News Hour: Gold breaks past Rs. 29,000 level after 4 months

Domestic gold prices edged past Rs. 29,000 mark after nearly four months tracking firm global trend. Gold prices rose by Rs. 755 to Rs.29,200 per 10 grams in the national capital. The sharp fall in the rupee, which traded near record low, also helped gold prices on Wednesday.

Sentiment in the precious metal was bolstered ahead of a Federal Reserve meeting that may signal a roadmap to taper down its stimulus program.

Gold in Singapore, which normally sets the price trend on the domestic front, rose by one per cent to $1,339.74 an ounce and silver by 1.4 per cent to USD 20.01 an ounce.

Gold of 99.9 and 99.5 per cent purity spurted by Rs. 755 each to Rs.29,200 and Rs. 29,000 per 10 grams, respectively, a level last seen on April 12. However, sovereigns held steady at Rs. 24,400 per piece of eight grams in scattered deals.

Silver ready jumped up by Rs. 915 to Rs. 42,260 per kg and weekly-based delivery by Rs. 42,160 per kg respectively. Silver coins also sky-rocketed by Rs. 1000 to Rs. 81,000 for buying and Rs. 82,000 for selling of 100 pieces.

Closing Summary, Market Synopsis: 30th April, 2013

Key benchmark indices fell for sixth day in a row as World stocks declined as investors remained cautious ahead of the Federal Reserve's policy decision. The BSE Sensex, settled at three-week low at 19345, down by 2.64 points . The CNX Nifty settled at month low down by 13 points at 5742. High volatility was witnessed in late trade as the Sensex alternately moved between positive and negative terrain, sharp up move seen from day’s low in last two hour of trade indicating bargain buy at lower levels. In Nifty50 stocks the advance to decline stood at 26 to 24. Sector wise Metals, CNXIT, Auto, Pharma were the leaders on Nifty, while Banknifty, FMCG & Real-estate are the laggards.

Commodity Market Update (Crude Oil)

On CMX, precious metals are trading higher since morning ahead of tonight’s FOMC meeting minutes and a speculation that Federal Reserve will continue its QE3. The actively traded Gold contract is gaining $6.3 or 0.48% to trade at $1330.90 and Silver is adding a percent or 20 cents to trade at $19.875 an ounce. On LME, base metals are trading higher since morning with Copper trading at $6803.75, up 76 points or 1.13%, followed by rest of the metals. NYMEX Crude Oil is trading slightly higher at $103.20 with a marginal gain of 12 cents while Natural Gas is trading almost flat at $3.442, up a cent per mmBtu. Oil traders are eagerly waiting for EIA’s Crude Oil Inventories report, scheduled to be released tonight 8.00PM with a market forecast of -2.1 million barrels against the previous of -2.8 million barrels.

On domestic bourses, commodities are trading much higher than the international counterparts due to a weaker rupee against the dollar which depreciated sharply to trade at Rs 60.985.

Morning Summary, Market Synopsis: 30th April, 2013

The Indian equity market has opened on a quiet note with the ‪#‎Sensex‬ down by 30 points at 19325 and‪#‎Nifty‬ at 5738.35, lower by 16.70 points. Rupee is playing a key role as it is trading near its record low around 61 per dollar. Investor sentiment is cautious ahead of the Fed two-day meet outcome due today. The Federal Reserve is expected to maintain its accommodative monetary policy, but investors will be looking for hints on when the central bank might start scaling back on its monthly bond-buying programme. On International front, The Dow and S&P 500 closed near the previous close on Tuesday as investors remained cautious ahead of the Federal Reserve's policy statement, but techs climbed to lift the Nasdaq to a fresh 12-year high. European shares closed narrowly higher on Tuesday. Asian stocks were mixed on Wednesday as investors adopted a wait-and-see approach ahead of the Federal Reserve's policy statement and key regional earnings. On BSE, Midcap and small cap are trading in red today, the midcap is down by 1.87% while the small cap eased 1.50% at the time of writing this. On sectoral front, Teck is the top gainer to increase 0.77% while Realty sector is significantly lower by 3.60%.

Further the market breath stands negative with 399 shares having advanced, 1232 shares having declined and 81 shares reaming
unchanged.

Closing Summary, Market Synopsis: 30th July, 2013

The Indian benchmarks ended the day on a sharp negative note on July 30, 2013. Despite dovish tone in RBI Monetary Policy, Nifty failed to see any rally apart from a small spurt as market was highly under hedged. Breakout in INR post policy created panic in markets bringing the big round of shorting. Finally Nifty futures premium started to come under pressure as shorting began. Nifty futuress spread which was @+50pts few days back drifted lower to +33pts but again recovered to +45 by close. Nifty futures fell below 200DMA after holding yesterday. Since last few days slide, non-Banking names are also participating in the down move. Rather Bank Nifty marginally outperformed Nifty today. Nifty spot has dropped to important gap support of 5745 where slide paused. Nifty futures hovered near 5800 towards close where biggest put positions are open. Its only IT names where money was finding way after a stronger guidance by Wipro yesterday & HCL Tech’s results being expected tomorrow. ICICI Bank averted the sell-off ahead of its results tomorrow. Dr Reddys cracked sharply for 4th day & now is below 50DMA. INR broke above 20DMA despite all RBI measures creating a havoc in sentiments. Selling remained more intense in BSE Midcap which dropped to more than 18 months low. A/D opened @1.1x but fell to 0.3x

Further, the market breadth closed negative as five stocks were seen advancing against eleven declining stocks.

News Hour: RBI keeps key rates unchanged; cuts GDP forecast for FY-14 to 5.5%

NEW DELHI: The Reserve Bank of India (RBI) in its first quarter review of monetary policy kept both the repo rate and Cash Reserve Ratio ( CRR) unchanged. This is in line with market expectations. 

Maintaining an extremely hawkish stance,RBI also cut the GDP growth forecast for FY14 to 5.5% from 5.7% earlier. RBI Governor Subbarao cited various risks that are likely to hamper economic growth. Both domestic and global uncertainty were admitted to be a deterrent for economic recovery. 

RBI said that it can revert to supporting growth with continuing vigil on inflation. The RBI will endeavor to keep inflation, which is under threat from a depreciating rupee, at 5 per cent by March end. 

It also said that the recent liquidity tightening measures, taken to support the rupee, will be rolled back in a calibrated manner as stability is restored to the foreign exchange market, enabling it to revert to the policy of supporting growth with continuing vigil on inflation. 

"The policy stance is guided by the need for continuous vigil and preparedness to pro-actively respond to risks to the economy from external developments, especially those stemming from global financial markets," Subbarao said. 

The effect of the Reserve Bank's recent interest rate increase and liquidity tightening to bolster the rupee will fizzle out if the government does not move to reduce external trade imbalances, a central bank policy review says. 

Giving the policy guidance, the governor said "monetary policy going forward will be shaped by the consideration of supporting growth, anchoring inflation expectations and maintaining external sector stability." 

The current situation of low headline inflation, prospects of softening food inflation on a good monsoon and decelerating growth warranted a pro-growth policy stance, but for the difficulties on the external front, as reflected in the almost 10 per cent depreciation in the rupee and the rising current account deficit, he said. 

Stating that the external sector was the "biggest risk to macroeconomic stability," Subbarao called for urgent policy steps from the government to curtail the CAD to a sustainable level of 2.5 per cent of GDP and said that the RBI is ready to use all instruments under its command help in the efforts. 

"It should be emphasised that the time available now should be used with alacrity to institute structural measures to bring CAD down to sustainable levels," the Governor said. 

The recent liquidity tightening measures, brought in to reduce speculative pressures on the rupee, which had hit a record low of 61.21 to the dollar on July 8, will be rolled back once the currency stabilises, which will lead to a shift in the monetary policy to be more accommodative and pro-growth, he added. 

On inflation, while Subbarao acknowledged the ongoing rupee depreciation would create trouble for the price rise scenario, he stressed that the RBI will use all instruments at its disposal to contain it to 5 per cent by March. 

Inflation as measured by wholesale prices increased marginally to 4.86 per cent in June. 

Top 10 Dailies: 30th July, 2013

~ Market Closed ~
‪#‎SENSEX‬: 19348.34 (-244.94)
‪#‎NIFTY‬: 5755.05 (-76.60)

Commodity Market Update (Silver)

Gold is trading at 1321.20, -7.2, -0.54% and Silver is at 19.57, -0.29, -1.48%; prices in the domestic market remained lower with Gold at 28229.0, down 48 points and Silver at 40982.0, down 164 points despite a weaker rupee which is at 60.12, down 70 paise against the dollar. The intraday bias is neutral today. Base Metals traded on LME were down almost a percenteach today, Copper is at 6808.0, down 67 points or 0.97% and Nickel at 13610.0, down 106.0 or 0.77%. On MCX, the weaker rupee limited downsides and Copper is at 411.40, up 45 paise and Nickel at 814.90, up 2.90 now. The intraday bias is negative for base metals. Oil and Gas is also trading in red, Crude Oil is down 103.91, down 64 cents and Natural Gas is at 3.447, down 0.72%. On MCX, prices are higher with Crude up 20 points to 6272.0 and Natural Gas up 0.60 to trade at 208.90. Intraday bias is negative for both the counters.

No Major Economic Releases.

Morning Summary, Market Synopsis: 30th July, 2013

The market opened flat with the ‪#‎Sensex‬ at 19614.45, up 21.17 points. The ‪#‎Nifty‬ is up 7.40 points at 5839.05. All eyes will be on Reserve Bank of India's credit policy today. The market will look forward to indications from RBI on when the tight money rules will be rolled back. Meanwhile the RBI's macroeconomic report says currency stability is its top priority. It also adds that steps to tighten liquidity will give the government space to make structural reforms to lower the current account deficit. The Indian rupee opened weak by 21 paise at 59.62 per dollar against 59.41 Monday and we expect further weakness, following the RBI's hawkish comments. Key policy rates are likely to be unchanged in today's policy. On international front, US stocks kicked off the week on a weak note as investors hesitated to jump in ahead of the Federal Reserve meeting and a slew of key economic reports. European shares pared earlier gains to close flat. On Asian market, Japanese stocks rebounded on Tuesday to break a four-day losing streak as the yen renewed its pace of declines while gains in the rest of Asia were capped ahead of key central bank meetings this week. On BSE, Midcap and Small cap are trading in red with a decline of 0.53% and 0.40% respectively while prices are trading mixed on sectoral front. IT sector is the best performer to surge 1.29% while Realty sector is trading down 1.44% as we write this.
Market breath stands negative with 588 shares having advanced, 871 shares having declined and 106 shares reaming unchanged.

News Hour: 3000-pound cash bond for visas for visitors from India, 5 other countries

LAGOS, NIGERIA: The British Home Officeconfirms it will demand a 3,000-pound ($4,350) refundable bond for visas for "high-risk" visitors from six former colonies in Africa and Asia.

A statement on Monday says Britain will go ahead with the pilot scheme which has caused outrage, charges of discrimination and warnings of retaliation and that the move will hurt trade.

The statement sent by email did not say when the pilot would start. It said if the scheme is successful Britain would like to apply the bond "on an intelligence-led basis on any visa route and any country."

The countries affected are Nigeria, Ghana, India, Pakistan, Bangladesh and Sri Lanka.

Britain's Home Office said it hopes the bond system deters overstaying of visas and recovers costs of foreign nationals using public services.

Closing Summary, Market Synopsis: 29 th July, 2013

The Indian benchmarks ended the day on a negative note on July 29, 2013. Markets continued to trade under pressure ahead of RBI policy tomorrow. Besides Banks, pressure continued to come from FMCG. HUVR & ITC remained under profit booking pressure. Volumes were subdued with most waiting for tomorrow’s RBI policy. Nifty futures found technical support @200DMA which was around 5868 mark where some short came to cover. However Nifty spot was already below 200DMA. Nifty futures spread has been rising since last 2 days which is bothering; Friday opened @+32pts which scaled to a high of +50pts today. BSE Midcap breaks to new 52-wk lows with supply in side markets continuing. Breadth remained suppressed; Advance-Decline opened @0.75x & dropped to 0.4x. Reliance moved below first support of 20DMA. ITC is now @20DMA which is 1st support but finally may be broken. BSE FMCG index already has broken 20DMA. Massive sell-off in Metals continued for the fourth day. Maruti dropped to 200 week average which will be most important support for the stock. ONGC again broke below 200DMA, failing to sustain higher. IT & AUTO remained outperformers.

Further, the market breadth closed negative as six stocks were seen advancing against ten declining stocks.

Top 10 Dailies: 29th July, 2013

~ Market Closed ~
SENSEX :19593.28 (-154.91)
NIFTY: 5831.65 (-54.55)

Commodity Market Update (Gold):

On COMEX, precious metals are trading higher since morning with Gold trading at $1331.70, up 0.77% or $10.30 after having tested a high of $1334.70 whereas front month Silver futures gained 0.68% or 14 cents to trade at $19.90 an ounce. On LME, base metals are trading mixed since morning due to volatility of dollar against the other currencies. LME Nickel is losing most of the ground to trade at $13790.0 while Copper is trading almost flat at $6855.75 with a meager gain of 75 cents after having tested a low of $6820.0 per metric ton. NYMEX Crude Oil is trading silent since morning, trading at $104.57, down 13 cents whereas Natural Gas is much lower by almost 2.5% or 8.5 cents to trade at $3.47 per mmBtu.

On data front, traders are waiting for US Pending Home Sales which is scheduled to be released at 7.30PM with a market forecast of -1.1% against the previous of 6.7%.

BMA Gyaan: How To Build A Retirement Plan

Morning Summary, Market Synopsis: 29th July, 2013

The market kickstarts the week's trading on a quiet note. The Sensex is down 11.01 points at 19737.18, and the Nifty down 13.30 points or 0.23% at 5872.90. It is a very important week for the market with the macro events lined up with the Fed meeting tomorrow and RBI monetary policy review on July 30. The Fed's two-day policy meeting kicking off on Tuesday is likely to decide on how best to prepare financial markets for a reduction of their bond-buying program. On international front, U.S. stocks erased roughly 150 points of losses on Friday and finished the session higher mainly as traders bought and sold shares on earnings reports. Asian markets were trading weak. China's Shanghai Composite shed 1.21 percent or 24.25 points at 1,986.60 and Japan's Nikkei plunged 2.54 percent or 358.85 points at 13,771.13. On BSE sector, Mid cap and Small Cap are trading in red with a decline of 0.87% and 0.41% respectively while on sectoral font, Teck is the top gainer to gain 0.77% while on other hand FMCG sector is the worst performer to ease 2.86%.
Further the market breath seen negative with 542 shares having advanced, 928 shares having declined, and 69 shares remains unchanged.

BMA iQ

Top 10 Dailies: 26th July, 2013

Market Closed
SENSEX: 19748.19 (-56.57)
NIFTY: 5886.20(-21.30)

Closing Summary, Market Synopsis: 26th July, 2013

Indian equity market closed on a negative note, with The BSE SENSEX was down 56.57 points to close at 19748.19, and the Nifty fell 21.30 points to end at 5886.20, but the cut was deeper in broader markets. Disappointing earnings continued to hurt the market sentiment with the asset quality concerns impacting public sector lenders and reduction in discretionary spending pinching FMCG companies. The BSE Midcap and Small cap were seen positive during the morning session but finished down near a percent and 0.82% respectively. On Currency front, Rupee hits 5-week high ahead of govt bond auction. The most actively traded Rupee future closed at 59.07, appreciated five paise today.

Commodity Market Update (Copper)

On CMX, precious metals were trading higher in the morning session on the back of last evening’s couple of weak economic data but later on erased its gains and trading flat as we write this. Active Gold contract is trading at $1327.00, down a dollar whereas Silver is losing 0.69% or 14 cents to trade at $20.01 an ounce. On LME, base metals are tumbling since morning and continued their last session decline due to weaker outlook for industrial metals from China. 3-month Copper is leading the metals group, losing almost a percent or 57.75 points to trade at $6953.75, followed by rest of the metals. On NYMEX, energy prices are trading in red since morning with Crude Oil trading at $104.73, lower by 0.71% or 75 cents and Natural Gas is losing 0.16% to trade at $3.639 per mmBtu. On domestic bourses, commodities are declining sharply with the help of a stronger rupee against the dollar which appreciated 0.29% to trade at Rs 58.94.

Morning Summary, Market Synopsis: 26th July, 2013

The market has opened August series on a stable note. The Sensex is up 96.00 points at 19900.76 while the Nifty is up 30.45 points or 0.52% at 5937.95. The Indian rupee opened with a gain of 30 paise at 58.81 per dollar against 59.11 Thursday. The rupee is likely to trade strong owing to the liquidity squeeze post the RBI measures and a weak dollar. However, a weak equity market and high dollar demand by oil importers may cap rupee gains. On international market, US stocks eked out small gains in volatile trading Thursday, lifted by materials, as investors digested the latest round of corporate earnings. Face Book skyrocketed 30% on better than expected earnings. European shares closed lower on Thursday. Asia traded cautiously as attention turned to the region's corporate earnings results. On BSE space, Midcap and Small Cap were seen positive with a gain of 0.23% and 0.50% respectively. On sectoral front, Capital Goods is the best performer to add 1.31% while FMCG sector is seen declining by 0.65% as we write this.
Market breath stands positive with 962 shares having advanced, 632 shares having declined and 99 shares reaming unchanged.

Commodity Market Update (Natural Gas)

Precious Metals drifting lower today continuing its momentum from last evening; Gold is trading at 1312.30, down 7.30 or 0.55% and Silver is at 19.88, down 0.13 or 0.67%. The bias is negative for bullions today. Base Metals are also lower today – three month LME Copper is down 0.76% at 6964.25 and Nickel is at 14222.0, down 0.70% as this time, base metals are likely to continue moving lower later in the evening. Oil and Gas prices are also down trading at 104.66, down 73 cents and 3.69, down 0.008 cents on NYMEX respectively. We are negative on crude and expect prices to move lower in the evening.

Key Economic Releases: Core Durable Goods Order, Jobless Claims and Natural Gas Storage.

BMA iQ: 25th July, 2013

Morning Summary, Market Synopsis: 25th July, 2013

The market has opened on a flat not ahead of the July expiry today. The Sensex is down 11.97 points at 20078.71, and the Nifty slips 8.35 points to 5982.15. Meanwhile, the Indian rupee opened at 59.29 per dollar versus 59.12 yesterday. RBI measures of raising short-term interest rates appear to be aimed at stabilizing the rupee around 60/USD and not towards significant appreciation. On international ground, the Dow and S&P 500 finished in negative territory Wednesday as investors digested the latest batch of corporate earnings, while stronger-than-expected results from Apple helped limit losses on the NASDAQ. European shares closed higher on Wednesday and Asian stocks declined on Thursday as caution over the region's second-quarter corporate earnings season offset gains from positive global economic data. Moving to the BSE segment, Midcap and Small cap are trading down with a decline of 0.50% and 0.22% respectively. On secotral front, prices are trading mixed with BSE IT sector is at 7289.35, recording a gain of 0.47% while on other hand BSE Power is trading down by a percent at the time of writing this.
Further the market breath remains negative with 588 shares have advanced, 928 shares declined and 90 shares are unchanged

Manmohan Singh's 1991 Rupee brahma astra may boomerang to a junk rating- An interesting reading

Rating companies and politicians have something in common - both are discredited, but indispensable in a socioeconomic system. The nation is suddenly back at a stage where one unreliable entity will evaluate the performance and potential of the other. The devil of a sovereign rating downgrade, that was nearly slain with the return of P Chidambaram to the finance ministry, who surprised by spending less than forecast - a sweet black swan event - is rearing its head again.

It is not the profligacy of the government this time, but a currency that is sliding fast and furious — partly due to global factors such as the US Federal Reserve tapering bond purchases, and mostly because of India's continued reliance on short-term flows to fund excessive imports.

A depreciating currency could be welcomed as a boon for a country suffering from a record high current account deficit — the excess of spending overseas than imports — as we did in 1991. Not quite in 2013.

Manmohan Singh as a finance minister in the PV Narasimha Rao Cabinet depreciated the rupee by a quarter and set the stage for an economic recovery after a balance of payments crisis in 1991. But as the head of the state, he could hardly afford that now. Government policies and finances are caught in such a web that his brahma astra of 1991 may probably boomerang this time with a sovereign downgrade to junk.

"The threat of a downgrade has more to do with India's current account deficit than with the exchange rate weakness per se,'' says Jahangir Aziz, senior Asia economist at JPMorgan Chase. "The rupee weakness, however, matters because it has the potential to widen this year's subsidy bill significantly, and therefore the fiscal deficit. To the extent that the rating agency is worried about India's CAD and fiscal deficit, the present situation clearly has not strengthened India's case for an improved outlook or rating.''

Indian Rupee has depreciated 10% since April amid fears that the Federal Reserve may taper its $85-billion of monthly bond purchases, shutting the liquidity tap for emerging markets. With announced reform measures not leading to a quick economic recovery, foreigners who flocked to India to benefit from higher returns have developed cold feet. After investing almost $30 billion between September 2012 and April 2013, they pulled out $5.3 billon since then. Standard & Poor's, which faces probe for its role in the 2008 credit crisis, rates India at Triple B- with a negative outlook and has warned that there are one in three chances of a downgrade in the next 12 months.

Moody's, which rated India Baa3 last week, said, "The fall in the exchange rate, by increasing the domestic prices of imported goods, will contribute to inflation, as well as to an increase in the government's expenditures, including on subsidies.'' Both ratings are investment grade, and a downgrade of one notch can make India a junk nation.

Government and the Reserve Bank of India have made consumption of gold, accounting for more than half the CAD, more difficult with restriction on imports and quadrupling import duty. The demand is falling, but relief from it is some way off. The bigger worry is crude oil, of which India imports more than three-fourths of requirements.

It has faced a double whammy with its price rising to $108 a barrel, from less than $98 and due to currency depreciation. Both translate into crude turning 20% more expensive than it was a few months ago. Fuel subsidy, which was Rs85,000 crore last year, and budgeted to be Rs90,000 crore, could bloat if oil remains where it is. Nomura Securities forecasts oil subsidy to rise by Rs8,100 crore for every Rs1 fall in the exchange rate. Petrol prices are market determined, but diesel is subsidised. So are cooking gas and kerosene, which account for half the subsidy. Raising prices of these fuels will pinch people. So that can be ruled out when the ruling class is headed to seek votes from the electorate.

"The government will also have to pay more on an increased fertiliser subsidy bill,'' says Sonal Varma of Nomura Securities. "Hence, a fiscal slippage is likely. The window for reforms is fast closing," she adds.

Government's foreign direct investmentboosting measures are not yielding immediate results. The big-bang opening up of multi-brand retail is yet to translate into investments. The government intends to raise foreigners' limit in telecom, defence and many other sectors.

"I don't think it's just a matter of opening up an FDI channel here or there, you have to address the root causes and send a signal that you are committed to making changes to narrow the deficits,'' says Subir Gokarn, former deputy governor of the RBI. "That is when you will start seeing new money from outside." CAD though may fall from the 4.8% of the GDP in 2013, but it may still remain far higher than the desired 2.5% for the next two years.

Fiscal deficit target of 4.8% of the GDP may be breached as government may not be able to squeeze expenditure as it did last year. Fiscal deficit worries will acquire bigger proportion given the economic slowdown where economists are lowering their target to just about 5% from more than 5.6%. Tax collections are falling behind budgeted estimates.

Indirect taxes rose 4.7% in the June quarter, compared with the fiscal year target of 20%. Direct taxes grew 12% in the fiscal first quarter, way below the 18% budget for the year. Sale of stake in state-run enterprises for Rs 40,000 crore appears tough, though staterun financial companies may be directed to bail out such sales. The revenue short fall and the weakening currency have created a rating risk, but it may not be there yet. "Although there is always a risk, I don't expect a downgrade,'' says Bimal Jalan, who conducted monetary policy during the previous downgrade and the 1997 Asian crisis as RBI governor.

"Growth may have declined, but our total borrowings are not very high and we have always been careful about borrowings abroad.'' The government may have bungled in its policy on subsidies and not getting its announcements translate into actual investments. But some are saying that the central bank may have also foundered in its currency operations. RBI should have shored up reserves when the flows were plenty, which it did not unlike during the times of Jalan, who also floated the Resurgent India Bonds and India Millennium Deposits, which some call a guerrilla attack.

Governor Bimal Jalan and deputy governor Reddy would buy as much FX as possible during periods of capital inflows and sell as little as they could during episodes of capital outflows,'' says Indranil Sengupta at Bank of America Merrill Lynch. "As these guerrilla-type tactics built up FX reserves, improved investor confidence led to capital inflows and, by extension, appreciation. Of course, times are different. CAD at 4.8% of GDP is four times of what it was in 1997. Fiscal deficit is budgeted at 4.8%, compared to last year's 5.06%. But some amount of consistency and strong measures should be taken, and there is a need to stand by them, even if painful. Last week's liquidity tightening by RBI and raising of short-term interest rates were a case in point. But those measures were diluted, and their impact were lot lesser than what they would otherwise have been.

If the twin deficits are not addressed in the next few months, the nation moves closer to a downgrade, even if it is by companies whose credibility has waned quite a bit. Investors are pouring in more money into Britain and the US after their downgrades. "Things can become much more ugly,'' says Aziz. "Right now, much of the CAD is being financed by short-term borrowing. A credit downgrade could spike the risk premium on such instruments, increasing next year's CAD and gross financing needs. This will, in turn, raise serious concerns about the sustainability of India's balance of payments.''

Closing Summary, Market Synopsis: 24th July, 2013

The Indian benchmarks ended the day on a negative note on July 24, 2013. The morning slide was led by Banks which further accentuated in the day as support from FMCG waned unlike seen over past few days. Hence this round of banking slide created an impact. Banks again failed to cross the first resistance of 11300 itself dragging it to new lows. Bank Nifty to Nifty ratio dropped to 18 months low. Larger damage in Nifty was averted as futures reversed from 5971. It was again IT which saw buying interest in these uncertain enviornment. Bharti also been looked as a safe bet besides Reliance lately with no place left to hide. BSE Midcap finally plunged sharply below 20DMA & saw selling pressure through the day. Breadth traded highly subdued between 0.2-0.5x. Nifty roll traded stable between 35-37pts. Yes Bank collapsed on 1 year high volumes. Besides the general Banking sell-off, results accentuated the slide here.
Further, the market breadth closed negative as one stock was seen advancing against two declining stocks.

Commodity Market Update (Crude Oil)

On CMX, precious metals are trading higher since morning with Gold trading at $1338.70, up $4.20 or 0.32% after having tested a high of $1348.70 while front month Silver is trading in green at $20.30 with a meager gain of 4.6 cents an ounce. On LME, base metals were trading lower in the morning session on the back of weaker economic data from China but later on paired its losses and trading higher as we write this. LME Copper is trading one month high at $7075.00, up 0.35% or $25.00 while Aluminum is only metals which is trading in red at $1844.75 per metric ton. WTI Crude Oil is trading almost flat at $107.17 with a negative bias while Natural Gas is losing 0.67% or 2.5 cents to trade at $3.718 per mmBtu. Oil traders are waiting for tonight’s Crude Oil Inventories which will be released at 8.00PM with a market forecast of -2.5 mbd.

Morning Summary, Market Synopsis: 24th July, 2013

The market has opened in the negative terrain dragged majorly by banking stocks. The Sensex opens 133.29 points down at 20168.84 while the Nifty is at 6031, down 46.80 points. Bank Nifty falls 3.5 percent as the banking stocks are under heavy selling pressure not unable to digest Reserve Bank of India’s measures to curb rupee volatility. The RBI has moved to further rein in FOREX market volatility as the rupee ends lower once again at 59.76 to the dollar. The central bank adds banks must maintain 99 percent of their daily cash reserve ratio (CRR) requirement with the RBI, against the current 70 percent. On International market, US stocks finished narrowly mixed in lackluster trading Tuesday, but the Dow posted a fresh closing high, as investors weighed a handful of upbeat earnings against a weak regional factory report. European shares pared earlier gains to close down on Tuesday. Asian stocks were mostly lower on Wednesday after HSBC's key survey of Chinese manufacturing activity fell to an eleven-month low in July. On BSE, Midcap and Small Cap are trading lower with a decline of 0.98% and 0.56% respectively. Sectoral front remains mixed with IT leading by 1.19% while Bankex is down 3.5%.
Further market breath remains negative as 572 shares have advanced, 975 shares declined, and 94 shares are unchanged.

Detailed News- PRE - SESSION

Read more: http://goo.gl/jmIk1W

Closing Summary, Market Synopsis: 23rd July, 2013

Key benchmark indices edged higher as upmove in global stocks boosted sentiment. The S&P BSE Sensex closed at 20302 up by 143 points or 0.71%, CNX Nifty closed up by 46 points at 6077.8. The advance decline ratio in Nifty was almost even, in Nifty50 stocks there were 34 advances to 16 declines. FMCG major Hindustan Unilever scaled record high. Index heavyweight and cigarette maker ITC also hit record high.

In CNX Nifty sector specific leaders are Bank nifty, FMCG, Realty, MNC & PSU Banks, while the laggards in today’s market are CNX Infra & Pharma.

Commodity Market Update (Silver)

Bullion prices are trading lower today with the most actively traded Gold contract on CMX is trading at 1327, down almost 10 points or 0.67% and Silver is trading around 20.18, lower by 1.60%. Prices are likely to remain in a range with a negative bias for the day. On data front, there are no major releases today that can set near term direction in Gold and Silver. Base metals across the LME are trading lower since morning; LME three-month Aluminum is the exception to trade nominally higher at 1849, adding 7 points or 0.38% while Nickel is the worst performer to ease 0.55% at 14047, followed by Copper which is trading at 6983, down 0.47%. Energy prices are trading mixed with Crude Oil at 106.18, lower by 0.71% and Natural Gas is up by 0.60% at $3.69. Intraday view on Crude Oil and Natural Gas remains range bound and we can see sideways trading for the day.

BMA Gyaan : Understanding Beta

Morning Summary, Market Synopsis: 23rd July, 2013

The market has opened on a stable note with the Sensex gaining around 100 points. The Sensex opened at 20263.97 up 104.85 points while the Nifty gained 32.50 points at 6064.30. The Indian rupee gained 23 paise in the opening trade on Tuesday. It has opened at 59.49 per dollar versus 59.72 Monday. Moving to international market, US stocks eked out marginal gains in lackluster trading, with the S&P 500 closing at a new high, but a batch of mixed earnings reports and weaker-than-expected existing home sales dampened the sentiment. In Europe, major indices pared early gains to close flat. A series of earnings releases boosted stocks in Europe, particularly in the banking sector. In Asia, government comments reiterated Beijing's commitment to supporting the export and service industry is aiding sentiment. Japanese stocks erased earlier losses to rise above 14,700. BSE Mid cap and Small cap are trading positive with a gain of 0.63% and 0.33% respectively at the time of writing this. On Sectoral front, with the exception of Consumer durable all other indicies are trading in green, the top gainer is Capital Goods, adding 1.66% till now.

Further the market breath remains positive with 760 shares having advanced, while 421 shares have declined and 53 shares are unchanged.

Closing Summary, Market Synopsis: 22nd July, 2013

Key benchmark indices provisionally closed almost flat after witnessing intraday volatility. BSE Sensex closed up by 9 pts and Nifty closed at 60.31.8 up by 2.6 points. L&T tumbled over 7% after reporting weak Q1 results. Weak Q1 results from L&T had ripple effect on shares of power equipment major Bharat Heavy Electricals (Bhel), which also fell sharply. The market breadth, indicating the overall health of the market, was negative. In Nifty50 stocks there were 24 advances to 26 declines. Reliance Industries (RIL) declined after Q1 results. Asian Paints dropped after the company reported weak Q1 result at the fag end of the trading session.
Sector specific Bank index was the outperformer on Nifty in today’s market, others include Auto, Finance & PSU banks, the laggards were Energy, CNX Infra & CNX PSE.

Top 10 Dailies: 22nd July, 2013

Market Closed
SENSEX: 20159.12 (+9.27)
NIFTY: 6031.80 (+2.60)

Commodity Market Update (Gold):

Precious metals are trading higher today, the actively traded Gold is at $1313.60, adding $21.00 or 1.62% and Silver is at $19.85, up by 2.00% at the time of writing this The near term outlook for Gold remains positive and we expect prices to move higher. On base metals, LME Copper is at $6984.75, up a percent and followed by Aluminum which is higher by 0.77% at $1839.0. Other metals are also trading higher while Lead remains unchanged at $2042.50. On NYMEX, Crude Oil and Natural Gas prices are trading mixed, with Oil futures adding half a percent at $108.40 while Natural Gas is down 1.32% at $3.74 at the time of writing this.
Data to Watch: US Existing Home Sales

BMA iQ: 22nd July, 2013

Morning Summary, Market Synopsis: 22ND July, 2013

The market has kickstarted the day on a quite note as key corporate earnings remain in focus today. The Sensex is down 9.63 points at 20140.22 while the Nifty slips 4.20 points at 6025.00.The Indian rupee opened on flat note at 59.29 per dollar versus 59.35 in last session. On international front, US stocks finished largely unchanged in lackluster trading on Friday, with the S&P 500 squeezing out a small gain to finish at another record high, but a batch of disappointing tech earnings dampened the sentiment. European stocks too ended lower on weak earnings. Asian equity markets were mixed on Monday as investors reacted to Japanese Prime Minister Shinzo Abe's victory in Sunday's upper house elections and China's decision to liberalize interest rates. Moving to the BSE sectors, Midcap and Small Cap are in green with Midcap adding half a percent and Small cap gained just 0.14%. BSE Auto sector is the best performing, up by 1.23% while Oil and Gas sector is lower by almost a percent till now.
Further the market breath stands positive as 973 shares have advanced, 602 shares declined and 80 shares are unchanged.

Attention Everyone!

'Like' us and also, stay in touch with us - Just follow the steps as in the picture below and make sure you receive all our updates.

BMA iQ: Find the three squares that are not linked to any of the others.

Top 10 Dailies: 19th July, 2013

Market Closed
SENSEX: 20149.85 (+21.44)
NIFTY: 6029.20(-8.85)

Closing Summary, Market Synopsis: 19th July, 2013

Key benchmark indices saw divergent trend on last trading day of the week after seeing high intraday volatility. The BSE Sensex, logged small gains to settle at over 7-week high at 20150 up by 22 points, Nifty shut shop down by 9 points at 6029. The market breadth, indicating the overall health of the market, was negative. The advance to decline in Nifty50 stocks stands at 24 advances to 26 declines.

Index heavyweight Reliance Industries rose ahead its Q1 June 2013 results today, 19 July 2013. Bajaj Auto surged in volatile trade after declaring Q1 June 2013 result. HDFC fell after announcing Q1 June 2013 result. IT major TCS hit record high after reporting good Q1 results after trading hours on Thursday, 18 July 2013. Other IT stocks were boosted by good Q1 results from TCS. HCL Technologies scaled record high. Capital goods sector edged lower, Power equipment major Bhel tumbled 8.71% to Rs 172.45. IT & Auto are the outperforming sectors in NSE, whereas Bank & Realty are the laggards.

Commodity Market Update (Copper)

Bullion prices on CMX are trading in a narrow range with ‪#‎Gold‬ front month contract at $1285.30, up by just a dollar or 0.10% while ‪#‎Silver‬ is trading at $19.31, down by 0.43% at the time of writing this. We expect prices to trade in a range with negative bias for the day. On base metals, with the exception of LME Aluminum all other metals are trading down today.‪#‎Copper‬ and Lead are lower by 0.47% each at $6877.00 and $2034.00 while Aluminum is adding just 0.14% to traded at $1806.00. Crude Oil prices on NYMEX are trading in red since morning; the most actively traded contract is at $107.64, down by 15 cents after a sharp rally in its last session. Any decline in Crude prices can be used as a buying opportunity as the overall outlook remains positive for Crude Oil. Natural Gas prices are also trading lower at $3.79, down by 0.40% at the time of writing this. On data front, there are no major macroeconomic releases from US that can set direction for prices.

News Hour: Detroit files biggest-ever US municipal bankruptcy

DETROIT: Detroit, the cradle of America's automobile industry and once the nation's fourth-most-populous city, filed for bankruptcy Thursday, the largest U.S. city ever to take such a course.


The decision, confirmed by officials after it trickled out in late afternoon news reports, also amounts to the largest municipal bankruptcy filing in U.S. history in terms of debt. 

"This is a difficult step, but the only viable option to address a problem that has been six decades in the making," said Gov. Rick Snyder, who authorized the move after a recommendation from the emergency financial manager he had appointed to resolve Detroit's dire financial situation. 

Not everyone agrees how much Detroit owes, but Kevyn D. Orr, the emergency manager who was appointed by Snyder to resolve the city's financial problems, has said the debt is likely to be $18 billion and perhaps as much as $20 billion. 

For Detroit, the filing comes as a painful reminder of a city's rise and fall. 

"It's sad, but you could see the writing on the wall," said Terence Tyson, a city worker who learned of the bankruptcy as he left his job at Detroit's municipal building Thursday evening. Like many there, he seemed to react with muted resignation and uncertainty about what lies ahead, but not surprise. "This has been coming for ages." 

Detroit expanded at a stunning rate in the first half of the 20th century with the arrival of the automobile industry, and then shrank away in recent decades at a similarly remarkable pace. A city of 1.8 million in 1950, it is now home to 700,000 people, as well as to tens of thousands of abandoned buildings, vacant lots and unlit streets. 

From here, there is no road map for Detroit's recovery, not least of all because municipal bankruptcies are rare. State officials said ordinary city business would carry on as before, even as city leaders take their case to a judge, first to prove that the city is so financially troubled as to be eligible for bankruptcy, and later to argue that Detroit's creditors and representatives of city workers and municipal retirees ought to settle for less than they once expected. 

Some bankruptcy experts and city leaders bemoaned the likely fallout from the filing, including the stigma it would carry. They anticipate further benefit cuts for city workers and retirees, more reductions in services for residents, and a detrimental effect on future borrowing. 

"For a struggling family I can see bankruptcy, but for a big city like this, can it really work?" said Diane Robinson, an office assistant who has worked for the city for 20 years. "What will happen to city retirees on fixed incomes?" 

But others, including some Detroit business leaders who have seen a rise in private investment downtown despite the city's larger struggles, said bankruptcy seemed the only choice left - and one that might finally lead to a desperately needed overhaul of city services and a plan to pay off some reduced version of the overwhelming debts. In short, a new start. 

"The worst thing we can do is ignore a problem," said Sandy K. Baruah, president of the Detroit Regional Chamber. "We're finally executing a fix." 

The decision to go to court signaled a breakdown after weeks of tense negotiations, in which Orr had been trying to persuade creditors to accept pennies on the dollar and unions to accept cuts in benefits. 

All along, the state's involvement - including Snyder's decision to send in an emergency manager - has carried racial implications, setting off a wave of concerns for some in Detroit that the mostly white, Republican-led state government was trying to seize control of Detroit, a Democratic city where more than 80 percent of residents are black. 

The nature of Detroit's situation ensures that it will be watched intensely by the municipal bond market, by public sector unions, and by leaders of other financially challenged cities. Just over 60 cities, towns, villages and counties have filed under Chapter 9, the court proceeding used by municipalities, since the mid-1950s. 

Leaders in Washington and in Lansing, the state capital, issued statements of concern late Thursday. A White House spokeswoman said President Barack Obama and his senior team were closely monitoring the situation. 

"While leaders on the ground in Michigan and the city's creditors understand that they must find a solution to Detroit's serious financial challenge, we remain committed to continuing our strong partnership with Detroit as it works to recover and revitalize and maintain its status as one of America's great cities," Amy Brundage, the spokeswoman, said in a statement. 

The debt in Detroit dwarfs that of Jefferson County, Ala., which had been the nation's largest municipal bankruptcy, having filed in 2011 with about $4 billion in debt. The population of Detroit, the largest city in Michigan, is more than twice that of Stockton, Calif., which filed for bankruptcy in 2012 and had been the nation's most populous city to do so. 

Other major cities, including New York and Cleveland in the 1970s and Philadelphia two decades later, have teetered near the edge of financial ruin but ultimately found solutions other than federal court. Detroit's struggle, experts say, is particularly dire because it is not limited to a single event or one failed financial deal, like the troubled sewer system largely responsible for Jefferson County's downfall. 

Instead, numerous factors over many years have brought Detroit to this point, including a shrunken tax base but still a 139-square-mile city to maintain; overwhelming health care and pension costs; repeated efforts to manage mounting debts with still more borrowing; annual deficits in the city's operating budget since 2008; and city services crippled by aged computer systems, poor record-keeping and widespread dysfunction. 

All of that makes bankruptcy - a process that could take months, if not years, and is itself expected to be costly - particularly complex. 

"It's not enough to say, let's reduce debt," said James E. Spiotto, an expert in municipal bankruptcy at the law firm of Chapman and Cutler in Chicago. "At the end of the day, you need a real recovery plan. Otherwise you're just going to repeat the whole thing over again." 

The municipal bond market will be paying particular attention to Detroit because of what it may mean for investing in general obligation bonds. In recent weeks, as Detroit officials have proposed paying off small fractions of what the city owes, they have indicated they intend to treat investors holding general obligation bonds as having no higher priority for payment than, for instance, city workers - a notion that conflicts with the conventions of the market, where general obligation bonds have been seen as among the safest investments. 

Leaders of public sector unions and municipal retirees around the nation will be focused on whether Detroit is permitted to slash pension benefits, despite a provision in the state constitution that union leaders say bars such cuts. 

Officials in other financially troubled cities may feel encouraged to follow Detroit's path, some experts say. A rush of municipal bankruptcies appears unlikely, though, and leaders of other cities will want to see how this case turns out, particularly when it comes to pension and retiree health care costs, said Karol K. Denniston, a bankruptcy lawyer with Schiff Hardin who is advising a taxpayer group that came together in Stockton after its bankruptcy. 

"If you end up with precedent that allows the restructuring of retirement benefits in bankruptcy court, that will make it an attractive option for cities," Denniston said. "Detroit is going to be a huge test kitchen." 

Around this city, there was widespread uncertainty about what bankruptcy might really mean, now and in the long term, although leaders of other cities who have been through court cautioned of lingering effects. 

"The label sticks with us, unfortunately," said Daniel E. Keen, the city manager of Vallejo, Calif., which filed for bankruptcy in 2008. 

For some Detroiters, recent memories of bankruptcies by Chrysler and General Motors - and the re-emergence of those companies - appeared to have calmed nerves. But experts say corporate bankruptcy procedures are significantly different from municipal bankruptcies. 

In municipal bankruptcies, for instance, the ability of judges to intervene in how a city is run is sharply limited. And municipal bankruptcies are a form of debt adjustment, as opposed to liquidation or reorganization. 

Residents are likely to see little immediate change from the way the city has been run since March, when Orr arrived to oversee major decisions. A bankruptcy lawyer, he is widely expected to continue to run Detroit during a legal process. Mayor Dave Bing and Detroit's elected City Council are still paid to hold office and are permitted to make decisions about day-to-day operations, although Orr could remove those powers at any point. 

Orr has said that as part of any restructuring he wants to spend about $1.25 billion on improving city infrastructure and services. But a major concern for Detroit residents remains the possibility that services, already severely lacking, might be further diminished in bankruptcy. 

About 40 percent of the city's streetlights do not work, a report from Orr's office showed. More than half of Detroit's parks have closed since 2008. 
(Source: economictimes.indiatimes.com)