RBI cuts CRR by 25bps: The Reserve Bank of India (RBI) on Monday kept repo rate, the key policy rate unchanged in its mid quarter monetary policy review, but cut cash reserve ratio (CRR) by 25 basis points to 4.50%. CRR is the portion of deposits that banks keep with the RBI. However, it normally does not earn any interest for banks. The policy action is almost in line with market expectations.
Mamata’s political show: Protesting against FDI in retail in particular, a hike in diesel price and cap on LPG cylinders, Mamata Banerjee pulled out of the UPA alliance on Friday. 19 Lok Sabha MPs from the Trinamool Congress (TMC) have submitted their resignation to the government and though, the Congress led government is likely to be in a minority now, Mulayam Singh Yadav’s Samajwadi party will prevent it from collapsing.
Retail inflation at 10.03%: Soaring vegetable prices pushed up the retail inflation to double digits at 10.03% in August, up from 9.86% in the previous month.
Govt opens door to FDI in retail: Its official now. India has formally opened its supermarket sector to foreign chains and eased foreign investment rules in airlines and broadcasters, implementing a spate of reforms unveiled last week to revive growth in an ailing economy and to stave a possibility of a credit ratings downgrade.
Biggest rally in 2012: The Sensex witnessed its biggest single day rally in 2012 on Friday as it shot up more than 400 points. The government’s reforms push also tagged along the Nifty as it jumped above the 5,700 mark. The rupee too strengthened to a four and half month high of 53.37 against the dollar.