Friday 29 March 2019

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Gold futures slide on weak global cues


Gold prices fell 0.25 percent to Rs 31,528 per 10 gram in futures trade Friday as speculators cut down their bets amid a weak global trend.

On the Multi Commodity Exchange, gold prices for delivery in April contracts was down by Rs 79, or 0.25 percent, to Rs 31,528 per 10 gram in a business turnover of 3,028 lots.

The yellow metal for delivery in June contracts also was quoting lower by Rs 76, or 0.24 percent, at Rs 31,747 per 10 gram in a business turnover of 14,442 lots.

Analysts attributed the fall in gold prices to trimming of positions by participants, taking weak cues from the global market.

Meanwhile, gold fell 0.13 percent to USD 1,288.11 an ounce in Singapore.

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Source: Moneycontrol

DLF raises Rs 3,173 crore via QIP to prepay debt


Realty major DLF on March 29 said it has raised Rs 3,173 crore by selling shares to institutional investors through its QIP offer. DLF, the country's largest real estate firm in market value, would utilise this amount mainly to prepay debt, which stood at around Rs 7,000 crore at the end of December 2018.

On Monday, the company had launched its qualified institutional placement (QIP) issue, offering up to 17.3 crore shares to investors. The issue closed on March 28.

In a regulatory filing, DLF Friday informed that the Securities Issuance Committee has approved the allotment of 17.3 crore equity shares to eligible qualified institutional buyers at an issue price of Rs 183.40 per share, aggregating to about Rs 3,172.82 crore.

Sources on March 26 had said that DLF's QIP issue has been oversubscribed by two times, enabling the company to raise around Rs 3,200 crore.

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Source: Moneycontrol

Fed done raising interest rates; significant chance of cut in 2020: Poll


The US Federal Reserve is done raising interest rates until at least the end of next year, according to economists in a Reuters poll who gave a 40 percent chance of at least one rate cut by end-2020.

The Fed left its federal funds rate on hold last week as expected, but its "dot plot" projections shifted and now suggest no hikes in 2019 compared with two in December. A Reuters poll taken just two weeks ago predicted one hike this year.

The change in the Fed's tone lines up with other major central banks which have recently turned dovish, influenced by increasing concerns of a global economic slowdown and political uncertainties like Brexit and the U.S.-China trade war.

While the Fed's projections show one rate hike next year, the latest Reuters poll of over 100 economists taken after the March 19-20 central bank meeting showed the fed funds rate will stay at the current range of 2.25-2.50 percent until at least end-2020.

A smaller sample of economists with an end-2021 view predicted no change by then either.

"The most dramatic development of the year to date has not been on either trade policy or politics. Rather, it is the Fed's full-throated embrace of a monetary stance more dovish than many market participants had been expecting," noted Ajay Rajadhyaksha, head of macro research at Barclays.

"We do expect U.S. inflation to exceed 2 percent, but not by much and not early enough to force a tightening within our 2019-20 forecast horizon. We therefore now forecast the Fed to leave the policy rate on hold through 2020."

Only three economists in the poll predict at least one rate cut this year. But the yield spread between U.S. three-month Treasury bills and 10-year notes has already inverted, suggesting a recession is likely in one to two years.

The Fed's preferred measure of inflation is close to the 2 percent target and is not expected to show any significant pick up anytime soon. The U.S. economy, which slowed more than initially thought in the fourth quarter, is expected to slow further over the next three years.

Over one-third of contributors with an end-2020 view have now pencilled in at least one rate cut by the end of next year compared to around one-quarter of them in the previous poll.

When asked on the probability of a rate cut by end-year, the median of those responding to an additional question was 20 percent. But that jumped to 40 percent for end-2020.

About one-third predicted a greater than 50 percent chance of lower rates by the end of next year, with the highest forecast at 100 percent.

"While not our core view, the odds of a rate cut...(are)significant given the Fed's reaction function has shifted towards guarding against downside risks," said Eugene Leow, rates strategist at DBS.

Still, nearly a quarter of respondents expect the Fed to raise rates at some point this year on hopes of an economic revival, contradicting the central bank's latest view.

But the fed funds futures market has completely priced out any rate hike over the next two years, despite a recovery in U.S. stocks after a deep sell-off late last year.

"For now, the Federal Reserve is still signalling a bias to tighten policy given the rate hike pencilled into 2020," said James Knightley, chief international economist at ING.

"But with a presidential election later in the year (2020) and President Trump keen to gain political capital out of challenging the Fed on any rate hikes, we are sceptical that would happen."

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Source: Moneycontrol

Copper futures gain 0.02% on positive cues


Tracking positive global cues, copper prices edged higher by 0.02 percent to Rs 439.35 per kg in futures trade Thursday as participants raised bets.

At the Multi Commodity Exchange, copper for delivery in April contracts was up by 10 paise, or 0.02 percent, to Rs 439.35 per kg in a business turnover of 13,686 lots.

Similarly, the metal for delivery in June contracts traded higher by 20 paise, or 0.05 percent, to Rs 443.10 per kg in 102 lots.

A firm trend overseas and pick up in demand in the spot market mainly led to the rise in copper prices in futures trade, analysts said.

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Source: Moneycontrol

Spot demand lifts zinc futures by 0.07%


Zinc prices rose by 0.07 per cent to Rs 203.40 per kg in futures trade on March 28, tracking a firm trend at the physical markets on the back of pick up in demand.

At the Multi Commodity Exchange, zinc contract for May was trading higher by 15 paise, or 0.07 percent, at Rs 203.40 per kg with a business turnover of 4,777 lots.

Marketmen said widening of positions by participants, following pick up in demand from consuming industries, kept zinc prices higher.

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Source: Moneycontrol

Gold faces worst month in eight; palladium recovers


Gold slipped on March 29 and was headed for its worst month since August 2018 as the dollar and equities rose, while palladium bounced back after three straight sessions of sharp selloffs.

Spot gold was down about 0.1 percent at $1,288.74 per ounce by 0507 GMT, after declining about 1.5 percent in the previous session, the most in over seven months.

The metal is set for its first weekly fall in four and has lost about 1.8 percent this month. But on a quarterly basis, gold is on path for a second straight rise, due to a dovish US Federal Reserve and concerns about a global economic slowdown.

US gold futures were down 0.1 percent at $1,288 an ounce.

The dollar was poised for its strongest monthly gain in five, while Asian shares rose on hopes that Washington and Beijing are making progress in trade talks.

The world's two largest economies started the new round of talks on March 28 to end the year-long tit-for-tat tariffs war.

"If we have a positive outcome from the trade talks, gold will be under pressure as investors will rotate out into more risk seeking assets," said Jeffrey Halley, a senior market analyst with OANDA.

"But, if we have disappointing outcome then stocks will go down and people will move into safe-haven assets like gold."

White House economic adviser Larry Kudlow said on March 28 the United States could lift some tariffs on China, while leaving others in place as part of an enforcement mechanism on a trade deal.

Meanwhile, spot palladium rose 1.1 percent to $1,363 an ounce on March 29, recovering from a two-month low touched in the previous session.

The metal, used in the making of catalytic converters in vehicles, slid 6.6 percent on March 28, the most since January 2017, and was set for its worst week since November 2015, as worries about a slowdown in global economic growth triggered a sharp sell-off.

On a monthly basis, it was headed for its biggest drop since end-2016.

"Negative market sentiment due to slowing economic growth triggered speculative selling in palladium," ANZ analysts said in a note.

Elsewhere, silver was flat at $15.01 an ounce, while platinum rose about 1 percent to $844.75 an ounce.

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Source: Moneycontrol

Oil prices rise amid OPEC's ongoing supply cuts, US sanctions


Oil prices rose on Friday, pushed up by ongoing supply cuts led by producer club OPEC and U.S. sanctions against Iran and Venezuela, which have given crude markets the biggest first quarter price push since 2009.

U.S. West Texas Intermediate (WTI) futures were at $59.54 per barrel at 0100 GMT, up 24 cents, or 0.4 percent, from their last settlement.

Brent crude oil futures >LCOc1> had yet to trade.

Oil prices have been supported for much of 2019 by efforts by the Organization of the Petroleum Exporting Countries (OPEC) and non-affiliated allies like Russia, known as OPEC+, who have pledged to withhold around 1.2 million barrels per day (bpd) of supply this year to prop up markets.

"Production cuts from the OPEC+ group of producers have been the main reason for the dramatic recovery since the 38 percent price slump seen during the final quarter of last year," said Ole Hansen, head of commodity strategy at Saxo Bank.

"In fact, the recovery has been so strong and swift that WTI is currently heading towards its biggest quarterly gain – currently 32 percent – since Q2 2009, when the recovery from the global financial crisis saw it jump by more than 40 percent," he added.

The price surge triggered a call by U.S. President Donald Trump on Thursday for OPEC to boost production to lower prices.

"Very important that OPEC increase the flow of Oil. World Markets are fragile, price of Oil getting too high. Thank you!" Trump wrote in a post on Twitter.

However, the OPEC+ cuts are not the only reason for rising oil prices this year, with analysts also pointing to U.S. sanctions on oil exporters and OPEC members Iran and Venezuela as reasons for the surge.

Saxo Bank's Hansen said "the biggest short-term risk to the oil market is likely to be driven by renewed stock market weakness."

Stock markets have been volatile this year amid signs of a sharp global economic slowdown.

"Business confidence has weakened in recent months ... (and) global manufacturing PMIs are about to move into contraction," Bank of America Merrill Lynch said in a note, although it added that "the services sector ... continues to expand unabated."

Given the OPEC+ cuts, however, Bank of America said it expected oil prices to rise in the short-term, with Brent prices forecast to average $74 per barrel in the second quarter.

Heading towards 2020, however, the bank warned of a recession.

"We are growing more concerned about the outlook for 2020. Manufacturing tends to lead consumer confidence ... A deeper dive into protectionism could eventually kill burgeoning global consumer sentiment and trigger a global recession," it said.

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Source: Moneycontrol

Oil prices set for biggest Q1 gain since 2009 on US sanctions, OPEC cuts


Oil prices rose on Friday, pushed up by ongoing supply cuts led by producer club OPEC and U.S. sanctions against Iran and Venezuela, putting the crude markets on pace to post their biggest first quarter gain since 2009.

U.S. West Texas Intermediate (WTI) futures were at $59.56 per barrel at 0211 GMT, up 26 cents, or 0.4 percent, from their last settlement.

WTI futures are set to rise for a fourth straight week and are set for a first quarter gain of 31 percent.

Brent crude oil futures were up 30 cents, or 0.4 percent, at $68.12 per barrel. Brent futures are set to increase by 1.7 percent for the week and are set to climb by 27 percent for the first quarter.

For both futures contracts, the first quarter 2019 is the best performing quarter since the second quarter of 2009 when both gained about 40 percent.

Oil prices have been supported for much of 2019 by the efforts of the Organization of the Petroleum Exporting Countries (OPEC) and non-affiliated allies like Russia, together known as OPEC+, who have pledged to withhold around 1.2 million barrels per day (bpd) of supply this year to prop up markets.

"Production cuts from the OPEC+ group of producers have been the main reason for the dramatic recovery since the 38 percent price slump seen during the final quarter of last year," said Ole Hansen, head of commodity strategy at Saxo Bank.

The price surge triggered a call by U.S. President Donald Trump on Thursday for OPEC to boost production to lower prices.

"Very important that OPEC increase the flow of Oil. World Markets are fragile, price of Oil getting too high. Thank you!" Trump wrote in a post on Twitter.

OPEC+ are meeting in June to discuss whether to continue withholding supply or not.

OPEC's de-facto leader Saudi Arabia favours cuts for the full year while Russia, which only reluctantly joined the agreement, is seen to be less keen to keep holding back beyond September.

However, the OPEC+ cuts are not the only reason for rising oil prices this year, with analysts also pointing to U.S. sanctions on oil exporters and OPEC members Iran and Venezuela as reasons for the surge.

Despite the surging prices, analysts are expressing concerns about future oil demand amid worrying signs the global economy may move into a recession.

Saxo Bank's Hansen said "the biggest short-term risk to the oil market is likely to be driven by renewed stock market weakness."

Stock markets have been volatile this year amid signs of a sharp global economic slowdown.

"Business confidence has weakened in recent months ... (and) global manufacturing PMIs are about to move into contraction," Bank of America Merrill Lynch said in a note, although it added that "the services sector ... continues to expand unabated."

Given the OPEC+ cuts, however, Bank of America said it expected oil prices to rise in the short-term, with Brent prices forecast to average $74 per barrel in the second quarter.

Heading towards 2020, however, the bank warned of a recession.

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Source: Moneycontrol

Gold edges up after steep fall; palladium faces worst week since end-2015


Gold inched up on Friday, but was on track for its first weekly decline in four weeks after posting its steepest fall in more than seven months in the previous session on a strong dollar.

Palladium, meanwhile, was set for its worst week since November 2015, after recording its biggest one-day decline in more than two years on Thursday.

FUNDAMENTALS

- Spot gold rose 0.1 percent to $1,291.40 per ounce by 0120 GMT, after falling about 1.5 percent in the previous session to touch its lowest since March 8 at $1,288.30.

- The metal is down about 1.6 percent so far this week, but is virtually flat for the quarter.

- U.S. gold futures were flat at $1,290 an ounce.

- Spot palladium gained 0.5 percent to $1,355.18 an ounce, after sliding 6.6 percent - the most since January 2017 - in the previous session.

- The auto-catalyst metal has still gained about 8 percent for the quarter.

- The dollar was poised on Friday for its strongest gain in three weeks as investors responded positively to a bounce in U.S. Treasury yields and as some of its rivals were hit by dovish signals from their own central banks. [USD/]

- The U.S. economy slowed more than initially thought in the fourth quarter, keeping growth in 2018 below the Trump administration's 3 percent target, and corporate profits fell by the most in a year after a one-off boost from lower taxes.


- China will sharply expand market access for foreign banks and securities and insurance companies, especially in its financial services sector, Premier Li Keqiang said on Thursday, as senior U.S. officials arrived in Beijing for more trade talks.

- White House economic adviser Larry Kudlow said on Thursday the United States could lift some tariffs on China, while leaving others in place as part of an enforcement mechanism on a U.S.-China trade deal.

- British Prime Minister Theresa May scrambled on Thursday for a way to secure a new delay to Brexit in the face of parliamentary deadlock by setting out plans for a watered-down vote on her EU divorce deal to be held on Friday.

- The U.S. Federal Reserve is done raising interest rates until at least the end of next year, according to economists in a Reuters poll who gave a 40 percent chance of at least one rate cut by end-2020.

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Source: Moneycontrol

Stocks in the news: Tata Power, Tata Metaliks, Sheela Foam, Lupin, Adani Ports, Wabco India


Here are stocks that are in the news today:

Listing: MSTC to list on exchanges

IPO: Rail Vikas Nigam IPO opens today.

NRB Industrial Bearings: Board approved the allotment of 17,50,000 cumulative, redeemable, non-convertible preference shares of Rs 10 each aggregating to Rs 1.75 crore of the company on private placement basis to Devesh Singh Sahney, Chairman, Managing Director and Promoter of the company.

Britannia Industries will replace Hindustan Petroleum Corporation in the Nifty50

PFC acquired govt stake in REC and became the holding company and also a promoter of REC

TCPL Packaging: Commercial production of company's new unit situated in Kundaim, Goa has commenced.

Andhra Bank approved the issuance of 114,56,72,061 equity shares to Government of India on preferential allotment basis at Rs 28.42 per equity share

Bharat Financial Inclusion: Company assigned a pool of receivables of an aggregate value of Rs 837.40 crore to one of the largest private sector banks on a Direct Assignment basis. With this transaction, the company has completed Direct Assignment transactions worth Rs 9,032.47 crore in FY19.

Indian Overseas Bank allotted 269 crore shares to Govt of India at Rs 14.12 per share

Kotak Mahindra Bank approves allotment of NCD worth Rs 150 crore

Lupin: Company launches Fluocinonide Ointment USP in the US. The drug is indicated for the relief of the inflammatory and pruritic manifestations of corticosteroidresponsive dermatoses.


Sheela Foam: SBI MF buys 3.63 percent stake in the company on March 27.

Indiabulls Integrated Services: IRDA approves R1/first level approval for Indiabulls Integrated General Insurance business - CNBC-TV18 Sources.

Adani Enterprises: Adani Defence Systems and Technologies Limited - a wholly owned subsidiary of the company has incorporated a company namely Adani Rave Gears India Limited.

HT Media: NCLT approved a Scheme of Arrangement between the company and Digicontent Limited and their respective shareholders.

Wipro: Company and IIT Kharagpur partner for advanced research in 5G and AI.

Abhishek Finlease: Company appointed Mahendra M Shah as Chief Flnancial Officer.

Apcotex Industries: Board appointed Suraj Badale as the Chief Financial Officer.

Lincoln Pharmaceuticals: Board appointed Darshit Ashvinkumar Shah as a Chief Financial Officer.

Adhunik Industries: Board approved appointment of Ajay Bhuwania as Chief Financial Officer.

Jet Airways: Repayment of the external commercial borrowing, availed by the company for working capital purposes, falling due on March 28, has been delayed owing to temporary liquidity constraints and the company has engaged with the lender in relation to the same.

Tata Metaliks: Tata Steel acquired 27,97,000 equity shares, aggregating to Rs 1,79,56,74,000, and 34,92,500 convertible warrants, aggregating to Rs 2,24,21,85,000 of company on preferential basis. Tata Steel holding in company stands increased from 50.09 percent to 55.06 percent.


Federal Bank: Bank has entered into a partnership with Ripple Inc, a blockchain supported global remittance company, for cross border remittance through its network.

Adani Ports: Subsidiary Adani Logistics approved the proposal for acquisition upto 100 percent equity shares of Innovative 828 Logistics Solutions Pvt. Ltd. out of which 97.03 percent of shares will be acquired upon closing from True North and its affiliates and balance shares consisting upto 2.97 percent held by other shareholders within 60 days of the closing.

Tata Power: Company signed the Power Purchase Agreement (PPA) with Brihanmumbai Electric Supply and Transport Undertaking, for 676.69 MW of power supplied from its Trombay Thermal and hydro plants, for a period of five years.

HUDCO: Ministry of Housing and Urban Affairs accorded its approval for extension of tenure of M Ravi Kanth, as Chairman & Managing Director (CMD), HUDCO for a period of six months, or until further orders, whichever is earlier.

IL&FS Transportation Networks: Delhi High Court had dismissed the petition filed by NHAI and has affirmed the arbitral award passed in favour of Pune Sholapur Road Development Company Limited (PSRDCL), a subsidiary of company.

Apunka Invest Commercial: Company invested Rs 99,84,000 in Panorama Studios Private Limited, increasing shareholding in same to 53.73 percent.

Wabco India: WABCO Holdings Inc. entered into a definitive merger agreement with ZF Friedrichshafen AG.


Visagar Polytex: Board approved resignation tendered by Sagar Tilokchand Kothari from the position of Chief Financial Officer of the company.

HIL Limited: Parador (Shanghai) Flooring Trading Co., Ltd, China [JV of Parador GmbH, Germany (step down subsidiary of HIL International GmbH, Germany)] has opened its first showroom in Shanghai.

DB Corp: Stitex Global Limited, one of the promoter group companies of DB Corp, amalgamated with DB Consolidated Private Limited (another promoter group company.

Trent: Board passed an enabling resolution for raising of funds through issue of Commercial Paper upto an amount not exceeding Rs 100 crore, in one or more tranches.

Gateway Distriparks: Company allotted 5,500 rated, listed, secured, redeemable non-convertible debentures having face value of Rs 10,00,000 each, with coupon rate of 11.25% - 11.50%, for cash aggregating Rs 550 crore, to identified investors on private placement basis.

Bulk Deals on March 28


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Source: Moneycontrol

Market Live: Nifty opens above 11,600, Sensex up 100 pts; rupee opens higher


Market Opens: It is a strong start for the April F&O series on Friday with Nifty above 11,600 level.

At 09:18 hrs IST, the Sensex is up 171.30 points or 0.44% at 38717.02, and the Nifty up 49.60 points or 0.43% at 11619.60.  About 592 shares have advanced, 203 shares declined, and 50 shares are unchanged. 

The gainers are IOC, Indiabulls Housing, Hindalco, Wipro, Tech Mahindra, RIL, BPCL, Can Fin Homes, Vodafone Idea, Jet Airways, PFC, REC while losers include Axis Bank, IndusInd Bank, Eicher Motors, SBI life and Motherson Sumi.

Rupee Opens: The Indian rupee gained in the early trade on Friday. It opened higher by 10 paise at 69.24 per dollar versus previous close 69.34.

Market at pre-open: The benchmark indices are trading positive in the pre-opening session on Friday.

At 09:02 hrs IST, the Sensex is up 138.14 points or 0.36% at 38683.86, and the Nifty up 55.50 points or 0.48% at 11625.50.

Yes Bank, Kotak Mahindra Bank, HDFC Bank are trading higher in the pre-opening session.

Asian markets trade higher: Asian shares posted narrow gains on Friday on revived hopes of progress in US-China trade talks, while global bond yields moved higher after a prolonged slide on worries about the economic outlook.

Wall Street ends higher​: US stocks climbed on Thursday as Treasury yields rose off 15-month lows, with investors optimistic about the latest round of US-China trade talks.

SGX Nifty: Trends on SGX Nifty indicate a negative start for the broader indices in India, a fall of 25 points or 0.21 percent. Nifty futures were trading around 11,645-level on the Singaporean Exchange.

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Source: Moneycontrol

Thursday 28 March 2019

Silver weakens in futures trade, down by Rs 40


Silver prices fell by Rs 40 to Rs 37,975 per kg in futures trade on Thursday amid profit-booking by speculators at current levels. However, a firming trend overseas capped the losses.

At the Multi Commodity Exchange, silver for delivery in May traded lower Rs 40, or 0.11 per cent, at Rs 37,975 per kg. It clocked a business volume of 21,357 lots.

The white metal to be delivered in far-month July was down by Rs 34, or 0.09 per cent, at Rs 38,520 per kg in 715 lots.

In the international market, silver rose 0.43 per cent to USD 15.30 an ounce in Singapore.

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Source: Moneycontrol