Rupee down, but margin improves

The rupee had ended six paise lower at 53.22 against the dollar in the previous session due to sustained dollar demand after government estimates pegged current fiscal's GDP growth at 5%. Today rupee further depreciated by 22 paise to 53.44 against the dollar.

The sharp decline in economic growth to 5% is alarming and validates the perception that the economy is under the throes of a widespread slowdown. The need to revive the investment sentiment has become indispensable. The government should take steps in the upcoming Budget to encourage growth and boost investments.

The Calcutta High Court today extended the interim relief on the winding up order on Dunlop India till 18th February after the management promised to submit `.10 crore as directed by the court.

MRF Ltd has announced unaudited results for the quarter ended 31st December 2012. During the 1st quarter, company has posted a net profit of `.1802.20 million, compared to `.1128.90 million for the quarter ended 31st December 2011. Total Income has increased from `.28794.20 million for the quarter ended 31st December 2011 to `.30286.80 million for the quarter ended 31st December 2012.

Higher production and rising stockpiles amidst muted demand continues to weigh on natural rubber prices. RSS4 grade rubber in India closed at `.157 a kg and the price of RSS3 grade closed at `.175.58 per kg at Bangkok. While Malaysian SMR 20, which Indian tyre makers prefer to import, closed with a positive note at `.164.83 a kg. On the Tokyo Commodity Exchange, February futures series closed lower at ¥308 per kg.