A first for Monetary Policy Committee, Governor Urjit Patel
Why tomorrow’s RBI policy will be watched beyond rates
- Tuesday’s monetary policy announcement will be marked in history as the first meet where the interest rate decision is taken by a panel, and not by an individual—-the Reserve Bank of India (RBI) governor.
- Urjit Patel, the new RBI chief, will be one among the six-member Monetary Policy Committee (MPC) notified by the government last week under the Reserve Bank of India Act, 1934.
- The governor, of course, will have a key role in the whole process and a casting vote in case there is a tie. But, beyond that, the RBI governor wouldn’t have the stardom, he typically enjoys during bi-monthly monetary policy meets. It isn’t a one-man show anymore.
India’s Ease Of Doing Business Rank Should Improve: Kaushik Basu
India will improve its ranking on World Bank’s Ease of Doing Business Index
- Hoping India will improve its ranking on World Bank’s Ease of Doing Business Index, eminent economist Kaushik Basu has said the government also needs to be more active in promoting cohesiveness and diversity in the society, as economic reforms with political and social inclusiveness can help the country regain 9.5 per cent growth rate.
- Mr Basu, who demitted office as vice president and chief economist at the World Bank on Friday after a four-year tenure and has been the architect of the Doing Business report, said India already stands out with over 7 per cent growth rate in a difficult phase of global economy but needs to pay greater attention on inclusiveness.
- Pointing out that for a nation growing so well, India has far too many people below the poverty line, Mr Basu said Indians must be proud of the country’s diversity in terms of religion, caste and race and rued that “some Indians are ashamed instead of being proud of these qualities”.
Deutsche Bank worries
Gold slips on tapering safe-haven demand as Deutsche Bank worries ease
- Gold edged lower on Monday on a firmer dollar and a gain in equities, with the yellow metal losing its safe-haven appeal as concerns about Deutsche Bank’s health eased. Spot gold dropped 0.1 percent to $1,314.50 an ounce by 0407 GMT. US gold futures rose 0.1 percent to $1,318.40.
- Deutsche Bank is trying to reaching a settlement with US authorities demanding a fine of up to $14 billion for the misselling of mortgage-backed securities.
- “With the news that Deutsche Bank is going to be settling at around $5 billion dollars, it is going to be taken fairly positive by the market as we had seen a lot of selling in the equities on Friday,” said Jeffrey Halley, senior market analyst at OANDA.
Jubilant Life Sciences jumps after USFDA approval for Ruby-Fill
The company said it received US drug regulator’s approval for Ruby-Fill- Rubidium 82 generator and elution system.
- Jubilant Life Sciences rose 6.40% to Rs 654 at 10:14 IST on BSE after the company said it received US drug regulator’s approval for Ruby-Fill- Rubidium 82 generator and elution system.
- The announcement was made before trading hours today, 3 October 2016.Meanwhile, the BSE Sensex was up 253.85 points, or 0.91%, to 28,119.81. On BSE, so far 2.42 lakh shares were traded in the counter, compared with average daily volume of 2.53 lakh shares in the past one quarter. The stock hit a high of Rs 676.10 so far during the day, which is also a record high for the counter.
- The stock hit a low of Rs 652.10 so far during the day. The stock hit a 52-week low of Rs 272.50 on 20 January 2016. The stock had outperformed the market over the past 30 days till 30 September 2016, rising 12.77% compared with 1.96% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 93.26% as against Sensex’s 2.66% rise.
An interplay of strong domestic macros and dangerously lopsided global forces
- Rupee continues to outperform its peers, barring the one day snap decline that happened last week on account of military operation conducted by Indian armed forces against terror camps in PoK. Indian currency is an interplay of domestic and global macro and micro forces.
- Domestic script would continue to remain supportive for Rupee as reforms and better policies improve long term growth potential. Current account is in near balance, inflation remains low, public investment is being better targeted and efforts are being made to increase the size of the official economy over the black economy.
- The next big challenge in front of policy makers is the rollout of Goods and Services Tax, scheduled for next calendar year. It is one of the biggest reform initiative undertaken in post-Independence era and if done properly, it can not only reduce cost of doing business but also augment government revenues.
It grapple with business and legal uncertainties
- Cognizant is already grappling with a slowdown in growth rates; it brought down its revenue growth guidance for 2016 in August, and now expects revenue growth to be in single digits.
- Cognizant Technology Solutions Corp. lost $4.4 billion in market capitalization after it disclosed a corruption probe and the resignation of one of its senior-most executives.
- “The company is conducting an internal investigation into whether certain payments relating to facilities in India were made improperly and in possible violation of the US Foreign Corrupt Practices Act (FCPA) and other applicable laws,” it said in a filing with the Securities and Exchange Commission (SEC). Cognizant also announced the resignation of Gordon Coburn, who was effectively the second-in-command at the company.
Tata’s UK R&D showcases Tata Bolt EV Prototype
- Tata Motors is not far behind, when it comes to electric vehicles and hybrid technology. The company is also willing to pioneer into the electric vehicles segment and cause some significant growth and development in that space.
- Tata Motors’ R&D team in the UK has developed an electric vehicle prototype with the Tata Bolt brand and moniker. Besides the Tata Bolt EV, Tata Motors will also be introducing new electric vehicles in the future.
- The Tata Bolt EV gets powered by the new e-Drive powertrain developed by Tata Motors. The 80 kW electric motor can help travel a 100 kilometers per full charge, which gets mated to a single-speed transmission. The Tata Bolt EV sprints from 0-100 kmph within 10 seconds with a top speed of 135 kmph.
Coin-minting factory busted in Delhi
Fake currency worth Rs 40,000 seized
- In the basement of a rundown shed on the city’s outskirts, a group of men were minting money coins of Rs 5 and Rs 10. But, the money-making business came to a halt when a gang member was arrested on Saturday.
- The group was counterfeiting for more than four months and had floated coins worth Rs 10 lakh in the market. Most of the coins were supplied to toll booths, car repair shops, grocery stores, petrol pumps, vegetable vendors who always need small change.
- During a surprise check on Saturday, a Delhi Police anti-auto theft squad flagged down a Swift Dzire near Rohini in northwest Delhi and found 20 packets of coins. Naresh Kumar, who was driving the car, told them he was an officer with the Punjab National Bank. When the policemen asked for his identity card, he refused to show it. He couldn’t tell them his rank or the bank branch he was employed with.