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"Monetary Policy Committee (MPC) constitution under the Reserve Bank of India Act, 1934, notified," the finance ministry said. The MPC, in which three members are from the RBI and three others from the government, will target to keep inflation at 4 per cent with an upper and lower tolerance level of 2 per cent. The government, last week, had named three academics to join RBI Governor Urjit Patel, his deputy in charge of monetary policy R Gandhi and central bank executive director Michael Patra on the MPC.
9:45 am Upcoming: Bangalore-based retailer Shankara BuildPro, which is into home improvement and building products, has filed for an initial public offering to raise about Rs 450 crore. According to market sources, the company has filed the draft red herring prospectus (DRHP) with the market watchdog Sebi today and proposes to mop up between Rs 400 crore and Rs 450 crore through the sale, which will involve promoters and investors diluting their stakes to the tune of 35 percent. The proposed IPO will enable private equity firm Fairwinds, which had pumped in close to Rs 120 crore in 2011, to exit Shankara, the sources told PTI today.
9:35 am China data: China's factory sector struggled to gain speed in September while Japanese inflation went backwards in August despite the best efforts of policymakers, underscoring the limits of stimulus in reviving world growth. Friday's unflattering figures bookmarked a week in which the IMF warned it would likely downgrade forecasts for the US economy, and the World Trade Organization slashed its outlook for global trade flows. That was unwelcome news for markets spooked by troubles at Deutsche Bank, whose US shares took a hammering on reports some hedge funds had reduced financial exposure to Germany's largest lender.