The annual rate of inflation, based on
monthly WPI, stood at 5.96% for the month of March 2013 as compared to 6.84% in
February and 7.69% during March 2012. India's inflation has slowed in recent
months due to weakening demand. The RBI responded to a slight cooling in
headline inflation in recent months with two 25 basis point cuts this year to
bring the benchmark repo rate to 7.50% in a bid to revive growth. The current
account deficit has re-emerged as India's weakest economic spot after leaping
to an all-time high of 6.7% of GDP in the December quarter. A high current
account deficit is potentially inflationary because it can lead to a weaker
currency and more expensive imports.
Currently there are no buyers at the current
levels as they anticipate a further downtrend to occur in prices. In the
domestic futures market, at 1.15 pm IST, the April 2013 series were trading in
negative at `.158.70 a kg, May at `.159.60, June at `.158.40,
July at `.157.60 and August at `.157 a kg on the
National Multi Commodity Exchange. The price of RSS3 grade closed at `.157.23
per kg at Bangkok on 11th April, while on 15th April, Malaysian
SMR 20 closed at `.134.28 a kg. The contract for delivery in September closed
with a negative note at ¥259 a kg on the Tokyo Commodity Exchange.
Read
lot more in Rubber4U – 1st May 2013 issue
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