"It is not entirely erroneous conceptually, the consumer price index is a better indicator of demand-side pressure than the wholesale price index...but there is no single representative consumer price index for the whole country”, said India's Central Bank Governor Duvvuri Subbarao.

The 30-share index BSE Sensex has made recovery of around 110 points during the morning trade, with finance and other sector stocks recording gains on emergence of buying by funds as well as retail investors at persisting low levels amid healthier trends on other Asian stock exchanges.

The country's central bank (RBI) has lifted its short term lending rate (repo) and short-term borrowing rate (reverse repo), for the eighth time since March last year, by 25 bps with the aim to curb inflation.

The repo rate has been raised to 6.75% from 6.50%, whereas the reverse repo has been lifted up from 5.50% to 5.75%.

Taking a step forward to cheer-up the hospitality sector, the RBI (Reserve Bank of India) came up with an order, which will help hotels to come out of the high risk category of real estate exposure.

This will guaratee that banks will provide loans to companies at lower rates of interest.

The union government has relaxed norms for issuance of foreign currency convertible bonds (FCCBs), equity through ADRs (American Depository Receipts) and GDRs (Global Depository Receipts). The move is aimed to help the corporate world for more freedom in pricing of equity shares as per prevailing market prices.