May 31, 2013 DAILY BRIEFING ECONOMIC AND GENERAL NEWS Petrol prices may be hiked by up to Re 1 a litre this

s week as the rupee hit a 10-month low making oil imports costlier.As per the practice of revising rates every fortnight, petrol price revision is due tomorrow and if oil ministry approves the increased prices will come into effect from June 1, sources privy to the development said. The Reserve Bank of India (RBI) chief warned of upside risks to inflation and expressed worry over the country's high current account deficit on Thursday, denting hopes for rate cuts and sending bond yields to a two-week high and the rupee to a 10-month low. RBI Governor Duvvuri Subbarao said the current account deficit, which hit a record high 6.7 percent of GDP in the December quarter on heavy oil and gold imports, would be a key factor in monetary policy decisions. BhartiAirtel, India's largest mobile phone company by subscriber numbers and revenues, plans to sell minority stakes in its landline and enterprise businesses as part of an exercise to cut debt, two executives with direct knowledge of the development said.The company is learnt to be looking at an enterprise valuation of about Rs 17,000 crore for its fixedline unit and about Rs 6,500 crore for its enterprise business. The Securities and Exchange Board of India (SEBI) said on Thursday it would increase the number of stocks that are allowed to be used for borrowing and lending, thus relaxing short-selling rules. Japanese bike major Yamaha plans to take the made-in-India brand global. The company has decided to develop and manufacture 'global models' here that would be sold in emerging markets, European countries and its home market Japan. Oil and Natural Gas Corporation (ONGC) and Royal Dutch Shell will equally split the prized 20% stake acquisition in Rovuma basin gas block in Mozambique, after the sellers decided to court individual buyers due to difference in priorities. The stake on offer is valued between $5-6 billion. Indian conglomerate Videocon Industries, which is selling 10% shares, wants to maximize the value. US based Anadarko Petroleum, the operator of the block, is offloading an equal stake but wants a pedigree global partner with better track record and execution skills. The US Food and Drug Administration (FDA) has rapped pharma giant Hospira for serious lapses in manufacturing of drugs at its Sriperumbudur unit. The US agency has warned the firm that this could result in drugs made at the plant not being allowed entry into the US. Hospira, in a regulatory filing, said it had received a warning letter from the agency . The letter followed an October inspection of the plant, where FDA said it found significant violations of quality regulations for finished drugs. INTERNATIONAL NEWS Singapore Airlines said Thursday it will buy 30 Airbus and 30 Boeing aircraft in an order worth more than $17 billion dollars. "Singapore Airlines has agreed to order 30 more Airbus A350-900s and 30 Boeing 787-10Xs in deals valued at more than US$17 billion," the top Asian carrier said in a statement. Spain's biggest bank, Santander, has reached a deal with U.S. private equity firms Warburg Pincus and General Atlantic LLC to sell them a 50 percent stake in its asset management arm. Santander said in a statement on Thursday announcing the sale that it would book a 700 million euro ($914 million) net profit from the deal, which valued Santander Asset Management at 2.05 billion euros. Sony Corp (6758.T) has tapped Morgan Stanley (MS.N) and Citigroup (C.N) to help sound out options for its entertainment business, according to a media report. US retail giant Walmart has pleaded guilty to charges of environmental crimes, including mishandling of hazardous waste and pesticides, and agreed to pay a total of $110 million to settle the cases.

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FOREX NEWS
The rupee is at 56.47/48 versus its close of 56.38/39 on Thursday after falling to as low as 56.60 in opening deals, its weakest since June 29, 2012. Dealers say the Reserve Bank of India governor's comment on Thursday that inflation still remained high and it will take into account the current account deficit for policy decisions, weighs, as it dampens rate-cut hopes in June policy review. CURRENCY RATES USD/INR: Todays Opening
Date 30/05/2013 29/05/2013 28/05/2013 27/05/2013 24/05/2013 23/05/2013 Open 56.12 56.12 55.70 55.75 55.61 55.85 High 56.47 56.20 56.12 55.78 55.74 55.96

56.55
Low 56.04 56.09 55.64 55.52 55.54 55.59 Close 56.39 56.18 55.96 55.57 55.63 55.60

EUR/INR: Todays Opening

Date 30/05/2013 29/05/2013 28/05/2013 27/05/2013 24/05/2013 23/05/2013 Open 72.77 72.07 71.87 72.20 72.03 71.46 High 73.64 72.93 72.44 72.24 72.23 72.16

73.56
Low 72.58 71.93 71.59 71.80 71.79 71.29 Close 73.58 72,86 72.14 71.86 72.18 72.07

INDIAN STOCK EXCHANGE

BSE-SENSEX: Todays Opening:
Date 30/05/2013 Open 20,066.94 High 20,254.03 20186.67 Low 20,066.14 Close 20,215.40

NSE-NIFTY: Todays Opening:

Date 30/05/2013 Open 6,072.15 High 6,133.75

6098.70 Low 6,072.15 Close 6,124.05

INTERBANK RATE at 11.15 A.M USD/INR EUR/INR EUR/USD USD/JPY USD/CHF AUD/USD GBP/USD USD/KRW 56.5034 72.6780 1.30396 100.868 0.95421 0.96492 1.52256 1128.28

LIBOR RATES: 30/May/2013 Tenor 3 months 6 months USD 0.27465 0.41626 EUR 0.11571 0.20000 GBP 0.50563 0.58875

Disclaimer: The above news has been compiled from various financial dailies, websites, and Shinhan Bank cannot be held responsible for any omissions or misinterpretations. Foreign exchange transactions are subject to RBI and FEMA regulations. This news update is merely for information, and Shinhan Bank is not responsible for any action or results based on the information contained herein. Readers are best advised to make their own judgements.