Greece crisis

Oil rose to near $78 a barrel on Wednesday in Asia amid hopes that Europe will contain the debt crisis that has engulfed greece and threatens to destabilize other countries that use the Euro. but sentiment recovered on Tuesday following reports that Europe was talking steps to bolster its banking sector, which is thought to be heavily exposed to Greek debt and could face crushing losses if the country defaults. Wall Street ended higher after a day of wild gains and losses. The Dow gained 1.4 per cent, while the Standard and Poor's 500 rose 2.2 per cent and the Nasdaq composite rose 3 percent. Investor concerns about Greece were heightened when the debt-strapped country said over the weekend it will miss its lower budget deficit targets even after severe cost-cutting. Despite the shortcoming, Europe pledged to loan Greece money to help pay its upcoming bills, but that failed to reassure stock and commodity markets. European markets tumbled on Monday after Greece said it wouldn't be able to reduce its budget deficits as much as it had agreed to as part of a deal to receive more emergency loans.

Asian Stock Market extended a sell - off

Asian stock markets extended a sell-off on Tuesday, following a dismal session on Wall Street that was sparked by the revelation that debt-strapped Greece would not be able to reach a target for reducing its budget deficit. Asian markets tumbled sharply in early trading on Monday, hurt by data suggesting debt-strapped Greece attempts at austerity were not yileding results and a weakening economic picture in Europe. Japan's Nikkei 225 fell 2.3 per cent to 8,503.88, with a government survey showing an improvement in business confidence among Japanese manufacturers doing little to nudge markets back to life.

Inflation and interest rate keeps market fluctuate

Inflation

Apart from concerns over a slowdown of the US economy and the euro zone debt crisis, high domestic inflation and fears of an interest rate hike will keep the stock market volatile this week, say experts. Headline inflation stood at 9.44 per cent in June, while weekly food inflation shot up to 9.9 per cent at the end of July, sparking fears of a further round of interest rate hikes to tame prices.

Problems in dairy farming

Dairying is a centuries-old tradition for millions of rural households; domesticated animals have been an integral part of the farming system from time immemorial. It provides supplementary income to some 70 million farmers in over 500,000 remote villages the farmers earn an average 27.3 percent of their income from dairying, with as high as 53 percent for landless and as low as 19 percent for large farmers. Annual milk production in India have more than tripled in the last three decades, rising from 21 million tones in 1968 to 80 million metric tones in 2001. Despite this impressive growth in milk production in the last three decades, productivity of dairy animals remains very low. Currently more than 80 percent of the milk produced in the country is marketed by unorganized sector is likely to dissuade small dairy farmers from expanding production, which is absolutely necessary to keep up with the strong demand growth.

NBFC stocks rally as RBI unveils new banking norms

RBI on Tuesday disallowed credit enhancements in transactions where banks buy loans from NBFCs (Non-Banking Financial Company). The regulator has proposed that banks follow the pass-through certificate (PTC) route instead. Currently, most priority sector portfolio sales by NBFCs to banks are done through the credit enhancement route. "For NBFCs, if the buyouts happen through PTCs rather than assignments, capital requirements will rise Shares of non-banking finance companies (NBFCs) such as Bajaj Financer, Reliance Capital, M&M Financial Services and Srei Infrastructure Finance Ltd posted gains for the second day after the Reserve Bank of India (RBI) released draft guidelines for licensing of new banks in the private sector. The RBI has proposed new regulations for non-banking finance firms (NBFCs), mostly centered on minimizing the regulatory arbitrage opportunities available to NBFCs as compared to banks. One of the major changes proposed by the RBI is to bring the capital adequacy requirements and asset classification and provisioning norms for NBFCs in line with the banks.

Suggestions to improve the growth of dairy farming in india

1. Cooperative banks and other national banks should come forward to extend liberal credit facilities to the farmers particularly small and marginal farmers for the development of dairy enterprise.
2. Establishing a veterinary service center to improve the efficiency of the artificial insemination scheme, veterinary services must be provided to the farmer door on all bases at a reasonable cost.
3. The changing cropping pattern should aim to produce sufficient green and dry fodder to livestock population in the village and encourage the farmer to take up fodder cultivation on a commercial basis.   

RBI reports show the imparting a downward bias

The Annual Report for 2010-11, a statutory publication of the Reserve Bank of India's central board, covers two broad areas — assessment of macro economy in 2010-11 as well as prospects for 2011-12 and working and operations of the RBI and its financial accounts. The economy returned to a high growth path in 2010-11. However, there were significant challenges: investment slowed, fiscal consolidation was achieved through one-off and cyclical factors and inflation remained sticky on the back of new pressures. In response, the RBI has raised the policy rates by 475 basis points (on a cumulative basis) since March, 2010. The central bank's medium-term target for inflation has been 3 per cent. After growing slightly above its recent trend in 2010-11, the economy can be expected to decelerate this year. But quite significantly, the growth rate will still be around 8 per cent. However, there is a possibility of global problems getting magnified and imparting a ‘downward bias' to India's growth rate. Indian equities may have shrugged off the latest increase in policy rates, but the outlook for the markets remains cautious amid concerns over stubborn inflation and the Reserve Bank of India's continued hawkishness