The inflation-targetting mandate for RBI for August 5, 2016- March 31, 2021 period sets an explicit numerical goal at 4 per cent CPI with an upper tolerance limit of 6% and a lower limit of 2%. If the average inflation is more than the upper tolerance level of 6% (or less than 2%) for three consecutive quarters, it would mean a 'failure' to achieve the target. RBI, in that case, will need to send a report to the government stating the reasons for the failure to achieve the target and propose remedial actions along with time period estimates the achieve it. RBI faces this unique situation today, unless it treats April-May prints as exempt.
MARKET CUES: Where do we stand >>>  | Nifty futures on the Singapore Exchange traded 53 points higher at 7 am (IST), indicating a strong start ahead for Dalal Street. |
| On Wednesday, Nifty50 jumped for the fifth day in a row and formed a higher high and low. But the broader market showed clear signs of fatigue and Nifty50 looked overbought on the short-term charts. |
| Most Asian stock markets advanced as investors mulled encouraging signs for Joe Biden in the presidential election race and the outlook for stimulus. Shares in Australia outperformed, with gains more modest in Japan, while Hong Kong stocks slipped. Kospi added 0.1% and Australia's S&P/ASX 200 index gained 1.1%. |
| US stocks closed sharply higher overnight as investors regained hope at least of a partial deal that more US fiscal stimulus may happen. Dow rose 530 points, or 1.91%; S&P500 gained 58.5 points, or 1.74%, and the Nasdaq 210 points, or 1.88% |
| Oil prices rose on Thursday as oil workers evacuated rigs in the US Gulf of Mexico ahead of Hurricane Delta. WTI crude futures rose 13 cents, or 0.3%, to $40.08 a barrel while Brent futures gained 20 cents, or 0.5%, to $42.19 |
| Snapping its two-day losing streak, the rupee strengthened by 13 paise to settle at 73.33 against the US dollar on Wednesday helped by positive domestic equities and foreign fund inflows. |
| The safe-haven dollar and yen nursed losses. The dollar was flat. The euro edged up 0.2%, the risk-sensitive Australian dollar rose about 0.5%, Sterling and the New Zealand dollar lagged broad gains against the dollar overnight, |
| Gold prices rose to Rs 53,860 per 10 gm, while silver trended at Rs 60,200 a kg. In New Delhi, the price of 22-carat gold remained at Rs 48,900, and in Chennai, it climbed to Rs 48,050. On the MCX, October gold futures fell 0.95 per cent to Rs 50,048, while silver December futures were at Rs 60,491 per kg. In global markets, the yellow metal was little changed at about $1,886 an ounce. |
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Big TCS buyback to lift mood… TCS said it would buy back shares of Rs 16,000 crore. The company recorded an increase in revenue in the quarter ended September but the profit dipped due to the provisions made for a legal case in the US, it said in regulatory filings on Wednesday. TCS also declared an interim dividend of Rs 12 per share. The Mumbai-headquartered company, in which parent Tata Sons owns 72.05%, will buy 53.3 million shares or 1.42% of total paid-up equity capital at Rs 3,000 per share.
Read More London-based firm claims to bag Jet… London-based asset management company Kalrock Capital said it, along with UAE investor Murari Lal Jalan, has been chosen as the new owners of the bankrupt airline Jet Airways. "Our consortium was chosen by the committee of creditors in a meeting that concluded this evening," Igor Starha, managing partner at Kalrock told ET on the phone. ET couldn't confirm it separately with Jet's lenders.
Read More Dixon in focus on output-linked sops… Dixon Technologies, India's largest electronics manufacturing services player, is once again in focus after the government approved one of its two applications for the production-linked incentive scheme for largescale mobile manufacturing. The stock, which surged 192% in the last one year, is likely to rally another 25-30% in the next one year, according to analysts who expect up to 60% return in case of the second PLI approval.
Read More 15 top firms line up to run private trains… Cube Highways, GMR Highways, IRCTC, L&T are among 15 companies which have submitted applications to qualify for operating passenger trains in the country. In all, 150 applications were received for 12 clusters where private trains will be operated. However, Alstom, Siemens, NIIF, ISQ Asia Infrastructure Investments, Sterlite and Titagarh Wagons — companies which had evinced interest in the project — have skipped the bids.
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Sebi notice to Kotak AMC on debt schemes... Sebi has served a fresh show cause notice to Kotak Mahindra AMC for delay in repayment of money to unitholders of four close-ended debt schemes that held securities of Essel Group on their maturity, said three people with direct knowledge of the matter. The regulator has alleged that Kotak Mutual has violated rules that require fund houses to pay back the entire money on the declared net asset value when a scheme matures, said the people mentioned above. This is the second show cause notice sent to the fund house on the matter.
Read More Amazon notice to Biyani over RIL deal… Amazon has sent a legal notice to Kishore Biyani's Future Coupons, a promoter holding company in which the US retail giant has a stake, claiming that its deal with Reliance Industries breaches the contract under which the US online giant took an indirect stake in Future Group last year. As per Amazon, the contract stipulated that Future cannot sell any shares to Reliance or any other competitor and that Amazon had the right of first refusal.
Read More Google finally pays up equalization levy… Google has paid the 2% additional equalisation levy on digital transactions after holding it back initially. Netflix and Adobe have also paid up, said people aware of the development. This is expected to put pressure on the others such as Facebook, LinkedIn, Ebay and Uber that haven't paid the levy, citing lack of clarity. "We have complied with the additional tax levy," a Google India spokesperson told ET, but didn't say how much it had paid.
Read More Meanwhile... Sen says fresh sop needed to lift growth… India's gross domestic product could regain the FY20 level next year if the government pushes through a second stimulus package as big as Rs 10 lakh crore, said Pronab Sen, chairman of the Single Standing Committee on Economic Statistics under the Ministry of Statistics and Programme Implementation. Sen warned if the government chooses not to roll out a stimulus package now, the economy may take another five years to be back to the level achieved in FY20.
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