LIC Housing slashes lending rates

LIC Housing Finance declares cut in the interest rate for existing home loan borrowers by 0.75 per cent with effect from January 1, 2009, according to media reports.

For loans upto Rs 20 lakh and above five years, LIC Housing Finance has reduced lending rates to 9.75 per cent. On December 17, LIC Housing had already reduced interest rates for loans up to Rs. 20 lakh and upto five years, the lending rates stand at 9.25 per cent.

LIC Housing Finance has carried out the cut on exsiting home loan borrowers considering the cut in interest rates on home loans by banks. The cut in repo and reverse repo rate by the Reserve Bank of India is the biggest factor for these changes.

ICICI Bank reduces home loan rates

India's second largest bank, ICICI bank has reduced interest on home loans by 1.5 per cent to 11.5 per cent from 13 per cent, according to media reports.

The interest rate change will be applicable on home loans of less than Rs. 20 lakh. This move by ICIC came just ahead of Reserve Bank of India's announcement of reduction in repo and reverse repo rates.

The change in the interest rate would be applicable for new home loans only,. There is no change in the interest rate for existing home loans by the ICICI bank. The change in the home loans interest rate by the ICICI bank would be effective from Monday.This is a gift by the ICICI bank to the customers on the eve of New Year.

RCom announces launch of GSM services

Reliance Communications, part of the Anil Dhirubhai Ambani group, on Tuesday announced the launch of GSM-based cellular services in 14 circles, according to media reports.

Reliance Communications has become the only operator to offer GSM as well as CDMA services on a nationwide basis. State-run BSNL and MTNL offer similar services in select regions only.

The company has invested Rs 10,000 crore in order to provide the GSM services in India. The GSM by the company would cover 11,000 towns and 3 lakh villages to 24,000 towns and six lakh villages over the next few months, media reports quote.

Air India announces fare cut up to 82%

A day after Jet Airways reduced fares on domestic routes, state-owned operator Air India on Tuesday announced fare cut up to 82 percent in at least 20 sectors, mostly on metro routes, according to media reports.

The cut in the fares by the Air India will come into effect from Tuesday. The cut will boost the tourism industry on the eve of New Year celebration. This is favorable time for all the tour operators and this would help to prepare a good travel package for tourists.

DoT To Put Off Auction Of 3G Spectrum

The Department of Telecommunication (DoT) has reportedly not received sanction from the Cabinet Committee on Economic Affairs over the much awaited 3G spectrum, according to media reports. Earlier, the government has announced 16 January as the date for the auctioning of 3G spectrum.

Media reports quote that the entire process of auctioning of 3G spectrum and high tech mobile services may get derailed if the sanction was delayed beyond January 2009 . The general election to be held in 2009 and the election process may further delay the process.

Fuel price cut under consideration: Deora

The Petroleum Minister Murli Deora on Monday said the government was considering passing on the benefit of the fall in international crude oil prices to consumers, according to media reports.

The government had earlier this month reduced the price of petrol by Rs 5 a litre and diesel by Rs 2 per litre. The crude oil is sliding below $40 a barrel in the international market, considering the slide in the price of crude in the international market, the government of India may consider further cut in the fuel prices.

The media reports quote that there was further scope for cutting the petrol price by up to Rs 11 a litre and diesel by Rs 3 per litre. This would be a great relief for the people as on one hand the inflation is decreasing and cut in fuel price would have positive impact on prices and market.

PNB, BoB cut interest rates up to 125 bps

Punjab National Bank, Bank of Baroda and Dena Bank on Monday declared reduction in their benchmark lending rates up to 75 basis points. The change would be effect from January 1, 2009.

The Punjab National Bank (PNB) has reduced the benchmark prime lending rate (BPLR) would come down to 12 per cent from the existing 12.50 per cent. The PNB also announced a reduction in its peak deposit rate by 100 basis points to 8.5 per cent for deposits of one year to less than three years.

Bank of Baroda has reduced BPLR by 75 basis points from existing 13.25 per cent to 12.50 per cent with effect from January 1, 2009, while Dena Bank reduced BPLR to 12.75 from 13.5 per cent, according to media reports.

Impact of global financial crisis on diamond industry

More than 13 lakh workers and their families are dependent on diamond, gems and jewellery industry in only Surat, Gujarat. Where as the number is much are if the expansion of the industry considered across India.

The global financial crisis has been widening and many sectors have been under the grip. Diamond industry of India is one of the worse hit. The diamond industry depends on the strong financial condition of banking in India and the growth of the industry depends on the fund mobilization into the industry.

The global financial crisis and credit crunch hit the diamond industry badly. The impact is much more than as expected, the people associated with diamond, gems and jewellery industry are badly affected. Alike other companies, there are reports of more than one lakh lay-offs in recent months in the diamond industry too due to the global meltdown.

The export of the diamonds from India have been too affected as the world economy is reeling under the global credit crunch. There is need to check the impact of global financial crisis on the Indian diamond industries.

Inflation dips to 6.61% from 6.68 %

The inflation dips further to 6.61 per cent to 6.68 per cent for the week ended December 13. Previous week the inflation was recorded at 6.68 per cent.

The inflation dips a nine months law as on the week ended December 13. Couple of months back the inflation was at peak and once it touched to high as of 13 years.

In this fiscal year, the inflation in double digit was also seen but thanks to the fiscal measures and cut the fuel prices which led to the drastic fall in inflation.

The government had raised the price of fuel prices which reportedly sparked the prices of the essential goods and services. The fall in the international crude prices gave a relief to the people back in India. The government of India has cut the fuel prices considering the drastic fall in the global crude price.

It's good time for the people as the inflation has been decreasing significantly. The price of essential goods and services would be in reach of the common people and the fall in the inflation will impact on the market.

The inflation would not be a big toll for the government in the coming New Year unlike current year. The inflation has been a sensational issue in India. Inflation has become political issue when it touched to the double digit mark.

World’s biggest refinery poised to start in Jamnagar

Reliance Industries is set to start world’s biggest refinery in Jamnagar, Gujarat, according to media reports. The $6-billion project will make the oil complex in Jamnagar the world’s single biggest supplier of fuels to the global market, pumping out 1.24 million bpd of ultra-clean fuels to Europe, Africa and the United States.

Run by subsidiary Reliance Petroleum Ltd, in which Chevron Corp holds a 5 percent stake, the refinery will at a stroke more than satisfy the world’s additional oil product demand next year. The refinery would help India in meeting the demand for oil.

The import of the oil from foreign countries would be differed due the production from the refinery. The new production from the new refinery would help to reduce many expenditures of the government and would favorable for the people of India and would have impact on oil prices in India.

Global financial crisis may hit export sector

The on going global slowdown would hit the Indian export growth. The export of India witnessed 30-33 per cent growth in 2007-08. The global financial crisis would certainly effect on the export sector.

The government however may declare further packages for many sectors in near further to minimized the damage out of the global slowdown.

The export sector from the mid current year has been affected due to the global economy tumble and the fluctuation in foreign values. Many nations have been hit due to the global slowdown and one of the major economies – Japan come under grip of recession.

Hope the government may come out with special attention towards the export sector to bail out from the impact of global financial crisis.

Cairn India discovers new oil field in Rajasthan

Indian oil explorer Cairn India has discovered a new oil and gas field in west India state Rajasthan's Barmer district. The newly discovered area is located approximately 1.5 km east of the Raageshwari 1 well which is a commercial and approved field development plan, according to media reports.

The newly found oil and gas field is located at a distance of around 480 km from Jaipur, the capital city of Rajasthan. The company got initial success on November 21 test, as it found credible clues of oil in the filed.

On November 24, the company reached total dept and produced API oil at a stabilized rate of 500 barrels of oil per day. In addition to that the there was production of 0.4 mmscfd gases from the site. The discovery would definitely help to reduce country's import bill and lower some burden of its foreign reserve kitty.

SBI: PLR cut by 75 basis points to 12.25%

The State Bank of India (SBI) has declared a 75 basis points cut in its benchmark prime lending rate (BPLR) from 13% to 12.25% on Tuesday, according to media reports.

The cut in the BPLR will be effective from the New Year, i.e. 1st January 2009.As per the new change in the interest rate structure, a 1,000-day deposit will earn the highest rate of 9% against 10% earlier in the deposits slab.

And 4.75 per cent would be paid to the short-end deposits of 15 to 45 days, the media reports quote. It is also expected that the SBI may scale down the floating interest rates on existing auto and education loans.

Jaypee Hotels to merge with Jaiprakash Associates: BS

Hospitality major Jaypee Hotels today said it has received approval from its board for the merger of the company with parent firm Jaiprakash Associates.

The company informed in filing to the Bombay Stock Exchange that the broad has approved the amalgamation of Jaypee Hotels with Jaiprakash Associates with effect from April 1, 2008. However, the merger is subject to requisite approvals and sanctions from the court, according to media reports.

IT industry to grow at 20%: Nasscom

The Chairman of the National Association of Software and Services Companies (Nasscom), Ganesh Natarajan says that the IT industry in the country is expected to clock a growth of 20 per cent in 2008-09, according to media reports.

The global financial crisis has been widening and all sectors including IT and ITES have been affected. It is expected that IT and ITES sector will overcome from the global financial crisis in near future.

In the global IT arena, India is a big player no doubt in that. But the global meltdown hit Indian IT services and ITES services. There are job cuts and cost cut measures have been adopted by companies including IT to bail out from global slowdown.

It is projected that by 2020 the size of IT industry would be reach to $300 billion and the role of India would be significant. The present scenario is a bad patch for India IT industry, as companies have been suffering huge losses.

India’s GDP to grow 6%: Amartya Sen

The Nobel Laureate Amartya Sen expects that India's GDP growth is likely to drop to 6 per cent during this fiscal year. As Indian economy is reeling under the pressure of global financial crisis.

The global financial crisis would have heavy impact on the India economy. The government has been trying various measures to minimise the damage due to the global slowdown. The government has declared fist bail out package and would declare another package to cover other sectors.

The India economy is under tremendous pressure and the Indian Industrial Output has drooped by negative for the first time for 15 years. There is need to pay attention towards the industrial output which is drooped to lowest level in the third quarter due to the low demand forces.

Once, it was speculated that the during 2008-09, India's GDP rate would grow to double digit. But there is a slide in the GDP rate, and the performance of the fourth quarter would be important to determine the over all GDP rate in this current fiscal.

Slowdown hits Reliance Industries

It is the major impact of the global financial crisis that made Mukesh Ambani to differ the investment of Rs 30,000 crore in semiconductor business, according to media reports. The impact was such huge that the company not only differed the decision but also asked some of employees of the division to resign.

Indian companies have been affected due to the global slowdown. The companies could revive from the pressure only after the world economy bails out from the crisis. The impact of the globalization is clear on Indian economy and the reforms of 90's are under question mark.

Almost all industries have been fully concern with the global slowdown that has been affecting the revenues. There is need to check the impact with more and more fiscal measures. Since the government has been putting effort to check the impact, its time to wait and see. The measures are being effective in boosting up the demands of certain goods and services but further effort would minimise the damage.

HDFC slashes home loan rates by 50 bps

Country's largest housing finance company HDFC Ltd on Friday slashed the lending rate by 50 basis points for loans of more than Rs 20 lakh. This is a great news for the existing customers while would be more appropriate for the people those are planning to have their dream home.

Loans of up to Rs 20 lakh will attract an interest rate of 10.25 per cent and the rates for loans above this level has been pegged at 11.25 per cent down from 11.75 per cent. The new rates are effective from Monday, according to media reports. Earlier this month the Public sector banks have declared for the cut in the rates.

Global financial crisis impact on Indian infra projects

There is global financial crisis and Indian economy is not untouched out of it. The economy has been affected due to the global financial crisis. The infrastructure projects in India are being also affected due to this, according to media reports. The ongoing project however may be find hard to get accomplished due the global meltdown.

The government has been declaring bailout packages for the sectors but there is need to pay attention towards the infrastructure projects. According to media reports, the slowdown will adversely affect the infrastructure projects in India.

The government may declare some relief measures to check the impact of the global crisis on the infrastructure projects. Any impact on the infrastructure projects would have direct impact on the services providers associated with those projects.

Chanda Kochhar set to be new ICICI CEO

Chanda Kochhar will be the new CEO of ICICI Bank effective March 2009. Chanda Kochhar is the current CFO and Joint MD of the ICICI Bank. Meanwhile, KV Kamath the current CEO of the ICICI Bank is likely to take over as Non-Executive Chairman effective May 1 2009, according to media reports.

K V Kamath took over as the CEO of ICICI Bank in 1996. KV Kamath whose 13-year term comes to an end in April 2009, will take over as non-executive chairman from the current chairman N Vaghul who also retires next year, media a reports quote.

Inflation drops to 6.84 per cent from 8 per cent

The inflation drops further to 6.84 per cent from 8 per cent. The inflation rate is recorded nine-month low for the week ended 6th December, according to media reports.

Despite the global financial crisis the inflation has been decreasing significantly in India. This is a great respite for the Indian economy which is being reeling under the pressure of global financial crisis. The fall in inflation rate was recorded in the backdrop of the economic slowdown, which led to a slump in crude oil prices and other commodities

The inflation was recorded 8 per cent last week, before last week the inflation rate was at 8. 4 per cent. The government has also declared cut in the fuel prices recently. The cut in the fuel price is a big relief for common men.

The economy is now getting back to its strong position. It seems that the bailout package and other fiscal mechanism by the government of India have been effective. The Indian economy is recovering from the hard impact of the global financial crisis.

However, the second quarter of the current fiscal year result was bit of disappointing as GDP rate was recorded at 7.6 per cent. Probably, the third quarter result would be much better than the second quarter results, as the inflation drooped to 6.84 per cent.

HCL Tech completes acquisition of Axon

In a major development, the HCL Technologies has completed the acquisition of Axon and the trading in Axon share will be stopped on the LSE from Tuesday, according to media reports. Couple months back the deal of the acquisition was finaliced by the HCL.

HCL Axon said that they have revenues of USD 600 million and 4,500 SAP Consultants. The company added that Axon CEO, Steve Cardell, will be the President of HCL Axon, media reports quote. Source

PSU banks cut rates on home loans up to Rs 20 lakh

Public sector banks announced on Monday that home loans up to Rs 5 lakh would be given at a maximum interest rate of 8.5%, while 9.25 per cent for the house loans between Rs 5 lakh and Rs 20 lakh, according to media reports.

This would be a big effort to protect the interest of real estate sector during the going global financial crisis. Need of the hour is to boost the demand for housing in India. The realty sector is worse hit due to the global financial crisis. The scenario is same across the globe not only in India.

According the media reports, the major real estate player are not satisfied with the declaration of the cut in the home loans by the public sector banks. The lower interest rate would help people in affording the housing price. But further decrease in the housing loan would boost the demand, would patch up the loss of the real estate sector due to the global financial crisis.

Foreign exchange reserves fell by $1.83 billion

The country’s foreign exchange reserves fell by $1.83 billion to $245.86 billion for the week ended December 5, due the fluctuation in the global currencies and selling of dollar by the Reserve Bank of India. Recently, the value of Rupees against the US dollar has been decreasing and touche to all time record of 50.60, according to media reports.

In the economy the foreign exchange reserve are important in the dealing with the valuation of foreign currencies. The exchange of foreign currencies are the major for the international trade and decides the devaluation rate of currencies.

In the previous week ended November 28, foreign exchange reserves had increased by $1.88 billion to $247.68 billion. But there is a fall recorded at the end of the first week of December 2008. It is the impact of the global financial crisis and the fluctuation in the foreign currencies, as the world economy is under the grip of global turmoil.

Industrial output dips, need for package

The industrial production shrank for the first time in 15 years by 0.4 per cent in October as impact of global financial crisis deepened in the country. It had soared by 12.2 per cent in the same month a year ago, according to media reports. Probably the biggest impact of the global financial crisis on the Indian economy.

The reduction in the industrial production is a big concern for the economy. The government need to give much more attention over the industrial sectors. It is the global financial crisis which hurt most all sectors in India.

The bailout package by the government of India however may a big relief but there should be package to check the decrease in the industrial output. Industry body Confederation of Indian Industry (CII) said there is need for more measures from the Reserve Bank of India and termed the industrial slowdown as a serious concern for the economy.

Second stimulus package soon: Kamal Nath

The government of India may soon declared its second stimulus package to protect the economy from the impact of the global financial crisis. Kamal Nath the Commerce Minister said that the government is going to announce more measures to stimulate the economy next week, according to media reports.

On 7th December the government of India has announced package for many sectors. In the second package the government would take the interest of sectors those are not listed in the fist package. Probably, the government may come out with another package in the next week.

The sectors including engineering, textile and agriculture, would get measures from the government of India in its second package. All most all the sectors are being affected due to the global turmoil. The first package gave relief to some sectors and helped manufacturers to boost the demand for their products, by cutting the Cenvat by four per cent.

Inflation dips to 8 per cent

The inflation has further come down to 8 per cent from 8. 4 per cent at the week ended November 29. Last week the inflation was recorded at 8. 4 per cent, While it was reported . 9 per cent before two weeks. Last year the inflation was around 3. 4 per cent, according to media reports.

The inflation rate for food articles increased marginally by 4 basis points to 10. 52 per cent in the seven days up to November 29, 2008. In the month of October 2008 the inflation rate recorded highest points and the present rate of the inflation is a significant fall.

However, the inflation is decreasing and would give a respite to the people and the economy. But it may take some time to have impact the prices of the essential commodities in the market due to the reported bottleneck policies. People have to wait some time to get the goods and services at lower price than current price, as there is fall in inflation rate and it will take time to have impact on the market.

RBI may lower GDP growth forecast

The Governor of Reserve Bank of India (RBI) D Subbarao said that the India's economic growth may fall short of the 7.5-8 per cent forecast for this fiscal, according to media reports. Further he added that the next year would be more pain full for the economy.

RBI, which has projected 7.5 to 8 per cent economic growth for the current fiscal in October with a downward bias, is to announce the quarterly review of the monetary policy on January 27 next year. The Governor of RBI is in Kolkata, informed about this speaking to reports after his meeting with the West Bengal Chief Minister on Wednesday, media reports quote.

Dena Bank - A Profile

Dena Bank is one of the leading banks in India. Dena Bank, in July 1969 along with 13 other major banks was nationalized. Dena Bank is now a Public Sector Bank constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970.

Under the provisions of the Banking Regulations Act 1949, in addition to the business of banking, the Dena Bank can undertake other business as specified in Section 6 of the Banking Regulations Act, 1949. To know more about the you can log on to http://www.denabank.com/

Source

Cars become cheaper due to cut in Cenvat

The cut in the Cenvat by the government of India from 14 per cent to 10 per cent, the car makers are gearing up for the price cut. On Tuesday, many car makers declared price cut.

Car maker Skoda India on Wednesday said it will cut prices of its products by up to Rs 51,500 following the four per cent reduction in Cenvat. Earlier, along with some car makers, Hindustan Motors declared prices cut for its Ambassador car models by 10,000 to 14,500 rupees, according to media reports.

Due to the impact of the global financial crisis, the car sales in India fell an annual 19.4 percent to 83,059 in November, media reports quote. The fourth drop in five months as high borrowing costs, tight credit and a slowing economy weigh on demand. Due the fall in the demand in the slugging economy, the auto sector is one of the worse hit.

The bailout package and the reduction in excise would help this sector to get into the swing and would give a boost to the demands in near future. The change in the demand for cars would made this sector boom in the days to come.

Maruti, Hyundai, Toyota, Mitsubishi, cut rates due to cut in excise duty

Maruti Suzuki, Hyundai Motor, Mitsubishi and Toyota Kirloskar have cut prices between 3 pe cent and 3.5 per cent following the announcement of a 4 per cent cut in Cenvat by the government of India while announcing the bailout package recently, according to media reports.

The government of India has also reduced the Cenvat(Central Value Added Taxes) by 4 per cent from 14 per cent to 10 per cent. The impact of the reduction in the cenvat is clearly visible on the auto industry, as the companies have slashed the price of their product to boost the demand. The world is reeling under the global financial crisis and the demand for goods have been decreasing due the impact of the global financial turmoil.

According to media reports, Maruti Suzuki has cut the price of its flagship Alto by around Rs9,000 and of the newly-launched hatchback A-Star by Rs 16,664. The company has also cut the price of M-800 and Omni in the range of Rs6,593 to Rs8,032. Hyundai's popular premium hatchback i10 would now cost around Rs 3.25 lakh as the company cuts the price of s 11,247 .

Many goods and service would be cheaper further due to the cut in the Cenvat by the government of India. The cut in the input cost would definitely result decrease in the price of the goods and services.

YES Bank reduces the PLR to 16.5%

YES Bank is the first bank to announce a prime lending rate (PLR) cut after the RBI cut both its repo and reverse repo rate by 100 basis points. The move by the RBI is target to check the liquidity crisis in India due to the global financial crisis.

YES Bank announced a 50 basis points cut in its PLR from 17 per cent to 16.5 per cent with effect from December 8th, according to media reports. The decrease in the PLR by the banks in India will help the economy to overcome from the global financial crisis.

It is expected that more banks would cut the lending rates as the RBI had cut the repo rate and reverse repo rate. The inflation fell further previous week and the government declared cut in fuel prices, these are the good indication for the common people.

The bail out package by the government would play significant role in checking the global financial crisis. However, the bailout package is covering some of the major sectors hit due to the global crisis.

The banks norms and RBI policy may be helpful in checking the global financial crisis on Indian economy and other other hand the bailout may widen the fiscal deficit for the year but will have positive impact too. The fiscal deficit would rise further but the bail out will check the impact of global financial crisis.

Govt. declares Rs. 20,000 cr package

The government of India on Sunday declares Rs. 2000 cr bail out package for the economy to check the impact of the global financial crisis. The government clears that India economy is better than the global economy.

This move has been anticipated, the package targets to power exports, housing, auto, small and medium industries and infrastructure sectors through additional funding and guarantees that a total amount of about Rs 35,000 crore, according to media reports. The government has also slashed Cenvat by four per cent across the board to boost demand.

Many sector have been hit due to the global financial crisis. In order to protect the interest of these sectors, the government announced the bail out package. It is very necessary to take more fiscal measures as the Indian economy is reeling under the pressure of global crisis.

The highlights of the Package are:

• Additional plan expenditure of up to Rs 20,000 crores.
• Excise duty reduced across the board by 4 per cent.
• IIFCL authorised to raise Rs 10,000 crores via tax-free bonds.
• PSU banks to announce package for borrowers of home loans.
• Rs 350 crores additional funds for export incentives.
• Back-up guarantee to ECGC for up to Rs 350 crores
• 2 per cent interest subvention for labour-intensive exports.
• Rs 1,100 crores to ensure full refund of Terminal Excise duty.
• Additional Rs 1,400 crores for textile sector under TUF Scheme.
• The guarantee cover for loans to MSME doubled to Rs 1 crore.
• The lock-in period for such collateral-free loans reduced.
• Government depts allowed to take up replacement of vehicles.
• Import duty on Naphtha for power sector eliminated.
• Export duty on iron ore fines eliminated.
• The economy will continue to need stimulus in next fiscal.

RBI cuts repo, reverse repo rate by 100 bps

The Reserve Bank of India (RBI) has cut the repo rate and reverse repo rate by 100 basis points, each to 6.5% and 5% respectively. There were specualtions about cut in the repor rate by the RBI. The RBI cuts the repo reate and reverse repo rate on Saturday, while RBI did not change the CRR and SLR structure in this review, according to media reports.

The RBI has changed the rates considering the global financial crisis. This move will help the economy in checking the impact of the global financial crisis on banking sector. There is liquidity crisis in the economy and banking sector need attention and time to time changes in the rates by RBI.

Govt cuts petrol, diesel prices

The UPA government finally cuts the fuel prices as expected. The government has decided to slash prices of petrol, diesel by Rs 5 and Rs 2 a litre with effect from midnight Friday, the first in over two years.

The crude price in the international market has been decreasing. Considering the fall in the international crude price the government of India has reduced the fuel prices with effect from midnight of Friday.

This will be a big relief for the people as the inflation has also decreased to 8.4 per cent this week. While inflation was at 8.9 per cent in previous week. The fall in inflation rate and the fuel price cut will give some respite for the economy and the people. Earlier, the petroleum minister had indicated about the chances for the cut in the fuel prices. But there will be no change in the price of LPG, according to media reports.

Infosys to freeze fresh hiring

Infosys Technologies, India's second largest exporter of IT services clears there will be no fresh hiring further. The global financial crisis hits hard on Indian outsourcing industry. As many companies have been adopting the cost cut measures.

Indian IT industry is affected by the global turmoil. Major IT companies of the world are reeling under the pressure. The decision of no fresh hiring by Infosys is due to the global crisis. Infosys plans to freeze fresh recruitment after meeting this financial year’s target of hiring 25,000 people, according to media report.

The impact of the global meltdown on Indian economy and its sectors are clear now. It is expected that the growth rate of the economy will be lower than expected figures. The impact on IT and outsourcing sector would affect the economy too.

RBI may cut repo, reverse repo rates on Sat

According to CNBC report, the Reserve Bank of India (RBI) is likely to cut repo and reverse repo rates on Saturday. The government of India may declare a fiscal package for many sectors, as the economy is reeling under the global turmoil.

The global financial crisis has been deepening and there is need for the packages to ease the pressure of the global crisis on many sectors including housing, auto and exports. Considering the need, the RBI may take further steps including further cut in CRR and ease in External commercial borrowing norms.

The reports also quotes that the export package by the government to check the impact of the global crisis on export would cost Rs 2000 crore. An additional budgetary support for the infrastructure could be to the tune of Rs 15,000 crore and there may be a special line of credit for non-banking financial companies, the housing and auto sectors.

Bombay HC rejects Vodafone's petition against I-T dept

Bombay High Court on Wednesday has dismissed a writ petition filed by telecom major Vodafone International Holdings BV, challenging Income Tax department's jurisdiction to assess withholding tax Hutchison-Vodafone transaction, according to media reports.

A division bench comprising Justices S Radhakrishnan and Anand Nirgude ruled that the “assets located in India were transferred and the company (Vodafone) is liable for payment of the taxes”. Vodafone is likely to challenge the order in the Supreme Court. The High Court has granted an eight-week stay on the decision, providing Vodafone time to appeal. Source

Air India to slash fares by Rs 400

Air India, the stat run carrier has decided to reduce fuel surcharge by Rs 400 for all domestic sector flights with effect from Tuesday. The fuel surcharge for below 750 km is Rs, 2, 350 and Rs3, 100 for sectors over 750 kms, according to media reports. Considering the sluggish in recent months, the Air India has taken the decision to reduce the fares

There is reduction of aviation turbine fuel (ATF) prices despite there are no reports of reducing the fares by other aviation companies yet reported. Airlines had started levying fuel surcharge since July due to an unprecedented increase in ATF prices that had peaked to over Rs 73,000 per kilolitre in August.

Rupee falls by 25 paise to hit fresh low of 50.53

The rupee today fell by 25 paise against the US dollar to a fresh low of 50.53/54 in the opening trade at the Interbank Foreign Exchange market on increased demand for the greenback amid melting stock markets, according to media reports.

The US stock maker fell low around 2 to five percent, dealers are speculating that there will be capital outflows. The capital outflows would result sharp fall in the stock market index. On Monday, the rupee had closed lower by 21 paise at 50.28/29 against the US$.

Anil Ambani healthiest, happiest person in business: Survey

The chairman of ADAG Group, Anil Ambani has been voted as the happiest and healthiest person in business in a study by magazine Complete Wellbeing.

The survey was conducted by global market research firm Synovate across eight cities in India, to find out India's healthiest and happiest people.

A majority of 47 per cent chose Anil Ambani as the happiest person. In the survey, 72 year old Ratan Tata, Chairman, Tata Group got 36 per cent while Ambani got 35 per cent. The respondents of the survey belong to 25 to 45 years age group old. Source

Manufacturing output falls in November: PMI

The impact of the global crisis is very high on Inida's manufacturing sector, as a sharp fall is recorded in November, according to media reports. World's big economies have been reeling under the pressure of the global crisis. Manufacturing output shrank for the first time in three-and-a-half years in November, according to the ABN AMRO Bank's purchasing managers' index (PMI), which is based on a survey of 500 companies.

The new orders index fell to 43.2 in November compared with 54.4 in October and export order index declined to 46.7 in November compared with 49.7 in October. However, the global crisis is the major factor, which has been affecting the economy. Bailout from the global crisis would help all the sectors to cherish and the prospect of the economy depends on the pace of the global economy.

Oil falls below $52

Oil fell more than $2 to below $52 a barrel today after OPEC decided to wait until mid-December to make another cut in output to try to defend sagging prices. While on November 21, it touched a three and half year low of $ 48.25, according to media reports.

The price of international crude has been declining significantly. The price of barrel in the international maker during July was around $ 147 a barrel. It was also speculated that the international crude price would cross the highest mark of $ 200 per barrel.

However, 20 and 30 per cent fall in the oil price was recorded in October and November 2008 respectively. Considering the fall the OPEC has decided to cut the production of the oil, despite the price of the oil is decreasing.

Sensex ends down 261 points at 8,832

The Sensex opened 70 points higher at 9,163 today, the first rise probably after 60 hours of panic in Mumbai following terrorist attacks. There were slight positive cues from the global markets, that helped stock market in getting good response in the early trade today.

The global market is being reeling under he global crisis. There were high purchase of stocks of realty, banking, metal and energy in the early trade today. And the market up around 234 points with index at 9,327 .

The positive impact of the global market scenario could not last long since the morning and weighed on the market today. The index slipped 261 points at 8832 points at the end of the day. However, the financial astrologer Ashok Motiani predicts that the bad period of the stock market will over soon and Sensex would cross 16,000 by March 2009. Let we can hope for the fluctuation of the stock market will end soon.