Nifty ignores RBI move, ends up as banks rule out rate hike

The benchmark Nifty saw a significant recovery in the last couple of hours and closed marginally in the green. After the initial jolt from a 75 bps cash reserve ratio hike in the credit policy, the Nifty recovered over 100 points from the day’s lows and the Sensex over 350 points to close at 4882 and 16357 respectively. The markets completely discounted the 75 bps CRR hike by Reserve Bank of India (RBI) while banks also ruled out the rate hike post the RBI move.

The RBI hiked the CRR by 75 bps to 5.75% from 5%. The move will be implemented in two stages; 50 bps hike w.e.f February 13 and 25 bps hike w.e.f February 27. This CRR hike will absorb Rs 36,000 crore of excess liquidity from the markets. However, the RBI kept repo and reverse repo rate unchanged. The revision in GDP forecast to 7.5% from 6% was a surpise for the markets.

Keki Mistry, Vice Chairman and Managing Director, Housing Development Finance Corp (HDFC): "Actual interest rates, in terms of banks hiking rates, I personally don't see that happening immediately. I think banks will start exercising a little more caution keeping in mind the fact that RBI is so concerned about inflation and therefore will start acting. But I don't see them immediately hiking the rates because they are sitting on a lot of liquidity."

3G auction may be postponed till December 2010: Sources

The government's auction of third-generation wireless spectrum doesn’t seem to see the light of the day anytime soon. It is learnt that the auction is likely to be postponed further till December 2010.

The Defence Ministry has also said that there would be no spectrum till September 2010, sources inform CNBC-TV18.

The Law Ministry, sources say, has said that there are legal challenges in the auction. It has also said that the legal issue were due to delayed availability of the spectrum.

Soruce:http://www.moneycontrol.com

Pak delaying on bringing 26/11 accused to justice

NEW DELHI, Jan 28 – India today said it would have to conclude that Pakistan is dragging its feet on bringing terror accused in Mumbai attacks to justice if it does not put on trial people including Hafiz Saeed, founder of terror group Lashker-e-Taiba, reports PTI. Union Home Minister P Chidambaram, while reacting toPakistan ’s claim that India had not provided any evidence against Saeed, said “Zaki-ur-Rehman Lakhvi is one of the masterminds. There are others. We know their names andPakistan also knows their names.

“If they do not bring the others to trial, then I would have to conclude, reluctantly and regretfully that they are dragging their feet,” Chidambaram told reporters here.

He was responding to questions that Pakistan had spared Saeed in its chargesheet filed in an anti-terrorist court accusing seven other Lashker terrorists including Lakhvi.

India seeks more crude from Nigeria

NEW DELHI, Jan 28 (IANS): India has asked Nigeria for more help in procuring crude, even as it promised to resolve outstanding issues related to its existing oil blocks.

Petroleum and Natural Gas Minister Murli Deora, who is on a four-nation trip to Africa along with heads of major public sector oil and gas companies, Monday held talks with Nigerian Minister of State for Petroleum Resources Henry Odein Ajumogobia on reaching Nigeria, according to an official release Tuesday.

The special advisor to the Nigeran president on petroleum matters, Emmanual Egogah was also present at the meeting.