Crude oil continues its upward march, gold prices edge higher, rupee falls to all-time lows & newly-constituted IL & FS board

29th Sept – 05th Oct

1. Indian Current Account Deficit (CAD) expected to mount further on rising crude and weakening rupee against dollar

October 04, 2018

The Indian rupee hit fresh lows on rising crude oil prices, which are trading at four year highs. The Fed raised its interest rates and the looming sanctions on Iran (from 4th Nov) are the key reasons behind the rupee decline and rising crude prices which is making Indian imports expensive.

Source: Economic Times

2. BSE launched commodities derivatives

October 01, 2018

BSE launched the much awaited Gold and Silver future contract on its platform on 1st Oct 2018. BSE is competing with other commodity exchanges such as MCX and will not be charging any fee from brokers for the next 12 months. NSE will be launching a similar platform from Oct 12, 2018

Source: Economic Times

3. Gold rallied as equity slides

October 03, 2018

Gold rose to its highest level in weeks following a sell-off in stock markets worldwide. The European commission comment on Italy raised the bet in gold as Italy may face the same turmoil as Greece.

Source: Reuters

4. IL&FS may sell assets to fund capital

October 03, 2018

As the government superseded the board of IL&FS and asked investigation about the company’s failure, the IL&FS board will be deciding on an asset steel program to generate working capital to meet short term liabilities. IL&FS was in talks to raise $2 billion from the sale of its assets.

Source: Live mint

5. Jeera remains weak due to ample supply from inventory and decrease in demand

October 02, 2018

Jeera is projected to trade lower this month due to good inventory and weak demand from importers. Local Mandi’s in Gujarat are seeing higher arrival year-on-year. Last season production was higher than normal.However, shortage of rainfall in Jeera farming areas will support the market in the long run.

Source: Financial Express

6. Brent oil at four year highs and longest quarterly gains in a decade

September 28, 2018

Oil prices shoot up to four year highs, with this move being thefastest in a quarter since the first half of 2008.Supply concerns over US sanctions on Iran, which are going to be implemented in the next 1 month, are the reason behind this rally.

Source: Bloomberg

7. Inflation and weak Rupee are key reasons behind possible rate hike

September 30, 2018

Imports are costly due to a weak rupee and crude oil prices are at four year highs– these are the key reasons that RBI may hike interest rate by 25 basis points to curb additional liquidly in markets to control inflation.

Source: Business Line

8. Festival season to boost demand for durable goods

September 30, 2018

Indian consumer durable makersare projected to achieve adouble-digit growth in sales this wedding and festival season starting from next week and a hike in customs duty will be absorbedby the industry players.

Source: Business Standard