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Profit Top 10: Inflation rises marginally; Kingfisher curtails overseas flights

Abhay Aima, Director, HDFC Securities told NDTV Profit that Budget 2012 could have greater impact than the previous budgets as the government may end up surprising everyone.

Shinzo Nakanishi, Managing Director, Maruti Suzuki India
Shinzo Nakanishi, Managing Director, Maruti Suzuki India

On a day when the Railway Budget ruled headlines, here is a look at the other important news of the day.

1) Inflation:

India’s annual rate of inflation, as measured by the Wholesale Price Index (WPI) for the month of February grew to 6.95 per cent, mainly driven by a surge in food prices. It is a marginal increase from the 6.55 per cent in January, and much lower than the 9.4 per cent in February 2011. (Read More)

The general consensus is that the situation has not improved enough to warrant a rate cut by RBI in its credit policy announcement scheduled for Thursday. (Read More)

Planning Commission Deputy Chairman Montek Singh Ahluwalia, meanwhile, projected the headline inflation to remain below 7 per cent during March. (Read More)

2) RBI Banker’s Poll:

After having cut CRR by 0.75 percentage points last week, bankers feel the Reserve Bank may not do much, especially with regard to reducing the key policy interest ratein its mid-quarterly review of monetary policy tomorrow. (Read More)

3) Markets:

A rally in banking shares powered the BSE Sensex to its highest close in almost three weeks on Wednesday on speculation that the Reserve Bank of India (RBI) may still deliver a surprise rate cut this week after a key sub-measure of inflation cooled. The 50-share Nifty index rose 0.6 per cent to 5,463.90, the highest close since February 23. (Read More)

4) Kingfisher:

Kingfisher Airlines will curtail its overseas operations as the debt-crippled carrier looks to slash costs as its funding dries up and losses mount. It also issued a statement today proferring an apology to passengers who have been hit by the ongoing agitation by pilots. Vijay Mallya is also going to hold a meeting on Thursday with agitated pilots and staff. (Read More)

But the Directorate General of Civil Aviation (DGCA) accused it on Wednesday of reneging on a recovery plan and British Airways said it had suspended a code-sharing pact with the airline. (Read More)

Meanwhile, Airports Authority of India (AAI), which is responsible for managing the civil aviation infrastructure in the country, has said that the airline still owes Rs 2.62 billion. (Read More)

5) SEBI-MCX dispute:

The Bombay High Court on Wednesday asked the capital markets regulator Sebi to reconsider MCX's stock exchange application in one month and set aside an earlier order by the regulator. (Read More)

6) TCS

Shares in TCS dropped 3.3 per cent to  Rs 1,157 after a Nomura research report warned India's largest software services exporter was facing a "muted" Q4 following the brokerage's visit with the company's management. (Read More)

7) iGate Patni

Moving toward delisting of Patni Computer Systems (PCS), IT company iGate Patni will start buyback of the company's shares at a minimum price of Rs 356.74 each  from March 28. (Read More)

8) Tata Power

Hit by more expensive coal, country's largest private power utility Tata Power may again seek Centre's intervention in increasing tariff for electricity generated from its 4,000 MW ultra mega power project in Mundra, Gujarat. (Read More)

Meanwhile, the government on Wednesday said that Coal India might divert a portion of coal that was meant for e-auction, to power plants to meet fuel supply commitments to the power sector. (Read More)

9) Wipro:

An offer by a trust controlled by Wipro's billionaire founder Azim Premji to sell up to 35 million shares was covered about 71 per cent at the close of the auction on Wednesday, according to stock exchange data. (Read More)

10) Air India:

Boeing Co has agreed to pay little over $500 million as compensation to state-run carrier Air India for delayed aircraft delivery, a senior government official told reporters on the sidelines of an industry event. (Read More)