Economy needs more stimulus in 2009-10: Ahluwalia

The Indian economy needs more stimulus in the next fiscal to counter the impact of global economic slowdown, Planning Commission Deputy
Chairman Montek Singh Ahluwalia said. "We need a little more stimulus in 2009-10. But there are certain issues which have to be taken up," Ahluwalia said on the sidelines of a function here. About the GDP growth projection by the Planning Commission, Ahluwalia said multiple models have been used to derive the figures and have been suggested to the Prime Minister. "We have sent a note to the Prime Minister. Planning Commission dosen't have any projection. What we said to the Prime Minister-- we used multiple models to know what is likely to be growth rate next year," he said. "There is certain base level of growth which we thought was around 9 per cent. Then you knock off from the growth the affects of shock. Then we add to it the affect of the positive stimuli... So there are different numbers depending on the affects of shock and stimulus measures," he added. Earlier, Ahluwalia projected a growth rate slightly less than 7 per cent in the current fiscal and the next fiscal.

FIIs buy Rs 80 crore stocks
Foreign institutional investors (FIIs) on Friday were the net purchaser of Indian
stocks worth Rs 80.43 crore in a flat market, where the
BSE's benchmark index gained a nominal 0.45 per cent to close at 10,048.49 points. FIIs were the gross purchaser of shares worth Rs 1,906.29 crore, while they sold equities valued at Rs 1,825.86 crore resulting in a net investment of equities worth Rs 80.43 crore, as per the provisional data available with the Bombay Stock Exchange. On Thursday, FIIs were the net seller of equities worth Rs 297.60 crore, according to the latest data available with the market regulator Securities and Exchange Board of India (SEBI). As per the BSE data, in today's market, domestic institutional investors (DIIs) were the net inventors of Rs 42.98 crore in shares.
Stocks like Tata Motors, Tata Steel, Reliance Industries, HDIL , Reliance Petro
are in good demand

2009 very dangerous for economy
World Bank president Robert Zoellick said on Friday that 2009 was turning into "a very dangerous year" for the global economy.
Financial crisisCompetitive economiesGhosts of 1929US mortgage crisisFive facts on stock falls"2009 is shaping up to be a very dangerous year," he told reporters ahead of Saturday's G20 finance ministers meeting on how best to tackle the worst economic slowdown in decades. "I believe it will be a positive sign if the G20 supports extended IMF resources, condemns protectionism and supports practical solutions," Zoellick said. The G20 includes the Group of Seven industrialised countries -- Britain, Canada, France, Germany, Italy, Japan and the United States -- the European Union and leading developing nations including Brazil, China and India. Finance ministers and central bank leaders from the United States and Europe go into Saturday's meeting deeply divided on whether stimulus packages or tighter regulation of the finance sector should be the way forward. Saturday's gathering in Horsham, south-west of London, is expected to lay the groundwork for a G20 heads of state summit on April 2" for the global economy.
Financial crisisCompetitive economiesGhosts of 1929US mortgage crisisFive facts on stock falls"2009 is shaping up to be a very dangerous year," he told reporters ahead of Saturday's G20 finance ministers meeting on how best to tackle the worst economic slowdown in decades. "I believe it will be a positive sign if the G20 supports extended IMF resources, condemns protectionism and supports practical solutions," Zoellick said. The G20 includes the Group of Seven industrialised countries -- Britain, Canada, France, Germany, Italy, Japan and the United States -- the European Union and leading developing nations including Brazil, China and India. Finance ministers and central bank leaders from the United States and Europe go into Saturday's meeting deeply divided on whether stimulus packages or tighter regulation of the finance sector should be the way forward. Saturday's gathering in Horsham, south-west of London, is expected to lay the groundwork for a G20 heads of state summit on April 2