New Delhi, September 2
Stock markets continue to be on a roll fuelled by improving economic indicators and Japan’s announcement on investment into India with the BSE Sensex rising by 151 points today to breach the 27,000-mark for the first time.

The NSE Nifty hit the record 8,100-level on buying by foreign funds triggered by narrowing current account deficit (CAD) and better-than-expected growth.

Continuing its surge for the eighth day, the BSE Sensex hit a fresh life-time high of 27,082 points in early trade. The barometer settled at all-time closing high of 27,019, up 151.84 points or 0.57%, over previous close.

It took 40 trading sessions from July 7 to September 2 to reach the psychological 27,000-level from 26,000.

Better economic data, CAD narrowing sharply to 1.7% of GDP and GDP at a two-and-a-half year high is aiding sentiment.

The market also got a boost after Japan yesterday announced doubling of its private and public investment in India to about $35 billion over the next five years.

Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services said the markets are buoyed by the handling of the coal issue. He added that further, amid positive global cues market continues to trade higher on monthly auto sales, CAD and GDP data, fuelling a quicker revival of the economy.

Sanjeev Zarbade, vice-president — Private Client Group Research, Kotak Securities, said though the global cues were not very strong as US markets were closed and the economic data from the EU was weak, strong market sentiment carried the Sensex to record levels.

He added that sentiment has been very positive as investors are buying into the India story which has seen some encouraging signs like improved GDP growth, likely funding support from Japan and soft crude prices.

Harsha Upadhyaya, chief investment officer — Equity, Kotak Mutual Fund, said with steady US bond yields despite ongoing taper and most other central banks in easing mode, the global liquidity is strong and is looking for better investment avenues in emerging markets. Monthly Emerging Market fund inflows in August were the second best in a decade. With domestic fundamentals on an improving trend, India is well positioned to receive global flows, he added.

New Delhi, September 2
Against the backdrop of Kingfisher case, the Finance Ministry has asked the RBI to tighten lending norms to prevent borrowers from opening multiple current account outside their consortium banks.

There are a few instances where defaulting borrowers indulged in diversion of funds have taken place by opening of multiple current account outside the members of the consortium, sources said.

Therefore, sources said, the Finance Ministry has urged the RBI to tighten the norms and monitoring system so that such activities could be prevented.

According to sources, Kingfisher Airlines allegedly diverted funds by opening a current account in HDFC Bank and had a balance of Rs 7.5 crore as on date.

This fact was not known to the consortium of lenders headed by SBI. These banks have an outstanding debt of Rs 6,521 crore from the now-grounded carrier.

Such diversion can be monitored by RBI as it is sector regulator and there is a need to strengthen the monitoring mechanism, sources said.

There has been a spate of defaults taking place in banking system. A majority of them are due to slow economic growth but there is small proportion of cases where defaults are intentional.

Recently, the Finance Ministry had ordered limited forensic audit into some non-performing accounts of Kolkata-based UCO Bank to find out whether there were any irregularities in sanction of loans.

Forensic audit is being conducted against Dena Bank and Oriental Bank of Commerce (OBC) where some officials were suspected of misappropriating funds worth Rs 436 crore from their fixed deposit customers.

Financial Stability Report released by RBI recently said that infrastructure, iron and steel, textiles, mining and aviation services contributed significantly to the level of stressed advances. — PTI

New Delhi, September 2
Hinting at deregulation of diesel prices as imminent, Oil Minister Dharmendra Pradhan today said there were good signals from international market and his ministry will approach appropriate forum for freeing of rates.

Under-recovery or the gap between retail selling price and the cost of import, this month dipped to an all-time low of 8 paise a litre, helped by the monthly increases and softening in international oil rates.

"We are getting good signals from the international market. Nothing conclusive as yet though," Pradhan said on the sidelines of a Bureau of Energy Efficiency event here.

The NDA government has continued with the previous UPA regime policy of raising diesel rates by up to 50 paisa a litre every month to bridge the gap between cost and retail prices.

He said the oil marketing companies review prices of diesel every month and will continue to follow the January 2013 policy for monthly increase.

On being asked as to when the ministry will approach Cabinet for diesel price deregulation, he said: "Whatever is the procedure we will follow it."

Pradhan said appropriate procedure and forum will be approached at appropriate time for deregulation of diesel.

Originally, petrol and diesel prices were deregulated in April 2002 when NDA government was in power. But administered pricing regime made a backdoor entry toward the end of NDA regime in first quarter of 2004. — PTI

New Delhi, September 2
The Supreme Court today refused to entertain a petition filed by Kingfisher Airlines against being declared as wilful defaulter, saying it has become infructuous as the Grievance Redressal Committee (GRC) of United Bank of India has already passed an order.

"Your grievance has been, that GRC should not decide the matter but they had already decided it, therefore your plea is infructuous" a Bench comprising justices AR Dave and UU Lalit said.

The Kingfisher Airlines had alleged that the order by GRC was passed yesterday, ignoring the plea that the director should be allowed to be represented through lawyers.

However, after the Bench said the plea has become infructuous, the airline counsel submitted that they would challenge the GRC order before the High Court concerned.

State-run United Bank of India yesterday became the first lender to declare debt-ridden Kingfisher Airlines and its promoter Vijay Mallya as wilful defaulters. — PTI 

BRIEFLY

Over 50% NSE-listed firms yet to hire women directors
New Delhi: With just one month left to comply with SEBI’s corporate governance guidelines, more than half of the 1,469 companies listed on the NSE are yet to appoint a woman director on their boards. Corporate governance norms, issued by SEBI in February this year, mandate all listed companies to have at least one woman director on board. These norms will come into force from October 1. — PTI

IBM opens new client centre in Delhi
New Delhi: Tech giant IBM on Tuesday opened a new client centre in Delhi to help enterprises address business challenges in their sectors leveraging cloud computing, analytics, mobile and social technologies. The centre will use technology to create a digital immersive environment using the best of IBM and partner technology to create a customised experience for each client. — PTI

SBI opens 1.14 lakh accounts under Jan Dhan Yojana
Chandigarh: The SBI, Chandigarh Circle, has opened a record 1.14 lakh accounts through 1,072 camps held across the states of Punjab, Haryana, Himachal Pradesh and J&K under the Pradhan Mantri Jan Dhan Yojana. — TNS

Coal India to spend ~235 cr on improving sanitation
New Delhi: In response to the call given to the corporate sector by PM Narendra Modi for 'Clean India' initiative, Coal India on Tuesday said it will spend Rs 235 crore on building toilets and improving sanitation in schools and households of underprivileged. — PTI