March 16, 2011 by akhilendra
OECD outlook for Indian Economy indicates a slow down
The Organization for Economic cooperation and development indicates a slow down for Indian economy in the coming period. The January composite leading indicator (CLI) grew at the whole and indicated a positive scenario for most of the Europe and the developed world. Italy is the only major economy in Europe which can witness down turn.
Outlook is positive for Britain, France, Germany and United States. In regard of some of the major developing economies, OECD indicators pointed towards a moderate slowdown in India. Stability in Brazil and expansion in Russia are the finding of the report. China too will witness a slight slowness in its growth.
Here are the findings of the report;
OECD Area – CLI index is 103.1
Euro Zone – 103.4 from 103.3
China – 101.6 from 101.7
India – 99.3 from 99.7
Brazil – 99.9 from 100
Russia – 105.4 from 105
USA – 103.2 from 102.5
Italy – 102.2 from 102.3
Japan – 104.7 from 103.9
As far Japan is concerned, after such a horrific natural disaster, it is very difficult to say how things are going roll out there in the future. But outlook about India definitely indicates a slight slowdown. Japanese crisis may impact some of the sectors in India too. Indian stock markets are already struggling for last few months. Though they have risen today but no one can predict if they can hold on to it.
These factors indicate that slowdown is here to stay for some time. Inflation is already out of the comfort zone and Reserve Bank of India may further increase the rates. Rake hike will impact rate sensitive sectors like banks and other financial institutions.
This is not the power play period where traders can expect to make strong gains everyday but this is the time to consolidate and pick the stocks to build a healthy portfolio for the days to come.
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