Business Standard Summary - 12th October

Submitted By
Falak Agarwal
Dhananjay Saraswat
Section : G
Group : 6


Sensex 20339.89
Nifty 6135.85
Gold 19540
(10 gm)


1. FM PROMISES ACTION ON CAPITAL INFLOWS WHEN IT IS NEEDED
• Rising capital inflows posing fresh risks to financial stability is a global concern
• India has not yet reached the alarming level
• Increasing capital inflows is identified as a “policy challenge” that could “pose significant risks to the financial stability” of Asia in meeting of World Bank and International Monetary Fund in Washington,
• India has argued for a 5-6 per cent shift in quota share from advanced economies to developing countries, and Mukherjee had reiterated this position in Washington.

2. THREE SHARE NOBEL FOR LABOUR MARKET THEORY
• Peter A Diamond, Dale Mortensen and Christopher Pissarides shared the 2010 Nobel Prize in Economic Sciences for research into the difficulties of matching supply and demand, particularly in the labour market.

3. INDIA SET TO GET SECURITY COUNCIL SEAT AT UN
• As kazakhstan is pulled out from the race for the seat on the security council as a non permanent member so India is all set to get a seat after a gap of 19 years.
• If germany wins one of the seats for the western europe group then all four members of the G4(India, Brazil, Japan and Germany) who wants to become permanent members will be on the council

4. COAL MINISTRY THRETENS TO CANCEL ALLOCATION TO NTPC AND 7 OTHERS
• The coal ministry has made a list of 93 coal blocks where development is not been satisfactory and is currently processing showcause notice to NTPC and seven others
• NTPC has recieved notice for delay in development of three blocks Chattidariatu, Kerandari and Dulanga asking them the reasons for the delay in the devlopment of block and why it should not be taken as vioilation of tearms and condition

5. TWITTER TURNS TO ADS
• Twitter has exploded to 160 million users, from three million, in the last two years — is reminiscent of Google and Facebook in their early days.
• The ad industry was closely watching Twitter to see if it continues the path.
• Another telling sign of Twitter’s newfound interest in pushing its advertising is that although fewer than 20 of the company’s 300 employees work on advertising, that is in contrast to one just three months ago.

6. DOPE SCANDAL HITS GAMES
• Nigerian women’s 100m gold medallist Osayomi Oludamola was found testing positive for a banned stimulant, prompting authorities to suspend her until the result from a second sample is known.

7. PRE-MARKET BIDS FROM OCTOBER 18
• Bids for shares before bourses open to reduce price swings.
• The National Stock Exchange and the Bombay Stock Exchange will introduce a 15-minute session during which buy and sell orders can be placed and matched for benchmark stocks before trading starts at 9.15 am starting on October 18

8. RBI’S‘INTERVENTION’ CAUTION CALMS
• The local currency closed on Monday 44.41 per dollar, compared to 44.44 per dollar on Friday
• This year, foreign institutional investors (FIIs) have so far purchased $21.4 billion of stocks, the highest in any year since such investments were permitted in 1992. FIIs have bought $10.5 billion bonds since January, compared to a total investment of almost $18 billion until now. Adding to the inflows are investments in share sales by local companies.
• Purchase of dollar to prevent the rupee from appreciating would result in adding more rupees to the banking system, thus working almost to the contrary of its policies.

9. Deposit rates may rise 50-100 bps in H2: Crisil
• The rates for short-term bulk deposits, which are more sensitive to liquidity, could see a rise of up to 100 basis points.
• The credit off-take will be substantially higher in the second half of 2010-11 since credit demand in India is by nature back-ended, in the event of the festive and agricultural harvest seasons during this period
• RBI has raised the repo and reverse repo rates by 100 and 150 basis points, respectively, primarily in response to inflationary pressures in the economy. Now the repo rate, or the rate at which RBI lends money to banks, is six per cent while the reverse repo rate, rate at which RBI accepts funds, is five per cent.