French President Nicolas Sarkozy and Indian Prime Minister Manmohan Singh may sign a draft accord today for Areva SA to build two nuclear reactors. Sarkozy will meet President Pratibha Patil later today.
Sarkozy is travelling with a group of 50 chief executives including Dassault Aviation SA’s Charles Edelstenne, EADS’s Louis Gallois, MBDA’s Antoine Bouvier and Areva SA’s Anne Lauvergeon on a four-day tour to India. He will attend a business conference in Mumbai tomorrow.
France was India’s fifth-biggest trading partner in 2009. French-Indian trade in the first nine months of this year was worth 5.3 billion euros ($7 billion), down from 7.1 billion euros in 2008, according to the French government.
India will report data on food inflation on Dec. 9. The measure slowed to its lowest level in one and a half years last week as monsoon rains raised crop output and moderated prices.
An index measuring wholesale prices of farm products such as lentils, rice and vegetables compiled by the trade ministry rose 8.6 percent in the week ended Nov. 20 from a year earlier, a report showed last week. It was the first time the rate fell below 10 percent since May 2009.
The country received the most rain in three years in the June-September monsoon season. Reserve Bank of India Governor Duvvuri Subbarao, who raised interest rates on Nov. 2 for the sixth time this year, has said the central bank may refrain from boosting them for three months.
The central bank predicts the benchmark wholesale-price inflation rate may slow to 5.5 percent by March 31 from 8.58 percent in October.
The government will release the industrial production data for the month of October on Dec. 10.
Indian equities rose last week, with the benchmark index posting its largest weekly gain in a month, after government data showed the economy grew 8.9 percent for a second quarter.
The Bombay Stock Exchange’s Sensitive Index, or Sensex, advanced 4.3 percent last week, ending three weeks of losses. Reports showing an increase in U.S. payrolls and manufacturing instilled more confidence in a global recovery, boosting prospects for growth in domestic earnings. Tata Motors Ltd., the owner of Jaguar Land Rover, and Jindal Steel & Power Ltd., the nation’s second-biggest producer, were the biggest gainers.
The rupee climbed 1.6 percent to 45.11 against the dollar, completing its biggest weekly gain in two months, according to data compiled by Bloomberg.
India’s 10-year bonds completed the biggest weekly loss in more than five months as a shortage of cash in the banking system reduced demand for debt. The yield on the 7.80 percent note due May 2020 rose 21 basis points last week to 8.18 percent, according to the central bank’s trading system.
Event Date Food Inflation data Dec. 9 Industrial Production data Dec. 10