Watch the interview of Kunal Shah of Nirmal Bang Commodities with Sonia Shenoy and Anuj Singhal on CNBC-TV18. He spoke about the current trend in commodities markets.
Watch the interview of Kunal Shah of Nirmal Bang Commodities with Sonia Shenoy and Anuj Singhal on CNBC-TV18. He spoke about the current trend in commodities markets.
The Food Ministry is planning to recommend a hike in import duty on sugar to 40 percent from the current 25 percent to check the sliding price of the sweetener and enable mills to clear mounting cane arrears that has reached almost Rs 20000 crore so far.
Sugar stocks are buzzing on buyers' radar hoping for a hike in import duty. Shares of stocks like Bajaj Hindusthan , Balrampur Chini , Mawana Sugars , Sakthi Sugars and Shree Renuka jumped 1-5 percent intraday on Thursday as Food Minister Ram Vilas Paswan said he would write to Finance Minister Arun Jaitley proposing a hike in import duty.
The Food Ministry is planning to recommend a hike in import duty on sugar to 40 percent from the current 25 percent to check the sliding price of the sweetener and enable mills to clear mounting cane arrears that has reached almost Rs 20000 crore so far.
In August last year, import duty on both raw and refined sugar was raised to 25 percent from 15 percent to bail out the cash-starved sugar industry.
Paswan has called two separate meetings of farmers and chief ministers to resolve the cane arrear crisis.
The sugar industry is finding it difficult to pay the cane price to farmers as mills have been incurring losses for the last few years due to low realisation and high production cost.
The Centre has recently provided a subsidy of Rs 4,000 per tonne for the exports of 1.4 million tonnes of raw sugars to improve the cash-flow of the millers.
Industry body ISMA has been demanding that the government give exports subsidy on white sweetener, create buffer stock of 2 million tonnes and also restructure millers' debt.
Ex-mill prices of sugar have fallen to Rs 21-24/kg in the country, while the cost of production is over Rs 30/kg.
Sugar production of India, the world's second largest producer, is estimated to be higher than the domestic consumption for the fifth year in a row.
The government has pegged sugar output at 26.5 million tonnes for the 2014-15 marketing year (October-September), as against 24.3 million tonnes in the previous year. The annual domestic demand is about 24.8 million tonnes.
With inputs from PTI
Sudarshan Sukhani of s2analytics.com recommends holding Alembic.
At 12:03 hrs Alembic was quoting at Rs 39.40, down Rs 0.85, or 2.11 percent. It has touched an intraday high of Rs 40.80 and an intraday low of Rs 39.20.
Disclosure: Analyst does not have positions in the stock.
Way2Wealth has come out with its report on currencies. According to the research firm, one can sell USDINR around 62.70 for the target of 62.55 with a stop loss of 62.80
USDINR (62.71)
Exactly in line with our weekly view the pair USDINR gave away it's losing streak and closed much higher. The pair traded with strong momentum throughout the session to close with huge gains of 0.32%.
In the upcoming session, 62.80 will now act as a strong resistance for the pair. Therefore, we might witness some selling pressure which can drag the pair back to 62.65 – 62.55 levels. Overall, the bunch of swing lows like 62.39 - 62.29 – 62.20 will continue to act as a decisive supports of the pair.
GBPINR (91.58)
Initially GBPINR maintained its downside journey on Monday and inched towards the 91 mark. However, as mentioned in our previous report the oversold prices reacted in the second half and the pair rebounded sharply to close with decent gains of 0.26%.
Going ahead, a move above Monday's high of 91.62 might pull the pair further towards 92 mark. On the lower side, 91.25 – 91.00 levels might act as a strong support for the pair.
EURINR (66.04)
As expected EURINR failed to sustain above its crucial support of 66 on Monday but surprisingly it succeeded in close above the same with a loss of almost a quarter percent.
We continue to maintain our view that a sustainable move below 66 mark can lead to a sharp selloff in EURINR wherein the targets on the lower side could be 65 and below.
| Currency | Action | Entry | Target | Stop Loss |
| USDINR | Sell Around | 62.70 | 62.55 | 62.80 |
| GBPINR | Buy Above | 91.65 | 92.00 | 91.42 |
| EURINR | Sell Below | 65.96 | 65.20 | 66.20 |
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
Economists say the latest number is proof that inflation is clearly trending lower, and this should provide the Reserve Bank of India room to cut rates
Wholesale price index (WPI)-based inflation for March fell to -2.33 percent, the fourth successive month of deflating prices after the flat reading in November.
A CNBC-TV18 poll of economists had forecast March WPI at -2.07 percent.
Economists say the latest number is proof that inflation is clearly trending lower, and this should provide the Reserve Bank of India room to cut rates.
January WPI inflation has been revised lower to -0.95 percent from -0.39 percent earlier
The adverse impact of unseasonal rains in February and March is yet to show in food inflation.
Food articles inflation in March fell to a three-month low of 6.31 percent against 7.74 percent in February. Vegetable inflation too declined to 9.68 percent from 15.54 percent in February. Manufactured products inflation hit a 68-month low of -0.19 percent.
A snapshot of the components:
Non-food Articles Inflation At -7.12% Vs -5.55% (MoM)
Fuel, Power Group Inflation At -12.56% Vs -14.72% (MoM)
Manufactured Pdts Inflation At -0.19% Vs 0.33% (MoM)
Primary Articles Inflation At 0.08% Vs 1.43% (MoM)
Manufactured Products Index Down 0.1%
Non-food Articles Index Down 1.8%
Food Articles Index Down 0.4%
Fuel & Power Group Index Up 3.3%
Primary Articles Index Down 1%
According to Sushil Finance, gold prices are likely to trade negative on the back of the US interest rate outlook.
Gold
Gold cut losses on Tuesday, as the dollar turned lower after U.S. retail sales and producer prices data came in weaker than expected, but prices remained below $1,200 an ounce on higher equities.
The Commerce Department said on Tuesday retail sales increased 0.9 percent, below the 1 percent that economists polled by Reuters had
forecast.
Separately, the Labor Department said its producer price index for final demand increased 0.2 percent last month. But in the 12 months through March, producer prices fell 0.8 percent, the biggest year-on-year decline since 2009.
The recent strength in the U.S. dollar, which has benefited from the growing likelihood that the Federal Reserve will raise interest rates this year, has been a headwind for bullion over the past months.
A U.S. rate increase, which would be the first in nearly a decade, dims the appeal of assets such as gold which do not pay interest.
Outlook
We expect gold prices are likely to trade negative on the back of the US interest rate outlook.
For all commodities report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
Indian ADRs ended lower on Monday. ICICI Bank was down 0.1 percent and Tata Motors slipped 3.03 percent.
Indian ADRs ended lower on Monday. In the IT space, Infosys shed 0.25 percent at USD 36.22 and Wipro was down 1.14 percent at USD 13.03.
In the banking space, ICICI Bank was down 0.1 percent at USD 10.49 and HDFC Bank was up 0.29 percent at USD 58.90.
In the other sectors, Tata Motors slipped 3.03 percent at USD 44.21 and Dr Reddy's Laboratories fell 0.89 percent at USD 59.87.
Bajaj will unveil the adventure variant of the Pulsar today. It is expected to have the same underpinnings as the Pulsar 200NS. There will be two Pulsars, the AS200 which will be a 200cc variant as well as a 150AS, the 150cc unit. The Bajaj Pulsar AS200 will be fed via a carburettor and should make 23.5PS of power. The Pulsar AS150 in the meanwhile will have an all-new engine and should make around 17PS of power. While the 150 will have a rear drum brake, the AS200 will have a disc at the rear. Both the motorcycles will not come with ABS... Read More
Honda has launched the City VX(O) trim in India at Rs 10.64 lakh for the petrol and Rs 11.83 lakh in diesel, ex-Delhi. The new VX (O) trim is the top most in the Honda City line up and features some additional features than the VX grade. Speaking of features, Honda have added, for starters, a new White Orchid Pearl exterior colour. Then there is the AVN system that has found its way to almost all of HCIL's products in India. This Audio Video Navigation system measures 15.7cm and is a touchscreen unit. Bluetooth connectivity,... Read More
Lancor Holdings Ltd has informed BSE that the Company had acquired 6.44 acres of land at Potheri, GST Road from L&T Urban Infrastructure Limited. Further, the Company has obtained permission for conversion of wet land and is in the process of launching a residential project.
Lancor Holdings Ltd has informed BSE that the Company had acquired 6.44 acres of land at Potheri, GST Road from L&T Urban Infrastructure Limited.Further, the Company has obtained permission for conversion of wet land and is in the process of launching a residential project, which has the potential of 8,00,000 sq.ft of built up area, with an estimated turnover of Rs. 400 crores at a margin of 25%.Source : BSE
Read all announcements in Lancor Holdings
