Wrap up: Food is secured, who will feed Sensex? Rupee woes for MFs

Confused and intimidated by the amount of news hurtling at you everyday? Well, to make your life easier, here’s a quick round-up of the major local and international business and economic news events.

Sensex fears food security

Another bad day at the markets with the Sensex closing around 120 points low though it recovered from a 250 point drop in mid-day trade. Bad news kept flowing in not allowing markets to recover from Friday’s carnage. The Food Security Bill was passed by the Cabinet on Saturday and has fuelled fear that it will push up India’s already heavy fiscal deficit. Here is our take on it.[caption id=“attachment_160194” align=“alignleft” width=“380” caption=“Pains and gains.”] [/caption]

Rising deficit and policy paralysis and given rise to other fears. Here’s another scary warning from CLSA: theSensex could dive to 11,000-12,000 and the rupee could tumble to 60 against the dollar if India’s GDP falls below 7 percent.The report said a plunge in the Sensex and the rupee is likely if India’s gross domestic product is downgraded from above 7 percent to 5-6 percent and if bad loans among banks increased. Here is the story .

Rupee shaves off foreign MF glory

Foreign mutual funds that invest in Indian shares are trailing onshore rivals by the widest margin in 13 years due to a dive in the rupee, raising the risk of sharp investor withdrawals unless funds embrace unfamiliar and costly currency risk hedging. Read more .

Looking back at 2011

It is nearing the end of 2011 and what a year it has been. After the collapse and near-collapse of several private-sector financial institutions in developed countries brought almost the entire world to its knees in 2008, this year, it was the turn of governments to inflict blows on the world economy. Here are five big economy questions for 2012.

Kingfisher’s tailspin tales

And Kingfisher Airlines is back in news. The debt ridden airlines has grounded 15 aircrafts after the Indian carrier was unable to meet maintenance and overhaul expenses, the Economic Times reported on Monday, citing an industry person familiar with the development. Here is the story .

Countdown for Shunglu report

The much-awaited Shunglu panel’s recommendations are likely to disappoint the markets and the power sector. Here are major recommendations the committee has made and why it might not work.

Slipping stocks of 2011

Calendar 2011 would easily rank among the terrible years for equity investors in the Indian stock market. Here is a list of stocks that made headlines in 2011, but for all the wrong reasons.

TCS plans bigger payroll

The country’s largest software exporter Tata Consultancy Services today said it will build a new software development unit in Maharashtra at an initial investment of Rs 600 crore, creating jobs for over 8,200 professionals. Read on .

Orchid Pharma plummets

The shares of Orchid Pharma fell 8 percent lowerafter reports stated that the company will redeem $117 million of outstanding bonds using funds raised via overseas borrowings.The management said that the company has got a sanction of $100 million of external commercial borrowings , which it will use to repay the bonds that are maturing by February 2012. Read on .

Euro emotions

The eurozone debt crisis may be as much about the heart as it is about the head - like a jilted lover, markets are just finding it hard to trust again.

Behavioural economists say financial bubbles can create an emotional high that turns into a irrationally deep low when the bubble pops - people begin to ignore fundamentals and have only negative associations with certain investments. Read on .