FINANCIAL NEWS FOR WEEK 4 (26th Aug to 30th Aug 2013)

FinMin Chidamabaram justifies food, land bills

New Delhi, Aug 29 (IANS) The government Thursday defended the landmark food security bill and the land acquisition and rehabilitation bill saying the markets couldn't be "spooked or ethused by them".The food bill was passed by the Lok Sabha Aug 26, the land bill was taken up Thursday.

BSE Sensex surges 400 pts after Indian rupee rebounds vs US dollar, RIL, HDFC shares soar
Mirroring the turnaround in the Indian rupee's value to the US dollar, stock markets today soared with the S&P BSE Sensex logging its best gain in a week of nearly 405 points to end at 18,401.04 on across-the-board buying after RBI opened a special window to help PSU oil firms meet daily forex needs.

Moody's warns India over Food Security Bill, wields 'credit negative' threat
Giving a thumbs down to the Food Security Bill, rating agency Moody's today said the measure is credit negative as it will weaken government finances and deteriorate macroeconomic situation."The measure (Food Bill) is credit negative for the Indian government because it will raise government spending on food subsidies to about 1.2 per cent of GDP per year from an estimated 0.8 per cent currently, exacerbating the government's weak finances," Moody's said in a statement.Moody's currently assigns 'Baa3' rating on India, with a stable outlook. 'Baa3' means medium grade with moderate credit risk.

Rupee bounces from record low of 68.80; govt seeks solutions

The rupee rebounded on Thursday from a record low as the central bank sold dollars to oil companies, while policymakers scrambled for more lasting solutions to what some investors are describing as a crisis.

India might buy gold from citizens to ease rupee crisis

India is considering a radical plan to direct commercial banks to buy gold from ordinary citizens and divert it to precious metal refiners in an attempt to curb imports and take some heat off the plunging currency.A pilot project will be launched soon, a source familiar with the Reserve Bank of India's (RBI) plan told Reuters, although the idea was met with some scepticism

Dollar Swap may Leave Oilcos with High Forex Risk

The Reserve Bank of India's special window to sell dollars to state-run oil companies may have helped the rupee rebound on Thursday, but experts say the move puts the oil marketers in high risk of foreign exchange losses. While the RBIs move announced late on Wednesday has eased spot dollar demand and gives a respite for the government to find ways to boost dollar inflows, Craig Chan, executive director and head of forex strategy & fixed income division (Asia-ex Japan) at Nomura Singapore, said oil companies will have to bear the brunt in case the rupee depreciates over the medium term.

GDP Nos. For Q1 Today, Likely to be Under 4.8%

The first quarter GDP numbers, to be released on Friday, are likely to confirm that Indian economy faces a prolonged slowdown, creating more problems for policymakers already battling a gutwrenching volatility and depreciation. Most experts see the economy growing in the range of 4.3% to 4.7%, below 4.8% recorded last quarter, and this may not be the bottom yet. In an alarming note, BNP Paribas on Wednesday said growth could drop to 3.7% for the entire fiscal 2013-14, lowest since 1991-92, implying that the next few quarters could be even worse.

Asian stocks rose in early trading and oil prices tumbled as a possible U.S. military strike on Syria appeared less likely
The dollar remained around a three-week high against a basket of currencies after data showed the U.S. economy grew at a quicker-than-expected annual pace of 2.5 percent in the second quarter.The GDP data, combined with a fall in weekly jobless claims, reinforced expectations that the U.S. Federal Reserve will begin tapering its asset-buying stimulus as early as next month.

BRICS agree capital structure for development bank - WSJ

The BRICS bloc of large emerging economies have agreed on the capital structure for a proposed development bank that aims to reduce their reliance on Western financial institutions, the Wall Street Journal reported.

India finds price of expats' patriotism elusive as growth fades

The patriotism of wealthy overseas Indians has helped the country avert economic crises in the past and it is little surprise that embattled policymakers are turning to them again to plug a record trade gap that is battering the rupee.

MANAGEMENT TIPS Learn How to Lead in a Crisis

When you are leading in a time-pressured, make-or-break situation, you might wonder if you should take charge and command action or take the time to enable the innovation of others. You can do both. Here are three things to do in a crisis that are both directive and empowering:

Set a vision that instills both realism and hope. Assess the current situation and how its likely to evolve. At the same time, articulate the possibility of succeeding against all odds. Bring people in. Set clear boundaries for who is on and off the core team, but invite in helpful collaborators as well. People may have to work in fluid, shifting arrangements, rotating in and out of teams as the demands of the situation evolve. Engage. Dive in and start doing the work. Lead a disciplined, coordinated execution while also encouraging innovation through experimentation and learning along the way.