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
The market gained some strength amid consolidation in noon trade with capital goods, realty and consumer durables holding firm. The Sensex rose 137.06 points to 29016.44 and the Nifty climbed 39.90 points to 8820.25.
12:26
Moneycontrol Bureau The market gained some strength amid consolidation in noon trade with capital goods, realty and consumer durables holding firm. The Sensex rose 137.06 points to 29016.44 and the Nifty climbed 39.90 points to 8820.25.The BSE Midcap and Smallcap indices gained 0.7 percent and 1.3 percent, respectively. About 1665 shares have advanced, 836 shares declined, and 179 shares are unchanged on the BSE.
BHEL, Bharti Airtel, Tata Power, HDFC and Tata Steel are top gainers in the Sensex. Among the losers are GAIL, M&M, Hindalco, Dr Reddy's Labs and Tata Motors.
Crude prices remained flat on a big jump in US crude inventories and stoke concerns of a global supply glut.
Meanwhile, consumer price index (CPI) data for the month of March that will be released later today is estimated to possibly harden a little to 5.36 percent versus 5.37 percent. The CPI data could come anywhere between the range of 5.08 to 5.6 percent due to the impact of food inflation that could be seen this time. A group of economists believe that the food inflation might not be high this time because of the unseasonal rains as there isn't much of an impact and secondly, it could be a lead impact. Hence, it could be more evident in the coming months as opposed to the month of March.
11:00
The market remained rangebound with the Nifty hovering around 8780 level. Banks, technology and auto stocks saw selling pressure while capital goods, FMCG and select oil stocks gained.
Read More »
10:00
The market remained in a consolidation mode ahead of January-March quarter earnings that will be kicked off with TCS and IndusInd Bank numbers on April 16. The Sensex rose 19.64 points to 28899.02 while the Nifty declined 1.25 points to 8779.10.
Read More »
09:15
L&T, BHEL, HDFC, SBI, Cipla, Tata Steel and NMDC gained 0.5-1 percent while GAIL dropped 2 percent. Dr Reddy's Labs, M&M, HDFC Bank, Sesa Sterlite and Coal India declined 0.5-1 percent.
Read More »
According to Angel Commodities, Chana futures is expected to trade on mixed to positive note as arrival of new crop in domestic market are picking up slowly.
Chana
NCDEX Chana Apr. futures closed higher in the last trading session by 0.08% as market participants accumulated buy position due to increasing spot demand against restricted supplies in the spot market from new season crop. Unseasonal rain in March brought a heavy loss to crops of pulses. As per the Union Agriculture Ministry reports, around 11.2 lakh hectares of pulse crops damaged.
Meanwhile, Government has extended duty free imports of pulses including chana till September 2015. As per 2nd Advance Estimates for 2014-15, Chana production estimated at 8.28 million tons compared to 9.53 million tons last year.
As per the Govt data, Chana has sown over 85.91 lakh hectares, which is 16 % less as on Feb 13, 2015 as compared to last year's 102.25 lakh hac. Whereas, area coverage under total Pulses is at 145.92 lakh hectares while the last year's sowing area coverage was 162.21 lakh hectares.
Outlook
Chana futures expected to trade on mixed to positive note as arrival of new crop in domestic market are picking up slowly. Overall sentiments look positive for Chana in long term amid expected lower output and duty-free imports allowed till Sep 2015.
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
It's been a one-way euro trip lower. The common currency has fallen every day this week, and is now near the lowest levels in 12 years.
Now, currency traders are keenly watching American economic data, as better news about the economy could lead the euro drop to intensify.
It all comes down to expectations about the Federal Reserve's next move. Most market participants believe the Fed will raise short-term rate targets this year. That should help the US dollar and hurt the euro, as it means that holding dollars will produce greater returns than holding euros, increasing demand for the greenback.
Expectations about a June Fed move have been tamped down due to a bevy of soft economic readings, most conspicuously the March jobs number. But this week, the Fed minutes and hawkish words from William Dudley have told investors that a June hike is still on the table, according to Boris Schlossberg of BK Asset Management.
Dudley, the generally dovish New York Fed president, told Reuters on Wednesday that depending on how the data develops, a June move could be "still in play."
Read More: American stocks are the world's worst this year
In the week ahead, Schlossberg says the biggest data point he will watch is Tuesday's retail sales report. If it indicates that "the US consumer finally started to spend, then dollar bulls run wild, and we may see 1.0500 break" on the euro, which is currently a bit below 1.0600 per dollar.
That's because better data could serve to convince traders that the much-awaited Fed move will come sooner than previously anticipated.
However, some traders say the move is overdone.
"This short-term move is technical, so I expect to see the euro bounce and the dollar pull back off of the recent move," said David Seaburg, head of equity sales trading with Cowen and Co.
Besides, increased buying by jewellers to meet wedding season demand helped the precious metal to recapture the crucial level. Silver also advanced by Rs 150 at Rs 36,900 per kg on increased offtake by industrial units and coin makers.
Gold prices rose for the second straight day and reclaimed the psychologically important Rs 27,000-mark, surging by Rs 280 to trade at Rs 27,080 per 10 grams at the bullion market on Saturday amid a firming global trend.
Besides, increased buying by jewellers to meet wedding season demand helped the precious metal to recapture the crucial level. Silver also advanced by Rs 150 at Rs 36,900 per kg on increased offtake by industrial units and coin makers.
Bullion traders said besides a firming trend overseas, increased buying by jewellers mainly led to the rise in gold prices.
Gold in New York, which normally sets price trend on the domestic front, shot up by 1.16 percent to USD 1,207.30 an ounce and silver by 2.07 percent to USD 16.49 an ounce in yesterday's trade.
In the national capital, gold of 99.9 and 99.5 percent purity rose by Rs 280 each to Rs 27,080 and Rs 26,930 per 10 grams, respectively.
It had gained Rs 50 yesterday. However, Sovereign remained flat at Rs 23,700 per piece of eight grams in scattered deals. In a similar fashion, silver ready rose further by Rs 150 at Rs 36,900 per kg and weekly-based delivery by Rs 310 at Rs 36,710 per kg.
On the other hand, silver coins, however, traded at last level of Rs 55,000 for buying and Rs 56,000 for selling of 100 pieces.
In India, Airbus Group already operates two engineering centres - one focused on civil aviation and the other one defence - besides, a research and technology (R&T) centre which together employ over 400 highly qualified people.
Expressing support to 'Make in India' initiative, aircraft manufacturer Airbus on Saturday said it is ready to manufacture in India, as Prime Minister Narendra Modi visited its facility here.
Modi took the tour of the facility where planes are manufactured. He was given a briefing by officials on the functioning.
Airbus Group CEO Tom Enders, who received the Indian leader, said: "We are honoured to host Prime Minister Modi in Toulouse and convey to him our desire to forge a stronger industrial bond with India. India already takes a centre-stage role in our international activities and we want to even increase its contribution to our products".
"We support Prime Minister Modi's 'Make in India' call and we are ready to manufacture in India, for India and the world," he added.
In India, Airbus Group already operates two engineering centres - one focused on civil aviation and the other one defence - besides, a research and technology (R&T) centre which together employ over 400 highly qualified people.
The group's senior representative conveyed their decision to expand these centres so that they can take on comprehensive design responsibilities for future Airbus group programmes.
On a day Mumbai attack mastermind Zaki-ur-Rehman Lakhvi was released, Prime Minister Narendra Modi today gave a veiled message to Pakistan, saying no country should provide shelter to terrorists but should punish them.
"There is a need for global action to deal with terrorism. All nations should commit that they will not provide shelter to terrorists but punish them," Modi said at a joint press interaction with French President Francois Hollande after their talks here.
Hollande said he understands anger in India over the release of a person who is responsible for such a reprehensible act, a reference to Lakhvi who was behind the attack in Mumbai in November 2008 that claimed 166 lives.
Modi and Hollande discussed the issue of terrorism in the context of recent attack in Paris and release of Lakhvi and decided to intensify cooperation against the menace. "The world is facing many challenges.
There is an upheaval in the world and all are affected...Terror is spreading in new forms in various countries," the Prime Minister said. France suffered in Paris when terrorists struck here in January and understands India's "pain" over terrorism, he said.
"They agreed that India and France must intensify their cooperation within the framework of JWG on Counter-Terrorism, including on information and intelligence sharing on terror networks and work together to share experiences on dealing with the growing phenomenon of radicalisation," a joint statement said after Modi and Hollande held wide-ranging talks.
"They asked officials on both sides to schedule the next meeting of the JWG on Counter-Terrorism at the earliest," it said.
The two countries also agreed to commence bilateral dialogue to discuss ways and means of enhancing their cooperation in the maritime domain, in particular in the Indian Ocean Region (IOR).
"India welcomes closer engagement of France in the affairs of the Indian Ocean Rim Association and will continue to work closely with France in realisation of the objectives enshrined in the Charter of the Association," the statement said.
"The two leaders noted with satisfaction the holding of second round of the Cyber Dialogue on 17 March 2015 in New Delhi, which outlined new areas of cooperation between France and India in the field of cyber security," it said.
Strong fourth-quarter US company earnings and signs of an overall improving economy, alongside what appears to be the start of a bottoming in crude oil prices, have given equities support.
After starting 2015 with its sharpest monthly drop in a year and a spike in volatility, the benchmark S&P 500 .SPX hit an intraday record on Friday while the Dow Jones Industrial Average .DJI reached its highest point so far this year.
As "stocks have found a footing, people aren't as afraid of the potential negative" stemming from recent instability in oil prices and Greece, said Wayne Kaufman, chief market analyst at Phoenix Financial Services in New York.
"That's allowed stocks to start breaking out of the channel that they've been stuck in since the beginning of the year," he said.
Volatility seems to abating. The CBOE Market Volatility Index .VIX, Wall Street's fear gauge, oscillated between 15 and 24 for most of 2015, rising over its historical mean of 20 during 15 of the year's 30 trading days so far.
Its 20-day moving average hit its highest since mid-2012 earlier this month.
But on Friday, the VIX fell to its lowest level this year, briefly trading below 15. That, together with a rising market, could be a promising sign.
"Market breadth, while it hasn't been wonderful, has been positive," said Phoenix Financial's Kaufman. The S&P 500 breaking above its 2,064 level earlier this month was another bullish technical sign, he said.
CONSUMERS, GREECE COULD ADD SUPPORT
With the bulk of US earnings season already in the bag, and positive on the whole, analysts are looking ahead to next week when consumer giant Wal-Mart Stores Inc (WMT.N) is scheduled to report fourth-quarter results.
"So far we're pretty pleased with the reports," said King Lip, chief investment officer at Baker Avenue Asset Management in San Francisco.
Of the 391 S&P 500 companies that have reported earnings, about 71.1 percent have topped profit expectations, above the historical average, Thomson Reuters data show.
Wal-Mart is likely to benefit from lower gas prices, which could translate into more consumer spending. At the same time, its global reach could leave it exposed to the negative impact of a stronger US dollar.
As stocks hit new highs, market participants will be paying close attention to developments in Greece - which, alongside oil prices, have been at the root of the volatility seen in the market this year.
Greece's new leftist government and euro zone finance ministers failed to agree this week on the next step for the country's bailout, leaving negotiations on the table for next week as they inch closer to a February 28 deadline. The Greek government promised to do "whatever we can" to secure a deal with international creditors.
While US exposure to Greek debt is "pretty minor," uncertainty over the situation and the impact on broader markets adds to volatility, according to Charles Lieberman, chief investment officer of Advisors Capital Management LLC in New Jersey.
"It's more in the nature of psychology than real substance," he said.
Young Turks brings all the action from the IIT-Delhi B-Plan Contest Aarabh 2015, organized by the department of management studies. Six B-Plans were shortlisted for the final round and Young Turks was there for all the action.
Young Turks brings all the action from the IIT-Delhi B-Plan Contest Aarabh 2015, organized by the department of management studies. Six B-Plans were shortlisted for the final round and Young Turks was there for all the action.
Watch accompanying video for more...
Shares of State Bank of India gained 1.5 percent intraday Friday after brokerage Barclays raised target price to Rs 353 apiece from Rs 346, citing strong performance saving accounts and credit cards.
Shares of State Bank of India (SBI) gained 1.5 percent intraday Friday after brokerage Barclays raised target price to Rs 353 apiece from Rs 346, citing strong performance saving accounts and credit cards.
According to the brokerage, SBI is the only PSU bank to have gained saving accounts share over the last eight years and also only PSU bank with a significant credit cards business (11 percent share of spends) with customer spending patterns similar to private banks.
Barclays believes the country's largest lender has better staff productivity trends than other PSU banks. The key reason is its success in migrating transactions to alternative channels, it said.
SBIs alternative channel transaction volumes are 1.5 times larger than the other PSU banks combined, even though the other PSUs have twice the assets/CASA. SBI is the largest player in the 3 key alternative channels – ATMs, electronic and point-of-sales terminals and is growing rapidly in each.
Brokerage said SBI benefits from the government's new capital allocation approach and has a less capital intensive balance sheet.
However, the brokerage cut its earnings per share (EPS) for FY15 and FY16 by 1 percent and 6 percent, respectively as slower revenue growth and marginally higher provisions offset lower operating expenses.
According to the note, revenue pick-up would be greater than cost increases if loan growth picked up faster.
Key risk to its overweight rating is lumpy credit events of the bank, particularly in the steel and infra space. SBI's large corporate and infra exposures have grown rapidly since FY13. Further SBI has high steel exposures. However, the stock of un-provisioned problem assets at SBI is lower," it explained.
At 11:51 hours IST, the scrip of State Bank of India was quoting at Rs 284.55, up Rs 4.10, or 1.46 percent on the BSE.
Posted by Sunil Shankar Matkar
Ashish Chaturmohta - Head Technicals & Derivative Research at Fortune Group recommends holding National Aluminium Company as the stock may touch Rs 65-67 in next 2 months.
"May be in the next 2-3 months one may expect a target of around Rs 58-60 kind of levels and still if someone continues to hold it then even NALCO has the potential to cross Rs 65-67 but around those levels, I will suggest to book profits," he added.
Disclosure: Analyst does not have any holdings in the stock nor he has recommended the stock to his clients.
