China’s inflation reached a 16- month high.

China’s inflation reached a 16- month high, industrial output climbed and new loans exceeded forecasts, adding to the case for the government to pare back stimulus measures. Consumer prices rose 2.7 percent from a year earlier, the National Bureau of Statistics said in Beijing today, compared with the 2.5 percent median estimate of 29 economists surveyed by Bloomberg News. A weeklong holiday may have boosted prices. Production expanded 20.7 percent in the first two months of the year after an 18.5 percent gain in December. The US senate on Wednesday approved a wide-ranging bill that would push back the deadline to file for extended unemployment insurance until year-end and extends dozens of expired tax breaks. The U.S. Commerce Department said wholesale inventories fell 0.2% in January, after a 1% drop the month before, raising expectations that consumer demand is strengthening. The Treasury Department said the government suffered a record $220.9 billion budget deficit in February, after a shortfall of $42.6 billion in January. It was the 17th consecutive monthly deficit and was slightly smaller than the $221 billion shortfall economists had forecast. Losses for oil companies are expected to increase on the back of increase in subsidies. The economic system is yet to stabilize as of now, as per ex-RBI Governor, Mr. Y V Reddy. Steel prices are set to rise on high raw material costs. LIC Housing Finance is interested to apply for a banking license.
TCS will enable state government, set up online delivery of services.
Tata Steel may face issues with regard to supply of iron ore from Orissa. Thermax and Babcock have entered into JV for supercritical boilers. Titan is planning to enter South East Asian markets in a big way. Gammon India has bagged orders worth Rs.600 crore. Jayshree Tea has lined up Rs.120 crore for acquisition. The board of BSNL has cleared a proposal to disinvest 30% in the company. Magma Fincorp has signed an agreement with VE Commercial vehicles – a 50:50 joint venture between Volvo Group and Eicher Motors. GVK Power and Infrastructure has won an order of Rs.5000 crore. Nifty March contracts ends the Day up by 21.20 points at a premium of 2.00 points adding OI by 2.0%. Nifty OI PCR at 1.394 compared to 1.351 at the close of last Day. Nifty puts sees addition of 38.13 lakhs and calls sees addition of 12.04 Lakhs over the Day. Highest OI in Nifty calls seen at 5100 March strike and puts at 5000 March strike. Nifty VIX at 20.01 from 20.80 last Day.
Ø Long build up seen in MCLEODRUSS, AMBUJACEM, HDFC, HEROHONDA, PATELENG, ACC, BRFL & ITC during the day. Short build up seen in LICHSGFIN, OPTOCIRCUI, BHARATFORG, TRIVENI, BAJAJHIND, ADANIENT, CHAMBLFERT, BALRAMCHIN, RENUKA & FSL during the day.
Ø FII side over the Day saws long build up in Nifty futures and short build up in stock futures and addition in Nifty options.