Asia trading weak

At 7: 52 am (IST), Asian markets were trading weak. China's Shanghai Composite was down 0.90% or 22.94 points at 2,536.53.

Hong Kong's Hang Seng shed 2.66% or 533.10 points at 19,483.17.

Japan's Nikkei fell 2.15% or 192.09 points at 8,751.67.

Singapore's Straits Times declined 2.36% or 66.78 points at 2,758.18.

South Korea's Seoul Composite tumbled 4.49% or 83.62 points at 1,776.96.

Taiwan's Taiwan Weighted shed 2.85% or 216.81 points at 7,398.16.

Air India allowed to take fuel on credit for 2-3 months

In a major relief for Air India, Petroleum Ministry today decided to grant two to three months credit to the troubled airline for jet fuel instead of making
daily payments. The national carrier had been put on cash-and-carry mode
by public sector oil companies since last December as it owes
more than Rs 2,000 crore to them.

Air India has been paying Rs 16.5 crore a day for lifting aviation turbine fuel (ATF) for its day-to-day operations. The decision on providing fuel credit was taken by a Group of Ministers, headed by Finance Minister Pranab  Mukherjee, which also reviewed the latest financial and operational performance of the ailing carrier, Civil Aviation Minister Vayalar Ravi said. 

"Instead of cash and carry, Air India will from now on make payments on the basis of this credit limit of two to three months," Ravi said, adding, "So, the tension of making daily payments is now over". The meeting was also attended by Petroleum Minister S Jaipal Reddy, Home Minister P Chidambaram, Deputy Chairman of Planning Commission Montek Singh Ahluwalia and Civil Aviation Secretary S Nasim Zaidi.

It was the first meeting of the GoM which was attended by the newly appointed CMD of Air India Rohit Nandan. The cash-strapped and debt-ridden national carrier has outstanding loans and dues of Rs 67,520 crore, of which Rs 21,200 is working capital loan, Rs 22,000 crore is long-term loan on fleet acquisition, Rs 4,600 is vendor dues and an accumulated loss of Rs 20,320 crore. 

"A sub-committee of the Finance Ministry will submit a report on the Turnaround and Financial Restructuring Plan next month," the Minister said, adding that the GoM will meet again in mid-September. "All attempts to strenghthen Air India with some financial support to improve its cash flow will be made by the government," Ravi said.

Nifty hits 15-month low

After a few days of relative calm, Indian equity benchmarks closed with enormous cuts, with the NSE Nifty closing at below 5000 for the first-time since June 2010. It was a complete free-fall on Dalal Street on Wednesday, spooked by fears of stammering recovery in the European and US economies after debt crisis.

The 50-share NSE Nifty touched new 52-week intra-day low of 4,932.15, before closing down 112 points at 4,944. The 30-share BSE Sensex fell 371 points, to end at 16,469.79.

On the global front, European markets like France's CAC, Germany's DAX, Britain's FTSE were down 2-3.5%. The Dow Jones futures tumbled 173 points. Major Asian markets like Hang Seng, Shanghai and Nikkei closed down 1-1.6%.

India gold hits record high of Rs 26557/10 gms

India's benchmark gold futures on the Multi Commodity Exchange extended the previous session's gains on Thursday morning and hit a new peak of Rs 26,557 per 10 grams, tailing a rally in the world market and on a weak rupee.

At 10:22 am, the October contract was trading 0.38% higher at Rs 26,495.

International spot gold edged higher on Thursday on persistent worries about euro zone debt woes and slower global growth, defying a rebound in the dollar

Anna agrees to 15-day fast

The confrontation between Team Anna and Delhi Police has come to an end for now after hectic consultations overnight. Anna Hazare will walk out of Tihar Jail on Thursday. He has agreed to fast for 15 days at Ramlila Maidan.

The Delhi police gave the permission for a 15-day fast at at Ramlila Maidan on Wednesday night. The compromise came after late night talks between Team Anna and Delhi Police Commissioner BK Gupta. Anna Hazare will reach Ramlila Maidan on Thursday after 3 pm.

Anna's health worries government

A 15-day fast has been agreed upon but considering Anna's age, the Centre is worried. The Centre's been keeping an eye on his health. Both the government as well as private doctors have been monitoring his health.

Team Anna member Kiran Bedi has reportedly said Anna's health is fine. According to Team Anna, the Gandhian has been fasting at Tihar as his supporters camped outside the jail.

Anna is likely to undergo a medical check up in Tihar Jail at 10 am. Authorities say he is likely to leave Tihar only post noon.

Government bends to please Anna

On the second night of protests outside Tihar Jail on Wednesday, while Team Anna held hectic negotiations inside Tihar, outside the crowds kept swelling.

Just after midnight, Anna Hazare's key aides left Tihar for a meeting with the Delhi Police Commissioner. Soon it was announced that a decision had been agreed upon.

"None of the conditions which we had earlier opposed relating to the number of people to be allowed at the protest venue and parking of vehicles were included in the Delhi Police's permission for the 15-day fast by Anna, which is a very good and sensible sign," said Kiran Bedi.

Outside Tihar, as the news spread, the crowds grew in number. The excitement was palpable, they knew Anna Hazare would now walk out of Tihar on Thursday