The Mint Report for 19 October 2010

The Mint Report for 19 October 2010

The opposition BJP has launched a fresh attack on the government over the irregularities in the Commonwealth Games. On Tuesday, party president Nitin Gadkari demanded to know why the Prime Minister’s office had approved the budgets of various projects without questioning their rationale. Gadkari also demanded a probe into corruption in Games contracts by a joint parliamentary committee. The statement came even as officials from the income tax department raided the premises of some of the contractors for the Games.

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HDFC Bank’s quarterly numbers are in line with expectations. The bank’s net profit climbed 33% to 912 crore. Net interest income grew 29% to 2,526 crore. HDFC Bank has seen the quality of its assets improve in recent times and it expects demand for loans to continue for the rest of the fiscal. Its main worry now is rising interest rates, spurred by a tightening of monetary policy. India’s reserve bank has already hiked policy rates five times since March.

Coal India’s gigantic IPO got subscribed 1.57 times by the end of the day. And the institutional part of it was already fully subscribed early in trade. Coal India’s public float could garner the government more than 15,000 crore.

And with Coal India’s IPO raking in the money on Tuesday, there was little to go around for the rest of India’s markets. The Sensex lost 186 points to close at 19,983. And the Nifty fell 49 to close at 6,027.