10:00AM New York, 7:30 PM Mumbai - India foreign exchange reserves falls $165 million in the week ending February 20. India’s economic growth eases to 5.3% in the third quarter to December.

Indian stocks fell 0.7% in choppy trading on news the country’s economic growth rose less-than-forecasted to 5.3% in the three months to December from 7.6% in the previous quarter.

The sell off was also sparked by a weaker rupee that prompted foreign funds to offload 6,431.90 crore rupees in the calendar year 2009.

Losses were pared after economic affairs secretary Ashok Chawla said economic growth will be robust in the fourth quarter of the year.

In Mumbai, the BSE 30-share Sensex index declined 0.7% or 63.25 to 8,891.61, and the CNX Nifty declined 0.8% or 22 to 2,763.65.

Of the BSE stocks, 1,054 rose, 1,336 declined, and 66 were unchanged.

Trading Statistics

Daily turnover on the BSE rose to 3,045 crore rupees from 2,696.32 crore rupees yesterday.

Foreign Reserves Decline $165 million

Reserve Bank of India reported today that the country’s foreign exchange reserves fell $165 million in the week ended February 20.

Total stock of foreign exchange reserves, including gold and SDR, declined $165 million to $249.5 billion due to the revaluation of non-dollar assets such as the euro, sterling pound and the Japanese yen against the US dollar.

The value of gold and SDR - the currency with the IMF remained unchanged but reserves with the IMF dropped $9 million.

Money supply growth increased to 19.9%.

India to Provide 5000 crore rupees for Affordable Housing Projects

India’s Cabinet Committee on Economic Affairs yesterday approved an action plan that will see the provision of 5000 crore rupees for the next four years for the provision of affordable housing.

States will be encouraged to increase the supply of land and construct 10 lakh affordable houses.

Government will forge public-private sector partnerships to achieve its goal.

India Unlikely to Achieve 7.1% this year

Economic Times of India reported that the country is unlikely to reach 7.1% economic growth this year on worsening economic conditions.

The report notes that the country needs to expand by 8.1% in the fourth quarter to March 2009.