Govt cuts monsoon forecast towards 92% of average

With the Indian monsoon showing little signs of improvement, the government said on Monday that monsoon rains are now expected to be below average, reports said. The government scaled down the India Meterological Department’s (IMD) latest forecast of rains at 96% of a 50-year average towards 92% of the average. Rainfall between 90-96% of the long-term average is considered to be "below normal", according to the classification by the IMD. Rains below 90% would be considered a drought, which the country last experienced in 2009. The government is taking emergency steps under contingency plans which would provide for supplies of high-yielding seed varieties, ensure fodder availability and increased power supplies in some areas.

Drinking water will be prioritized over irrigation where necessary from reservoirs, a statement from the Prime Minister’s Office said, although reserves should be replenished after recent heavy showers in the foothills of the Himalayas, the north-east and parts of south India. "The progress of the monsoon so far has not allayed earlier concerns," the statement said. "The intensity and spread of rainfall over the next week or so needs to be watched carefully," it added. Even distribution is crucial and the insufficient rains have slowed the speed of planting crops such as rice, cereals, pulses and oilseeds including soybean. However, areas under sugar cane, mainly grown in irrigated regions, have been higher than in the previous year. Less than normal rain may curb exports of rice, wheat, sugar and cotton and increase imports of cooking oils. India is the world’s second-biggest grower of wheat, rice and sugar, and the largest buyer of palm oil. If the rains play truant for the rest of the season, there is a possibility of already high inflation being stoked further as demand may outpace supply, pushing up prices of fruits and vegetables.

PMO unveils measures to combat deficient monsoon

Pranab Mukherjee sworn in as 13th president

Pranab Mukherjee was sworn in as the 13th president of India at a special ceremony in the Central Hall of parliament on Wednesday. Mukherjee, 76, succeeded Pratibha Devisingh Patil to begin his five-year term as the head of the state and supreme commander of the Indian armed forces. Chief Justice of India, S.H. Kapadia administered the oath of office to Mukherjee in the presence of Vice-President Hamid Ansari; Prime Minister Dr. Manmohan Singh; Lok Sabha speaker Meira Kumar; UPA chairperson Sonia Gandhi; Union ministers, governors and a host of dignitaries. In his first speech after his swearing-in, Mukherjee said that he would, in keeping with his high office strive to rise above partisan interests in the service of the people. Mukherjee also said that he would strive to preserve, protect and guard the Constitution not just in spirit but all across the divide of party and region.

I will strive to preserve India's constitution: Pranab Mukherjee

Corruption is enemy of development, good governance: Pratibha Patil

Govt won’t reverse stance on retail FDI, says Anand Sharma

Without committing to when Foreign Direct Investment in multi-brand retail will be a reality, Trade Minister Anand Sharma affirmed that the government was committed to opening up the retail sector to foreign investment and would not reverse its stance. "We are committed, we have taken the decision and we are building a strong consensus and we are not reversing our decision," he said. "It is being held in abeyance, it is on pause button... But it is a political call. We want to do this and I am not the only one," reports said citing Sharma. Late last year, the government had to withdraw its decision on allowing 51% FDI in multi-brand retail after it was met with stiff resistance from the opposition parties and allies alike. The situation is seen as make-or-break for India and vital for foreign investment, economic growth and the current account. Opening up retail is expected to enable massive inflows from foreign retailers such as Tesco and Wal-Mart. However, there is a fear that some small local stores and farmers would face losses in the bargain.

Retail shares down as SP opposes FDI in multi-brand retail

Mid-cap stocks tumble on margin call rumours...Tulip Tele plunges

Select shares in the Small- and mid-Cap space like Pipavav Defence, Radico Khaitan, Tulip Telecom, Glodyne Technology, Everonn and Parsvnath Developers plunged amid media reports of pressure on account of margin calls. One would receive a margin call from a broker if one or more of the securities bought (with borrowed money) has decreased in value. One would be forced to either deposit more money in the account or to sell off some of your assets. Tulip Telecom shares have been pounded out of shape. The Small-Cap and Mid-Cap indices have taken a beating. According to reports, Vanguard Fund is a common shareholder in most of these stocks. It holds 6.9 lakh shares in Pipavav Defence, 50,000 shares in Glodyne Technoserve, 1.26 lakh shares in Tulip Telecom, 6.3 lakh shares in Radico Khaitan and 50,000 shares in Everonn.

Shares of F&O discards fall

Orissa Minerals Development shares spurt on bonus buzz

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