dna Money must reads: From wholesale inflation at 0.34% to Jaitley on RBI, FinMin relationship, and more

These are the five top business stories of the day so far

1) Wholesale inflation enters positive territory for first time in 17 months

Wholesale price-based inflation turned positive after 17 months, posting an annual gain of 0.34% in April, on the rise in vegetables and pulses prices.

The April Wholesale Price Index-based inflation was at (-)0.85% in March.

"The annual rate of inflation, based on monthly WPI, stood at 0.34% (provisional) for the month of April 2016 as compared to (-)0.85% for the previous month," said the government data released on Monday.

It was (-)2.43% during the corresponding month of the previous year, showed the data.

Food inflation stood at 4.23% in April compared with 3.73% in March. Read more here.

2) HSBC upgrades India to 'neutral'; targets Sensex in 2016 at 26,000

Global brokerage major HSBC has upgraded Indian equity markets to "neutral", saying "green shoots" are emerging and has increased its Sensex target for the year to 26,000 from 25,000.

According to the financial services major, Indian equity market has underperformed and its premium to the rest of the region is shrinking. Moreover, macroeconomic data like PMI and auto sales suggest the earnings environment might improve.

"We raise India to neutral in an Asian context. We raise our 2016 Sensex target to 26,000 (from 25000)," HSBC said in a research note. Read more here. 

3) India to renegotiate tax treaty with Singapore, says FM Arun Jaitley

India will have to renegotiate the tax treaty with Singapore to extend the capital gains tax provisions of the recently-concluded tax pact with Mauritius, Finance Minister Arun Jaitley said on Monday.

Without giving any timeline for such renegotiation, he said it "is a separate sovereign state, it (Mauritius treaty) does not ipso facto automatically extend. The principles will have to be applied, but applied through a process of renegotiation."

Speaking at an Indian Women Press Corps event here, he said further: "But sooner or later, that process will commence and hopefully conclude."

India on May 10 amended the 34-year-old tax treaty with Mauritius. After toiling for almost a decade to redraw the treaty, India will begin imposing capital gains tax on investments in shares through Mauritius from April next onwards. Read more here. 

4) Govt may phase out Foreign Investment Promotion Board soon

In a bid to further ease the process of approving investments and introducing new instruments, the government may do away with the Foreign Investment Promotion Board, a Times of India report has said.

The FIPB was set up 25 years ago when India opened its gates to the world under its economic liberalisation policy. Currently, the FIPB acts as a single window clearance for Foreign Direct Investment (FDI) applications under the approval route.

The sectors which allow for FDI in automatic route do not need any prior approval from FIPB and are only subject to sector-specific laws.

The government is working on allowing foreign investments into more sectors under the automatic route, which means the FIPB may eventually be phased out, the report says. Read more here. 

5) RBI, Finance Ministry share 'mature relationship', says Arun Jaitley

Amid speculation about a possible second term for Reserve Bank Governor Raghuram Rajan, Finance Minister Arun Jaitley declined to be drawn into the matter, but said there is a "mature relationship" between the central bank and the government.

"As far as the Finance Ministry and RBI are concerned, there is an institutional relationship between the two. It is a very mature relationship. We at the highest level at the two institutions have discussion and each other views is considered between us," he said.

He was speaking at an event organised by Indian Women's Press Corps. Read more here.