RBI’s Monetary Policy next week

June 01, 2018

the RBI’s Monetary Policy Committee (MPC), which meets next week, economists are predicting a further pick-up in activity during the current financial year on the back of higher consumption demand, a stable GST and a surge in investment towards end of the year. But they have identified higher crude oil price and its impact on inflation, current account deficit and overall growth as risk factors that are expected to weigh on the RBI’s Monetary Policy.

Source: Times of India

Critical Support for Comex Gold at $1278, medium-term picture still holds some promise

May 31, 2018

Gold prices got supported by concerns over US.-China trade, Comex gold futures have been consolidating from recent lows. The overall picture still hints at bullishness ahead, while crucial supports hold at $1,278 levels. As we have been maintaining for a while, the medium-term picture still holds some promise, therefore caution should be exercised on getting excessively bearish too.

Source: Business line

ONGC to bear fuel subsidy to help cut petrol and diesel prices

June 01, 2018

The government may ask state-owned Oil and Natural Gas Corp. Ltd (ONGC) to bear fuel subsidy to help cut petrol and diesel prices, sources said on Thursday. The government does not want to cut excise duty and is looking at alternative means to reduce petrol and diesel prices.

Source: Livemint

India’s economy grew at its fastest in seven quarters in the January-March period

June 01, 2018

India’s economy grew at its fastest in seven quarters in the January-March period, GDP grows 7.7% in Q4, bolstered by strong performance in construction, manufacturing and public services, pointing to a persistent revival trend and bringing cheer to the government ahead of next year’s general election.

Source: Economic Times

SGX plan to discuss the issue with Modi to put an end to offshore trading

May 31, 2018

Singapore-based business groups plan to discuss the issue with Modi to put an end to offshore trading of Indian derivatives. Singapore, a major offshore trading hub will be interacting with PM during his visit and Singapore's corporate executives will meet PM Modi on June 1. The ongoing tussle between the National Stock Exchange (NSE) and Singapore Exchange (SGX) is likely to be a talking point during Prime Minister (PM) Narendra Modi's visit to Singapore.

Source: Business Standard

Deepening political turmoil in Italy threatening to reignite the euro zone crisis

May 31, 2018

Global investors are considering moving back to safe-heaven assets backed by the dollar or yens as emerging markets like India and Indonesia will be most vulnerable to risk-off sentiment. Currency markets are on the edge with the deepening political turmoil in Italy threatening to reignite the euro zone crisis that may trigger a fresh rout in the rupee.

Source: Economic Times

Government is mulling a proposal to import gold from Russia

May 31, 2018

The government is mulling a proposal to import gold from Russia to help gems and jewellery exporters provided they agree to ship out the entire consignment after value addition, Commerce and Industry Minister Suresh Prabhu has said.

Source:Economic times

Brent crude prices have dropped by 4.35 per cent after Saudi Arabia and Russia promised to increase output

30 May, 2018

In the last 10 days, Brent crude prices have dropped by 4.35 per cent after Saudi Arabia and Russia promised to increase output, but the price of the Indian crude oil basket has dropped only 1.9 per cent. The Indian benchmark does not record the same fall as the price of the London-based Brent, which is followed by most international oil traders, because Brent has a share of around 27.62 per cent in the Indian basket. From $78.09 a barrel on May 18, Brent crude prices dipped to $74.69 a barrel on May 28, while the Indian basket prices saw a smaller decline from $77.43 to $75.95

Source: Business Standard

NCDEX-Guar Seed contract remains bearish

May 30, 2018

The Guar Seed futures contract on the National Commodity and Derivatives Exchange (NCDEX) surged in the beginning of the year to a high of ₹4,737 per quintal in February. However, it failed to sustain and has plummeted over 21 per cent to the current level of ₹3,724 . Increased arrivals and a weak spot market demand have pulled the prices sharply lower. The outlook for the NCDEX-Guar Seed contract remains bearish. Though there is an immediate support near current levels in the ₹3,715-3,700 region. If the contract manages to sustain above this support zone, a range bound move between ₹3,700 and ₹3,900 is possible for some time. However, the bias will continue to remain bearish. Key resistances are poised at ₹3,900 and ₹4,000 which can cap the upside in the short term.

Source: Business Line

Cotton prices are around `44,000 per candy and they have been going up in the last 10 days

May 30, 2018

According to industry experts, prices are likely to remain on the higher side with international market prices also on the rise. According to Cotton Corporation of India (CCI), cotton prices usually go up at this point in the season because of the slowdown in arrivals. According to market sources, cotton prices are around `44,000 per candy and they have been going up in the last 10 days. With more demand coming from spinning mills as well as ginners, prices are likely to remain firm.

Source: Financial Express

Crude oil prices continued to decline

May 29, 2018

The rupee has strengthened and bond yields have fallen over the past two days. News reports said crude oil producers—Saudi Arabia and Russia—are considering increasing output. This comes at a time when Venezuela is suffering from a production breakdown and uncertainty looms large on supplies from Iran. Further, latest data shows rig counts in the US have increased, suggesting higher production in future. These factors are putting downward pressure on crude oil prices.

Source: Livemint

Chana for delivery in June was trading higher, demand picks up

May 29, 2018

Amid uptick in demand at the domestic spot market and restricted arrivals from producing belts, chana prices edged higher by 0.28 per cent to Rs 3,621 per quintal in futures trade today as speculators created fresh positions. At the National Commodity and Derivatives Exchange, chana for delivery in June was trading higher by Rs 10, or 0.28 per cent, to Rs 3,621 per quintal with an open interest of 97,910 lots.

Source: Business Standard

Exports are expected to record a growth of about 15-20 per cent to touch $350 billion

May 29, 2018

Despite the growing protectionism, exports are expected to record a growth of about 15-20 per cent to touch $350 billion in the current fiscal on account of number of factors including the rise in commodity prices. The northward movement in petroleum and commodity prices would also add to export growth. The recent depreciation of indian rupee is also supporting exports though its impact varies from sector to sector and from company to company.

Source: Asian age

SEBI LIKELY TO ALLOW FUTURES TRADING IN PETROL AND DIESEL

May 28, 2018

The Securities and Exchange Board of India (Sebi) is considering allowing futures trading in petrol and diesel, according to sources. The petroleum and natural gas ministry has already approved the proposal. Petrol and diesel are among the 90-plus commodities that have been approved by the government for derivatives trading Globally, petrol and diesel derivatives are traded on the Nymex and ICE exchanges. The proposal for trading in petrol and diesel derivatives was submitted by the Indian Commodity Exchange (ICEX) eight months ago. Sebi deliberated on the matter and sought

Source: Business Standard

Agri Commodities rose on demand outlook

May 28, 2018

Cardamom prices rose by 1.03 per cent to Rs 924 per kg in futures trade today as speculators raised their bets amid an increase in physical demand in the domestic spot market. Besides, tight stocks position on fall in arrivals from growing regions too fuelled the uptrend. At the Multi Commodity Exchange, cardamom for delivery in June went up by Rs 9,40, or 0.103 per cent, to Rs 924 per kg in a business turnover of 6 lots. Similarly, the spice for delivery in July edged higher by Rs 3.90, or 0.44 per cent, to Rs 885 per kg in 2 lots.

Source: Business line