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Saturday, June 04, 2011

EGoM meeting on diesel prices in focus

A meeting of the ministerial panel on diesel prices, progress of the monsoon rains and data on industrial production will be on investors' radar next week. A decision on raising diesel price is likely to be taken by the Empowered Group of Minister (EGoM) headed by finance minister Pranab Mukherjee on Thursday, 9 June 2011. If the government hikes diesel prices it will lead to increase in inflationary pressures -- diesel is a key transportation fuel in India.

Market drifts lower on slowdown in services sector in May

The key benchmark indices extended losses for the second straight day as index heavyweight Reliance Industries (RIL) declined after chairman Mukesh Ambani at the company's 37th AGM (annual general meeting) said that RIL has to confront challenges arising out of higher commodity and input prices and inflationary trends. Data showing slowdown in growth in the services sector in May 2011 weighed on the sentiment. The BSE Sensex was down 117.70 points or 0.54%, off about 295 points from the day's high and up close to 30 points from the day's low.