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Politics Business Expressions General Sports Leisure States 09 January 1998   Moody's threat jolts the market Global credit ratings agency Moody's Investors Service's threat to downgrade India's ratings to just below investment grade took its toll on the Indian markets. The Bombay Stock Exchange (BSE) sensex crashed by 85 points with speculators selling around Rs 600 crore of shares in one single trading session.   FDI norms eased The Reserve Bank of India (RBI) has done away with the need for its prior approval for foreign direct investment (FDI) under its "automatic" route. The move is synchronous with the Centre's earlier decision to dismantle the Foreign Investment Promotion Board (FIPB). MoF to write off Rs 370 cr Pawan Hans dues The government's plans to dilute its stake in Pawan Hans Helicopters Limited (PHHL) have been facilitated by the Union finance ministry. The ministry has given an in-principle approval to a proposed waiver of the outstanding loan and interest liability of Rs 370 crore of PHHL, a condition stipulated by the Disinvestment Commission for dilution of government stake. Asian stock market crash continues Asia-Pacific stock markets kept up their new-year plunge on Thursday with no signs of respite from the deepening regional financial crisis. Jakarta plunged 12% to a four-year low, Hong Kong 3% to a two-year low and Singapore 7.1% to levels last seen during the October 1987 crash.   Forwards shoot up over Moody's report Moody's Investor Services decision to review India's sovereign rating for a possible downgrade took its toll on forward rates also. Forward rates across all maturities shot up on Thursday as corporates scrambled to cover their forex borrowings in reaction to Moody's threat. Six-month forward premia shot up by 360 basis points to touch the year's highest of 12.3%. India may lose benefits of oil price crash Experts have forecast a sorry scenario for India's crude oil sector, even though global crude oil prices are presently at a record low. India may be able to save between $300 and $350 million in the next three months if the present trend continues. But India may not be able to take too much advantage of the favourable prices due to lack of storage facilities.     MoF contests Moody's move   Cos debt to be costlier   RBI show cause to Hoffland Finance   Sensex plunges 85 points