There’s a new ray of hope for struggling national carrier Air India. On Thursday the Reserve Bank approved its financial restructuring plan. It has asked a group of lenders headed by State Bank of India to meet on Monday about the next steps. The restructuring is expected to take four months. Most significantly, it will include an equity infusion of Rs6,850 crore.
In other news, India’s food inflation is finally showing some signs of easing. The country’s food price index climbed 9.01% in the period to 12 November. That’s a steep fall from the previous week’s 10.63%. Reacting to the news, finance minister Pranab Mukherjee said he hoped food inflation would continue to ease through the rest of November. India’s wholesale inflation remains above nine percent despite 13 hikes by the Reserve Bank since March 2010.
Moving on, the rupee is showing some signs of recovery, though its position remains difficult. On Wednesday it finally broke an eight-day losing streak. The currency ended trade at Rs52.07 to the dollar. That’s from the previous day’s Rs52.37. But the rupee remains under pressure, thanks to a surge in global dollar buying and India’s rising oil import bill.
And finally, Indian markets rebounded on Thursday with better news from Europe and higher hopes for FII inflows. The Sensex climbed one percent to 15,858. And the Nifty jumped 50 to 4,756.