The foreign exchange reserves of India rose $2.6 billion during the week ending October 29, reaching $297.96 billion, partly due to revaluation of gold reserves. Foreign currency assets increased $1.399 billion while gold reserves rose $1.152 billion. India still ranks 134th in ease of doing business globally due to regulatory hurdles like complicated business start-up processes. The RBI hinted at a possible interest rate hike as inflation remains above target.

1. Weekly NewsWeekly News
(1(1stst
Nov-8Nov-8thth
Nov 2010)Nov 2010)

2. Forex reserves jump $2.6 b to touchForex reserves jump $2.6 b to touch
$298 bn$298 bn
 The country’s foreign exchange reserves rose $2.6 billionThe country’s foreign exchange reserves rose $2.6 billion
during the week ended October 29, partly on account ofduring the week ended October 29, partly on account of
revaluation of its gold reserves.revaluation of its gold reserves.
 The reserves are at $297.96 billion now.The reserves are at $297.96 billion now.
 Foreign currency assets comprising dollars, British pounds andForeign currency assets comprising dollars, British pounds and
euro, among others, rose $1,399 million during the week.euro, among others, rose $1,399 million during the week.
 The value of gold in reserves rose $1,152 million during theThe value of gold in reserves rose $1,152 million during the
week.week.
 While special drawing rights, or SDRs — the reserveWhile special drawing rights, or SDRs — the reserve
currency with the International Monetary Fund — and thecurrency with the International Monetary Fund — and the
reserve capital with IMF rose $4 million and $2 million.reserve capital with IMF rose $4 million and $2 million.

3. India still a difficult place to doIndia still a difficult place to do
businessbusiness
 India has shown improvement in the last five years in terms ofIndia has shown improvement in the last five years in terms of
ease of doing business among South Asian countries, but stillease of doing business among South Asian countries, but still
ranks 134th in sharp contrast to its stature as a rising economicranks 134th in sharp contrast to its stature as a rising economic
power.power.
 The ranking is based on nine parametres, starting a business,The ranking is based on nine parametres, starting a business,
dealing with construction permits, registering property, gettingdealing with construction permits, registering property, getting
credit, protecting investors, paying taxes, trading acrosscredit, protecting investors, paying taxes, trading across
borders, enforcing contracts and closing a business. As per theborders, enforcing contracts and closing a business. As per the
report, India is one of the most difficult places to start areport, India is one of the most difficult places to start a
business, as it has the most procedures and the maximum costbusiness, as it has the most procedures and the maximum cost
to set up a business.to set up a business.

4. 'Keep capital control options open''Keep capital control options open'
 India should keep its options open on capital controls in caseIndia should keep its options open on capital controls in case
the situation turns alarming after further liquidity injection bythe situation turns alarming after further liquidity injection by
the US central bankthe US central bank
 The country, however, will have to keep all options on theThe country, however, will have to keep all options on the
table to handle the flows in case there is an increase intable to handle the flows in case there is an increase in
volatility. The inflows are large at present, but still not at avolatility. The inflows are large at present, but still not at a
level to cause worrylevel to cause worry
 US Federal Reserve’s move to purchase another $600 billionUS Federal Reserve’s move to purchase another $600 billion
in government bonds to boost the economy is expected toin government bonds to boost the economy is expected to
pump liquidity into the world system.pump liquidity into the world system.

5. RBI hints at tight monetary policyRBI hints at tight monetary policy
 The Reserve Bank hinted at a marginal hike in key policy ratesThe Reserve Bank hinted at a marginal hike in key policy rates
when it reviews its monetary stance, saying inflation was stillwhen it reviews its monetary stance, saying inflation was still
above the comfort zone and that there was uptick in credit toabove the comfort zone and that there was uptick in credit to
non-food sectors.non-food sectors.
 Overall inflation was 8.62 per cent in September, although theOverall inflation was 8.62 per cent in September, although the
government expects it to slip to 6 per cent by December.government expects it to slip to 6 per cent by December.
"Food inflation continues to remain high despite a good"Food inflation continues to remain high despite a good
monsoon, as price pressures have amplified for certain non-monsoon, as price pressures have amplified for certain non-
cereal items," the central bankcereal items," the central bank

6. Coal India may find it tough to hold onCoal India may find it tough to hold on
to gainsto gains
 The world's largest coal producer today listed on the boursesThe world's largest coal producer today listed on the bourses
with a handsome premium and zoomed over 32 per cent, overwith a handsome premium and zoomed over 32 per cent, over
its IPO issue price of Rs 245 per share, to hit a high of Rsits IPO issue price of Rs 245 per share, to hit a high of Rs
324.75 in the first hour of trade on the Bombay Stock324.75 in the first hour of trade on the Bombay Stock
Exchange.Exchange.
 The total m-cap of Coal India was at Rs 2,03,860 crore in theThe total m-cap of Coal India was at Rs 2,03,860 crore in the
first hour of session, Partha S. Bhattacharyya, Chairman &first hour of session, Partha S. Bhattacharyya, Chairman &
MD, Coal India Limited says.MD, Coal India Limited says.

7. Contd.Contd.
 About 195 mutual funds, 48 financial institutions and banks,About 195 mutual funds, 48 financial institutions and banks,
six venture capital funds, 44 insurance companies, 484 foreignsix venture capital funds, 44 insurance companies, 484 foreign
funds and 1935 corporate bodies own the stock, making it thefunds and 1935 corporate bodies own the stock, making it the
company with the fifth largest shareholder base. There arecompany with the fifth largest shareholder base. There are
15.17 lakh retail investors holding up to shares worth Rs 115.17 lakh retail investors holding up to shares worth Rs 1
lakh and 444 individuals above it.lakh and 444 individuals above it.