FREE DAILY SECTORS ALERT: 24.08.2012

[rupeedesk]

FREE DAILY SECTORS ALERT: 24.08.2012

* ECONOMY: High interest rates are not the primary reason for the recent economic downturn, the Reserve Bank of India said in its annual report. The RBI says the priority should be to bring down capital account and fiscal deficits even if it meant sacrificing growth in the short term.

    -The RBI says there is a need for containing risks in housing and gold prices as they are running ahead of inflation.

    -Controlling inflation remains the "cornerstone" of the RBI's monetary policy as upside risks to inflation remain.

    -The RBI says current account deficit in 2012-13 (Apr-Mar) is at risk of remaining at the unsustainably high level seen in 2011-12.

    -The RBI has asked the government to cut its revenue expenditure and use the savings to augment capital expenditure to stimulate domestic recovery.

* DIVESTMENT: The government's divestment proceeds may fall short of the 300-bln-rupee target in 2012-13 because of adverse market conditions, the RBI has said.

* FOREIGN INVESTMENTS: The Foreign Investment Promotion Board has approved 10 foreign direct investment proposals worth 12.60 bln rupees, including Walt Disney's 10-bln-rupee plan to make downstream investments.

* GOVERNMENT: Has deferred taking a decision on the contentious Land Acquisition Bill, which was on the Cabinet panel's agenda.

    -Parliament proceedings were stalled for the third day Thursday as the government and Opposition continued to spar over the Comptroller and Auditor General's report on coal block allocations.

* MINING: The Supreme Court has asked the Central Empowered Committee to submit an additional report on alleged illegal export of 800,000 tn iron ore from Karnataka despite the court's ban.

* MONSOON: Rainfall in the country was just slightly below the long period average after three consecutive days of above-normal rainfall, the India Meteorological Department said.

* OIL: Cabinet panel approves award of five blocks under New Exploration Licensing Policy. The Cabinet Committee on Economic Affairs referred pricing formula for buying ethanol for blending with petrol to a group of ministers.

* POWER: The RBI says that there is a need for revamping coal policy in the country to address supply shortages and suppressed inflation, and for pegging prices of the fuel to international levels.

* REAL ESTATE: The Maharashtra government has imposed a value added tax of 5% with retrospective effect on flats purchased between 2006 and 2010.

* REGULATORY: SEBI may approve qualified institutional placement, preferential issue and secondary market sale of shares by promoters, to enable companies to increase public equity float.

* SUGAR: India 's sugar output in the season beginning October is seen falling to 23.0-23.5 mln tn as poor rains across the country hit crop yields.

* TRADE: The process of normalisation of trade between India and Pakistan has slowed as Islamabad wants more progress on contentious political issues such as Kashmir and Siachen, a government official said.

    -Commerce and Industry Minister Anand Sharma has asked the finance ministry to reconsider the minimum alternate tax and dividend distribution tax levied on special economic zones.

* TELECOM: The government has increased the maximum limit for sending SMSes to 20 per day from five with immediate effect.

By RUPEE DESK

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