Sensex Rebounds 272 Pts; Car Sales Slip 16% In July; Fed Vows To Keep Interest Rates Near Zero

Wednesday, Aug 10, 2011 SPECIAL LEAD Click here for India Business Update Mobile Version FORECAST DIM, FED VOWS TO KEEP RATES NEAR ZERO The Federal Reserve made a rare promise on Tuesday to hold short-term interest rates near zero through at least the middle of 2013, in a sign that it has all but written off the chances of an expansion strong enough to drive up wages and prices. It is now conventional wisdom among forecasters that the economy will plod along through the end of President Obama's first term in office. Millions of Americans will not find work. Wages will not rise substantially. read more LEAD STORIES SENSEX REBOUNDS 272 PTS AFTER 6 DAYS OF BLOODSHED Sensex rallied 1.6% to end up at 17,130.51 points as the Fed pledged to keep interest rates near zero. Nifty rose 88.15 points to end at 5,161. read more CAR SALES SKID 16% IN JULY, FIRST DROP IN 30 MTHS High interest rates, rising fuel prices, higher vehicle costs saw car sales falling in July for the first time since January 2009. read more PARLIAMENT LOGJAM: BJP WANTS CHIDAMBARAM TO RESIGN The BJP disrupted both houses of Parliament demanding P Chidambaram's resignation over the police crackdown on BJP workers yesterday. read more TOP STORIES • Stocks in U.S., Europe slide as Treasuries rally • Rupee falls for 7th day to end at 11-wk low • Brent crude over $105 on Fed vow over interest rates • Gold hits another peak at Rs 26,055/10 gm • Govt to scale down 12th Plan growth to 8.5% from 9% • Passenger car exports jump 41% in July • 2G scam: Rel Tele denies substantial equity in Swan • Govt examining proposal to merge BSNL-MTNL: Sibal • MCX-SX conduct on buyback won't be tolerated: HC • IOC Q1 net loss deepens at Rs 3,719 cr • MTNL Q1 net loss widens 88.45% to Rs 850 cr • Scooters India sale may be postponed after UP polls • Intl Paper moves SAT over AP Paper open offer price • Probe into Jagan assets, Emaar case: Andhra HC • Flight cancellations in 2011: AI 2,753, KF 682, Jet 540 • UTI AMC officers begin 3-day hunger strike • Mercedes Benz launches SLK 350 at Rs 62 lakh • China July exports hit record $175 bn, surplus swells • UK riots: 3 British Asians mowed to death • Facebook launches mobile messaging app more stories TOP VIDEOS S&P's Downgrading Is A Wake Up Call To The U.S. Fiscal Position: YV Reddy, Former Governor, RBI I am Sure The U.S. Will Try To Prevent Any Big Crash Or A Double Dip: Bimal Jalan, Former Governor, RBI We Will See More Stabilised And Better Market In Few Days: Raamdeo Agrawal, Director & Co-founder, Motilal Oswal Financial Services This Is Not Like 2008, It's Not A Liquidity Crunch; This Is A Growth Crunch: Andrew Holland, CEO Equities, Ambit Capital Quantitative Easing Is The Only Bullet Left In The Gun For U.S.: Emil Wolter, Head Regional Asian Equity Strategy, RBS AT A GLANCE BSE 17130.51 +272.6 NSE 5161 +88.15 TURNOVER Rs. 142,403 cr BSE CASH Rs. 2,712 cr NSE CASH Rs. 12,130 cr NSE F&O Rs. 127,561 cr BULLION GOLD 26132 +401 SILVER 58057 +646 CRUDE NYMEX 102.25 -0.08 BRENT 103.74 +1.17 FOREX $ / Re 45.25 +0.05 £ / Re 73.169 -0.64 € / Re 64.115 -0.94 EVENTS 11 August Cadbury Delisting Case At Bombay High Court 12 August L&T Finance Holdings To List Shares 11-12 August Indian Management Conclave 2011, India International Centre, New Delhi 16 August Finance Ministry To Meet Stakeholders On Jalan Committee Report 17 August High Court Noida Extension Case Hearing 18 August Interactive Session With Members Of Parliament, New Delhi 18-19 August 6th Annual Conference On Road Development In India, The Imperial, New Delhi EXPERT VIEWS "We had projected 9.5% (growth) for the 12th Plan and then we scaled it down to 9%... But today I don't feel it will be 9%... But we will definitely move to 8.5%, 8.6%, 8.7%." Ashwani Kumar Minister Of State For Planning "I hope over time that people recognise that we are objective and independent. We call risks as we see them with a forward-looking view...When we downgraded Japan it was the second largest economy...People wondered, what the hell we were talking about. But now Japan has more than 200% debt to GDP and the problem there is big." Deven Sharma President, S&P "The situation is more complex. Inflation is higher...We are uncertain about the near-term developments in the economy. We would like to see if the economy does pick up. We are not prepared at this point to take further action." Ben Bernanke Federal Reserve Chairman WATCH OUT Ministers of Change This week Ministers of Change travels through India's largest state: Rajasthan. We talk to Shekhar Gupta, Yogendra Yadav and Prabhu Chawla about how low profile chief minister Ashok Gehlot is ministering change. Aruna Roy tells us what makes Rajasthan a hotbed for vibrant people's movements and we speak to young leaders like Sachin Pilot to get you a ground report on reforms in administration. SHOW TIMINGS Thurs 7:30 pm