US stocks rise to new 18-month highs
Stocks rallied on Tuesday, led by the tech, industrial and materials sectors, driving the Dow and the S&P 500 to 18-month highs



The Dow Jones industrial average .DJI rose 102.94 points, or 0.95 percent, to 10,888.83. The Standard & Poor's 500 Index .SPX gained 8.36 points, or 0.72 percent, to 1,174.17. The Nasdaq Composite Index .IXIC shot up 19.84 points, or 0.83 percent, to 2,415.24.

The Dow chalked up its 10th day of gains out of the past 11 sessions.

The Nasdaq Composite Index .IXIC ended at its highest level since August 18, 2008, or about a month before Lehman Brothers collapsed during the credit crisis.



Forex reserves shrink $375 mn as value of gold dips

Foreign exchange reserve dipped $375 million during the week ended February 26 to touch $278.4 billion. This was partly on account of revaluation of non-dollar assets and partly on account of dip in the value of gold in reserves.

According to the latest data released by RBI, both foreign currency assets as well as value of gold in reserves dipped $212 million and $136 million, respectively. While SDR (special drawing rights, the reserve currency with IMF) rose $26 million and $7 million, respectively.



India loses Rs 10 lakh crore from black economy every year

According to the latest estimate of Central Statistical Organisation (CSO), the size of the Indian economy is around Rs 61,64,000 crore. Thus, the size of the black economy, taking it at 40% of GDP, is around Rs 25,00,000 crore or around $500 billion.

If black money is declared by individuals or corporate houses as income, it becomes legal and would be taxed at 30%. If all the estimated black money is declared, it could generate a tax revenue of Rs 7,50,000 crore for the government! This is more than total tax collection at Rs 6,41,000 crore for 2009-10. Kumar puts the potential tax revenue figure much higher at around Rs 10,00,000 crore.