RBI Chief Rejects High Inflation As `New Normal`; Sensex Soars 269 Pts; Hits 1-Month High; Regulators Join Hands To Monitor Financial Groups; World Stocks Hit Highest Level Since 2008

Friday, Mar 08, 2013 RBI CHIEF REJECTS HIGH INFLATION AS 'NEW NORMAL'   Notion that high inflation is the "new normal' was rejected by RBI Governor D Subbarao. He said many of the supply-driven causes of inflation can be corrected by appropriate policies. Subbarao said "We must recognize that the government does not have the fiscal capacity to continue entitlements and welfare programmes at this level. The government's embrace (of) fiscal responsibility will act as a self-limiting check on the wage-price spiral." He said high growth in wages is not sustainable in the absence of improved productivity. read more   LEAD STORIES SENSEX SOARS 269 PTS; HITS 1-MTH HIGH ON GLOBAL CUES  Friday saw a massive rally on D-Street on back of positive global cues. The Nifty rose 82.40 pts to 5,945.70 while Sensex closed at 19,683.23 points. read more WORLD STOCKS HIT HIGHEST LEVEL SINCE JUNE 2008  U.S. jobs data is expected to point to a continuing pick up in the U.S. & Dollar touched a fresh 3-1/2-year high vs yen. read more KINGFISHER AGREES TO PAY 6-MTHS SALARY; STOCK UP 5%  KFA has told DGCA they will pay 6 month's salary to its staff soon with the funds from USL-Diageo deal, KFA rose to Rs 10.04 in trade. read more REGULATORS JOIN HANDS TO MONITOR FINANCIAL GROUPS  RBI, SEBI, IRDA & PFRDA sign an agreement aimed at consolidated supervision, monitoring of financial conglomerates. read more TOP STORIES • Service tax evaders deprive govt of Rs 9,872 cr   • Parl nod sought for addl spending of Rs 49,715 cr   • No mechanism to safeguard, compensate investors:FM   • Lok Sabha polls 2-3 months away, says Mamata   • SEBI to ease registration norms for foreign investors   • Re rallies to over one-wk high; up 28 paise at 54.28   • Cos raised Rs 39,025 cr via placement of bonds in Jan   • Oz court refuses Perdaman's request to sue ICICI Bank   • Maruti to go for 1 day production cut at Gurgaon plant   • Bosch employees go on tool-down strike   • Pantaloon to sell 22.5% stake in Future Generali   • Jet rises 10% on Etihad to buy some stake from owners   • Govt mops up Rs 310 cr via RCF stake sale   • BookMyShow.com acquires Ticketgreen.com   • Telco scam: CBI grilled for not naming corporates   • No instance of PNs used for money laundering: FM   • Ratan Tata meets MNS chief Raj Thackeray   • I-T unearth 189 returns with Rs 7,222 cr fake bills   • Govt opens country's first all-women post office   • Google's Motorola unit suspends India ops, cuts jobs   more stories TOP VIDEOS India Least Favoured Among BRIC Nations: Mark Mobius, Templeton Emerging Markets   India Is More Vulnerable To Global Volatility Compared To Other Emerging Markets: Nandan Chakraborty, Axis Capital   AT A GLANCE BSE 19683.23 +269.69 NSE 5945.7 +82.4 TURNOVER Rs. 173,452 cr BSE CASH Rs. 2,080 cr NSE CASH Rs. 11,406 cr NSE F&O Rs. 148,788 cr BULLION GOLD 29211 -178 SILVER 54171 -485 CRUDE NYMEX 91.43 -0.13 BRENT 110.09 -1.06 FOREX $ / Re 54.285 -0.28 £ / Re 81.238 -0.5 € / Re 70.639 -0.72 EVENTS TO WATCH 9 March India Healthcare Awards 2012, The Oberoi, New Delhi 11 March SAT To Hear Subrata Roy's Appeal Vs SEBI Jim Yong Kim, Chief, World Bank To Visit India 12 March January IIP Data 12-14 March FICCI Frames 2013, Renaissance, Powai, Mumbai

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"I think we all are 'Mad Men' but we are also 'Math Men'. It is a balance and our business is not only an art but also a science with traditional people. This balance in our business is very good." Sir Martin Sorell CEO, WPP "Accepting a new normal for inflation not only has no theoretical or empirical support, but entails the moral hazard of policy inaction in dealing with supply constraints. The 'new normal' argument ... is that it will be politically difficult to reverse these entitlement programmes, they are here to stay, and that India should accept wage-price pressures as a structural feature and adjust its inflation goal accordingly." D Subbarao Governor, RBI "Stock exchange is a market place, it is a private entity. Sebi is the regulator. In a market place, there will be some who will not comply. There is no mechanism by which the government can compensate the shareholder. The market is based on speculation and risk," P Chidambaram Finance Minister