RBI Deputy Governor Mr Chakravarti is of the openion that higher yield on 10yr Govt paper is no indication of tighter interest scenario in near term. He says that while the bank are still paying between 7 to 7.5pc for one year fixed deposits, the yield on bond of longer mager maturity does not seem to higher, he further said that once the bank reduce rates on deposits and subsequently on loans, the interest rates on bonds would also ease. I think this is right assessment and the there is no immediate need to cry foul about interest rates.
Air India would get Rs 2000 crs ss equity in the first phase. It has Rs 16000 crs of debt. The total equity infusion of Rs 5000 crs will be staggered. The plans are to buy 111 aircrafts and investment pragramme is of order of Rs 45000 crs. With cost cutting and natural preference of flying population, the ‘maharaja’ may come back in full glory.
Oil India IPO subscribed on the opening day itself, its price bank is Rs 950 and 1050. There is liquidity in system without doubt.
Clinton Foundation will put up five solar parks in Gujarat to generate 5000 MW of electricity at a layout of Rs 50000 crs. Mr Ira Magaziner, the Chairmantn thinks that in five years, the cost of solar power generation will be lower than coal based power.
August sales of ‘tatasteel’ have been up 25pc. The quantum of sales was 492,000 tonnes. It has announced hiking of prices of the long products too.
B K Modi has decided to aquire 51 pc stake in Wll Street Finance. The cash rich tycoon should try his hand at some green field project, but his ways are different.
I am happy to have kept the morale of my reader high all through the past six months without leaving room for doubt. The Nifty is up 87pc over its Mar 09 low. This should have proved to be dream return for those who took the message (told in so many different ways).
The Asian cues are positive and this may be yet another day of advance for Nifty. In Singapore it is already trading at 4829.