Kotak Mahindra Bank to raise Rs 5,400 crore of equity

Kotak Mahindra Bank on Thursday said it has received board approval to raise equity capital by issuing up to 62 million shares, which, according to the closing price of Rs 865 a share on Thursday on the BSE, amounted to Rs 5,363 crore. The face value of the share would be Rs 5 each. 

The bank could raise the fund through any means the board decides appropriate, including rights issue, private placement, follow-on public offering (FPO), qualified institutional placement (QIP), Global Depository Receipts (GDR), American Depository Receipts (ADR) or through any other permissible mode or a combination of these options.The Reserve Bank of India (RBI) had issued a directive that Kotak Mahindra Bank Executive Vice-Chairman Uday Kotak would need to reduce his stake in the bank to 30 per cent by June 2017 and to 20 per cent by December 2018. Earlier this month, Kotak had sold 27.6 million shares, reducing his stake in the bank from 33.3 per cent to 31.8 per cent. If the company raises the entire proposed amount, his stake would fall further to around 31 per cent. Astrology and Numerology Trading Tips

The proposed capital dilution works out to 3.37 per cent on the current equity base. After the capital raising, the bank's capital adequacy ratio would rise to about 20 per cent, said Jaimin Bhatt, president and group CFO, Kotak Mahindra Bank. Its capital adequacy ratio was 18 per cent at the consolidated level in the December 2016 quarter.  

Commodity Trading Tips

India imposes import duty on wheat, tur dal

Days before the Centre begins its annual wheat procurement in full steam, it re-imposed an import duty of 10 per cent on the commodity and levied duty of a similar duty on tur (pigeon peas). The estimated revenue implication of both measures is Rs 840 crore at current levels of import. The import duty on tur has been imposed after a long gap. Announcing the decision in the Lok Sabha, Minister of State for Finance Arjun Ram Meghwal said a notification from March 17, 2012, had been amended so as to “impose basic customs duty of 10 per cent on wheat and tur with immediate effect”. The import duty on wheat was withdrawn in December after wheat and flour prices started rising in the open market because of a supply crunch. The withdrawal allowed traders to import almost 6 million tonnes of wheat, among the highest in recent times, to restock inventories. Commodity Trading Tips

Inventories with food companies were running thin because of a weak output in 2015-16 and low sale of government stock. Most of the imported wheat came from France, Ukraine and Australia. Officials said large imports and forecasts of a bumper crop prompted the government to impose the tax so that wheat farmers’ interests were protected. The new wheat crop has started arriving in mandis of Madhya Pradesh, Rajasthan and Gujarat. “Wheat prices in north India are at Rs 1,625 a quintal and transportation to the south will cost another Rs 200. With a 10 per cent levy, imports will not be viable,” said Veena Sharma, secretary, Roller Flour Millers Federation.  Nifty Trading Tips

Jeera prices to hit two-month high on firm global demand, lower output

Cumin seed (jeera) prices bounced back from recent lows to their highest in two months on a lower output forecast and strong demand from overseas buyers.The most active jeera contract for delivery in April on the National Commodity and Derivatives Exchange (NCDEX) rose 3.17 per cent to trade at Rs 18,410 a quintal before profit booking pulled it down marginally to Rs 18,310 in early evening trade on Tuesday. The contract showed a gain of around 8.5 per cent since early February. Astrology and Numerology Trading Tips

Similarly, jeera for delivery in May gained 2.72 per cent on Tuesday at Rs 18,515 a quintal. Analysts expect the trend to continue on robust overseas orders. “A further upsurge of Rs 400-700 a quintal is possible on overseas demand. Exporters are likely to fetch better realisation due to the quality of the jeera crop. With estimates of lower production, jeera prices are likely to remain bullish,” said Ritesh Kumar Sahu, an analyst with Angel Broking.  Future & Option Trading Tips

 

US cut in anti-dumping duty on shrimps to boost exports

The United States, the largest importer of Indian shrimps, has pegged its preliminary anti-dumping duty on the perishable seafood item at an average rate of 1.07 per cent. The US commerce department has announced the preliminary determinations in the ongoing 11th administrative reviews of the anti-dumping duty orders against frozen warm water shrimp from India and Thailand. The period of review (POR) was from February 1, 2015 to January 31, 2016. The new rate applies to 229 Indian producers and exporters not selected for individual examination, sources said. The review-specific average duty in the 11th round was lower than the final tenth review rates, exporters said. The final duty for 2014-15 was 2.20 per cent.  Future & Option Trading Tips

“Because of the duty being lowered, a lot of major exporters will stand to get duty refunds, which will be a big boost for the exports,” said Rajen Padhy, director general of Utkal Chamber of Commerce and Industry and a seafood consultant. The US is a major importer of Indian seafood with a share of 28.46 per cent in terms of dollar. The total exports to the US stood at $ 1334.05 million in 2015-16. While the exports had registered a growth of 18.53 per cent in terms of quantity, it showed a decline of 2.23 per cent in rupee terms and 8.52 per cent in dollar terms. The US is the largest market (1,34,144 tonnes) for frozen shrimp followed by the European Union (81,849 tonnes), South East Asia (65,188 tonnes), Japan (34,204 tonnes), Middle East countries (17,477 tonnes), China (9542 tonnes) and other countries (31,464 tonnes).  Financial Astrology Tips

Harvesting times for fertiliser firms

Fresh triggers after the note ban have helped fertiliser stocks not only gain lost ground but register good returns. Expectations of a decline in subsidy receivables in FY18 after the Union Budget, hopes of demand improvement following the UP elections, as well as talk of fast-tracking fertiliser reforms have helped these stocks gain in the past few month. With these gains, the one-year returns given by these stocks too have been phenomenal. Coromandel International, Chambal Fertilisers, GSFC, Tata Chemicals, Deepak Fertilisers, etc have gained 52-98 per cent in the past one year. There could be more gains ahead. This reversal in fortunes for fertiliser stocks in FY17 comes after three challenging years. The deficient monsoons, high raw material prices, elevated subsidy receivables, and policy stagnation had contributed to their underperformance earlier. While substantial improvement in the monsoon in 2016 provided the first trigger, falling prices of natural gas and those of MoP (muriate of potash), DAP (di-ammonium phosphate) and urea in 2016 (down up to 30 per cent in the last two years) supported the process. With the government maintaining a budgetary allocation of Rs 70,000 crore in FY18, expectations of subsidy receivables declining substantially have also increased. Nifty Trading Tips

PSU banks extend gain; SBI nears 52-week high

Shares of public sector banks (PSBs) were trading higher for the fifth straight trading sessions, gaining 7% on the National Stock Exchange (NSE), on the premise that the asset quality issues faced by them would largely be comprehended and quick resolutions to be bought about for them. At 10:23 am; the Nifty PSU Bank index, the largest gainer among sectoral indices, was up 0.88% at 3,463 as compared to 0.3% rise each in Nifty 50 and Nifty Bank index. Nifty PSU Bank index hit an intra-day high of 3,467, is 1.3% or 45 points away from its 52-week high of 3,512 touched on February 6, 2017. In past five trading sessions, the index rallied 7% against 2.4% rise in the Nifty Bank index and 0.97% gain in Nifty 50 index. Commodity Trading Tips 



Among the individual stocks, State Bank of India (SBI) was up 1.3% at Rs 286 on the NSE. The stock hit an intra-day high of Rs 286, is less than 1% away from its 52-week high of Rs 289 touched on November 11, 2016. Promising a solution to the growing non-performing assets (NPA) problem in the next few days, Finance Minister Arun Jaitley on March 24 said the resolution being worked out with the RBI will put enough pressure on borrowers to settle dues. According to Business Standard reports, the Reserve Bank of India (RBI) will likely find itself in the driver’s seat in the war against bad debt — closely monitoring big-ticket restructuring and even getting to decide the haircut to be taken by bank.  Punjab National Bank (PNB), Bank of India (BOI), Bank of Baroda (BoB) and Syndicate Bank have risen more than 7% each in past five trading sessions. Nifty Trading Tips

Dishman Pharma hits new high; stock surges over 35% in two days

Dishman Pharmaceuticals and Chemicals hit a fresh record high of Rs 322, up 16% on BSE on back of heavy volumes after the company on Tuesday said that its partner Tesaro Inc received US Food and Drug Administration (FDA) nod for cancer drug Zejula capsules. The stock of drug maker has rallied 39% in past two trading sessions from Rs 232 on March 27, 2017. “We believe that the increase in the stock price is based upon market estimation that we are one of the suppliers of the API for "Zejula" capsules, which got approved by the US FDA as per the press release given by Tesaro lnc,” Dishman Pharma said in a regulatory filing. Since the company does not manufacture the innovator's end product in CRAMS segment, it is Tesaro lnc., which has received the US FDA approval for cancer drug Zejula Capsules, it added. At 09:30 am; the stock was up 12% at Rs 310 as compared to 0.15% rise in the S&P BSE Sensex. The trading volumes on the counter surged more than five-fold with a combined 6.86 million shares changed hands on the BSE and NSE so far. Astrology and Numerology Trading Tips

Bharti Infratel gains after KKR, Canada's CPPIB buy stakes in the company

Shares of Bharti Infratel rallied 6.6% to Rs 340 on BSE after a consortium of global private equity firms KKR and Canada Pension Plan Investment Board (CPPIB) bought 10.3% stake in tower infrastructure firm from open market on Tuesday. “Bharti Airtel, the promoter of Bharti Infratel, had offloaded 190 million equity shares representing a 10.3%, to a consortium of global private equity firms KKR and CPPIB, for a total consideration of over Rs 6,193.90 crore, executed at a price of Rs 325 per share,” Bharti Airtel said in a press release. In the investor presentation, Bharti Infratel said that it stands to benefit from a pick-up in data growth across the industry. Diversification of customer base allows Bharti Infratel to benefit from data growth in the Indian telecom sector, no matter which operator achieves dominance. The company will capitalise on opportunities arising out of government initiatives of Digital India, smart cities, etc. At 10:02 am; Bharti Infratel was up 6% to Rs 337 as compared to 0.22% rise in the S&P BSE Sensex. A huge block deal of 209 million or 1.1% of total equity of the company changed hands on the BSE in early morning trade. The stock of Bharti Airtel was up 1% at Rs 344 after hitting intra-day high of Rs 345 on BSE so far. A combined five million shares changed hands on the counter on BSE and NSE. Financial Astrology Tips

CPSE ETF may enter top 10 equity scheme club

A second exchange-traded fund (ETF) is likely to enter the club of top 10 equity schemes in the country. Because of two sizeable follow-on offers by the government in the Central Public Sector Enterprise (CPSE) ETF, the index could break into the league of biggest schemes in terms of asset size. The only ETF in the top 10 club is SBI ETF Nifty 50, which had assets of Rs 15,520 at the end of last month. The CPSE ETF is an index of 10 state-run companies, including Coal India, ONGC and Oil India. The government has divested its holding in the basket of 10 companies as a part of its disinvestment programme. On March 14, the government launched the third tranche of CPSE ETF worth Rs 2,500 crore. The offering was subscribed nearly four times. The units issued in the third tranche were listed on Tuesday. The CPSE ETF had assets under management (AUM) of Rs 7,432 crore as of February 28 and it is likely to have increased to Rs 9,900 crore following the third tranche. Nifty Trading Tips

The previous tranche worth Rs 6,000 crore was launched in January 2017. The first tranche worth Rs 3,000 crore was launched in March 2014. The CPSE ETF, originally managed by Goldman Sachs Asset Manager, was acquired by Reliance Mutual Fund in October 2015. The CPSE ETF is likely to become the top scheme of Reliance MF. As of February 28, Reliance Equity Opportunities Fund, with assets of Rs 9,808 crore, was the biggest scheme of the fund house and the 10th biggest scheme overall, data provided by Value Research show. The scheme-wise AUM data are released on a monthly basis. The net asset value of the CPSE ETF on Tuesday ended at Rs 27.78, up 0.64 per cent. Interestingly, the units of the CPSE ETF have appreciated 58 per cent in the past one year. In comparison, the benchmark BSE Sensex has gained 16 per cent. The success of the CPSE ETF has prompted the government to increasingly tap the ETF route for its divestment programme. The government is in the process of launching a new ETF, which will have a different set of underlying stocks. The Centre has appointed ICICI Prudential MF to manage the second CPSE ETF. According to reports, the government is also looking to divest its holdings in Axis Bank, ITC and Larsen & Toubro through an ETF. It isn’t sure whether these three companies will be part of the proposed second CPSE ETF. Future & Option Trading Tips

ITC hopes wheat imports to remain near decade high

India’s wheat imports are likely to remain near the highest in a decade, as the world’s second-biggest producer seeks to replenish stockpiles slashed by El Nino-induced drought, according to ITC. Imports may reach 3 million tonnes in 2017-18, S Sivakumar, CEO of the ITC's agriculture business division, said. That would be the second-highest level in the past decade, although down from estimates for 5.5 million tonnes in 2016-17. India is seeking to rebuild stockpiles that likely plunged 44 per cent in March from a year earlier to 9.43 million tonnes, according to state-run Food Corp. India has been purchasing high-protein grain from Australia, Russia and Ukraine. Commodity Trading Tips

The world’s second-biggest consumer of wheat on Tuesday imposed a 10 per cent duty on imports after scrapping the tax in December. "Low stocks mean imports," said Sivakumar, who last year predicted both the jump in imports and the duty reduction. "It makes sense for the south Indian mills to import while the government should keep buying in northern India. That's how they can protect consumers as well as farmers. Overall the supply and demand should be balanced." This year's harvest, which began mid-March, is likely to rise to 95 million tons, and may reach as high as 96 million tons if the weather is good, Sivakumar said. That compares with the government's estimate for record 96.6 million tons. Sivakumar's estimate for imports includes 1 million tons contracted this year. Astrology and Numerology Trading Tips

Sensex opens higher, Nifty above 9,100; Rupee highest since Oct 28, 2015

The benchmark indices on Wednesday opened higher a day ahead of the expiry of March derivatives contracts as Asian markets inched up tracking positive closing on Wall Street after US consumer confidence improved unexpectedly. At 09:17 am, the S&P BSE Sensex was trading at 29,478, up 69 points, while the broader Nifty50 was ruling at 9,123, up 23 points. In the broader market, the S&P BSE Midcap gained 0.3%, while the S&P BSE Smallcap added 0.4%. "Yesterday’s positivity could push prices further higher earlier in the day, but a range expansion is less likely. Ideally, the 9170 region might offer some resistance, but major falls are less expected. Push above 9200, on the other hand, could suggest that the measured objectives of 9350-9500 is in play again. Meanwhile, rupee appreciated above 65-mark against US dollar for the first time since October 28, 2015. On Tuesday, foreign institutional investors bought equities worth Rs 6,415 crore, while domestic institutional investors were net buyers to the tune of Rs 356 crore. Commodity Trading Tips

March expiry due tomorrow

On Tuesday, two-day ahead of the March F&O expiry, marketwide rollovers came in at 43%, which were higher than the average rollover of 42% seen during the comparable period of last three series. Nifty futures rollovers, meanwhile, stood at 46% on D-2, marginally higher as compared to the average rollover of 41% seen in last three series.  Nifty Trading Tips

Consumer confidence grows

US consumer confidence surged to a more than 16-year high in March amid growing labor market optimism, while the trade deficit in goods narrowed sharply in February. The economy's strengthening fundamentals were bolstered by other data showing further increases in house prices in January. Future & Option Trading Tips

Dollar bounces from four-month low

The dollar bounced from 4-month lows as Federal Reserve Vice Chairman Stanley Fischer, one of the more influential policy makers with markets, said two more rate increases this year seem "about right". Financial Astrology Tips

Loan waivers negative for banks, MFIs: Analysts

A farm loan waiver following the Bharatiya Janata Party’s win in Uttar Pradesh could exacerabte the issue of bad loans, particularly for public sector banks. They have higher exposure to this segment and are already struggling to stay afloat at a time of low capital, anaemic credit growth and high bad loans. Punjab National Bank would have a big impact, given its strong exposure in the Indo-Gangetic belt; so will State Bank of India, given its scale of business, believe analysts at Kotak Institutional Equities. It is not clear if such waivers will be implemented and if such loans will be repaid by governments. The bigger issue is that it might weaken the repayment discipline across borrowers. At Rs 65,000 crore, direct agricultural loans in UP formed 0.8 per cent of the system loans in FY16, estimate analysts. The bigger worry is that, increasingly, political parties are promising loan waivers to win state elections. Besides UP, this is visible in Karnataka, Maharashtra, etc, gearing up for state elections within the next two years.  Future & Option Trading Tips

“Loan waivers can become a national issue, particularly for the 2019 general election,” says Parag Jariwala, banking and financial services analyst at Religare Capital Markets. Analysts believe if these become the new norm, banks could resort to measures such as cautious lending and higher interest rates. These would provide support for asset quality but also lead to lower growth for most lenders. Apart from banks, loan waivers could impair the repayment behaviour of microfinance borrowers, as they might anticipate similar waivers in their sphere. “The Reserve Bank’s special relaxation of 60 days for NPA (non-performing asset) recognition was earlier misunderstood as a loan waiver scheme, particularly in UP,” says Jariwala. This could have a bearing on microfinance lenders, too. Astrology and Numerology Trading Tips

Mutual funds see Rs 30,000 cr inflow in Feb; Rs 3.98 lakh cr in 11 months

Investors have pumped in more than Rs 30,000 crore into various mutual fund schemes in February, with liquid, income and equity funds attracting the most of the inflows. With this, total inflows have reached Rs 3.98 lakh crore in the first eleven months of the current fiscal (2016-17). In comparison, Rs 2.07 lakh crore was invested in various mutual fund products during April-February period of 2015-16. "Investors may have seen the volatility of the current fiscal as a positive to average out costs. Retail investors also appear to have become savvier, using liquid schemes to either earn higher returns or to run Systematic Transfer Plan (STPs) into equity funds to average costs," said Srikanth Meenakshi, the COO of Fundsindia.Com, an investment portal for mutual funds. "Apart from equity, inflows into debt funds have risen. Deposit rates have been falling, resulting in lower returns for investors. Falling rates help debt fund returns as yields instruments rally, which could have additionally helped draw in investors," Srikanth added. Commodity Trading Tips

According to the data by the Association of Mutual Funds in India (Amfi), a net sum of Rs 30,273 crore has been invested in mutual funds in the month of February. The latest inflows have been mainly driven by contribution from liquid, income and equity funds. Income funds attracted Rs 10,864 crore last month, while liquid or money market fund category saw net inflows of Rs 8,227 crore. Equity and equity-linked schemes saw inflows of around Rs 6,462 crore. Liquid and money market funds invest mainly in money market instruments like commercial papers, treasury bills, term deposits and have a lower maturity period and do not have any lock-in period. An income fund emphasises on current income, either on a monthly or quarterly basis, as opposed to capital appreciation. Such funds usually hold a variety of government, municipal and corporate debt obligations, preferred stock and dividend-paying stocks. Nifty Trading Tips

MFs' exposure to bank stocks hits record Rs 1.2 lakh cr in Feb end

Mutual Fund managers seem to be bullish on bank shares as they raised their allocation in the sector to an all time-high of over Rs 1.2 lakh crore at the end of February, primarily on account of cheaper valuations. In comparison, fund managers had allocated Rs 71,864 crore for bank shares in the year-ago period. "We could be getting close to the bottom of the NPAs (non-performing assets) cycle, valuations were not that expensive, hence funds could have preferred buying into the sector," Quantum Mutual Fund Associate Fund Manager Equity Nilesh Shetty said. In percentage terms, exposure to banking stocks was at 20.59 per cent of equity assets under management last month as against 20.91 per cent in January-end. Overall, deployment of equity funds in bank stocks stood at Rs 1,19,796 crore at the end of February, compared to previous high of Rs 1,16,002 crore in the preceding month, as per the latest data available from the Securities and Exchange Board of India (Sebi). Astrology and Numerology Trading Tips

Fund managers have been increasing their allocation to banking stocks for quite some time due to an ongoing clean-up exercise of the Indian banking system initiated by the Reserve Bank of India by keeping a tab on the NPAs. Banking continues to be the most preferred sector with fund managers as they cannot afford to take a bearish call on the banking stocks, given the high weightage attached to the index. After banks, IT was the second-most preferred sector with fund mangers. Equity fund managers' deployment to software stocks was at Rs 46,797 crore, followed by finance (Rs 43,722 crore), pharma (Rs 41,690 crore) and auto (Rs 37,510 crore). Mutual funds are investment vehicles made up of a pool of funds collected from a large number of investors. They invest in stocks, bonds, money market instruments and similar assets. Financial Astrology Tips

Regulator mulls instant cash-out from mutual funds

In order to boost small investors, the market regulator is mulling instant redemption (withdrawal) for investors in liquid mutual funds. Currently, it takes up to three days to withdraw money or cash out The regulator Securities and Exchange Board of India is in talks with mutual funds (MFs) to standardise and introduce instant redemption. "We need to think about parameters to go along with this. There shouldn't be a liquidity crunch," said G Mahalingam, whole-time member of Securities and Exchange Board of India (Sebi). He was speaking at an event organised by the Association of Mutual Funds in India (Amfi). "How much liquidity demand can we manage? Are we prepared to keep a portion of assets in liquid form? How can we take this concept forward without attracting any problems in terms of financial stability," he said, addressing MF players. Sebi may initially keep a cap on such transactions to prevent systemic risk. Besides, Mahalingam also pointed out rising instances of MF players not conducting investor education programmes or campaigns in a disciplined way. Nifty Trading Tips

"It's not Amfi's job alone. There has to be equal participation from individual asset management companies. A negative aspect with regard to such a campaign is lack of enthusiasm," he noted. "We need to set a vision for the growth of the MF industry. Sebi is closely watching how investors respond to such campaigns," Mahalingam said. He also suggested MF players to work on the content of product advertisements and investor campaigns and ensure that no advertisements promise unrealistic returns in order to lure in people. "Such bad practices undermine the confidence of the investors. So if we expect mutual funds to grow, we need to weed out the bad practices," Mahalingam said. Sebi had last year proposed overhaul of regulations governing investment advisors. It had proposed to curb unsolicited investment advice and promotion of investment products through social media platforms. Future & Option Trading Tips

Markets extend morning gains; Nifty reclaims 9,100 mark

Benchmark indices extended morning gains with Nifty50 reclaiming the 9,100 mark following firm global cues as dollar bounced back from 4-month low. Hopes of timely implementation of goods and services tax (GST) also fueled some upside on Tuesday. At 10:47 am, the S&P BSE Sensex was trading at 29,427 up 190 points, while the broader Nifty50 was ruling at 9,106, up 61 points. The broader market were inline with the indiced with the S&P BSE Midcap up 0.7% while the S&P BSE Smallcap gained 0.8%. Commodity Trading Tips

"While volatility amidst negative bias dominated yesteray’s moves, bargain hunting resurfaced swing prices higher. However, that has not put the prices back into the upside trajectory, and to that end, yesterday’s moves could be re inacted again today, albeit on the positive side. Upside momentum is less expected to pick up unless above 9,200 or near 8,970 or below," said Geojit Financial Services in a note. Meanwhile, scripting its second biggest single-day gain this year, the rupee today gained 37 paise to close at a fresh 17-month high of 65.04 on Monday. This was the highest closing for the currency since October 28, 2015, when it had closed at 64.93. The forex and money market was closed today on account of Gudi Parwa. Astrology and Numerology Trading Tips

New India Assurance looking for merchant bankers to manage IPO

State-run insurer New India Assurance Company is looking for merchant bankers to manage its disinvestment through an initial public offering (IPO). Within a week of PSU reinsurer General Insurance Corporation (GIC Re) floating an RFP for merchant bankers, the New India Assurance (NIA) has asked bankers to submit their bids by April 19."The size of IPO offer and structure shall be decided by the company in consultation with the selected BRLMs, legal advisers subject to regulatory requirements," New India Assurance said in a Request for Proposal for merchant bankers. The company would appoint up to seven merchant bankers for managing the share sale. The authorised share capital of the company is Rs 300 crore and the paid-up share capital is Rs 200 crore as on March 31, 2016. The government currently holds 100 per cent stake in the company. Astrology and Numerology Trading Tips 

Besides underwriting the IPO, the merchant bankers would advise New India on the timing and the modalities of the IPO. They would also undertake due-diligence activities and prepare the draft prospectus, among other things. The bankers would also organise both domestic and international road shows and ensure best return from the IPO to the company. Headquartered in Mumbai, New India Assurance is the only Indian entity to have a trading desk at Lloyds of London. The general insurance company has issued 2.6 crore policies and processed 24 lakh claims in the year 2015-16. In mid-January, the Cabinet had approved listing of general insurance companies -- New India Assurance Company, United India Insurance, Oriental Insurance Company, National Insurance Company and General Insurance Corporation of India (GIC Re). It had approved dilution of up to 25 per cent equity stake in the five companies. The government has set a steep disinvestment target of Rs 72,500 crore for the next fiscal, of which Rs 11,000 crore is expected to come from listing of PSU general insurance companies. Financial Astrology Tips

Gold glitters near 29K level; silver tops Rs 42K

Buoyed by positive global cues and sustained buying by jewellers at the domestic market, gold gained Rs 160 to trade at Rs 28,905 per ten grams at the bullion market here today.
Silver shot up by Rs 495 per kg to reclaim the key Rs 42,000 mark on hectic demand from industrial units and coin makers. Standard gold (99.5 purity) rose by Rs 160 to end at Rs 28,905 per 10 grams as against last Friday's closing level of Rs 28,745. Pure gold (99.9 purity) also rallied by a similar margin to conclude at Rs 29,055 per 10 grams as against Rs 28,895 previously. Nifty Trading Tips

Silver (.999 fineness) climbed by Rs 495 to finish at Rs 42,155 compared with Rs 41,660 earlier. Globally, gold rallied more than 1 per cent after US President Donald Trump's failure to push through a healthcare reform package on Friday raised questions over his ability to deliver promised tax cuts and spending plans. Spot gold was up 1.1 per cent at $1,257.08 an ounce at early trade, having touched a one-month high of $1,259.14. Silver was up 0.9 per cent at $17.91 an ounce, off an earlier three-week high of $17.938. Future & Option Trading Tips

South India might face sugar deficit this season due to lower output

Sugar mills in south India are likely to face a shortage of sugarcane by the end of the current crushing season in September because of a decline in yield after three years of drought. The Indian Sugar Mills’ Association (Isma) early this month estimated a 40-50 per cent decline in yield from sugarcane this year due to lower acreage and unfavourable climate. India’s second largest sugar producing state, Maharashtra, faced a drought in 2016 that lowered cane yield. The Isma forecast a 50 per cent decline in sugar output in Maharashtra this season to 4.2 million tonnes from 8.42 million tonnes last year.The carryover stock of 7.75 million tonnes for the 2016-17 season was largely with mills in Maharashtra, Karnataka and Tamil Nadu. However, sugar mills in Maharashtra and the southern states have little carryover stock for 2017-18, most of which is likely to remain with sugar mills in Uttar Pradesh. “Sugar will be in abundance in the north. There might be some concerns over availability in Tamil Nadu, Andhra Pradesh and Telangana,” said an industry executive. The output of sugar is expected to decline by around 50 per cent in Tamil Nadu, Karnataka and Andhra Pradesh, which reported production of 6.25 million tonnes in the 2015-16 crushing season. Data compiled by the Isma showed India’s sugar output at 20.3 million tonnes. Traders and individual mills, however, estimate output at 19.5 million tonnes this year and consumption at 24.5 million tonnes. The ISMA estimates sales of 23.8-24 million tonnes in the current year against 24.8 million tonnes last year. Commodity Trading Tips

 

Castor prices decline 2.5% as cash margin goes up

Castor seed prices declined by up to 2.5 per cent on Monday following the imposition of a 20 per cent margin on all buy-side contracts by the National Commodity and Derivatives Exchange (NCDEX). The NCDEX levied the 20 per cent special cash margin on long (buy) side contracts with effect from March 27. With this, the applicable margins on castor seed are 29.98 per cent on the long side and 9.98 per cent on the short (sell) side. Increased margins force traders to reduce their positions, resulting in a price decline. Castor seed for delivery in July declined by 2.44 per cent to Rs 4,949 a quintal. All other active contracts also declined marginally. Open interest in all active castor seed contracts fell on Monday.  Financial Astrology Tips

Castor seed prices have risen 28.8 per cent since January on a decline in production. The rise coincides with the Securities and Exchange Board of India (Sebi) allowing companies like Ruchi Soya Industries to hedge their risks on futures platforms after a seven-month suspension. In all, 19 entities, including Ruchi Soya, involved in the castor seed trade, were suspended by Sebi in May 2016. The regulator allowed them to resume trading on the futures exchange in January 2017.  Trade sources anticipate a repeat of earlier manipulation of the castor seed price by a handful of traders, which led to the NCDEX suspending its trading for a while. Sources said Sebi was expected to discuss the issue with the finance ministry shortly. A spokesperson for Ruchi Soya Industries declined to comment on the matter. Astrology and Numerology Trading Tips

Nine years after ban, govt allows export of edible oil in bulk

The Government of India has allowed bulk export of select edible oils. In a notification issued on Monday, the office of the Director General of Foreign Trade, said, “Exports of groundnut oil, sesame oil, soybean oil and maize (corn) oil in bulk, irrespective of any pack size, has been exempted from the prohibition on export of edible oil.” This means a nine-year ban on their export has been lifted. Until now, export of select edible oils were allowed only in consumer packs of up to five kg each. This should mean better realisation for producers, improving their capability to pay more for oilseed. This could encourage more sowing by farmers. India currently meets around 60 per cent of its edible oil demand of 24 million tonnes (mt) a  year through import. “It is a welcome move, as importing countries would be able to procure non-genetically modified (non-GM) oil from India. Nifty Trading Tips

The world is a big market for non-GM food. Hence, India would have a good opportunity overseas,” said Atul Chaturvedi, chief executive, Adani Wilmar, producer of the Fortune brand. Export of edible oil was initially prohibited for a year with effect from March 17, 2008, and extended from time to time. In October 2012, the prohibition was extended till further orders. India estimates bumper oilseed output this year. The groundnut season seems to have got over but other oils, including sesame and soybean, would offer an opportunity for exporters.  “Before the ban, India was exporting up to 100,000 tonnes of groundnut oil. Opening the export opportunity would definitely help. We will start getting the benefit immediately,” said Sanjiv Sawla, chairman, Indian Oilseeds and Produce Exporters Promotion Council. Future & Option Trading Tips

Sensex skids 184 points, Nifty goes below 9,100

Market gave a poor account of itself as the Sensex tumbled over 184 points on Monday to end at 29,237, with heavyweight Reliance Industries Limited (RIL) struggling in the wake of the Securities and Exchange Board of India (Sebi) ban, which barred the company from equity derivatives trading for one year. The general global weakness stemmed from investors' doubts about future policies of US president Donald Trump, who failed to push through his proposed health-care legislation, which cast shadow on stocks in India. Logging the first fall in three sessions, the 30-share Sensex stayed in the negative zone throughout and went down by 184 points, or 0.6 per cent, to 29,237 after hitting a low of 29,163.5. The 50-share Nifty slipped below 9,100 to touch a low of 9,024.6 before making a partial recovery to close 63 points or 0.7 per cent lower at 9,045. Tata Steel was the top Sensex loser, skidding 3.15 per cent, followed by RIL (2.76 per cent) after Sebi imposed a one-year ban on the company from the equity derivatives space for alleged fraudulent trading. The rally in the rupee sent information technology (IT) shares lower, which earn much of their revenue in dollars. HCL Technologies lost 1.8 per cent, Wipro 1.79 per cent, and Tech Mahindra 1.25 per cent. Astrology and Numerology Trading Tips

The rupee hit a nearly one-and-a-half-year high to close at 65.04 against the dollar. Stocks of drugmakers retreated, with Sun Pharma and Lupin ending lower by up to 1.76 per cent each. "Global headwinds on account of Trump's failure on US health-care Bill have kept markets across the world under the selling mode, including India. The global market waned due to the concern over the future rollout of tax cuts and fiscal spending plan in the US," said Vinod Nair, head of research, Geojit Financial Services. "Premium valuation and speculative trades as expiry nears will test investor's patience in the near term," Nair said. Meanwhile, the government tabled four Bills related to goods and services tax in Lok Sabha on Monday, ahead of the tax's proposed rollout from July 1. Coal India ended 2.06 per cent down even as the state-owned miner announced its second interim dividend of Rs 1.15 per share for the current financial year. Commodity Trading Tips

Did Reliance Industries get away lightly in the unlawful gains case?

Securities and Exchange Board of India (Sebi) on Friday delivered its verdict in the decade-old unlawful gains case involving the country’s second-biggest company, Reliance Industries. The capital market regulator has directed the Mukesh Ambani-led company to disgorge (give up) Rs 447 crore, with interest of 12 per cent per annum since November 2007, it made “illegally”. Besides the high interest levied, the only punitive action is a one-year ban from dealing in the futures and options (F&O) segment by the company. So has the company gotten away lightly?  Governance firm InGovern’s Managing Director Shriram Subramanian says that the punitive action should have been stricter. Future & Option Trading Tips

“Sebi needs to be more tough and proactive in such cases. It has taken almost 10 years to come out with this order, which doesn’t contain any penalty. This could set a wrong precedent for companies and market participants who brazenly violate regulations. Banning the company from the F&O segment will not have any impact on the company. Apart from the disgorgement amount, there has to be a penalty to serve as a deterrent to all market participants,” he said. JN Gupta, former executive director, Sebi, and founder of proxy advisory firm SES, says that besides the company, those running the show should also be held responsible. "This order reinforces the faith of investors in the market regulator that it will take to task anyone for the wrongdoing, regardless of the size of the entity. However, this once again raises age-old issues, such as whether the wrongdoing was committed by the company, which is a passive entity, or by the people managing the show. Obviously, a passive entity cannot commit any wrongdoing. Therefore, instead of penalising the company and its shareholders, action should be taken against the people who are responsible," he said.  Financial Astrology Tips