Here's a guide which will help you settle for a camera that should satisfy your basic photography needs.
Kodak M893 IS (Rs. 8,999)
Another compact point-and-shoot camera to join the ranks here is Kodak's M893 IS. It's an 8 MP camera and uses a 34-102 mm lens with a 3X optical zoom and optical image stabilisation. The back of the camera houses all the necessary controls along with a 2.7-inch LCD that has a resolution of 230k pixels. However, the camera doesn't look too stylish. It features Face detection, KODAK PERFECT TOUCH Technology, multimedia slideshow on-camera crop and sound tagging for images as well as 20 preset scene and shooting modes. ISO sensitivity ranges from ISO 80-1600. The camera has 32MB of internal memory and uses a Kodak proprietary Li-Ion rechargeable battery (KLIC-7001). The only spot of bother is the low battery life that Kodaks are notorious for. Although the EasyShare M893 IS is the best in its class it does hold its own when it comes to indoor shooting by giving great color and skin tone reproduction. Overall, this is a decent camera for those new to digital photography. The Kodak EasyShare M893 IS is available for Rs. 8999 and usually comes with a dealer-bundled 2GB SD Card and a carrying case.