fastest since April 1995, according to Bloomberg - were sectors such as engineering, petroleum products, readymade garments, gems and jewellery. The strategy to diversify to new markets in Asia, Africa and Latin America has helped in maintaining high growth rates. Meanwhile, imports in July rose 51.5 per cent to $40.4 billion. Trade deficit (gap between imports and exports) in July widened to $11.1 billion, up from $7.7 billion in June and $8.9 billion in April 2011. It had touched a $15 billion–high in May.
June industrial output up 8.8%
India's industrial production grew by 8.8 per cent in June this year as compared to the same month of last year, an official gave a statement here today. The Quick Estimates of Index of Industrial Production (IIP), with base 2004-05 for June 2011, released by the Central Statistics Office of the Ministry of Statistics and Programme Implementation, showed today that the General Index for the month stood at 170.3.The cumulative growth for the period April-June 2011-12 stood at 6.8 per cent over the corresponding period of the previous year, the statement said. The IIP for May 2011 has been revised to 5.94 per cent from 5.6 per cent reported provisionally last month.
Andrew L D Cunha, Managing Director, WinWin Fin Advisory Pvt. Ltd (finadvisoryltd@yahoo.com). Mangalore.
