THERE'S ROOM FOR A 50-BP RATE CUT, SAYS SBI CHIEF
State Bank of India Chairman Pratip Chaudhuri a further 25-bp (basis point) cut in CRR can be expected.
The Reserve Bank of India has reduced CRR 75 bps to 4.75 per cent on Friday March 9, 2012.
The CRR cut will definitely ease the liquidity pressure and cool down money market rates -- certificates of deposit and commercial paper -- which have been crossing 11 per cent in some cases.
INDIAN ECONOMY TO GROW BY 7-7.5% IN FY13: WORLD BANK
Noting that downside risks to Indian economic growth are high, the World Bank on projected the country's GDP to expand 7-7.5 per cent in 2012-13.
"In India, the slowdown in GDP growth witnessed over the last two quarters is likely to extend into the coming fiscal year because of the weakness in investment," the World Bank said in its latest economic update for India.
According to the multilateral lender, the country is expected to see a growth of 7-7.5 per cent in the current as well as next financial years, a sharp slowdown "from 9-10 per cent growth in the run-up to the global financial crisis".
EXPORTS POST MERE 4.3 PER CENT GROWTH IN FEBRUARY
India's exports recorded the slowest pace of growth in three months at 4.3 per cent year-on-year at USD 24.6 billion in February, mainly due to the global slowdown.
In sharp contrast, imports grew at a faster rate of 20.6 per cent year-on-year to USD 39.8 billion in the month under review year-on-year, translating into a trade deficit of USD 15.2 billion.
Expressing concerns over the ballooning trade deficit, Commerce Secretary Rahul Khullar said that since October last exports are decelerating faster than imports.
"There is a large ballooning of trade deficit. October onwards, export started coming down sharply whereas the lag in imports deceleration was larger. The two big drivers for high import bill are crude oil and gold and silver," he said.
In sharp contrast, imports grew at a faster rate of 20.6 per cent year-on-year to USD 39.8 billion in the month under review year-on-year, translating into a trade deficit of USD 15.2 billion.
Expressing concerns over the ballooning trade deficit, Commerce Secretary Rahul Khullar said that since October last exports are decelerating faster than imports.
"There is a large ballooning of trade deficit. October onwards, export started coming down sharply whereas the lag in imports deceleration was larger. The two big drivers for high import bill are crude oil and gold and silver," he said.
FIIS INVEST RS 12,000 CR IN EQUITIES THIS MONTH; BULLISH ON INDIA
Adopting a bullish stance on India, overseas investors have pumped over RS 12,000 Crore into the Indian equity market this month so far.
Foreign institutional investors (FIIS) were gross buyers of shares worth RS 15,362 Crore, while they sold equities amounting to Rs 14,104.50 Crore, translating into a net investment of Rs 12,57.30 Crore (used 258 million) this month till march 9, as per the data available with market regulator SEBI.
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