Corporate and Market News Highlights

• Food Inflation-Induced Rate Hike Possible- Dearer vegetables pushed up the food inflation marginally to 15.57% for the week ended January 15, prompting experts to say that RBI may go for yet another round of rate hike in its mid-quarterly policy review in March. Food inflation was 15.52 per cent for the week ended January 8. It was 20.07 per cent a year ago. Based on price movement in the wholesale market food inflation rose by 0.05 percentage points for the week ended January 15 after declining for two consecutive weeks.

• PFC Likely to Announce FPO- The government today said that the Rs 7,000-crore follow-on public offer of the state-owned Power Finance Corporation (PFC) is likely to come around April or May this year.

• Oil India to Give Up on Libya Exploration Blocks- India's state-run explorer Oil India will relinquish two exploration blocks in Libya, its chairman N M Borah told reporters on Thursday, as their operations were not viable.

• RVL and IL&FS to Collaborate for Haryana's Economic Township Development- Reliance Ventures (RVL), a wholly-owned subsidiary of Reliance Industries (RIL), and Infrastructure Leasing and Financial Services (IL&FS) will jointly develop a model economic township and other infrastructure facilities at Jhajjar in Haryana. IL&FS will acquire a 45% equity interest in the new company. RVL and Haryana government will hold 45% and 10%, respectively.

• 3i Acquires Stake in BVG India Ltd.- 3i, an international investor in private equity, infrastructure and debt management, have acquired a minority stake in BVG India Limited.

• Marico Products to be Costlier- Hair oil major Marico said it will increase the prices of its products by up to nine per cent in a bid to offset high input costs. The company is also planning to invest about Rs 60 crore during 2011-12 financial year in its capital assets.

• L&T Likely to Sell Infotech Subsidiary- Larsen & Toubro may sell stake in its infotech subsidiary after failing to turn it into a bigger business. The firm is talking to merchant bankers about a sale mandate and has also held discussions with a bank representing a potential bidder last week.