WPI Inflation Data_February 2016

  • India’s WPI inflation fell 0.91% in Feb vs 0.96% fall in Jan
  • WPI food articles at 3.35% in February vs 6.02% rise in January
  • WPI Primary articles 1.58% rise in February vs 4.63% rise in January
  • WPI pulses price up 38.84% in February vs 44.91% rise in January
  • WPI vegetables price declines 3.34% in February vs 12.52% rise in January
  • WPI egg, meat and fish prices up 3.47% in February vs 5.69% rise in January
  • WPI onion price decline 13.22% in February vs 5.51% rise in January
  • WPI fuel and power inflation declines 6.40% in February vs 9.21% fall in January
  • WPI manufactured products growth declines 0.58% in February vs 1.17% fall in January


“Inflation is taking up the poverty line, and poverty is not just economic but defined by way of health and education”

-Azim Premji


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Morning Business News Round up_December 02, 2015

Morning Business News :

  • Car sales rise with high demand for Hyundai Creta & Mahindra TUV, two-wheelers under pressure
  • China pips India in race for reserve currency status
  • Need for more economic reforms in China, says IMF
  • Gold scheme brings Rs 246 cr, RBI issues certificates
  • Volkswagen’s US sales plunge 25% in November
  • Alkem Laboratories fixes IPO price band at Rs 1,020-1,050


  • BRICS bank to issue bonds
  • D-St gung-ho on GST, most expect bill to go through in winter session
  • Retail inflation may rise to 5.5% in Q4
  • Cox & Kings sells 100% of issued, outstanding shares of Explore Worldwide Limited
  • Coal India misses November production target by 4.42%
  • IVRCL pins hopes on 18 months SDR moratorium to bounce back
  • Bankers hint at lowering rates after Raghuram Rajan’s push
  • Chennai airport temporary shut down due to rains, water reaches runway
  • India Inc hails International Solar Alliance
  • Standard & Poor’s keeps Bharti Airtel’s rating unchanged post capex plan
  • AXA increases stake in Indian insurance joint ventures to 49%
  • ATF prices cut by 1.2%, non-subsidized LPG rate raised by Rs61.50
  • Institutional Shareholder Services changes stand, backs Maruti Gujarat plant project
  • Weak rabi prospects cloud Bayer CropScience outlook
  • Govt halts subsidy on CFL to encourage LED-based solar lights
  • Concerns rise about sustainability of record low solar tariffs
  • Motilal Oswal PE eyes ₹300 cr on exit from Mrs Bector’s Foods
  • Manufacturing output at 25-month low in Nov on poor new orders
  • FinMin sees GDP growth in “vicinity of 7.5%” this fiscal
  • FMCG firms drop prices, create smaller packs to lure rural India
  • TV18, CNN renew partnership

  • Sanofi supplies injectable polio vaccine to government
  • Cox and Kings sells UK unit to Hotelplan
  • KG Block: RIL may have pumped 15% of ONGC’s gas, says consultant
  • Benefits of IFRS would start to flow in 2018: Ian Mackintosh
  • HDFC invokes Mallya’s shares worth Rs 40 cr in USL
  • Yes Bank signs pacts worth $265 mn with US cos for SME lending
  • Bihar can replicate the Kerala model and not ban beer: Shekhar Ramamurthy


Today’s Wealth Mantra !

“Derivatives are financial weapons of mass destruction.”

-Warren Buffett

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Beat inflation by systematic investments in equity !

When policymakers talk about the economy, the one recurrent thing that comes up in all debates is “ inflation”. Now you may think that it is for the policymakers to break their heads over such matters as you are not impacted by it. But that is not true. The “aam aadmi” is the worst impacted by inflation. Let’s see how.

  • What is inflation?

In financial parlance, when the general level of prices goes up, its called inflation. In India the key measure of inflation is CPI or consumer price index. Through CPI the cost of the consumption of a basket of goods over a certain period of time serves as an evaluation index of the cost of living of the economy. This basket includes things such as food, shelter, clothing, transport and the likes. CPI is looked at as a measure of inflation, because it is stable by nature and the basket constituents do not change So to consider an example, if the weighted average of this basket of goods in 2014 was 300 and in 2015 it is 306 the rate of inflation would be 3% in 2015.

Inflation is an important measure to keep track of as policymakers need to reallocate resources as per the inflationary numbers, but how are common people impacted by inflation? High inflation leads to a high rate of interest thus increasing the cost of borrowing for those willing to take a home loan or any other such product. For fixed income families in the lower income group, the sword of inflation can make a deep incision as the prices for daily utilities rises at a rapid rate, and the common man is unable to keep up with the pace.

  • Inflation reduces the value of your investment

That’s not where the impact of high inflation ends. For those saving for the future, higher inflation’s spells trouble as well, as it poses a risk of the rise in cost for saving for any future goal such as owning a home, marriage, education of children and retirement. A common man mostly believes that his investments are “Safe” in fixed income securities, but what he does not realise that he is losing out substantially due to inflation. For example, if the rate of inflation is rising at 9% and Mr A is earning 6% in his savings account, he is oblivious to the fact that instead of becoming richer by 6%, as he believes he is, he is in fact getting poorer by 3%. His wages do not keep up with the rate in the increase of prices, and thus Mr A real cost of living goes up higher as a result of high inflation.

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  • Beating inflation with equities

However, the good news is that you can insulate yourself from the effects of inflation and yet earn good returns, by opting for systematic equity plans. At Beeline, we offer you plans where you can invest directly in equities systematically either in a fixed quantity of shares each month or a fixed amount to be invested in shares. The underlying principle and benefit of this method of investing is that you are protected from the stress of speculation thanks to rupee cost averaging. So in effect, you buy more stocks when the price is lower and lesser when the prices are high.

As the cost of your purchases in equities is averaged over several transactions, you are not only protected from the stress of timing the market but are also beating inflation effectively as equities have been the most efficient asset class to beat inflation over the long term. The trick however is to remain invested over the long term (at least five years) and diversify your investments across large, middle and small cap stocks.

To put things into perspective, consider this example. Over the last three years the average CPI has been 9.36 %. If you would have put your Rs 10,000 each month across a diversified  portfolio of stocks, you would have earned approximately 12.5% on a conservative estimate over the past five years (considering the returns of the BSE Sensex). On the other hand, investment in a five year FD would have fetched you 9.30%. So effectively your real rate of return would have been -0.06%.


This should make it clear to you that what you have been gauging as a safe is actually giving you’re the poorest rate of returns, so make the switch to equities. We, at Beeline, can help you construct the ideal SEP (systematic equity plan) that will give you the required protection from inflation and fetch your superior returns over a period of time.




Morning Business News Round up_September 30, 2015

Morning Business News :

  • World Won’t Achieve Goals Without India: Bill Gates
  • Rate Cut Shows RBI Considering Growth Trends Subdued: Moody’s
  • India Need Not Worry About Glencore Troubles: Rajan
  • Govt May Invest Rs 3.3L Cr In Transmission Sector
  • EM Firms’ $18 Tn Debt Needs Careful Watching: IMF
  • Banks Will Have To Follow New Base Rate Calculation: Rajan
  • RBI Allows Fpis To Buy Up To 49% In Eveready
  • Finmin To Compile List Of Projects For Foreign Govts
  • India Up 16 Spots To 55th In Global Competitiveness
  • RBI’s 50 Bps Rate Cut Takes Bond Yields Near 26-Month Low
  • RBI Allows Corporates To Raise Up To $750 Mn Via Rupee Denominated Bonds Overseas
  • Power Grid Commissions First Power Transmission Express Highway
  • Renuka Sugar’s Brazilian Arm Applies For Bankruptcy Protection
  • Suzlon Completes Commissioning Of Wind Power Turnkey Project
  • Antrix Told To Pay Devas $672 Million
  • Rain Deficit Slips Back To 14% As Monsoon Resumes Withdrawal
  • SEBI Issues Final Norms For Commodity Derivatives Brokers
  • Idea Gets Shareholders Nod To Raise Up To Rs. 10,000 Cr
  • Imports To Help India Meet 70% Of Edible Oil Demand
  • Mfs Exposure To Software Stocks Hits All-Time High Of Rs 40,602 Crore
  • Jaitley Nudges Banks To Pass On Rate Cut Benefit To Borrowers
  • Rupee Closes Stronger Against US Dollar At 65.96 After RBI Policy
  • Reserve Bank Shifts Focus From Inflation To Growth
  • Steel Producers Likely To Hike Prices By Up To Rs 1,500/Tonne
  • Govt Delays Implementation Of Bigger Tobacco Pack Warnings
  • Infogain To Buy IT Operations Of Blue Star Infotech
  • Sensex Closes 162 Points Up At 25,779 After RBI Rate Cut Lifts Sentiments, Nifty Settles At 7,843
  • Reserve Bank Of India Lowers GDP Forecast For FY16 To 7.4%


  • Sun Pharmaceutical Makes Tender Offer To Acquire Insite Vision
  • Households Expect Inflation To Stay In Double Digits: Survey
  • US Welcomes Diaspora Role In India’s Development: Obama
  • Govt To Review Interest Rate On Small Saving Schemes
  • Chidambaram Welcomes RBI Rate Cut Of 0.5%
  • Hindustan Motors Misses Interest On Debentures
  • RBI Rate Cut To Benefit Housing, Auto, FMCG Sectors
  • FPI Investment Limit In G-Sec Hiked To 5% Of Outstanding Stock

Morning Business News Round up_September 15, 2015

Morning Business News :

  • India Ready To Face US Fed Rate Hike: Economic Affairs Secretary Shaktikanta Das
  • Cooling Inflation Boosts Expectations For More Rate Cuts
  • Drought To Cut India’s Summer-Sown Corn Output By 15 Per Cent: Industry
  • Texmaco Rail To Acquire 76 Pc Stake In Bright Power
  • Foreign Investors Allowed To Buy Upto 40% In Maruti
  • US Clears Nokia Acquisition Of Alcatel-Lucent
  • RBI Cancels Sahara Financial Corp’s NBFC Registration
  • Govt Imposes 20% Safeguard Duty On Some Steel Products
  • Urea Imports Surge 43% To 3.06 Million Tonnes
  • India’s FX Reserves Loss In August Fourth Highest Among Ems
  • Tata Steel Gopalpur SEZ Validity Extended
  • BALCO Begins Procedure To Shut Down Its Aluminium Rolling Mill
  • L&T Finance Holdings Rise On Stake Sell Buzz
  • India Difficult Place For Business; Reforms Needed: WB
  • PM Takes Stock Of Sick Power Distribution Companies
  • GDP Growth To Exceed 7.5% This Fiscal: Finmin
  • India’s Potential Growth Could Rise To 9% Over Next 5 Yrs:GS
  • Taking Efforts To Ensure Predictable And Fair Tax Regime: FM
  • Nava Bharat Ventures, Tata Steel In Chrome Conversion Pact
  • Kesoram Industries Up On Sale Of Haridwar Tyres Unit
  • Arrival Of Imported Pulses To Begin From Sept. 23
  • 44% Of India Has Received Deficient Rainfall: IMD
  • Dr Reddy’s Inks $198 Million Pact With Hatchtech To Market Head Lice Product

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  • Mahindra Group Launches E-Commerce Platform
  • Blackstone To Sell Three Land Parcels For Rs1,000 Crore
  • Practo Acquires Insta Health For $12 Million
  • Sensex Closes 246 Points Up At 25,857, Nifty Settles At 7,872;
  • India’s Retail Inflation Eases To 3.66% In August
  • RBI To Cut Rates Irrespective Of US Fed Moves: Ind Ra
  • Sebs Wilful Defaulters: Banks Could See Rs 3-4 Lakh Cr Npas
  • Bose Panel Report Has Mutual Funds Sounding Bullish
  • WPI Inflation Plunges To Historic Low Of (-)4.95%
  • Jaitley Exhorts US Cos To Invest More In Infra
  • DRL Enters Into Commercialisation Deal With Hathchtech
  • India To Clear $700m Iran Oil Dues As First Tranche
  • Centre Exploring SPV Mode To Energise Sebs

Morning Business News Round up_August 31, 2015

Morning Business News :

  • China Fears Linger As Focus On Fed’s Rate Hike Sharpens
  • Land Acquisition Ordinance Lapse Setback To Reforms: Assocham
  • RBI On Wait-And-Watch Mode On Interest Rates Cut: Raguram Rajan
  • Corrupt Banking System Creates Mountain Of Bad Loans
  • MMTC Looking For Investors To Sell Its Stake In ICEX
  • Give Banks Priority Sector Lending Benefit To Boost Gold Monetisation: WGC
  • Monetary Policy Panel Appointments: Finmin, RBI Agree On Key Change
  • Rajan Hints At Rate Cut, Says Inflation Down Quicker Than Expected
  • Sebi Wants Companies To Adopt ‘Dividend Distribution Policy’
  • Payments Banks Rs 14,00,000 Cr Bonanza For Infra Sector
  • GMR Plans To Export Power From Its Nepal Plants To Bangladesh
  • ONGC, Partners To Invest $24 Bn In Mozambique Gas Field
  • Govt Mulls 2-Kg LPG Cylinders; Starts E-Booking For Connections
  • SEBI To Review Surveillance Systems; Fast-Track Enforcements


  • Sun Pharma, Wockhardt Recall Drugs From US Market
  • Govt To Finalise Gas Pricing Formula Soon
  • Maharashtra Govt To Buy Back Kolhapur Proj From IRB Infra
  • Majority Of Unions Reject Govt Appeal To Call Off Sept 2 Strike
  • Govt Not To Go Ahead With OIL Stake Sale Soon
  • Infosys Gets Govt Nod For 3 More Campuses In Bengaluru
  • Aditya Birla Group’s Revenue Crosses Rs2.5 Lakh Crore; Up 9%
  • Lower Crude Oil Price Gives Lubricants A Smoother Ride
  • No Plan To Buy Jaypee’s Bhilai Cement Unit, Says Ultratech
  • Indian Oil Plans $2.4 Billion Ethanol Investment
  • Immigration Shift In US Shows India, China Outpacing Mexico
  • Indian Pharma Industry Capable Of Discovering New Drugs: Sun Pharma
  • FDI In Services Sector Dips 14% In April-June Quarter
  • Nine Top-Valued Sensex Companies See Rs 93,000 Crore M-Cap Erosion
  • Bharti Airtel, Idea Cellular Hike Post-Paid Data Tariffs By 20% In Delhi
  • Tata’s Revenue Rises To $108.8b; Headcount Cross

Morning Business News Round up_August 25, 2015

Morning Business News:

  • China Fears Wipe 230 Bn Euros Off Euro Shares
  • North, South Korea Reach Agreement To Halt Tensions
  • France, Germany Shrug Off China-Induced Mkt Rout
  • US Inflation Probably Lower Than Reported: Fed Study
  • Yuan Devaluation, China Slowdown A Worry: Jaitley
  • FDI Reporting Module To Promote Ease Of Doing Business: RBI
  • Govt Won’t Pin Foreign Portfolio Investors On MAT
  • No Immediate Advantage To Exporters From Rupee Fall
  • Sebi Approves Merger With Commodities Regulator FMC


  • Real Estate Offers $11.8 Bn Opportunity For Builders
  • Great Fall Of China Sinks World Stocks, Dollar Tumbles
  • India Signs Pact For South Asia’s First Trans-National Oil Pipeline
  • Inflation Expectations Are Still High: Rajan
  • Union Ministry To Offer Subsidy To Ship Building Industry
  • Odisha Will Offer To Sell Iron Ore To Posco For Steel Project
  • Chennai Petroleum To Augment Its Net Worth With Rs 1,000 Crore Infusion From IOC
  • HPCL Posts Record Profit In FY-2015, Highest Since 1974
  • Crude Prices At Six-And-A-Half Year Low; India Might Gain Over Rs 1 Lakh Crore
  • CBEC Gets Ready For GST, Sets Up New Directorate
  • Indian Oil OFS Subscribed 1.18 Times
  • Monsoon In A Lull Phase Over North-West India
  • Crude Oil Hovers Below Key $40 Per Barrel Mark
  • Stock Market Wealth Crashes Below Rs. 100-Trillion Mark
  • SEBI-FMC Merger To Take Effect From September 28
  • Emerging Assets Hit New Multi-Year Lows On China Contagion
  • India Has Sufficient Forex Reserves To Address Rupee Volatility: RBI
  • Three State-Run Banks Plan To Sell Npas Worth Rs.2,700 Crore To Arcs
  • Supreme Court Vacates Stay Granted To DLF
  • Bhushan Steel In Talks With Monnet Ispat For Stake Purchase
  • Amtek Unit Bondholders Look To Move UK Courts
  • Gateway Distriparks Offers To Buy Blackstone Stake In Unit For Rs600 Crore
  • Sensex Plunges 1,625 Points To End At 25,742; Nifty At 7,809
  • Manufacturing Sector Growth Improves In August: SBI Index
  • Fiscal Deficit, Inflation Under Control; Economy In Revival Mode: FM Arun Jaitley
  • Market Mayhem: PM Reviews Situation, Calls For Reforms
  • India Has Potential To Achieve 100 GW Solar Target: Bosch
  • Heineken Eyes Control Of Indian Maker Of Kingfisher Beer
  • Ready To Use FX Reserves As Sensex Tumbles: Rajan
  • BSE To Suspend Trading In 17 Companies From Aug 26
  • Glenmark Expects USDFA Approval For 4-6 Drugs
  • IIB To Manage Transaction Exchange
  • NSE Shortens Concessions In Transaction Fee By 1 Month
  • Adani To Invest Rs 25,000 Crore In Chhattisgarh



Currency Insight

Euro pushes higher as dollar rally pauses

The euro pushed higher against the dollar on Wednesday after Greece played down the threat of an imminent default, as the greenback paused following a rally on the back of expectations for a U.S. rate hike later this year. EUR/USD was up 0.41% to 1.0916, still not far from the one-month lows of 1.0862 struck on Tuesday. The single currency found support after the Greek government expressed confidence to that it would make a €305 million payment to the International Monetary Fund due on June 5.

USD/CAD rises to 1-month highs in early trade

The U.S. dollar rose to one-month highs against its Canadian counterpart on Tuesday, after the release of mixed U.S. durable goods orders data, as expectations for a U.S. rate hike in the coming months continued to support. USD/CAD hit 1.2416 during early U.S. trade, the pair’s highest since April 15; the pair subsequently consolidated at 1.2415, advancing 0.82%. The pair was likely to find support at 1.2275, Monday’s low and resistance at 1.2570, the high of April 15. In a report, the U.S. Commerce Department said that total durable goods orders, which include transportation items, declined by 0.5% last month, compared to expectations for a drop of 0.4%.

Pound falls to 2-week lows vs. stronger dollar

The pound fell to two-week lows against the U.S. dollar on Tuesday, as expectations for a U.S. rate hike in the coming months continued to lend broad support to the greenback.

GBP/USD hit 1.5385 during European morning trade, the pair’s lowest since May 8; the pair subsequently consolidated at 1.5415, sliding 0.36%. Cable was likely to find support at 1.5241, the low of May 8 and resistance at 1.5591, the high of May 20. The dollar was boosted after Federal Reserve Chair Janet Yellen reiterated Friday that the bank still expects to start raising interest rates later in the year if the economy continues to improve as expected.
Rupee third on fake foreign currency list in Switzerland!

With Switzerland remaining in focus in India’s fight against black money stashed abroad, the quantum of counterfeit Indian rupee seized by Swiss Police is third highest among all foreign currencies despite a sharp fall from the previous year.

As per the latest ‘counterfeit statistics’ released by the the Federal Office of Police (Fedpol), the total number of counterfeit Indian rupee notes seized during 2014 stood at 181, down from 403 in the previous year.  This is third highest among all foreign currencies after the euro (2,860) and the US dollar (1,101).

Important events and their explanation:
Time ( IST) Currency Economic Data Expectation Previous
 2:00pm GBP Manufacturing Production m/m 0.20% -0.60%
4:30pm GBP BOE Inflation Report
GBP MPC Official Bank Rate Votes 2-0-7 0-0-9
GBP Official Bank Rate 0.50% 0.50%
GBP Asset Purchase Facility 375B 375B
GBP MPC Asset Purchase Facility Votes 0-0-9 0-0-9
Tentative GBP MPC Rate Statement
5:15pm GBP BOE Gov Carney Speaks
6:00pm USD Unemployment Claims 273K 267K

Explanation:-  Out of the above events , GBP MPC Rate and US Unemployment are the most crucial one. We assume Britain’s Central bank will maintain status quo and unchanged the rate . Negative for GBP for a shorter term and US Unemployment figures would gonna increase. Negative for dollar and minor positive for INR.

Quick Glance :


Instrument Price %Chg Volume OI
USD/INR 64.02 0.17 788526 960103
EUR/INR 69.905 -0.82 37048 48836
GBP/INR 99.92 0.07 21059 41217
JPY/INR 51.32 -0.64 7908 15311
Technical touch :

NSE-CUR USDINR 27AUG2015_Daily_1Year

As seen from the chart, Pair is trading above its crucial levels of 64.00 marks and also trading near its converging trendline. We assume USDINR might formed support 63.90 levels with a positive upside till 64.20 levels.


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