After a smart rally for three days last week, Friday witnessed a heavy sell-off in markets, on the back of speculation that the US Federal Reserve may start reducing its stimulus plan. Worse was the news of Moodys downgrade of financial strength rating, and baseline credit assessments of three PSU banks, including affirming one, which includes Canara Bank, Union Bank, Bank of Baroda and PNB respectively. The rupee’s sharp dip was another reason. Nifty closed at 5507 down around 4.08 per cent on daily basis and down 1.04 per cent on weekly basis.

Duty
In order to reduce the widening current account deficit, the government last week raised the import duty on precious metals. The import duty on gold and platinum was hiked to 10 per cent, from 8 per cent and on the silver the import duty was hiked to 10 per cent, from 6 per cent. The customs duty was raised to 8 per cent, from 6 per cent on gold dore and to 7 per cent from 3 per cent, in the case of silver dore bars.