Inflation 11.05%

Powered by rise in fuel prices, the inflation has reached its 13 yr high of 11.05%.  Immediate reverberations in the market last friday led to the downfall of sensex by 550 points. This is the max downfall since aug 2007. Lower income groups are hit the hardest as the price of food prices are also affected with this inflation. Economists feel that the inflation may rise further in the forthcoming days as the rise in fuel prices have effect on other items too. Finance Minister says, "Rise in inflation was expected and we will have to look at stronger steps on fiscal, monetary side. Hike in petrol price is unavoidable. It is expected that the RBI will hike CRR or Repo rate before Monetary Policy. It will affect growth in infrastructure sectors as capital availability become scare, squeeze banks margin and impact on auto sales.

Market Snapshots:

• Sensex, Nifty hits new 2008-lows as inflation accelerates to 11.05% at 13-year high
• Lowest closing for Sensex, Nifty since August 2007
• Sensex ends down 516.7 pts at 14571.2; Nifty down 157 pts at 4347.5
• RIL hits new 2008 lows; closes down 6.6% at 2100
• CNX Midcap Index down 3.4%, BSE Small-cap Index down 3.4%
• All BSE Sec total Indices end in the red
• BSE Oil & Gas Index down 5%; RIL down 6.6%, Cairn India down 5.6% 
• BSE Realty Index down 4.5%; DLF down 4.3%, Unitech down 2.4%
• BSE Metal Index down 4%; Tata Steel down 4.8%, SAIL down 3.3%
• Index Losers; Zee Ent down 8.5%, R Comm down 6.6%, Hindalco down 6.4%, Nalco down 6.3%, Tata Comm down 6%
• Loser; Pyramid Saimira down 20%, SICAL Logistics down 16.6%, OCL India down 13.5%, Rain Comm down 10.6%, IFCI down 8.2%, GHCL down 8.8%, Sasken Comm down 7.9%, Indiabulls Fin down 8.4%, HDIL down 9.3%
• Total market turnover at Rs 85088 cr Vs Rs 56589 cr on Thursday
• F&O turnover at Rs 58533 cr Vs Rs 42696 cr on Thursday