AI Demands Rs 1,000 Cr VVIP Dues From Govt; Inflation, Industrial Output Data Flawed Says RBI Guv; Sensex Down 69 Pts

Tuesday, Jul 05, 2011 SPECIAL LEAD Click here for India Business Update Mobile Version INFLATION, INDUSTRIAL OUTPUT DATA FLAWED: RBI GUV The data on industrial output and inflation is flawed as it does not reflect the correct picture and could "potentially mislead policy calculations", Reserve Bank of India (RBI) governor Duvvuri Subbarao said on Tuesday. "The Index of Industrial Production (IIP) has shown counter-intuitive trends," Subbarao said while referring to recent unusual fluctuations in the industrial output data. The RBI governor pointed out that, according to the then available IIP series, IIP growth was positive during the period of global economic crisis -- December 2008 to June 2009. read more LEAD STORIES AIR INDIA DEMANDS RS 1,222 CR VVIP DUES FROM GOVT Though AI has billed Rs 1,222 crore for offering five Boeings for VVIP operations, the government could give the ailing airline Rs 802 crore. read more SENSEX DOWN 69 PTS ON PROFIT-BOOKING Sensex closed at 18,744.56 points on profit booking and lacklustre cues from the global market. Nifty fell 18.40 points to end at 5,632.10. read more TOP STORIES • Telangana crisis: Bandh paralyses life in Andhra • Case against Neyveli Lignite CMD for Rs 10K cr fraud • Murli Deora resigns ahead of cabinet reshuffle • SC lifts stay on probe against Justice Dinakaran • Analjit Singh likely to be Chairman, Vodafone India • RBI caps banks' invst in up to 1-yr liquid scheme • Silver rallies Rs 770 on global cues, ends at Rs 52,415 • Key issues unresolved in Telecom Commission meet • TDSAT restrains DoT from Rs 250 cr penalty on Idea • I-T returns: E-filing now with digital signature • Nilekani task force submits report on direct subsidies • UK-based BT to stay invested in Tech Mahindra • Karvy to buy into Bahrain Shares Registering Co • BSNL mulls leasing out factories to private cos • Audi June sales up 75% to 408 units • Hyundai mulls legal action over 'Delhi Belly' • HC notices to Big B, Sony TV for 'insulting' Netaji • ED to probe companies, trusts affiliated to Ramdev • Prosecutors to drop charges against Strauss-Kahn • Facebook, Skype to launch video chat service more stories TOP VIDEOS (On Governance Crisis) The Industry Felt Neglected, Feedback From Customers, Investors Abroad Was Indicating Amber If Not Red Light : Kiran Karnik, Former Chairman, NASSCOM Fed Doesn't Want Another Program Of Monetary Easing Which Will Lead To Commodity Price Increases: John-Paul Smith, Global Emerging Market Equity Strategist, Deutsche Bank Eurozone Leaders Will Have To Integrate A Single Treasury Or European Banking Authority To The Eurozone: George Magnus, Sr Economic Advisor, UBS Investment Bank AT A GLANCE BSE 18744.56 -69.92 NSE 5632.1 -18.4 TURNOVER Rs. 74,896 cr BSE CASH Rs. 2,783 cr NSE CASH Rs. 10,525 cr NSE F&O Rs. 61,587 cr BULLION GOLD 21919 +177 SILVER 51767 +1297 CRUDE NYMEX 102.25 -0.08 BRENT 113.35 +1.96 FOREX $ / Re 44.39 -0.03 £ / Re 71.526 +0.33 € / Re 64.255 -0.01 EVENTS 6 July GoM To Meet For Clearance Of Coal Blocks 7-9 July Hospitality Business Fair, Chennai Trade & Convention Centre 8 July FM To Meet PSU Bank Chiefs GoM On Food To Meet 11 July Delhi Court To Begin Hearing On Framing Charges In The 2G Scam Case 12 July Bombay HC To Hear Lavasa Case Infosys Q1 Results 2G Scam: Former Telecom Secretary S Behura To Appear Before JPC EXPERT VIEWS "I was worried for about a period of last three months or little over three months, but I now see the mood lifting. What is required is some signalling that interest rate increases have peaked and some assessment that inflation is being controlled." KV Kamath Chairman, ICICI Bank "The data on industrial output and inflation is flawed as it does not reflect the correct picture and could potentially mislead policy calculations. The use of wholesale price index (WPI) as the headline inflation index is flawed as it does not capture the final goods prices that consumers actually experience in the market." D Subbarao RBI Governor "Economic prosperity alone is not sufficient. There should also be social prosperity and the development should uplift 400 million people out of poverty by 2020." APJ Abdul Kalam Former President Of India WATCH OUT Bazaar Morning Call Hosted by Udayan Mukherjee and Mitali Mukherjee, Bazaar is the benchmark market opening show in the country. Widely acclaimed and winner of leading industry awards, Bazaar sets the tone for the trading day for millions of Indian investors. SHOW TIMINGS Weekdays 8am