RBI Hikes Repo Rate By 25 Bps; Exporter`s Duty Drawback Rate Recomputed At 5.5%; Deceased Andhra Chief Minister YSR`s Corruption Shocked U.S. Diplomats

Friday, Sep 16, 2011 YSR'S SIZE OF CORRUPTION SHOCKED U.S. DIPLOMATS   Deceased Andhra Pradesh chief minister YS Rajasekhara Reddy's populist schemes kept him comfortably in power from 2004 to his sudden death five years later, but they were also conduits for massive corruption, U.S. Consul General David Hopper, then based in Chennai, wrote in a confidential cable newly released by WikiLeaks. Last month, the Andhra Pradesh High Court ordered a wider CBI probe into alleged kickbacks Jaganmohan Reddy received from some 30 companies, including Emaar Properties, Ramky Infrastructure and Pennar Aluminum for sweetheart deals he wrangled for them from his father's government. read more   RAHUL NOT SONIA AT THE CONG CORE GROUP MEETING   Congress General Secretary Rahul Gandhi today attended his first ever Congress Core Committee meeting, while party President Sonia Gandhi chose to skip the meet. The move has been seen as another clear indication that he is being eased into the top role in the party. read more   LEAD STORIES RBI HIKES REPO RATE BY 25 BPS; KEEPS UP HAWKISH TALK   The Reserve Bank Of India raised key interest rates by 25 basis points, its 12th such hike since March 2010 making loans more expensive. read more EXPORTER'S DUTY DRAWBACK RATE RECOMPUTED AT 5.5%   As a setback to exporters, shipments of 1,100 items will be entitled to lower tax refunds from October 1 when curtains draw on the DEPB scheme. read more SENSEX UP 55 PTS AMID HIGH VOLATILITY AND RATE HIKE   Despite high volatility and RBI rate hike, Sensex closed up at 16,933.83, bolstered by positive global cues. Nifty ended at 5,084.25 up 8.55 points. read more TOP STORIES • Home, auto loans up again as RBI hikes rates   • RBI rate hike is shocking, says auto industry   • RBI to FinMin: We're right on inflation, don't screw it   • EGoM meet on limiting LPG cylinder supply deferred   • Petrol hike: It's oil marketing firms decision says FM   • FDI dips 38% to $1.09 bn in July   • Rupee up 29 paise at 47.26/27 against dollar   • MCX-SEBI spat: Bombay HC offers two solutions   • Karnataka Lokayukta Justice Patil under scanner   • Maruti to resume prodn at Manesar on Sunday   • Axis Bank board okays Enam deal   • Tata Motors Aug global sales up 3%   • SC to hear Satyam 'fraudsters' bail pleas   • Jet Airways raises fuel surcharge on tickets   • Govt to redraw candidate list for LIC chairman's post   • Support for Modi's fast grows; Jaya, Badal back him   • Relief for Jayalalithaa: No further probe, says Court   • Egyptian Steel tycoon and a Mubarak crony jailed   • Geithner presses euro zone to leverage bailout fund   • MF Husain's paintings fetch $ 4.7 mn at NY auctions   more stories TOP VIDEOS It's Important For The RBI Not To Go Too Far And Start To Kill Economic Growth: Jim Walker, MD, Asianomics   Global Price Rise Not Rupee Fall Led To Petrol Price Hike: PK Goyal, Director Finance, IOC   < /td> Steady Increase In Subsidy Sharing Has Eroded Investor Confidence: RS Sharma, Former Chairman, ONGC   AT A GLANCE BSE 16933.83 +57.29 NSE 5084.25 +8.55 TURNOVER Rs. 173,013 cr BSE CASH Rs. 2,669 cr NSE CASH Rs. 14,192 cr NSE F&O Rs. 156,151 cr BULLION GOLD 27483 +13 SILVER 64051 +794 CRUDE NYMEX 89.03 -0.37 BRENT 113.87 +1.57 FOREX $ / Re 47.26 -0.29 £ / Re 74.751 -0.37 € / Re 65.273 -0.75 EVENTS 17 September FM To Review Performance Of Zone-Wise PSU Banks 19-20 September 2nd Annual Conference On Energy Needs For Telecom Sector, The Imperial, New Delhi 19 September Government To Consider DLF's Plan To Sell Pune SEZ Court To Hear The Bail Of Bellary Reddy's On Charges Of Illegal Mining 20 September 7th Edition Of Annual International Bank Tech Summit, Taj Lands End, Mumbai EXPERT VIEWS RBI is using a "sledgehammer to swat a fly. By raising the interest rates, RBI is not going to help anyone. The fall in inflation will not be because of the monetary policy. An exclusive attention to headline inflation is not right. RBI and petrol hike is a double whammy for India. The assumption that the economy could achieve 7% growth should not be "taken lightly"." Rajiv Kumar Ficci Secretary General "Inflation remains high, generalised and much above the comfort zone of the Reserve Bank. Moreover, there is still an element of suppressed inflation. Though global oil prices have moderated, the pass-through to domestic prices remains incomplete. Food inflation is at near-double digit levels, despite normal monsoons, underlining the fact that it is being driven by structural demand-supply imbalances and cannot be dismissed as a temporary phenomenon." D Subbarao RBI Governor "Now, American lawmakers and the State Department are being primed for the return of BJP to power in New Delhi, with Modi at the helm as prime minister, following what U.S. analysts say is a 'precipitous' decline in the Congress party's fortunes due to a string of corruption scandals." LK Advani BJP Leader WATCH OUT   Beautiful People   On Beautiful People this week Anuradha SenGupta talks to Teesta Setalvad, the social activist who has been helping the Gujarat riot victims in their legal battle speaks about the recent Supreme Court order in the Gulberg Society case and expresses her views about the much debated Communal Violence Bill all this and more. SHOW TIMINGS Sat 9pm