RBI hints at more steps

Reserve Bank Governor Duvvuri Subbarao today said April inflation at 8.66% was too high and stressed upon the central bank's resolve to batten it down to a comfortable level, indicating that he will continue with the hawkish monetary stance.

Stating that inflation needs to be brought down to a comfortable level to maintain high growth, the Governor said, "if you try to drive up growth by driving up inflation, what you will get left with is high inflation".

The Government data released today showed a minor dip in headline inflation to 8.66% in April, driven by a moderation food and manufactured items prices.

However, the Government revised upwards the March figure to 9.04%, which was provisionally reported at 8.98%. It also revised upwards the numbers for February to 9.54% from the provisional 8.31%.

Disagreeing with the idea of inflation-growth trade-off, which is gaining currency among a section of economists, Subbarao said, "Nowhere in our history we can prove that we have had high inflation and high economic growth.

Gold futures down due to profit-booking

Gold prices fell by 0.31 per cent to Rs. 22,185 per 10 gram in futures trade today amid profit-booking by speculators and a weak trend overseas. At the Multi Commodity Exchange, gold for delivery in August declined by Rs. 69, or 0.31 per cent to Rs. 22,185 per 10 grams, with a business turnover of two lots.

Similarly, the yellow metal for delivery in June shed Rs. 63, or 0.29 per cent to Rs. 21,898 per 10 grams, with a business volume of a single lot. It had gained 0.20 per cent at Rs. 21,961 per 10 grams in the previous session. Gold for delivery in December also fell by Rs. 65, or 0.28 per cent to Rs. 22,891 per 10 gram, with a trade volume of two lots.

Analysts said besides profit-booking by speculators, a weakening trend overseas as a stronger dollar reduced the appeal of precious metals as an alternate investment.

In the Asian region, gold shed $ 6 to $ 1,489.20 an ounce.

Toyota to resume normal production in India from May 20

Japanese car giant Toyota today said it will resume normal production in India from May 20 after being compelled to slash output by 70 per cent since April 25 due to component supply constraints following the devastating earthquake and tsunami that hit the island nation.

During the period of low operations, production was curtailed by about 10,000 units, translating into a revenue loss of about Rs 650 crore for its Indian entity, Toyota Kirloskar Motor (TKM).

“The parts that we were not getting will start arriving in coming days. That is why we are confident of resuming normal operations earlier than expected,” TKM Deputy Managing Director (Commercial) Shekar Viswanathan told PTI.

In the wake of the disruption in supplies, the company had earlier suspended production on Mondays and Fridays between April 25 and June 4.

“We lost about 10,000 units of production across all models... Because of the production drop, the revenue loss was on an average Rs. 6,50,000 per vehicle,” Mr. Viswanathan said.

On that basis, the overall production loss of 10,000 units translates to about Rs. 650 crore.

TKM currently manufactures models like the Etios sedan, multi-utility vehicle Innova, premium sedan Corolla Altis and SUV Fortuner in India.

At present, the waiting periods for Etios and Fortuner are about four months each, while that of Innova and Corolla Altis are three months and one month, respectively, he said.

“Plans are afoot to recover the loss of production and reduce the waiting period. The plant will function on all weekdays and some of the non-working Saturdays,” the company said.

TKM primarily imports engine and transmissions from Japan and other regions.

The company also said the upcoming launch of its small car, Etios Liva, in India is on track.

“We are now all set to launch the Etios Liva. The launch will be as per schedule in the last week of June,” TKM Deputy Managing Director (Marketing) Sandeep Singh said.

The company’s first facility, which produces the Innova, Corolla Altis and Fortuner, in Bangalore has a production capacity of about 80,000 units per annum.

Asian Currencies Decline

Asian currencies dropped, led by Malaysia’s ringgit and Singapore’s dollar, as demand for emerging-market assets declined on concern Greece’s debt crisis will worsen.

The ringgit fell to its weakest level in almost two months and the Singapore dollar retreated to a one-month low after President Barack Obama said failure to raise the U.S. government debt ceiling by early August might disrupt the global financial system and plunge the world’s largest economy into another recession. Greece will plead today for a boost in its 110 billion-euro ($155 billion) financial lifeline from European governments and the International Monetary Fund

सोना 1500 डॉलर के नीचे

कमोडिटी बाजार में सोने और कच्चे तेल में नरमी देखी जा रही है। सोना एक बार फिर 1500 डॉलर के नीचे कारोबार करता दिख रहा है। कच्चा तेल भी 99 डॉलर के नीचे फिसल गया है। वहीं चांदी बढ़त के साथ 35 डॉलर के ऊपर बनी हुई है। यूरो के मुकाबले डॉलर में आई मजबूती की वजह से कमोडिटी पर दबाव बन रहा है।

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जीरे को निचले स्तर की खरीददारी का फायदा मिल रहा है। वहीं आज जीरे में बढ़त के आसार हैं। जून वायदा में आज जीरा 14700-15100 रुपये पर कारोबार के आसार हैं। वहीं शनिवार को जीरा हल्की गिरावट के साथ 14215 रुपये प्रति क्विंटल पर बंद हुआ था।

सोयातेल को अंतरराष्ट्रीय बाजारों में मजबूती का फायदा मिल रहा है। जून वायदा में आज सोयातेल को 626-636 रुपये के बीच कारोबार कर सकता है। जबकि शनिवार को सोयातेल 626 रुपये पर बंद हुआ था।