The RBI latest annual report has made it clear that containing inflation is a top priority. The report said high rates of inflation were causing a fall in the real incomes of many Indians, canceling out the gains from economic growth. It said inflation persistence meant that containing rising prices may be now more important than other policy objectives. India’s headline inflation figure, the wholesale price index rose at a lower-than-expected 9.97% in July, though that number is expected to be revised upwards when new data comes in.
On Tuesday the environment ministry rejected Sterlite Industries’ plan to mine for bauxite at Niyamgiri in Orissa. Minister of state Jairam Ramesh said the project violated the Forest Rights Act, the Environment Protection Act and Forest Conservation Act. He added that the decision to deny permission was a strictly legal one, not influenced by politics or sentiments. Tuesday’s move was influenced in part by the N.C. Saxena report. That report said the project had denied the local Dongria Kondh tribe its legitimate rights. It added that parent company Vedanta’s nearby alumina refinery violated the environment protection act. The report also said the Jharkhand mine its currently sourcing from doesn’t have the necessary environmental clearances.
Stocks of Sterlite Industries lost 4% on the BSE on Tuesday to close at 152.40.
And finally, here’s how markets did on Tuesday. The Sensex lost nearly a hundred points to close at 18,312. And the Nifty lost 38 to finish 5,505.