Jet Stock Dips 8% As Etihad Deal Revision Looms Large; Sensex Recovers From 2013 Lows; British PM India Visit, Eyes Key Road Projects

Monday, Feb 18, 2013 BUDGET 2013-14 TO BE MOST AUSTERE IN YEARS   Finance Minister P Chidambaram is planning to cut the public spending target for fiscal 2013-14 by up to 10% from this year's original target, in what would be the most austere budget unveiled in recent history as he tries to avert a sovereign credit downgrade. Some government departments and ministries are bracing for funding cuts of up to 20-24% from their original 2012-13 targets, which could crimp plans for expansion of the defence forces, rail lines, highways and even development spending on tribal minorities. Despite his austerity drive, Chidambaram has not lost sight of politics ahead of the looming elections. Officials say he will use the spending cuts to make headroom for the rollout of the proposed food security law at a cost of around Rs 1,200 billion to the exchequer. read more   LEAD STORIES JET STOCK DIPS 8% AS ETIHAD DEAL REVISION LOOMS LARGE  The stock of Jet Airways fell on reports that Etihad Airways PJSC needs to revise its deal to buy a stake in the company. read more MARKETS RECOVER FROM 2013 LOWS; L&T & DLF GAIN  Sensex rose 32 pts, as under performers L&T rose 1% and DLF up 5%. All eyes are now on the Union Budget. Sensex ended at 19,501.08. Nifty at 5,898.20. read more BRITISH PM CAMERON INDIA VISIT; EYES KEY ROAD PROJECTS  On his 2nd visit to India Cameron eyes projects worth up to $25 bn which include the Mumbai-Bangalore corridor and Mumbai Metro Rail. read more TOP STORIES • India planning 3rd round of phone airwave auction   • Govt allows 4G holders to offer voice; boost for RIL   • Govt urges trade unions to call off strike call   • Govt mulls swap option in 700-MHz spectrum auction   • Moily rules out rollback in petrol, diesel hike   • "Nothing to hide" in helicopter deal, PM says   • Moody's cautions India of negative credit outlook   • SEBI probes large-scale 'pump-and-dump' of stocks   • UB seeks investor nod to infuse more funds into KFA   • Negotiations with KFA have not been fruitful: SBI   • Unilever to set up Rs 360 cr deo unit in Maharashtra   • Shriram Properties' $100 million deal falls through   • ONGC sets world record in drilling deepest well   • Wipro Infotech bags 10-yr contract for Mumbai airport   • Govt gets tough on taxation of transfers within MNCs   • Call me ugly but don't attack my biz, says Head of IIPM   • Modi survey shockers: a big Southern advantage   • British Royal Mint to make gold sovereigns in India   • BBC journalists on 24-hour strike over job cuts   • Hong Kong Disneyland turns a profit for first time   more stories TOP VIDEOS India Should Take Some Steps Of Austerity To Reduce Govt Spending. RBI Should Step In With Quantative Easing To Further Aid The Economy & Boost Growth: Uday Kotak, MD, Kotak Mahindra Bank   RBI's Focus Will Be On Not Just The Fiscal Deficit Number But The Quality Of Fiscal Adjustment Too: D Subbarao, Governor, RBI   AT A GLANCE BSE 19501.08 +32.93 NSE 5898.2 +10.8 TURNOVER Rs. 99,196 cr BSE CASH Rs. 1,571 cr NSE CASH Rs. 8,148 cr NSE F&O Rs. 81,059 cr BULLION GOLD 30177 -17 SILVER 56209 +146 CRUDE NYMEX 96.39 -0.02 BRENT 117.8 +0.14 FOREX $ / Re 54.185 -0.03 £ / Re 83.936 -0.26 € / Re 72.483 -0.01 EVENTS TO WATCH 18-20 February U.K. Prime Minister David Cameron 3-Day Visit To India 20-21 February Bank Employees To Go On Strike 24 February The Academy Awards Ceremony 25 February 2G Case Hearing In Supreme Court 26 February Union Railway Budget To Be Presented

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"There is room for monetary easing over the next few months, but that room is limited because of the outlook for inflation and outlook for growth. Important variable for monetary policy calibration is the fiscal adjustment that the government will do. The government will come up with deficit stats in the Budget. We will look at the headline fiscal deficit number but also look at the quality of the fiscal adjustment." D Subbarao Governor, RBI "India's rise is going to be one of the great phenomena of this century and it is incredibly impressive to see - the vibrancy of your democracy, the great strength of the diversity of your country and the enormous power of your economy, that is going to be one of the top three economies by 2030. Britain wants to be your partner of choice. We've only just started on the sort of partnership that we could build, As far as I'm concerned, the sky is the limit." David Cameron British Prime Minister "The money (to pay for oil import) can be either found by raising taxes or passing it on to the consumers, Our country imports 73-75% of oil. We need to pay Rs 7 lakh crore for the imports. Where do we find that kind of money." Veerappa Moily Oil Minister