Fidelity raises stake in Satyam to 6.79%

Scandal-hit Satyam Computer Services today said Fidelity International (FIL Asia Services Pty Ltd) has purchased 3.62 per cent shares, raising its stake in the company to 6.79 per cent, according to media reports.

Fidelity is estimated to have purchased these shares, through various bulk deals for about Rs 277 crore. This makes Fidelity the second largest shareholder in Satyam after Larsen & Toubro, which holds a 12 per cent stake.

The board would discuss over the appointment of the CEO and CFO and the next board meeting is to be held on February 5. It is expected that board might soon declare the names of CEO and CFO.

HC lifts stay on selling gas by RIL

The Bombay High Court on Friday lifted the stay on Reliance Industries to sell gas from its KG basin fields to third parties, but it would be subject to its final judgment.

The high court reserved the judgment as both parties -- Mukesh Ambani-led RIL and Anil Ambani-run RNRL - concluded arguments over price of gas to be supplied by RIL to RNRL.

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Cut in fuel price to ease inflation?

The inflation in India has been increasing for consecutive two week. Now the inflation is at 5.64 per cent from 5.6 per cent. The rise in the inflation however may be a cause of concern for the economy. But the cut in the fuel price by the government of India would ease the inflationary pressure.

The finance ministry said reduction in fuel prices would lower inflation by 100 basis points, though some economists said the fall will be 40 basis points. On the other hand, the RBI has urged the banks for lower their interest rates in order to tackle the situation.

The RBI did not change the interest rates while recently reviewing the its credit policy. The truckers strike would have caused the rise in the inflation and the cut in the flue prices may reduced the inflation rate.

Inflation rises to 5.64% from 5.6%

The inflation rises to 5.64 per cent from 5.6 per cent for the weekended 17 January. Previous the inflation was recorded at 5.6 per cent. This is the consecutive rise in the rate of the inflation in two weeks.

Experts believe that the slight rise in the inflation in the nation is a big concerns and would not be overlooked. The impact of the trucker strike could be one of the major reasons. The supply had been interrupted due the strike, which reportedly led to rise in the prices.

However, the government has declared cut in the fuel prices and LPG. This measure would have positive impact on the economy in tackling the inflation rate. The RBI has been taking adopting various anti-inflationary measures.

In the recent credit review police the RBI did not made any change. Considering the inflationary pressure the RBI may opt for any changes in the interest rates to bring down the soaring inflationary rates.

Govt cuts fuel price

The government has announced the second fuel price cut on Wednesday night. The price of petrol and diesel cut by Rs 5 and Rs 2 respectively. The price on LPG cylinders cut by Rs 25 on each.

It has been speculated that the government may go for cut in the fuel prices for the second time considering the global crude price. Earlier the government cut fuel prices in the month of December last year.

Govt approves 31 FDI proposals

The government of India has cleared 31 foreign direct investment (FDI) proposals worth Rs 1,277.23 crore of firms such as Morgan Stanley Financial Services, Keystone Realtors and Ramky Enviro Engineers.

The FDI in India will help to boost the industrial sector, which has been under pressure of the global financial crisis. The investment of Rs 1,277.23 crore would have positive impact on the those economy.

Ramky Enviro Engineers and Keystone Realtors have proposed the highest investment of Rs 320 crore and Rs 300 crore, respectively. They plan to convert their operating companies into operating-cum-holding ones to make further downstream investment.

RBI kept rates unchanged

The Reserve Bank of India (RBI) has reviews its policy as per the schedule. The RBI did not change the CRR, repo rate and reverse repo rate. Indian industrialist have expressed their dissatisfaction over the unchanged in the rates.

There were speculations by industrialists experts that RBI could change the its rates in order to infuse money into the system. RBI had failed to avail of the opportunity to provide stimulus to the Indian economy by infusing extra money in the system through interest rate cuts, says FICCI.

Confederation of Indian Industry said, many sectors, including manufacturing sector were seeing a decline and there were no sign of reversal in the slowdown. However, the credit policy is not changed by the RBI but it may take stake of the situation before changing any policies in future.

Satyam names Goldman Sachs, Avendus as investment bankers

The scheduled Board of Directors of Satyam Computer was held on Tuesday in Hyderabad. The six member board meeting was chaired by T.N. Manoharna, the former head of ICAI.

There are reports that the Satyam Computers would pay the salaries to its employees for January as scheduled from its internal accrual and receivables.

In the board meeting, the members have appointed Goldman Sachs and Avendus as investment bankers and Boston Consulting Group as management advisors to support the directors and the leadership team.

British Economy Officially in recession

The global financial crisis deepens further, as the economy of United Kingdom(U.K) has officially sunk in to the recession. For the first time the UK economy is in recession since 1991.

According to the Office of National Statistics of UK the gross domestic product shrank by 1.5 per cent in the forth quarter of 2008. There is decline in the quarter results for two consecutive quarters. Generally the recession is defined as two straight quarters of negative economic growth of an economy, according to media report.

PM panel cuts the growth forcast to 7.1%

The Prime Minister’s Economic Advisory Council (EAC) has cut the current fiscal growth forecast to 7.1 per cent from previous projection of 7.7 per cent. The cut in the projection is said to be due to the on going global turmoil.

In 2007-08, the nation had witnessed a growth of 9 per cent. This fiscal the growth would be lower then previous year. The government has been taking various major steps including stimulus packages to check the impact of global financial crisis.

The global economy has been facing the worse since June last year. The global financial crisis has been affecting all most sectors of the nation, where as the export sectors is one badly hit. The fall in the demand of various products and services has adversely affected the export sectors and the economy.

The inflation was one of the core issues of the economy in the current fiscal. Considering the global financial crisis and inflation in India the EAC has cut its projection from 7.7 per cent to 7.1 per cent.

Satyam Case: Two auditors sent to custody till Feb 6

The CID in Andhra Pradesh have produced before a magistrate, two auditors of Pricewaterhouse Coopers identified as Gopalkrishna and T Srinivas in connection with the Satyam case, according to media reports.

Hearing the case, the court has sent the two accused to judicial custody till February 6. They have been charged with criminal breach of trust, criminal conspiracy, cheating and falsification of accounts.

Deepak Parekh awarded Outstanding Business Leader 2008

Deepak Parekh, HDFC's Chairman and one of the Directors on the newly-constituted Saytam Board, has been bestowed the coveted 'Outstanding Business Leader 2008' award by CNBC-TV18.

Presented by Accenture, Mukesh-Ambani-run Reliance Industries Limited bags the Outstanding Company of the Year, while Bollywood star Aamir Khan was conferred as the Entertainment Business Leader.

Uday Kotak was adjudged CNBC Asia's India Business Leader Of The Year Award at the 4th CNBC-TV18 India Business Leader Awards presented here late last evening.

Union Commerce and Industry Minister, Kamal Nath, Maharashtra and Gujarat Chief Ministers, Ashok Chavan and Narendra Modi, were some of the prominent dignitaries among others who felicitated the winners.

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Ashok Leyland bags Rs 480 crore order from DTC

Ashok Leyland, the flagship of the Hinduja Group, a leading commercial vehicle manufacturer of India has bagged orders worth Rs 480 crore from Delhi Transport Corporation (DTC). DTC has order for 875 high-end ultra low entry (ULE) buses to Ashok Leyland.

The Chennai based Ashok Leyland compete the order by September this year. The order includes 350 air conditioned and 525 non-air conditioned buses.

The new ULE buses will have a floor height of 390 mm, for step-less entry. These 12-metre- long buses will have 35-seats with a 2x2 configuration. Passenger ride comfort is further addressed through a wide 1100 mm door and kneeling facility for easy entry and exit as also comfortable grab bars and air suspension.

The ULE buses will be powered by a 230 hp engine and fitted with automatic transmission, Speed Limiting Device and multiplex wiring.

Inflation rises to 5.6 per cent

Inflation rises to 5.6 per cent for the weekended 10 January from 5.24 per cent recorded previous week. There was a slide in the inflation for last ten week. The inflation rose by 36 basis points this week in the latest released data.

The economy is on track and the slide in the inflation has been a good sign. But the rise in the inflation would be bit of concern for the government and Reserve Bank of India (RBI). However, the RBI is likely to review the credit policy soon.

While restructuring the credit policy the RBI would may go for changes in the interest rates to suppress the rise in the inflation. The fiscal mechanism plays a great role in deciding the rate of the inflation.

Tata Motors enters pre-owned car business

Tata Motors enters in the business of pre-owned cars in India. Earlier, the leading car maker of of India, Maruti has started pre-owned car business.

The Tata Motors has initiated the certified pre-owned programme on a pilot basis in the country. The company has started the process with 15 dealers in 10 cities likeMumbai, Delhi, Bangalore, Hyderabad, Chennai, Pune, Ahmedabad, Chandigarh, Ludhiana and Vapi, the company said in a statement.

The company would reportedly be offering various services under the process. However, the service provided to pre-owned cars are subject to company's terms and conditions. The sale of pre-owned cars would be grow in India, as another major car maker entered into this business.

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Govt has no plans to sell Satyam: P C Gupta

The Minister for Corporate Affairs Minister PC Gupta told to media persons on Wednesday that government had no intention of selling the shares of scam hit Satyam Computers. The minister said that many corporates were expressed their interest to by Satyam Computers but the government had not decided on it.

The newly appointed board of directors have been acting fast on restoring the scam hit Satyam Computers. The difficult task would be arranging salaries for the employees of the company.

One of the directors of the newly constitute body, Deepak Parekh said that the company has received around 40 applications for the post of CEO at Satyam. He added that the board had been concentration over the funds the run the company.

More fiscal and monetary polices from the Government?

The economy has been reeling under pressure of the global financial crisis. The government has been very serious in controlling the fiscal and monetary polices in order minimise the impact of the global crisis on Indian economy.

The government may further come up with another stimulus package for the economy. It is expected that the economy would grow at seven per cent in this fiscal. There has been many steps taken by the government to bailout the economy from the clutches of global crisis.

The Reserve bank of India will review its policy stance on Jan. 27. The RBI had cut its key lending rate by 350 basis points since October last year. And the bank would take further measures as required to balance the economy.

The inflation has drooped from double digit in June 2008 to five per cent recently indicating the recovery of the economy. Only concern is that the industrial production which has been getting back to track after a negative slope in October 2008. Experts believe that the economy is back on the tracks again, but the fiscal year 2009-10 will be challenging.

Airtel launches IPTV services in Delhi

Bharti Airtel launched Internet Protocol Television (IPTV) service in Delhi on Monday. Aitel has started the IPTV service in the Delhi and north central region of the country after the service was started by the BSNL.

The IPTV service by AirTel would be called as "Triple Play". The company will provide landlines connection, broad band connection and television with video-on-demand facilities to its subscribers
Airtel offers two entry packs priced at Rs.999 and Rs.599.

SEBI petition hearing deferred till Jan 22

The hearing SEBI petition seeking permission to question Raju has been deferred till January 22 by the court on Monday, according to media reports.

Satyam's disgraced former chief B Ramalinga Raju, his brother Rama Raju and former CFO V Srinivas are being questioned by the CID. On Sunday they were transferred from Chanchalguda jail to CID custody and they will be questioned for four days.

Satyam Ex chairman Raju sent to police custody till Jan 21

A local court hearing Satyam fraud case today sent the ex-chairman of Satyam Ramalinga Raju , his brother Rama Raju and company's former CFO Vadlamani Srinivas to four days police custody from tomorrow.

They will be in police custody till January 21. Ramalinga Raju to be shifted from Chanchalguda jail to CB-CID custody, according to media reports. The former Chairman of Satyam Computers Raju was arrested on 9 January following the scam in the company.

Raju would be handed over to police custody at 10 am on Sunday. The petition filed by SEBI to be heard on Monday. Raju would be interrogated from 10 am to 7pm on Sunday, media reports quote.

HDFC set to cut rates for new home loans

Housing Development Finance Corp (HDFC), the largest home loan lender is set to cut the interest rates on home loans. Earlier, HDFC had cut rates in mid December by 0.5 per cent, according to media reports.

In December last year, many banks have cut in the interest rate for the home loans. The global financial crisis hits the real estate sector in India. The cut in the interest rate would boost the demand of the real estate.

HDFC may declare the cut in the interest rates on home loans on Monday. As per the new structure home loans upto Rs 30 lahk to be available at 9.75 per cent and home loans above Rs 30 lakh to be available at 10.75 per cent.

Inflation drops to 5.24%

It's good news for the economy and common men, the inflation is dropped to 5.24 per cent for the week ended January 3rd from 5. 91 per cent last week. The fall in the inflation is a good sign for the economy.

Last week the inflation was recorded a ten month low at 5.91 per cent. But last year the inflation was at 4.3 per cent. If the last year inflation rate will be considered then the current inflation rate has a rise of around one per cent.

However, the inflation has been easing from a rate of 13 years high to around 1o months low. That drop of inflation is significant. There is possibility of cut in the fuel price by the government of India. Any further cut in the fuel price would help the economy and set the market conditions that will help to stabilize the prices.

Government appoints three more directors for Satyam

The government on Thursday appointed three more new directors to Satyam Computers board. The government has appointed Confederation of Indian Industry (CII) chief mentor Tarun Das, former Institute of Chartered Accountants of India president TN Manoharan and LIC's S Balakrishan to the board of Satyam Computer Services, according to media reports.

The newly three members will join with existing directors those were appointed recently by the government of India. It is expected that the meeting of board of directors would be held on Saturday.

PM reviews Satyam case with Cabinet colleagues

Prime Minister Manmohan Singh on Tuesday held discussions with his senior colleagues in the face of developments in the Satyam computer Services case, according to media reports. The Satyam fraud case is one of biggest corporate frauds in India.

The government has been taking steps to protect the invests of investors and the employees of the scam hit Satyam Computers. The appointment of news director for the company was for one of the important steps taken by the government.

The government may appoint further new members into the board of the company to restore the functioning of the organization. The government may come out with some solutions to solve the cash crunch in the company. The Prime Minister had already discussed with the SEBI Chairman over the Satyam Computers.

KPMG and Deloitte new auditors for Satyam

The scam hit-IT major Satyam will have new auditors, the newly formed Satyam board have named KPMG and Deloitte as the Hyderabad-based company's new auditors, replacing previous auditor, the Indian unit of PricewaterhouseCoopers (PwC), media reports quote.

The first meeting of the newly formed board of Satyam was held in Monday. The board members had a press conference in Hyderabad after the meeting; cleared that the Chairman and CFS would be appointed on priority basis.

Speeding the process the board has named the two - KPMG and Deloitte as the new auditors for the scam hit Satyam Computers on Wednesday. The audit of the company would unveil the exact amount of scam in the company. The interest of the investors and employees are to be addressed by the board on priority basis, the media reports quote.

HC adjourns hearing on Satyam PIL

The Bombay High Court on Wednesday has adjourned the hearing on PIL till January 22, the PIL was filed by the Investors' Grievances Forum over the Satyam scam. The PIL filed seeking measures fro protecting small investors, those are affected due the scam in the IT major, according to media reports

The petitioners have been allowed to serve the notices on the respondents, which include the Institute of Chartered Accounts of India, PricewaterhouseCoopers, the two stock exchanges, Sebi, besides Satyam promoters and former directors.

Truckers' strike called off

The All India Motor Transport Congress (AIMTC) has called off its strike on Monday, according to media reports. The strike by AIMTC last for eight days as on Monday.

More than 6 lakh trucks had stopped plying on the road following the strike. The strike was a called off after the government's assurance. The government has also assured to withdraw all the charges levied upon them under during the strike time.

The truckers had demanded cut in the annual national permit fees by Rs. 35,000 and suspend toll on the highways for a period of six months.

Satyam board meet ends; hunt for CEO, CFO

The first meeting of the newly constituted three board members of Satyam Computer was held on Monday. The Union government on Sunday had appointed three director are former Chairman of HDFC, Deepak Parekh, former NASSCOM President Kiran Karnik and former SEBI member C Achuthan.

After the meeting is over, the board members of Satyam addressed a press conference in Hyderabad. According to media reports, the board members have suggested for the further appointment of some other members in to the broad.

The board members have also suggested that the interest of the employees would be the key priority. However, the detail study in the accounts of the company would be necessary in order to know the real damage and the fraud.

However, this is a tough time for the investors and employees of Stayma Computers. The board members would have priority in appointing a new Chairman and CFO for the company, the media reports quote.

Satyam former chairman Raju sent to judicial custody till Jan 23

The disgraced Satyam chief, Ramalinga Raju, who was arrested on Friday, today he was produced before magistrate in Hyderabad. B Ramamlinga Raju has been sent to judicial custody till January 23, the latest media reports quote.

The hearing of the magistrate is completed in Hyderabad, according to media reports. Ramalinga Raju and his brother were sent to judicial custody till January 23, television channels report quote. They are taken to Chanchalguda jail in Hyderbad after the hearing was completed.

Govt orders inspection of 8 Satyam firms

In a significant development, the government of India has reportedly ordered for the inspection of the eight Satyam firms following the fraud and arrest of the former Chairman of Satyam, B Ramalinga Raju and his brother Rama Raju, according to media reports.

On the Friday night the former Chairman of Satyam B Ramalinga Raju and his brother Rama Raju were arrested and would appear before court today. The scam has hit the markets too as indices reported loss.

The government has ordered inspection of eight Satyam companies under Companies Act. B Ramalinga Raju and his brother Rama Raju were questioned by the police throughout the night.

Ramalinga Raju surrenders

Satyam Computers former Chairman Ramalinga Raju surrenders before DGP in Hyderabad, according to media reports. Andhra Pradesh police has taken legal action and to do follow up. On Friday, the government has disbanded the Satyam's board and the scheduled board members meeting will not be held on Saturday, the media reports quote.

Inflation drops to 5.91%

Inflation in India fell for the ninth consecutive week on Friday to a 10-month low of 5.91 percent, according to media reports. The inflation in India has been decreasing, for the week ended 20 December the inflation drops to 6.38 per cent.

This a good time that the economy has been getting relief from the high inflation rate to ten months low figure of 5.912 per cent. The fall in the inflation would have very positive impact on the economy and the people.

The government has been taking various fiscal measures to check the impact of the global slowdown on Indian economy. The fall in the inflation indicates that the economy has been back on the track again. The economy may over come the clutches of the global slowdown if the oil price at the international market stabilization further.

Govt disbands Satyam board

The government started the investigation process in the to Satyam fraud, according to to media reports. On Friday the government has also disbanded the current board of troubled IT company Satyam and would nominate 10 directors to the board. While on the other hand the governmnet of Andhra Pradesh has formed three member panel to prove into violation of the rugulation case.

The media reports quote that all the current board members were being removed and there would not be any meeting Saturday, as scheduled earlier. Considering the approach by the government the Company Law Board(CLB) has allowed to restrain the current board members from functioning as the directors at the company.

But this is a wait and watch time for the investors those have shares of the company. On Friday the Satyam shares fell drastically and the demage reported to the tune of around 80 per cent.

The axe would reportedly to fall on the employees of the Satyam as media reports quote that the employees would not receive salaries for around two months. The is tough time for the investors as they have been suffering due the company irregularities.

Fuel price likely to be cut this month: Deora

The government may approve another cut in the fuel price. The Petroleum and Natural Gas Minister Murli Deora on Wednesday gave a clear indication that the government was seriously considering undertaking another cut in prices of petrol and diesel along with domestic Liquefied petroleum Gas (LPG) in the next fortnight or so, according to media reports.

It is clear that the crude price in the international market has been stabilizing and the government may chalk out strategy for the cut in the fuel prices. On 5 December 2008, the government announced a Rs. 5 a litre reduction in the price of petrol and Rs. 2 a litre for diesel, as global crude prices hovered around a four-year low.

The cut in the fuel prices would be give relief to the people and the government. The cut in the fuel price would help the market which was under the pressure of inflation last quarter.

Satyam Chairman Resigns

The Chairman of Satyam Ramalinga Raju has resigned form the post, according to media reports. This the biggest news for the corporate world over the violation of corporate governance. in India. Satyam stocks took a heavy beating after the resignation of Ramalinga Raju.

Ram Mynampati has been appointed as the interim CEO of Satyam Computers. According to media report, coming clean on financial irregularities, Ramalinga Raju said that the company had Rs 1,230 crore worth of understated liability as of September 30. The company was supposed to hold a board meeting this Saturday.

Govt to focus on IIFCL refinance to pump in Rs 75k cr: Montek

In order to check the impact of the global slowdown on the economy the government of would take more steps besides declaring the second stimulus package.

The Planning Commission Deputy Chairman Montek Singh Ahluwalia said on Monday that the government will focus on utilisation of refinance facility extended to India Infrastructure Finance Company (IIFCL) to provide Rs 75,000 crore for the infrastructure sector projects, according to media reports.

IIFCL is expected to leverage Rs 30,000 crore it has been allowed to raise from tax-free bonds and provide about Rs 75,000 crore to projects in the infrastructure sector.

600,000 trucks on strike - big impact on economy

Around 6 lakh trucks have stopped plying on the road from Monday following strike called by the All India Motor Transport Congress (AIMTC) the apex body of transporters and goods booking agents, according to media reports.

The strike will have huge impact on the economy as the supply of goods are being badly hit. AIMTC has been demanding a Rs 10 a litre reduction in diesel prices, slashing tyre prices by 35% and exempt transporters from collecting 3.09% service tax on gross freight from customers, the media reports quote.

The truckers have also demanded cut in the annual national permit fees by Rs. 35,000 and suspend toll on the highways for a period of six months. It was reported that the transporters have been badly hit due to the economic slowdown and any change in the policies in regard to their demands would be in favor their interest.

Oil PSU officers to go on strike from 7th Jan

The Oil Sector Officers' Association (OSOA), an amalgamation of officers' unions of 14 PSU oil firms will go on strike from 7th January. OSOA wants 50 per cent dearness allowance (DA) merged with the basic pay with effect from 1st January 2005, in line with the one approved for the central government employees in January 2006, according to media reports.

The officers union believe that November wage hike was approved by the government worked out the only 17 per cent and the officers are reportedly on schedule to go on strike due the dissatisfaction over the DA issues.

The first strike in the New Year would have major impact on the economy. The strike would cripple fuel supplies and would have impact on the other sectors too.

RBI infuses Rs 20K cr through CRR cut, slashes key rates

The Reserve Bank of India (RBI) on Friday eased money supply further by cutting key policy rates and ratios - decisions that would among other things infuse Rs 20,000 crore into the banking system, according to media reports.

The RBI has cut the cash reserve ratio (CRR) by 50 basis points, and both the repo and reverse repo rates by 100 bps. The CRR now stands at 5%, while the repo rate post the cut stands at 5.5% from 6.5% earlier.

The reverse repo rate is now at 4% from 5% earlier. This will release more money supply in the market. The RBI aims to check the liquidity crisis by increasing the liquidity int he market.

The cuts in repo and reverse repo are with immediate effect, while CRR cut would be effective from the fortnight beginning 17th January, the media reports quote. The cut in CRR, repo, reverse repo rate are very important to ease the pressure of global financial crisis on India economy and banking system.

The change in the interest rates would give relief those all the sectors hit due to the global financial crisis. It has been reported that the demand for the goods the key factor to maintain the revenue of companies. However, the interest rate cut by the RBI would boost the demand for for goods and services in the economy.

Govt announces 2nd stimulus package in tandem with RBI

The second stimulus package has been expected from the government of India since the first stimulus package was declared.

On Friday the government has declared second stimulus package, which enables the industry to borrow more from abroad and FIIs to invest more in the country, according to media reports.

Finally, the suspense over the much awaited stimulus package was over with the announcement by the Deputy Chairman of Planning Commission, Montek Singh Ahluwalia on Friday. It's a major move by the government to ease the pressure of global slowdown on Indian economy.

In the second stimulus package, special attention was being paid to housing sector, macro and micro industries and infrastructure sectors through a series of measures including provision for higher credit and greater liquidity for the non-banking financial companies.

The Reserve Bank of India (RBI) has reduced the repo rate and reverse repo rate by 100 basis points and the CRR by 50 basis points, the media reports quote.

The package provides for liberalisation of External Commercial Borrowing norms and raising FII investment limit in rupee-denominated instruments to USD 15 billion from USD six billion now.

The government has also tried to concentrate on the IIP whcih was seen negative trend for the fist time in 15 years. Some measure are being added in the second stimulus package to protect interest of industries.

The government eyes on infrastructure advancement, as the it enables the India Infrastructure Finance Company Limited (IIFCL) to access additional Rs 30,000 crore by tax-free bonds to finance additional projects worth Rs 75,000 crore over the next 18 months.

Rupee at on one-week low, falls 28 paise against dollar

Indian rupees depreciated by 28 paise against US dollar at the Interbank Foreign Exchange (Forex) Market on Friday, according to media reports.

Domestic currency trades lower at 49.04 against US dollar on Friday. On previous day the rupees closed at the rate of 48.76/87 against the US dollar. The fall in the value of rupees is seen due to the huge demand for US dollar in the market.

The export of India was reported low for the month of November and the fall in the rupees value would put pressure on many sectors. And the fall in rupees may widen trade deficit. The economy has been reeling under the pressure of global financial crisis and the depreciation of the domestic currency would a big concern.

Pepsi to invest Rs 250 cr after Govt exemption

Pepsico India Holding need not divest 49 per cent equity in bottling firms to Indian companies, with the Government exempting it from the obligation following change in FDI rules for the food processing sector, accoridng to media report.

The decision was taken by the Cabinet Committee of Economic Affairs as 100 per cent FDI in the food processing sector is now allowed in the country. Pepsico to bring in Rs 250 crore of FDI after Cabinet decision.

Global financial crisis hits India's export sector

India's export fell by 9.9 per cent in November 2008, it is the impact of the global financial crisis, according to media reports.

There is decline in the consumer demand in the major global markets including US for Indian products and services. This slide in the export led to widen in the trade deficit.

The export figures recorded at USD 11.5 billion in this November while the last year the export official figures were reported at USD 12,7 billion. There is fall in the export volume in India and this would have impact on the industrial sectors too.

Inflation drops to 6.38 % from 6.61 %

Business News: The inflation in India has been decreasing, for the week ended 20 December the inflation drops to 6.38 per cent. Previous week the inflation was recorded at 6.61 per cent, according to media reports.

The inflation in India has drooped to ten months low by the week ended 20 December. The prices of the essential products have been decreasing. There are reports of possibility in the fuel price by the government of India.

The further fall in the fuel price would ease the inflation further. This was possible due the low rate of the international crude prices. Once the high crude price in the international market had forced the government of India to rise the fuel prices.

It is expected that the crude at the international market would be trading at around $ 40 per barrel. The lower in the crude price would help to bring down the inflation rate in India.