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Commentary

Weekly Summary: Inflation Charts, Rajan Talks, Housing Prices

This week has been light, as I’ve had a medical issue in the family which needed a couple days in hospital. All is well now, and here’s what Capital Mind brought to you this week:

  • RBI: We’ll Make G-Sec Markets Better, Incentivize Banks to Recognize Defaults

    Rajan has yet another speech in which he says much of the same but two important points: Changes to Markets are coming In the coming weeks, we will roll out more recommendations of the Gandhi Committee report to improve the …

    • WPI Inflation for Oct 2013 at 7%, Big Past Revision, Uptrend in All Components

      So now the writing is on the wall. Wholesale Price Index (WPI) based inflation has just gone to 7%, the highest since February. If you notice the near term upslope of the green line towards the end, it seems to …

      • RBI Calms Markets By Downplaying Inflation, Talks Up The Rupee

        In a sudden move today, the 10 year bond yield came down from the 9.1% it started with down to 8.91%. At the same time the rupee rose abruptly from the Rs. 63.75 to a dollar in the early part …

        • SEBI Gets Tough on HSBC after MoneyLife’s Expose

          Moneylife’s action to expose HSBC for mismanaging the funds of singer Suchitra Krishnamoorthi has paid off; SEBI has now asked HSBC to explain its behaviour or face the prospect of losing its mutual fund distributor licence. In a notice on …

          • CPI Inflation for Oct 13 At 10.1%; Interest Rate Hike Likely?

            Okay, we’re now getting into ludicrous territory. Consumer Price Inflation has just crossed into double digits, moving to 10.1% in October 2013. Wholesale price data will only come on Friday. And here’s where it gets worse. Inflation which seemed to …

            • IIP Bumps Up to +2% on “Electricity”

              The Index of Industrial Production (IIP) for September 2013 has come in at +2.0% in what seems to be a surprise. However the numbers are better due to a lower base in September last year, as you can see from …

              • Reads: Indonesia Ups Rates, Summers Calls India Outlier, NSEL arrests, Thinksoft Soars

                Indonesia raises rates by 0.25% to 7.5% . They have now raised rates by 1.75% since June. Inflation there is at 8%, and their current account deficit is 4.4% of GDP. (India’s facing 9.5%+ CPI inflation and a current account …

                • Apollo Tyres Q2 Profit Up 44%, Cooper Deal in Jeopardy

                  Apollo tyres Q2 profit comes in at Rs. 219 cr. , a 44% increase over last year. Apollo was set to acquire Cooper tires in the US for $2.5 billion, and after Cooper’s China subsidiary broke contact with the parent …

                  • RBI Sells $4bn in Sep 2013, Despite Big Currency Inflows

                    We note from the RBI Monthly Bulletin , that it has continued its selling spree on the dollar, selling a more than $6.9bn (gross) through the month of September . Remember this is the month Rajan introduced the FCNR swap, …

                    • Trade Balance for October Back Up to $10 Bn, Oil Imports Weigh

                      India’s Trade Balance for October 2013 comes in at $10 billion, above the two-year low number of $6.7 billion in September , which I had said was likely to be an anomaly (because of the September effect) What is intriguing …

                      • Housing Prices in India Grow 13%, Lowest in Four Years

                        The RBI Housing Price Index for April-June 2013 is out. Well, sort of. In the quarterly macroeconomic development paper, they’ve released the Housing Price Index (HPI) details, but not the actual numbers (only QoQ and YoY growth rates). Additionally,they’ve changed …

                        • International Indexes in 2013; Nifty Still Ahead in BRIC

                          It’s been a while since I posted the International Index Comparison, so here goes. International indexes in November favour the developed nations, with the Japanese Nikkei leading the way by a distance: And in the BRIC countries India has done …