Foreign Funds pulled off: Is Inflation the reason????

Foreign funds are being pulled from Indian equity market due to towering Inflation. The corporate margins are being decreasing due to rising prices. This Financial year RBI has increased interest rate seven times, however it is difficult to control double digit inflation rate. The reason is the inflation is due to the supply factors and worldwide/international prices (rising oil prices). Again the inflation can even be considered due to rise in purchasing power, which leads to increase in demand but there is decline in agri production compared to this.

As the global economy especially US economy seems to be sustainable the investors are trying to put money in US market along with commodity-heavy markets.

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Exploring Green Gold by Tata

Tata Chemicals are moving to explore farm inputs. Utilizing the best supply chain and distribution channel of Tata Salt and Fertilizer, the company is moving ahead in consumer product with Pulses under i-Shakti brand. Company has done test marketing in Tamil Nadu and has recently entered in Mumbai.


The " Khet Se" Initiative seems to be a step in this direction. Company has made a Joint Venture with Total Produce of Ireland for 'Khet Se'. It is an Initiative from Tata group for one of the major concern areas of wastage of Perishable agri food in India. Acquisition of Metahelix will be helpful to group for research in seeds and to improve its yield.

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