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Thursday, January 01, 2009

News Headlines










Sensex value shrinks by half








Posts the third-worst performance among emerging economy indices in 2008.The Bombay Stock Exchange Sensitive Index shed more than half its value in 2008,its worst performance ever,and the outlook remained downbeat in the near term on dismal corporate earnings outlook.The index fell 52.5 per cent or 10,640 points.









Bond yields may drop further








In line with the fall in inflation and interest rates,the yield on 10-year government bonds declined by 254 basis points in 2008 to close a tad below 5.25 per cent.This is the biggest fall since 2001.The yield is expected to fall further in early 2009 as central banks across the world continue to slash interest rates to boost demand and revive the economy.









FII flows hold key to rupee








The currency fell the most in 17 years,losing 24 per cent against the dollar.The rupee saw the biggest annual fall since 1991,losing 23.75 per cent against the US dollar this year as foreign institutional investors(FIIs) pulled out of emerging markets such as India and the greenback appreciated against most Asian currencies.The outlook is mixed with treasury officials predicting more volatility in the next months before seeing the rupee strengthen towards the end of 2009.









ICICI cuts home,auto loan rates 50 bps








The country's largest private sector lender,ICICI bank,today reduced its lending rates on home and auto loans 50 basis points and deposit rates 50 to 75 basis points across various tenures with effect from December 31.The bank's decision came after rate cuts by public sector banks and some of its major private sector rivals like HDFC Bank earlier this month.

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