Economic and Other News
Govt. to rewrite BIPA to exclude taxation, intellectual property right issues
India has readied a new draft to negotiate bilateral investment treaties in the future, keeping taxation and intellectual property right issues out of its ambit. The new draft for bilateral investment promotion agreements (BIPA) draws on the learning from the ongoing tax dispute with British telecom firm Vodafone and an adverse ruling in an arbitration case against Australian firm White Industries two years ago.
As per the proposed draft,foreign investors can only invoke BIPA with the country from where they invest into India and not the one with their parent country. “The idea is that only that treaty should be invoked which governs the investment,” said an official privy to the discussions on the new draft, which is being circulated for interministerial consultations.
U.S. Manufacturing Activity Sees Faster Growth DespiteRough Weather
Despite the impact of adverse weather conditions, the activity inthe U.S. manufacturing sector expanded at a faster than expectedrate in the month of February. The ISM said its purchasingmanagers index climbed to 53.2 in February from 51.3 in January,with a reading above 50 indicating growth in the manufacturingsector. Economists had been expecting the index to edge up to51.9. A notable acceleration in the pace of growth in new orderscontributed to the increase by the headline index, as the neworders index rose to 54.5 in February from 51.2 in January.
Russia’s Central Bank Lifts Key Rates Unexpectedly
Russia’s central bank raised its key interest rate unexpectedly by amassive 150 basis points, as rising concerns over the escalatingcrisis in Ukraine took the ruble to record lows against the U.S.dollar and caused the stock market to plummet. The Bank ofRussia lifted its lending rate to 7.00% from 5.50%, citing risingrisks to inflation and financial stability. “The decision is aimed atpreventing the risks for inflation and financial stability arising fromthe recent increase in financial market volatility,” the bank said.
NIFTY – CMP 6219
Nifty opened with a positive bias & faced selling pressure onrises leading the Index to finally close 0.6% positive.
Going forward, Till Nifty holds 6190, it can move upto 6265-6275 zone where it will face high resistance.
If Nifty breaks 6190 support zone, then 6150-6130 would beretested.
Daily Momentum is in positive territory while Weeklymomentum is in negative indicating choppy price action athigher levels.
Bank Nifty – CMP – 10651
Bank Nifty opened with a positive bias & buying on dips waswitnessed leading the Index to finally close 1% negative.=
Going forward, till it holds 10550, it can move upto 10800 zonewhere it will face high resistance.
If breaks & sustains below 10550, would fall upto 10400-10350.
Daily Momentum is in positive territory while Weeklymomentum is in negative indicating choppy price action athigher levels