India’s 50 stock Index breaches 6,100 level for the first time since Jan 6, 2011. * Strong earnings from blue-chip companies including Infosys  and Reliance Industries, reform measures by the government and rate cut expectation by the central bank have led to a 3 percent rise in the 50 stock index in 2013 as of Monday’s close.

“Leading the gains on Tuesday: Reliance Industries was up 0.9 percent while ICICI Bank rises 1.2 percent.  The yen and Asian shares marked time on Tuesday as investors awaited the outcome of the Bank of Japan’s policy meeting, with expectations running high for bold monetary easing measures aimed at reflating the world’s third-largest economy.
marked time marked time

The yen’s recent violent selloff came to an abrupt halt on Tuesday as investors waited to see if the Bank of Japan would deliver its most aggressive effort yet to beat years of economic stagnation, or disappoint as so often in the past.

Brent crude oil slipped below $112 a barrel on Monday, ending a three-day rally, as pessimism over global economic growth returned traders’ focus to healthy supply levels, offsetting fears of unrest in North Africa.

U.S. Treasury debt prices rose on Friday as the previous session’s selloff lured bargain-minded investors and dealers bought bonds to exit hedges on the corporate debt issues they underwrote this week.

    LOCAL MARKETS PREVIOUS CLOSE
* BSE index 20,101.82 (+0.31 pct)
* NSE index 6,082.30 (+0.3 pct)
* Rupee 53.765/775 per dollar (53.71/72)
* 10-year bond yield 7.86 pct (7.86 pct)
* 5-year OIS rate 7.13 pct (7.15 pct)
* 1-year OIS rate 7.54 pct (7.56 pct)
* Call money 8.00/8.10 pct Fri (8.00/8.10 pct)

India’s Finance Minister to meet foreign investors in Hong Kong. Media briefing at 0700GMT.

India has raised the import tax on gold by 2 percentage points to 6 percent to curb purchases and rein-in a ballooning fiscal deficit, but industry officials expect only a moderate drop in demand.     India’s foreign investment panel has approved Swedish retailer IKEA’s 100 billion rupee ($1.86 billion) plan to set up shop in the country, India’s trade minister said in a statement late on Monday.

Shares of Pantaloon Retail India today surged over 10 per cent after the Reserve Bank allowed foreign institutional investors, non-resident Indians and persons of Indian origins to buy shares in the company.

Shares of the company opened on strong note and later spurted 10.63 per cent to trade at Rs 268.40 on the BSE.  At the National Stock Exchange, the stock zoomed 10.63 per cent to Rs 268.30.

RBI in a notification yesterday said, “The aggregate share holdings by FIIs, NRIs and PIOs under portfolio investment scheme in Pantaloon Retail has gone below the prescribed threshold limit stipulated under extant foreign direct investment policy.”

“Hence, the restrictions placed on the purchase of shares of the above company on behalf of FIIs/NRIs/PIOs, are withdrawn with immediate effect,” RBI said. Further, it is advised that in respect of the existing prior approval applications for purchase of shares received through custodian banks of FIIs, pending with RBI which could not be processed due to unavailability of limit/headroom, such investors are free to invest within the enhanced ceiling, it said.

“As on December quarter, total FII holding in the company stands at 21.98 per cent. Pantaloon shares jump 10% as RBI eases norms for foreign investment (Reuters): Pantaloon Retail Ltd gained as much as 10.6 per cent after India’s central bank eased restrictions on the purchase of shares in the company by foreign institutional investors and by non-resident Indians as well as persons of Indian origin.

The Reserve Bank of India took the measures after the aggregate share holding held by these categories of investors fell below the threshold limit under the Foreign Direct Investment Scheme, meaning these investors can now buy into Pantaloon shares. Pantaloon Retail India Ltd shares were up 9.2 percent as of 0410 GMT.