Business

India’s inflation based on retail prices surged 10.36 percent in April as compared to 9.38 percent in the previous month due to a sharp increase in prices of vegetables, edible oil and milk products, government data showed Friday.

The price rise was sharper in urban areas. In urban area, inflation based on Consumer Price Index (CPI) surged by 11.10 percent in April year-on-year, while in rural area it grew by 9.86 percent, according to data released by the Central Statistics Office.

The rupee on Friday plunged to a new all-time low of 54.89 against the US dollar as capital outflows continued, raising widespread concerns about the health of the economy.

Forex dealers attributed the fall to strong capital outflows in tune with the fall in local as well as global stocks where investors are increasingly avoiding riskier assets and moving to the new safe haven – the US dollar.

Strengthening of dollar against the euro, which plunged to a four-month low following renewed worries over deepening eurozone debt crisis, also put pressure on the rupee.

Pricing its IPO at USD 38 a share, Facebook, the highly popular social networking site that has over 45 million users in India, is expected to raise USD 16 billion, making it the largest tech IPO in history.

It’s reported to be the third largest US IPO ever, trailing only the USD 19.7 billion raised by Visa in March 2008 and the USD 18.1 billion raised by automaker General Motors in November 2010.

Country’s largest lender, State Bank of India (SBI) on Friday posted net profit of Rs 4,050.27 crore in the fourth quarter ended March 2012, against just Rs 20.88 crore recorded in Q4 of the previous fiscal.

SBI profits had taken a big hit in Q4 of 2010-11 on account of higher provisioning for bad loans and increased tax outgo.

Total income of the bank rose to Rs 33,959.54 crore in the quarter against Rs 26,536.84 crore in the same quarter a year ago, SBI said in a filing on the BSE.

Civil Aviation Minister Ajit Singh on Thursday said that the government will convene a meeting of all the recognised Air India unions next week to discuss Justice Dharmadhikari report on HR issues. Singh said he will discuss the issues of promotions and career progression of pilots in the meeting. The meeting will have representatives of all the recognised unions, which means the Indian Pilots’ Guild that is spearheading this strike will not be part of it.

Etihad Airways, national airline of the United Arab Emirates (UAE), will host the International Air Transport Association (IATA) World Passenger Symposium (WPS) 2012 here in October.

Airline, travel agent, ground handlers and suppliers, as well as government representatives are expected to attend the event which aims to find solutions to industry challenges.

Russia’s largest car-maker AvtoVAZ has built its 27 millionth car at the company plant in Togliatti city, RIA Novosti reported.

The milestone car was a Lada Priora hatchback.

AvtoVAZ president Igor Komarov and the governor of Samara region, where Togliatti is located, were present in the assembly hall when the car rolled off the assembly line.

AvtoVAZ began producing the Lada Priora in 2007.

The BSE benchmark Sensex recovered by over 151 points in early trade Thursday, after yesterday’s losses, on fresh spell of buying by funds and retailers amid a firming trend on the other Asian bourses.

The 30-share barometer, which had lost 298.16 points in the previous session, rebounded by 151.56 points, or 0.94 percent, to 16,181.69 with all the sectoral indices, led by realty, FMCG and capital goods, recovering up to 1.41 percent.

The wide-based National Stock Exchange index Nifty, regained 4,900 points by gaining 50.75 points, or 1.04 percent, to trade at 4,909.00.

Three Air India pilots, who had reported sick, resumed duty Wednesday in the first sign of an end to the nine-day stir by over 200 pilots, whose union IPG said they were open to talks with the government to resolve the deadlock.

The Indian Pilots Guild (IPG), spearheading the agitation, claimed that they were not its members and accused the management of trying to create a rift and confusion among their ranks.

Steel major Jindal Group Wednesday denied any wrongdoing or indulging in illegal activity even as the Central Bureau of Investigation (CBI) searched offices and houses of its executives in a graft case related to the multi-crore-rupee mining scam in Karnataka.

Former chief minister B.S. Yeddyurappa and his kin are accused of favouring Jindal Group’s firms.

The government is planning to introduce some austerity to aid fiscal consolidation, Finance Minister Pranab Mukherjee said Wednesday as the rupee slumped to a record low of 54.50 against the dollar and stock markets tumbled.

Mukherjee said he would take austerity measures to bring more fiscal discipline and send a right signal to the market.

“I am going to put in some austerity measures. It is important to send a right signal,” Mukherjee told lawmakers in the Rajya Sabha.

Arunava Majumdar, a top Indian-American scientist, is leaving his job at the US energy department as the Senate has not confirmed his elevation as an undersecretary at the department.

President Barack Obama Tuesday withdrew Majumdar’s nomination, which was sent to the Senate on Nov 30 last year, a brief White House announcement said.

However, Science journal citing Energy Secretary Steven Chu reported that Majumdar, who has led the energy department’s Advanced Research Projects Agency-Energy (ARPA-E) for nearly two-and-a-half years, will leave June 9.

The crisis in Air India worsened further on the ninth day following the cancellation of 9 more flights, media reports said on Wednesday.

The government on Tuesday promised to hear the pilots’ grievances unconditionally and appealed to them to return to work as the “almost bankrupt” airline had already lost Rs 150 crore and they had the “last chance” to revive it.

In the face of US sanctions on Iran, India has decided to reduce crude oil imports from the gulf nation by 11.1 percent to 15.5 million tonnes during the 2012-13 fiscal, Parliament was informed Tuesday.

“The target fixed for import of crude oil from Iran for the year 2012-13 is approximately 15.5 million tonnes,” Minister of State for Petroleum and Natural Gas R.P.N. Singh told the Rajya Sabha.

Total crude oil imported from Iran by Indian companies during 2010-11 and 2011-12 was 18.50 million tonnes and 17.44 million tonnes, respectively, Singh said in a written reply.

Snapping a five-day losing streak, the BSE benchmark Sensex on Tuesday bounced back from its 4-month lows and closed 112.41 points higher led by capital goods, metal and IT stocks after higher trends in European markets.

The 30-share Sensex, which had lost nearly 700 points in last five sessions, gained 112.41 points, or 0.69 percent to 16,328.25 after touching the day’s high of 16,370.12.

Similarly, the broad-based National Stock Exchange index rose by 35 points, or 0.71 percent to 4,942.80.

As the Pilots crisis in Air India entered eight day on Tuesday, AI management has put out its contingency plan.

Under this plan, ten out of thirty four international routes have been cancelled. In addition, frequency of flights on eight routes has been reduced from seven to two per week.

Air India cancelled around 10 international flights from Delhi and Mumbai this morning.

Meanwhile, seven Air India unions in a letter to Singh have sought an end to the standoff between pilots and management.

The crisis in Air India worsened further on the eighth day following the cancellation of 24 more flights, media reports said on Tuesday.

As losses in the wake of the agitation by over 200 pilots of the Indian Pilots Guild crossed over Rs.150 crore, 24 more international flights were cancelled on Tuesday, bringing no end to the woes of the passengers.

The airline, which had stopped taking bookings for flights to North America and Europe till Tuesday, extended the period till Thursday, airline officials said.

Domestic and foreign air travellers passing through Delhi airport will have to pay higher User Development Fee (UDF) of upto over Rs 1,000, an increase of more than Rs 200.

The new UDF, which comes into effect from Tuesday, varies depending on the distance to be travelled.

The Airports Economic Regulatory Authority (AERA) had on April 25 decided to raise airport charges, including UDF, by a whopping 346 percent for two years, with airlines protesting the move and saying they and the passengers would have to face the brunt of the massive hike.

Nearly ten months after it was formed to examine ways to check the menace of black money, a committee under the chairmanship of Central Board of Direct Taxes (CBDT) chief has submitted its report to the Finance Ministry.

The Ministry, however, declined to share its details saying “action taken” on the basis of the report is to be laid in the Parliament.

The Government had on May 27 last year constituted the committee to examine ways to strengthen laws to curb the generation of black money in the country, its illegal transfer abroad and its recovery.

Falling for the fifth day in a row, the BSE benchmark Sensex Monday dipped by 77 points on profit selling by funds in bluechips following spurt in inflation.

The fall was led by Reliance Industries, which declined to a 52-week low on sustained selling. Besides, the banking sector stocks fell as inflation rose during April, reducing chances of a cut in interest rates.

The Sensex, which has lost nearly 620 points in the last four sessions, fell further by 77.14 points, or 0.47 percent, to 16,215.84.

Stating that neither he nor his family had any connection with Aircel or any other telecom company, an emotional Home Minister P Chidambaram Monday said: “Plunge a dagger in my heart rather than question my integrity.”

He was giving a clarification in the Rajya Sabha on allegations that his son’s company was transferred money, before the Foreign Investment Promotion Board (FIPB) cleared a proposal from Aircel pertaining to its telecom service venture in 2006.

Expressing concern over rise in food inflation, Finance Minister Pranab Mukherjee Monday said the prices could be kept under check through institutional reforms in agricultural marketing and he would discuss the issue with states.

Reacting to the latest WPI inflation data, he said the rise in prices of food items could be checked by creating storage facilities and bringing in institutional reforms in the agricultural marketing.

Inflation moved up to 7.23 percent in April on account of spurt in prices of vegetables, meat, milk and pulses, although onion and fruits showed a declining trend.

Inflation, as measured by the Wholesale Price Index (WPI), was 6.89 percent in March. In April last year, it was 9.74 percent.

Vegetables turned costlier by 60.97 percent during April. In March, the rate of price rise in vegetables was 30.57 percent. Pulses were expensive 11.29 percent.

The agitation by Air India pilots entered its seventh day Monday with the management cancelling 14 international outbound flights, also throwing domestic operations into disarray, an official said.

“We have cancelled around 14 flights for the day. The contingency plan will be implemented within two or three days whereby a guaranteed minimum international operations will be operated,” a senior Air India official with the Operations Arm told IANS.

“We are monitoring the situation and informing the passengers in advance.”