The Repo Rate Hike: Inflation Gave the Cover, the Rupee Gave the Reason

Opening Bell 23 September | Global equities lower on weak US data 

Tracking the losses, Asian markets also opened lower, but slight improvement in China flash PMI might help

Mumbai, September 23, 2013: The US markets closed lower as S&P 500 lost 0.8% to 1,994 on weaker-than-expected housing data. Home resales unexpectedly fell in August as investors stepped away from the markets, reports Reuters . 

Tracking the losses, Asian markets also opened lower. China’s flash manufacturing purchasing managers’ index (PMI) unexpectedly picked up in September even as factory employment slumped to a five-and-a-half-year low, a survey showed on Tuesday. Read more.

In a fillip to the cement industry, the government has decided to abandon bitumen—the raw material for road construction—in favour of cement for all new road projects, reports Mint . The detailed project reports for new road projects will assess the project cost factoring cement as the raw material. 

In a potential setback to the microfinance industry, the government is proposing to dilute the previous version of the Microfinance Bill introduced in 2012, reports Mint . The new version of the Bill that is being worked on is unlikely to override existing state government legislations like the earlier version proposed.

Uncertainty over the fate of subsidy payments for shipbuilders such as Pipavav Defence and Offshore Engineering Co. Ltd, ABG Shipyard Ltd and Bharati Shipyard Ltd could lift soon, with the government looking to extend the payment timeline for a scheme which ended seven years ago, reports Mint . The scheme offered Indian firms 30% subsidy on ocean-going merchant vessels. 

Government is looking to launch another exchange-traded fund with blue chip stocks like ITC Ltd, Larsen and Toubro Ltd and Axis Bank Ltd, reports The Economic Times . According to the report, the government may also add some shares of public sector companies to the fund. 

Reliance Jio Infocomm Ltd plans to use telecom towers of Indus Towers Ltd. Indus Towers is a joint venture between Bharti Airtel Ltd, Vodafone India Ltd and Idea Cellular Ltd. Read more. 

The Supreme Court-imposed cap on iron ore mining in Goa could see Sesa Sterlite Ltd producing at half its capacity once the required permissions are in place, reports Business Standard . The apex court had in April lifted the mining ban in Goa but had imposed an annual cap of 20 million tonnes on the industry, the report says. 

Ahead of the annual general meeting on Tuesday, two independent directors of Steel Authority of India Ltd (SAIL) have resigned, reports PTI . The move comes against the backdrop of removal of independent directors appointed by the United Progressive Alliance (UPA) government. 

The board of CESC Ltd has approved a proposal to raise $150 million through private placement. The money may be raised through equity shares, debentures, warrants or any other securities. Read more. 

A new business model, focus on costs, an emphasis on better customer service, and some money from its promoters has put SpiceJet Ltd on the path to recovery, reports Mint . The airline has been hit by a cash crunch. 

Lastly, Apple Inc. sold more than 10 million iPhones in the first weekend after its new models went on sale on Friday, reports Reuters . The company could have sold even more phones if supplies had been available, Apple claimed.  

Courtesy: Live Mint