New Delhi, January 15
The RBI is expected to keep interest rates on hold as headline inflation touched a five-month low of 6.16% due to easing vegetable prices. The moderation in December WPI figures comes on the back of easing prices of essential food items, including vegetables, cereals and protein-rich items.

According to analysts, the RBI will not raise rates this month. "With the noise in inflation data (created by high and volatile prices of vegetables) likely to abate further, we do not expect the RBI to raise the repo rate in its monetary policy review scheduled on January 28," Crisil Research said.

Wholesale Price Inflation (WPI) fell to 6.2% in December 2013 from 7.5% in the previous month. Led by a sharp fall in vegetables inflation, primary inflation came down to 10.8% from near 16% in November, driving down the overall inflation.

Aditi Nayar, senior economist, ICRA, said while headline CPI and WPI have eased sharply on the back of the correction in vegetable prices, core inflation remains sticky.

"Nevertheless, given the weakness in consumer demand and contraction in industrial production in October-November 2013, we expect the central bank to retain the repo rate in the upcoming policy review," she said.

Stock markets cheered the lower inflation number with hopes of easing interest rates and the BSE Sensex rose by 257 points. However, analysts said a rate cut looks unlikely. Dipen Shah, head, private client group research, Kotak Securities, said the markets ended the day with more than 1% gain. The WPI data came in much lower than estimates and this supported the banking stocks, which ended sharply higher.

"The inflation and IIP data suggests that, despite growth not showing any signs of rebound, the core inflation continues to rise. This makes the case for a rate cut difficult in the near term," he added.

Industry has sought cut in interest rates to revive growth. "The easing of inflation at a time when industrial growth continues to be in the red should induce RBI to review its monetary policy stance and cut its policy rates to rejuvenate growth, which has been hit by high interest costs, flagging investments and subdued demand," industry chamber, CII said.

Assocham said while achieving a sustained moderation in WPI rise is an issue, the present outcome certainly gives scope for cutting the interest rates in a bid to improve domestic supply response.

Greater Noida, January 15
With Oil Ministry opposed to selling Indian Oil Corp (IOC) shares on stock market, a ministerial panel is likely to decide tomorrow on selling 10% government stake in the company to ONGC and OIL.

An Empowered Group of Ministers (EGoM) headed by Finance Minister P Chidambaram will decide on selling 3% government stake in IOC to ONGC and another 7% to Oil India Ltd (OIL).

"The EGoM is scheduled for tomorrow afternoon," a top source said. "The EGoM will be presented with two options — splitting the 10% stake that the Finance Ministry wants to sell between ONGC and OIL equally or asking OIL to buy 7% stake and ONGC the rest 3%." The source said Oil Ministry continues to have "concerns" over IOC shares being sold in the market at current low rates.

While shares being bought by ONGC and OIL will meet the Finance Ministry's urge to meet mop up about Rs 4,500 crore from IOC disinvestment, buying shares of the nation's largest oil firm at low rates presents the oil producers an opportunity.

"There will be no lock-in period and ONGC/OIL can sell the shares they buy now in 6 months and make profits," the source said. "The Finance Ministry says give us Rs 4,600 crore either by way of disinvestment, cross-holding or special dividend. They have no particular objection to IOC shares being bought by ONGC or OIL." Under the proposal, the government shares in IOC will be sold to ONGC and OIL.

The government in the past too had resorted to the cross-holding route to shore up its revenues.

In late 1990s, the government had sold its shares in ONGC, GAIL and Indian Oil Corp (IOC) to raise Rs 4,643 crore. — PTI 

New Delhi, January 15
After suspending their operations for a few weeks amid growing regulatory glare, many bitcoin operators have cautiously resumed courting business from their clients and some new players have also come to fore in India.

The RBI last month had issued a warning against dealing in bitcoin and other virtual currencies due to various risks, including those related to money-laundering and cyber security, as such digital currencies are not backed by any assets or monetary authorities.

Besides, tax authorities and the Enforcement Directorate have also initiated action against some bitcoin operators in recent weeks, which resulted in many entities suspending their operations.

However, many bitcoin operators and even some corporate houses have recently stepped up their lobbying for a clear regulatory framework on digital currencies in India.

In the meantime, some operators like Unocoin have resumed operations, although on a 'trial basis', while some new entities have also started dealing in bitcoins.

"Unocoin is running on trial basis. Strict buying and selling limits are applied on all accounts," it said in a message displayed prominently on its website.

Unocoin says it will be collecting 0.5% of trade value from customers on every bitcoin buy and sell operations.

Unocoin will also contribute 1% of trade value to Bitcoins Alliance India (BAI), a new grouping formed by bitcoin operators in India, to further their cause.

A new entrant, BitQuick.in has come to the scene, claiming to help connect Bitcoin buyers and sellers in India directly to their own banks.

This new player is offering to provide a platform for sale and purchase of bitcoins in India while linking the payments to the customers' bank account. It is charging 1% fee for purchases of bitcoin, while no charge is levied on those selling these currencies.

Large operators like buysellbitco.in and inrbtc.com continue to remain suspended for want of a clearer framework.

However, experts say that market demand for trading in bitcoins and 75 other such currencies in circulation has not diminished much.

There are an estimated 30,000 bitcoin holders in the country, currently in possession of 1 per cent of around 12 million bitcoins in global circulation.

Some existing operators are in fact shutting down their portals and considering running new services with new names. — PTI

New Delhi, January 15
Eight telecom operators, including Vodafone, Bharti Airtel and Reliance Jio Infocomm, today applied for spectrum auction slated for February 3, raising hopes that the government would garner more than Rs 11,343 crore from it.

"Eight applicants have applied. The auction will be successful, that is what we believe," Telecom Secretary MF Farooqui said.

"From the sale of spectrum in the current year, the Budget has provided for Rs 11,343 crore. We will exceed that," he added.

Overall, the government has set a revenue target of Rs 40,874.50 crore for this fiscal from the auction amount, one-time spectrum charge and annual regular licence fee.

Today was the last date for submitting the applications and companies have the option to withdraw them by January 27. — PTI

BRIEFLY

Rs 15K cr bond issue put off to contain fiscal deficit
New Delhi: A day after Coal India decided to give Rs 19,600 crore bonanza to the government, the Finance Ministry deferred Rs 15,000 crore bond auctions citing improvement in cash position. "On review of the government's cash position and funding requirement, it has been decided, in consultation with RBI, to defer the auction of dated securities amounting to Rs 15,000 crore scheduled to be held on January 17," the Finance Ministry said. — PTI

Vodafone, ICICI Bank launch M-Pesa facility
Karnal: Vodafone and ICICI Bank on Wednesday launched M-Pesa facility, a money transfer and payment service. With this facility, customers can transfer money and make payments to any mobile phone in India, remit money to any bank account in India, recharge mobile, clear utility bills and pay DTH service subscription. — TNS

BSNL launches smartphone at Rs 3,225
New Delhi: BSNL in partnership with Champion Computers on Wednesday launched two smartphones for Rs 3,225 and Rs 4,499, targetted at tier 2 and 3 cities. The devices come with dual core processor and run on Android Jelly Bean operating system and have a dual SIM slot. — PTI

NHAI announces public issue of tax-free bonds
New Delhi: The National Highways Authority of India (NHAI) has announced the public issue of tax-free, secured redeemable, non-convertible bonds in the nature of debentures of the face value of Rs 1,000 each for an amount of Rs 1,000 crore. These bonds have an option to retain over-subscription up to Rs 2,698.40 crore aggregating to a total of Rs 3,698.40 crore. The issue closes on February 5 with an option of early closure. — TNS