Foreign Direct Investment allowed: The government post market hours on Friday relaxed foreign direct investment (FDI) in aviation, multi-brand retail, power exchanges and broadcast services -- key economic reforms that had been stalled for months by political gridlock in New Delhi.
Diesel price hike: In an effort to rein in the country's heavy fiscal deficit and fend fears of a ratings downgrade, the government has finally hiked diesel prices by Rs 5 per litre while capping the number of subsidized cooking gas cylinders at six a year. However, petrol, kerosene and LPG rates were untouched.
Inflation at 7.55%: India's wholesale price index (WPI) rose a higher-than-expected 7.55% in August from a year ago period, mainly driven by higher food prices due to deficient monsoon. Ahead of the RBI's next monetary policy review on September 17, experts feel the central bank could go in for rate cuts for the first time since April.
July IIP at 0.1%: A fall in in manufacturing sector growth pulled down the index of industrial production (IIP), during the April-July period to 0.1%. On a sequential basis, July's growth at 0.1% is an improvement over (-) 1.8% recorded in June.
Fed announces QE3: To boost its sluggish economy, the US Federal Reserve unleashed a third round of quantitative easing, better known as QE3. The central bank will buy USD 40 billion of mortgage debt every month to improve the jobs outlook and reduce unemployment rates in the country.
Gold touches Rs 32,900/ 10 gm: The golden metal became dearer as it touched a new all-time high of Rs 32,900 per 10 grams. After the US Federal Reserve decided to add further stimulus to its ailing economy, metals along with gold saw a significant rally.
Infosys acquires consulting firm Lodestone: In a major acquisition bid, IT major Infosys bought Switzerland based global management consulting firm Lodestone Holding for USD 350 million. Keeping aside negative perceptions built around the company on account of its lacklustre performance, this acquisition will boost the company’s revenues significantly.
Car sales hit in August: Car sales in August dived 19% as an overall slowdown in demand depressed volumes significantly, stated a report released by the Society of Indian Automobile Manufacturers (Siam). In the first decline since October last year, sales in August stood at 1.18 lakh units against 1.45 lakh in the same period last year.