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.

TCS targets 1billion profit...........

IT major Tata Consultancy Services (TCS) today commercially launched cloud computing services and said they could generate $1 billion in revenue over five years from the small and medium business segment.

Cloud computing helps users get access to hardware and software from companies like TCS on pay-per-use basis, without having to set up their own IT infrastructure.

"We have been running pilot of our cloud computing services since last one year. Today we announce to launch it commercially. These services have been built by SMBs for SMBs," said TCS MD and CEO N Chandrasekaran.

"The contribution of SMB segment in our revenue is negligible but in next five years time we expect to garner USD 1 billion from this segment by help of these services," he added.

TCS has observed that worldwide spending of SMBs on information and communication technology has been growing at three times the pace compared to large companies.

As per a TCS study, Indian SMBs spent USD 11.9 billion in 2010 on IT and it is expected to grow to USD 48.5 billion by 2015.

Chandrasekaran said TCS has designed these services based on the feedback of Indian SMBs.

TCS had been running pilots of cloud computing services for one year with 130 clients. These clients have now turned in to commercial cloud computing user of TCS.

TCS will provide everything to its customers right from the level of hardware, software and even network solution, which will include devices and services for enabling connectivity of its customers with cloud platform.

"Our customer will not have to invest any money separately for any hardware or software. We will provide end-to-end solution," Chandrasekaran said.

The services will be offered on pay-per-use model. Chandrsekaran said that the final price of offering will evolve period of time and will depend on the requirement of the client.

Banking sector gets continous support from govt............

after daily basis interest calculation now govt. decided to stimulate people for bank accounts by penetrating in rural area

yeah this was expected from the govt because banks are the most important link of financial system as our economy is developing so we need more money in circulation for growth perspective,

as we all know this that indians has more mobiles than a bank account only 40% of indians having bank account which is not good from the indian point of view means there are still atleast 50crore people those are not facilating the bank account thats why their money is not able to grow ............

and thats why their standard of living is also not able to grow but now as our FM says that 73000 villages those have population more than 2000 will be under banking rule so this news can bring up the bankig share specifically for state bank of india .............

in india there are only 38% banks branch in rural area which is not satisfactory numbers at all ...........

still huge market is untrapped now banks should go towards efficient working as base rate introduced & hope some more banking license can given in coming budget so market is untrapped but competition is tough.............

controversial reliance......

in present time reliance is the biggest issue in indian stock market everybody is talking about reliance chevron atlas deal about shell gas in united states.

and now junior ambani Mr. anil ambani announce that there is a conspiracy against reliance (adag) shares just because some institution dont want rise in the prices of reliance but the problem is of shell gas mukesh ambani's short cut to get deal of shell gas from atlas get failed 

so now i think this is not the right time to invest in reliance and i think something more is going worng in reliance ............

and if reliance get sick then there will be worst condition for nifty because reliance has 3% weightage in nifty which is huge then nifty i think get support at or below the 5000 points........

japan in trouble............

the problems continues for japanease economy as chinease economy overtake japanease economy now there is problem of debt to equity ratio in japan the ratio of debt to equity in japan is as high as more than 100 which is one of the big reason of trouble because japanese economy directly related to crude oil prices as japan's 80% energy needs comes to full fill by import but in present scenario the crude oil prices is continously growing just because of devaluation of dollar and egypt crisis n now thats why japanease FII completly exited their funds from indian capital market

but now i think the problems is now for automobile sector as japan is the biggest importer of automobiles for india particularly in sedan cars segment then the prices of maruti share can fall ....................

so this is not the right time to invest yours precious money in automobile sector..............

chinese influence..................

as china increased their interest rates the crude oil price falls this is the simple indicator that upto what extent china is going to influence the world scenario...........

this is also shown that its time of yuan now dollar is past.............

just because of this increase in the interest rate the demand of crude oil will fall because in present china is the largest consumer of crude oil it recently over take US 

and increased interest rate will cut money from the economy and it will be costlier to take money from banks and ultimately the demand will fell down...........

this is the time of power shifting from west to east.... economic power shifting............

Defensive approaches continue in india...............

this is the news related to the trade between india & iran..........
as we all know that iran exports crude oil to india and due to this import we have deficit trade account with iran but some time back india paid the bills of crude oil in indian rupees and iran has accepted this and iran's govt. said that u should deposit all the indian currency in the bank of iran situated in mumbai so iran can further purchase some indian goods which they actually import from india but this would not be able to balance the trade figure between india & iran but very obviously this does in the long run as this trick saves lots of time and precious money of both the countries they are able to save money from dollar exchange rates..........

but RBI refused to payment for irani crude oil in rupees and gives a very absurd reason that this process will lead to a great reserve of INR for iran which they can use for the shake of crash the indian currency...........
one thing i dont why i think that if india want to be a world power than u have to give some liberty and this will reduce the trade deficite between india & iran but RBI has payment iran in euro's which one more example of very conservative one can say poor approach...........