Subbarao hints at slowing the pace of raising interest rates due to moderating food prices. This will help maintain a balance between reining in inflation and ensuring economic growth is not choked. The top priority remains containing food inflation. The Forest Advisory Committee has recommended rejecting Vedanta's proposal to source bauxite from Niyamgiri hills in Orissa and take action against their Lanjigarh alumina refinery. IRDA is proposing to allow insurance companies to invest in venture capital funds across all sectors as there are 157 domestic and 144 registered VCs in India.

1. Current news

2. Subbarao hints at slower pace of hikes It may ease the pace of raising key rates with the moderation in food prices. To maintain a proper balance between taming inflation and ensuring no choking of growth. top priority is to contain food inflation.

3. Vedanta Vedanta’s plan of sourcing bauxite for the Niyamgiri hills in orissa. Forest Advisory Committee has recommended to reject the proposal. Committee also recommended action against Vedanta’s alumina refinery at “Lanjigarh

4. Insurers investments in VC funds IRDA proposing to allow insurance companies to invest in Venture Capital Funds of all sectors. There are 157 domestic and 144 venture capital funds registered with India’s market regulator SEBI.

5. New DTC gets cabinet nod Proposal to raise exemption limit on income tax from 1.6 lakh to 2 lakh. Corporate tax is proposed at 30%. MAT is proposed at 20% Can come into effect from 1st April, 2011.

6. Food inflation eases to 10.05% Food inflation rose to an annual 10.05% in week ended 14 August against 10.35% in previous week. Fuel price index is at 12.57%. WPI inflation is expected to remain around 9.5%. GDP of first Q will be released later in this month.

7. Investors hold back long positions Rise in Nifty August roll over rises to 75.58%. Telecom, IT and Realty sectors see high rollovers. Heavy roll over for RIL, Balrampurchini. Selected stocks are expected to outperform in September.