Eventful week ends on positive note - Microsec

The week was quite eventful on account of WPI Inflation data, RBI mid-quarter monetary policy and the much awaited Fed tapering.

On Domestic front, India's Inflation came in at 7.52 percent YoY in November 2013 against 7.00 percent YoY in the previous month. While, acceleration in price level was witnessed across all broad categories, the uptick was more prominent for Primary Articles and Fuel group. Food Inflation rose sharply in November to a 41 month high.

India's Foreign Exchange Reserves fell by USD192.8 million to USD295.51 billion during the week ended December 13, 2013 due to decline in Foreign Currency Assets. The Currency Assets stood at USD268.56 billion. The value of gold reserves was USD20.6 billion.

On Global front, The U.S. Federal Open Market Committee (FOMC) finally decided to start tapering its third round of quantitative easing (QE3). Beginning in January, MBS purchases will be reduced to USD35 billion-a-month (from USD40 billion/month) and the pace at which the Fed purchases longer-term Treasuries slows down to USD40 billion-a-month (from USD45bn/month). The FOMC made this decision because of the reduction in unemployment and the stronger non-farm payrolls in recent months.

The U.S. economy grew at its fastest pace in almost two years in Q3 of 2013. GDP grew at a 4.1 percent annual rate instead of the 3.6 percent pace reported earlier. That was the quickest pace since Q4 of 2011. GDP grew at a 2.5 percent pace in Q2 of 2013.

The U.S. Initial Jobless Claims rose to the highest level since late - March, 2013. Initial Jobless Claims increased by 10,000 to a seasonally adjusted 379,000 for the week ending December 14, 2013.

Source : Equity Bulls

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