current account deficit touched 4.1% of gdp in q2 of fy2011. but now looks like falling upto 2.5% of gdp in h2 the prime minister's economic advisory council talks of establising the cad at 2to 2.5 % of gdp but i think 3% entirely bearable for an economy growing at over 8% with exports growing over 30%remittences bringing in 4% of gdp and domesting saving hovering around 35%
 and i think to reduce fiscal deficit we need funds and fdi is better one because it is more stable then fii

buy buy buy.................

Hdil 142-143buy sl 125 target 155,163,

Reliance 945buy sl 893 target 993to 995

Sbin buy 2700 target 2770 t0 2800 sl 2495 final target 2834.14……..

the dollar's era is about to an end...............

the dollars era is about to an end just because dollar is the vehicle currency of the world so every nation wants to have a huge reserve of dollar for their foreign trade & some other contigency but this can happen only when america lies in trade deficite and now in present scenario the american economy is not doing well they need huge amount of dollars but due to some currency wars threy are unable to get it and as well as not abe to depriciate it and this is the era of rising two most powerfull countries of east india and china and analyst says that in coming years there will be 300% appreciation in the currency of brick countries thats why chinese and russian and indian thinking about the drawee system and imf is also thinking to start it once again 

now american also ready for the special drawing reserve in which there wiill be a reserve of basket of mainly four major currency american dollar euro japanese yen and pound of britain proportion wise so dollar will soon replace from the vehicle currency status

the proportion will be like around 41% of dollar 37% of euro 9% of yen and 11% of pound

game of crude oil...........

 

for the third time in the past few months estimates of global oil demand have been revised upwards

now crude oil prices are projected as high as 100$/barrel and infact its almost around 90$/barrel and opec ministers are comfortable with thease prices they are saying that we are not thinking to increase the production level of crude because we are having adequate inventories.

which is not very surprising .even during past episode of demand increasing the pursian gulf countries is not increase the production level in fact in the upward direction of oil price in the era 2004-2008 the increase in production is only 1million barrels a day which is not at all satisfactory. some analst says that keeping production low contributed to price increase in no small level.just look back to 1974 the production is same now while demand is increasing day by day from 1980 the strategy of opec has changed now they are increasing their crude reserve instead of production and now they will produce only upto that level which is required to trade for other things from the remaining part of the world because they know increasing price will give huge to them from their reserves in the long run and this situation is not good for our economy 

now once again price of crude oil will increase just because the inflation is felt below the expected level in china and the picture is still not clear in egypt after getting throne out of mubarak and as well as american economy is recovering i think prices would be around 90 to 100$ now indian should prepare to live with the inflation rate upto 9 to 10% upto 10years because this will increase your electricity,fertilisers major input cost like naptha & bitumen ...........

so inflation will continue in india ............

problems for automobile sector..............

FOR customers looking at early car deliveries in 2011 may have to wait a little longer as manufacturers facing severe tyre shortages in local market are now hunting in China, Thailand, Korea and Malaysia to meet their new production targets. Car companies are looking at importing tyres to make up for the shortages that are affecting their 2011 production plans. Already facing component shortages that led to lower production for most car companies in 2010, major carmakers like Maruti Suzuki India, Tata Motors and Hyundai Motors are planning import of tyre, anticipating a 25% increase in production in 2011 from the 28.14 lakh cars produced in 2010 calendar year. Indian carmakers claim that tyre shortages in the domestic market have forced them to venture overseas, as the local manufacturers couldn’t meet their required demand. “Inconsistent supply of tyre has hampered production for the major part of 2010. Keeping in view the higher production targets of 2011, we have planned tyre purchase overseas markets for meeting our long-term commitments, as we aim a 14-lakh units production in next fiscal,” said a senior executive of Maruti Suzuki, who preferred not to go on record. Shortages for tyres come as carmakers are already at loggerheads with component suppliers with shortages of several critical parts affecting production. Carmakers say that sufficient component supply would have helped them to produce 20% more cars in 2010. Lower production has led to long waiting period of up to 4-5 months on many popular cars like the Maruti Swift, Volkswagen Polo, Toyota Innova. Tyre supply in the domestic market could fall short by around 10% of their demand. “While components were in short supply as demand peaked in the past few months, we do not anticipate an immediate solution in the short-term and availability of tyres is a matter of concern,” said Pawan Goenka, president, Society of Indian Automotive Manufacturers, who also head automaker Mahindra & Mahindra .

bailout set for european union........

European finance ministers agreed Monday that their new rescue system for struggling eurozone economies would be able to lend €500bn ($675bn) for any future bail-outs, but deferred all decisions on how they will ensure the fund can achieve that level of financial firepower.
The size of the fund is identical to the current, temporary rescue system – made up of €440bn from a eurozone fund and another €60bn from an European Union-wide facility – that has been plagued by doubts over whether it is big enough to handle the expanding number of countries that may need assistance.

hyundai exports rise..............

Hyundai Motor India today said it has exported five lakh units of its flagship car Hyundai Santro from the country.

"The export of the Santro has reached five lakh units. From the time of its launch, this popular car has been widely appreciated for its design, technology and safety," Hyundai Motor India Ltd (HMIL) Managing Director and CEO H W Park said in a statement.
HMIL began exporting cars in 1999 when it shipped a batch of 20 Santro cars to Nepal and had exported one lakh cars across models by 2004.

The company exports its 'Made in India' Santro to more than 80 countries across continents.

"With this we gear up for next phase of growth and remain committed to bringing world class products and service to our customers," he said.

"In a little over a decade since Hyundai has been present in India it has become the leading exporter of passenger cars with a market share of 57 per cent of the total exports of passenger cars from India," the statement said.

HMIL currently exports Santro, i10, i20 and the Accent models.