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(Please click on the Newspaper link to read the full article)   INDIAN ECONOMY Inflation still high, says Subbarao India, Sweden amend tax treaty New bank licence norms ‘very soon’: RBI Deputy Governor Banks’ bad loans could go up as Govt delays payments to vendors We will focus on creating macro-economic stability: Rajan Forex reserves down by $595 mn to $295 bn Finance Ministry pegs growth at 5.5% this fiscal INTERNATIONAL ECONOMY Oil Exports Trim U.S. Trade Deficit as Fuel Gap Shrinks: Economy German Exports Rose in December to Cap Trillion-Euro Year Japan Posts Back-to-Back Current-Account Deficit in December China Festive Sales Seen Gaining as Economy Strengthens EQUITY MARKET 8 sectors which could be impacted by Budget 2013 Analysts don’t expect Nifty to correct sharply in near term BSE Sensex plunges to rock-bottom in 2013 after 7-day losing streak Chidambaram to launch Rajiv Gandhi equity scheme tomorrow DEBT MARKET Bankers want SLR reduced if HTM bond limit is cut IRFC mops up Rs 5,350 cr through tax-saving bond issue Call rates edge higher on reporting Friday Bond yields edge lower on March rate cut hopes Treasury 10-Year Yields Are Poised For Weekly Decline Spanish Bonds for Gain Second Day on ECB Policy Bets COMMODITIES Growth data may put gold under pressure Copper Rises Most in a Week on China’s Trade, Auto Data Brent Oil Rises to Nine-Month High on China World Cotton Surplus Estimate Raised on Bigger Crop in China FOREX Rupee depreciates the most in over a month on Friday Euro Near 2-Week Low, Poised for Weekly Drop, on Draghi Warning Brazilian Real Touches Highest Since May as Mantega Sets Ceiling Pound Posts Biggest Weekly Gain Versus Euro Since 2011  MUTUAL FUNDS Market rally fuels exits from equity schemes Rajiv Gandhi scheme: SEBI extends new fund offer period to 30 days Are fixed maturity plans losing sheen? INSURANCE Insurers can now invest up to 15% in equity of a company IRDA proposes to lower solvency margin to 145 pc for insurers REAL ESTATE ABG Group said be in talks to sell prime Worli plot Morgan Stanley may invest up to Rs 9-10 billion in Mumbai office development: Sources Real value U.K. Property Prices Increased in January, Acadametrics Says  OPINION Tax administration, heal thyself Better than it looks Should housing be given ‘infrastructure status’? - YES Should housing be given ‘infrastructure status’? - NO KNOWLEDGE CENTER Tax-savings Bonds are  Best option before Rates Fall Park money in a contingency fund Look beyond Section 80 C for tax-saving instruments Guarding against a weak rupee How the rupee’s movements can wreck your portfolio

Financial Coffee

(Please click on the Newspaper link to read the full article)   INDIAN ECONOMY Foreign funds pour more into China than India in Jan India's savings rate to dip to 30%: India Ratings India's economic growth slowdown could be worse than expected, shave a 1% off Chidambaram f'cast FDI inflows can grow ten-fold, onus on govt to get that done: Experts Growth likely to touch decade low of 5% this fiscal: CSO 8% growth for India will take tough decision, time: IMF India Predicts Decade-Low Growth Amid Inflation Risks  INTERNATIONAL ECONOMY Fewer Workers Filed Claims for Jobless Benefits in U.S. Draghi Signals Euro Strength May affect ECB’s Recovery Efforts Carney Backs Flexible Inflation Targeting in BOE Testimony Worker Productivity in U.S. Declines U.K. Manufacturing Rises Most Since July on Machinery Output Spain Borrowing Costs Rise Amid Corruption Allegations U.S. Consumer Confidence Rises for First Time in Five Weeks Stournaras Says Greek Recovery May Begin by End-2013 EQUITY MARKET India Inc’s investment abroad jumps 179% in January Consumer durables, realty stocks pull Sensex down 59 points Sensex falls for 5th day, NTPC, Coal India shares down over 2%, Nifty positive at close Merger, demerger deals need SEBI approval now It’s only a conditional nod for Diageo-United Spirits open offer DEBT MARKET Bonds remain bullish on steady demand ‘Retail home loans likely to grow by at least 20% this fiscal’ Treasuries Gain as ECB Concern Keeps Yields Unde 2% Spain Borrowing Costs Rise Amid Corruption Allegations China Injects  860 Billion Yuan via Reverse Repos in Week German Bonds Rise as Draghi Says Policy Can Remain Accomm COMMODITIES China remains top gold producer for sixth year Forex movements hold key to gold’s direction Zinc Leads Metals Slump as Europe Crisis Fuels Demand Concerns Platinum Rally Stalls on Speculation Miners May Boost Selling Brent Crude Rises to Four-Month High, Extends WTI Premium Oil Falls as Draghi Says Euro Strength May Hamper Growth FOREX Rupee slips to 53.22 on lower GDP estimate Euro Falls Most Since July as Draghi Warns of Slowing Inflation Brazil’s Real Surges as Central Banker Says Inflation Rate High Canadian Dollar Falls From 2-Week High Before Jobs Report Aussie May Test 4-Month Low Versus Greenback: Technical Analysis   MUTUAL FUNDS Rajiv Gandhi scheme: SEBI extends new fund offer period to 30 days Are fixed maturity plans losing sheen? Central Public Sector Enterprise ETF launch may be put off INSURANCE Random investments in insurance products to reduce tax can cost you dear in long-run IRDA proposes to lower solvency margin to 145 pc for insurers REAL ESTATE Correction in housing prices to continue for some time: NHB Panacea, Bestech join to develop township OPINION Rajesh Bhayani: Gold prices in correction mode Glass half full Montek Singh Ahluwalia: CSO ignored rising trend in economy for FY13 estimates Time we raised direct taxes KNOWLEDGE CENTER Tax-savings Bonds are  Best option before Rates Fall Park money in a contingency fund Look beyond Section 80 C for tax-saving instruments Guarding against a weak rupee How the rupee’s movements can wreck your portfolio

Financial Coffee

(Please click on the Newspaper link to read the full article)   INDIAN ECONOMY Can’t borrow beyond a limit: Chidambaram Gross direct tax  grows 7.1%, Income Tax 15% in Apr-Nov Permit banks to buy back gold coins from public: RBI report India’s long-term potential rate is 7%: Goldman Sachs IMF calls for slashing SLR to spur pvt investments Net direct tax  grows 12% in April-Jan INTERNATIONAL ECONOMY UK CEOs expect more revenue German Factory Orders Add to Signs of European Recovery: Economy Netherlands AAA Outlook Cut as Fitch Cites Shocks to Economy China’s January Data Gap Vexes Economists EU Seeks to Advance U.S. Trade Deal as China’s Role Grows EQUITY MARKET Sensex falls for 5th day, NTPC, Coal India shares down over 2%, Nifty positive at close Performance of Asia-Pacific coal firms to remain subdued in 2013: S&P It’s only a conditional nod for Diageo-United Spirits open offer Merger, demerger deals need SEBI approval now Banking, fin services stocks drop on weak Q3 earnings DEBT MARKET Deposits growth continues to lag at 13.08% Call rates remain steady around previous close Bond yields edge tad higher tracing rising global crude oil prices Bunds Advance Before ECB Meeting as Spanish Notes Rise U.S. Treasury Sees Floating-Rate Note Sale Within Next Year Taiwan 10-Year Bond Yields Rise to 7-Month High  COMMODITIES Crude oil up on healthy economic indicators Time to dump gold for platinum Coffee Exports From India Set to Drop as Europe Demand Slows Carmakers Use Aluminum Over Steel in Boost for Rio: Commodities Platinum Advances to 16-Month High on Supply Woes; Gold Climbs FOREX Rupee slips a tad Brazil Swap Rates Increase on Inflation Concern; Real Advances Aussie Declines After Retail Sales Unexpectedly Fall Pound Rises Before Carney Testimony, Rate Decision; Gilts Euro Falls Toward One-Week Low Versus Dollar Before ECB   MUTUAL FUNDS Mutual funds exposure to banking stock soars to over 3-year high Gold holding through ETF touches 40,000 kg Gilt assets jump 10 times in first 3 quarters of FY13 INSURANCE Planning to buy an endowment plan? It may pay to wait a few more days Irda to Stop Schemes that Guarantee Highest NAV REAL ESTATE Commercial project 'Spire Edge' at Manesar designated as World Trade Center Panacea, Bestech join to develop township OPINION Why was IRDA sleeping? Taxing FDI Burning issues in real estate regulation Sukumar Mukhopadhyay: GST - 'Paradise lost' from fractured design KNOWLEDGE CENTER Tax-savings Bonds are  Best option before Rates Fall Park money in a contingency fund Look beyond Section 80 C for tax-saving instruments Guarding against a weak rupee How the rupee’s movements can wreck your portfolio

Financial Coffee

(Please click on the Newspaper link to read the full article)   INDIAN ECONOMY IMF CUTS GROWTH FORECAST Global Consumer Confidence Dips, Indians Still Most Optimistic Economy to grow slower at 5.6% in 2012-13: NCAER Policy changes key to our ratings review: Fitch INTERNATIONAL ECONOMY Fed Says Banks Forecast Improved Lending Outlook for 2013 Housing Packs Punch for U.S. Growth in 2013 and Beyond Obama’s Fiscal 2014 Spending Plan Said to Be Delayed Until March Australia’s Trade Deficit Narrows on Coal, Iron Ore Export Surge  EQUITY MARKET Banking, fin services stocks drop on weak Q3 earnings Sensex ends at 3-week low sentiment still weak FMCG volumes decline, but margins hold fort in third quarter India Inc sought debt restructuring for 126 cases in 2012 India on track to become steel powerhouse: E&Y Global M&A in healthcare IT grows $7 b in 2012  DEBT MARKET Short-term Paper Yields Fall Below Bank Base Rates Bond yields tread water on Monday Call rates edge tad higher in second half of reporting fortnight Spanish, Italian Bonds Slide Amid Signs of Political Risk China Five-Year Swaps Climb to Two-Week High as Economy Improves Brazil’s Swap Rates Drop on Outlook for Currency; Real Declines COMMODITIES Gold remains firm, silver falls, Platinum Rises to 17-Week High; Palladium, Gold Advances Platinum Supply Falls to 13-Year Low as Mines Close: Commodities Oil Trades Near One-Week Low on Iran Talks Offer, Europe Crisis  FOREX Rupee settles at 53.28 against dollar Euro May Hit 3-Week Low, Credit Suisse Says: Technical Analysis Euro to Weaken to 10-Week Lows Over Next Year, Wells Fargo Says Pound Rises Versus Euro Even as Construction Contracts  MUTUAL FUNDS Gilt assets jump 10 times in first 3 quarters of FY13 Budget may offer tax sops on pension products by mutual funds MFs sport 'RGESS' tag to tap tax-saving investment  INSURANCE Irda to Stop Schemes that Guarantee Highest NAV IRDA likely to finalise norms for traditional life insurance policies soon REAL ESTATE Need to relax land use norms to boost low-cost housing: Maken Discounts through real estate group buys OPINION Sukumar Mukhopadhyay: GST - 'Paradise lost' from fractured design Abheek Barua: Post-policy blues Britain drifts away from EU KNOWLEDGE CENTER Tax-savings Bonds are  Best option before Rates Fall Park money in a contingency fund Look beyond Section 80 C for tax-saving instruments Guarding against a weak rupee How the rupee’s movements can wreck your portfolio

Financial Coffee

(Please click on the Newspaper link to read the full article)   INDIAN ECONOMY Plan Expenditure may face substantial cut in Budget ‘India’s savings rate to plunge to 10-year low this fiscal’ Close to 6% growth on manufacturing picking up in Jan-Mar: Rangarajan Global Economy: China factories see only modest pick-up, Europe stabilises, HSBC, Markit PMIs show INTERNATIONAL ECONOMY Service Industries in U.S. Probably Maintained Momentum China Services Industries Expanded at Faster Pace in January Japan Finance Minister Models Policy After 1930s Stimulus China Reports highest Capital-Financial Account Gap for 2012 Payroll Gains in Recent Months Show Progress in U.S. Jobs Market Euro Rallies to Highest Since 2011 as ECB Balance Sheet Shrinks European Stocks Post Weekly Drop; Santander, Saipem Slide   EQUITY MARKET Trade cautiously as bears seem to be in control of markets: Analysts Markets may see consolidation, Q3 results to set tone: experts Market cap of top 7 companies dip by Rs 30,797 cr FIIs invest Rs 22,000 cr into Indian equities in Jan LIC cuts holdings in 27 Nifty firms, sells shares worth Rs 8k cr DEBT MARKET Seven states to auction 10-yr bonds to raise Rs 7,670 cr NHB to raise Rs 5,000 crore from tax-exempt bonds by March-end Why investors don’t bank on tax-saving deposits Italian Bonds Fall After 10-Year Debt Sale; Irish Notes Advance Credit Swaps in U.S. Fall as Hiring Rises, Manufacturing Expands Treasury Yields Rise to Highest Since April as U.S. Adds Jobs COMMODITIES Health will be the fastest growing insurance business: Tapan Singhel Oil Completes Longest Run of Weekly Gains Since 2004 Commodities Post Longest Run of Weekly Gains Since 1996 Crude oil prices up in Asian trade   FOREX Euro Rallies to Highest Since 2011 as ECB Balance Sheet Shrinks Pound Falls Versus Euro as Data Signals Recovery Stalling Asian Currencies Decline in Week as Yen Tumble Threatens Exports Dollar Drops to 14-Month Low on U.S. Jobs; Yen Slides Rupee rallies on fund inflows  MUTUAL FUNDS MFs sport 'RGESS' tag to tap tax-saving season flows MFs garner over Rs 1 lakh cr from investors in Apr-Dec 2012 Business Line:-SBI Magnum Equity: Invest Business Line:-Building on Banking and Energy Market regulator Sebi to introduce product labelling for Mutual Funds soon INSURANCE Health will be the fastest growing insurance business: Tapan Singhel Drop in average premium size of life insurance policies: Deloitte REAL ESTATE Discounts through real estate group buys China Home Prices Have Biggest Gain in 2 Years Maytas Properties agrees to pay Rs 850 crore as settlement to SRS Investments, JM Financial OPINION Gold struggles to gain traction Asset markets are driving inflation India’s GDP growth estimate KNOWLEDGE CENTER How to reap benefits from a diversified investment portfolio Park money in a contingency fund Look beyond Section 80 C for tax-saving instruments Guarding against a weak rupee How the rupee’s movements can wreck your portfolio