Weekly news

Doubts on 8.8% GDP growth for Q1

India grew at its fastest pace in last two years.

But large data discrepancies prompted many economists to question the strength of economy.

The question mark on GDP data will make it difficult for central bank to raise interest rates further.

Inflation rate is still at 9.97%.

Mukesh picks up 14.12% in EIH

Reliance industries took investors surprise with a stake buy in hospitality company for Rs.1021 cr.

Deal upsets ITC’s desire to control EIH one day.

Oberoi family’s stake fell to 32% from 46%.

Both Reliance and Oberoi said thet there will be no change in the management.

Munjal’s, Honda may part ways

Honda Motor Company of Japan is in talks with Hero Group to sell its 26% stake in Hero Honda motors.

Hero Honda makes more then half of the bikes sold in India.

Currently Hero’s stake is 52%. Both Hero and Honda denied the

statement.

Errors in GDP numbers

Centre admits to errors in some GDP numbers.

Revised data likely to show economy grew 8% from demand side in Q1.

Growth in the value of all goods and services produced by India was not corroborated by demand side.

The difference in both is of about 0.5%.

FY11 tax collection may top budget estimate

India's tax collections could beat budget estimates of Rs 7,46,000 crore ($160 billion) in the fiscal year to end-March 2011.

With this govt. could lower the fiscal deficit to below the targeted 5.5 per cent of GDP.

could result in federal borrowing being reduced from the record Rs 4,57,000 crore budgeted for the current fiscal year.

Ailing PSUs may get lifeline through banks

Government may throw a lifeline to ailing state-run banks to offer joint ventures with private sector players.

Out of the total 213 operating PSUs, 54 incurred losses during 2008-09.

The loss of sick PSUs stood at `14,424 crore in 2008-09, 40% more than the previous year’s figure.