THE FINANCIAL EXPRESS SUMMARY - 13th October

SUBMITTED BY
DEPENDER DIVYA BANSAL
GAURAV RAI
SECTION-I

IIP growth plummets to 5.57%
IIP grew at 5.57% in August, nearly half of the year ago period slowest rate in 15 months.
Slow growth in manufacturing sector owing to tight interest rates resulted this slowdown in IIP growth.
The negative growth in the production of capital goods is the the most factor.
Finance Minister Pranab Mukharji as well as Finance Secretary Ashok Chawla suggested that one should wait and watch as the steps taken by RBI are appropriate and the current trend is just a cyclic one.
Central bank may hike interest rates
Inflation rate has touched 8.5% in september this year and this might tempt RBI to hike interest rates in 8.50%
WHOLESALE price index for all commodities saw an annual rise of 8.50%
Policymakers see inflation moderating to around 6% by the end of December.
But the analysts are not so optimistic about a sharp decline in inflation rate in coming months as prices of food and non food items are rising.
RBI has already raised reporate by 125bps and reverse reporate by 175bps in 5 stages between march and September this year.

Not right time to deregulate diesel
As inflation is still high the government has said not to deregularise diesel prices.Finance secretary Ashok Chawla has said at a panel discussion on cnbc tv 18 that it will not be wise or prudent to deregularise the diesel prices.
Government had deregulariosed the prices of petrol in june but dint take any decision to lower down the diesel prices.
In order to calculate inflation government has come out with a new index in which it aws revealed that the rate of price rise declined by 1.3% points to a 7 month low of 8% during that month.
The rate of price rise dipped marginally from 10% in july to 9.5% in august when the old inflation series was released with the new series.

Coal India issue price band set at Rs 225-245
The company will offer 5% discount on the issue price between Rs 225 and Rs 245 per share for its employees and retail investors.
The IPO will be open between October 18 and 21
The government will put on block 631.64 million shares,of which 63.16 million shares will be reserved for employees at 5% discount.
On listing, Coal India could become the second most valuable coal producing company with a market capi talisation of $35 billion compared with $84.7 billion for China Shenhua.

SENSEX - 20687.88
NIFTY- 6233.90