Impact of commodity market on inflation

Impact of commodity market on inflation: It is important to know the correlation amid inflation and commodity rates and the things of inflation on commodity rates themselves.

Sagar Cements gains acquisition plan of grinding unit of Toshali Cements

Business standard has Published by Sagar Cements gains acquisition plan of grinding unit of Toshali Cements The stock rallied 6% to Rs 710 on the BSE. Sagar Cements has rallied 6% to Rs 710 on the BSE after the company on Wednesday announced the complete acquisition of grinding unit owned by M/s Toshali Cements for Rs 60 crore.

“The board has accorded its ‘in principle’ approval for the acquisition of the entire assets in the grinding unit of 181,500 tons per annum capacity in Bayyavaram, Vizag district, Andhra Pradesh, owned by M/s Toshali Cements, Hyderabad, at a cost of around Rs 60 crore (including transaction cost),” Sagar Cements said in a BSE filing.

Post acquisition, the company proposes to increase the capacity of the said unit to 300,000 tons per annum by optimizing the equipment already available with the company by infusion of funds to the extent of around Rs 6 crore.

The acquisition will enable the company to save its logistic cost and to introduce slag cement to cater markets in Visakhapatnam, Viziangaram, Srikakulam and parts of Orissa, it added.

The transaction is expected to be completed by September 30, 2016, subject to regulatory approvals as may be required by the company to commence its grinding operations in the said unit.

At 09:45 AM, the stock was up 5% at Rs 706 on the BSE. A combined 49,247 shares changed hands on the counter on the BSE and NSE so far.

Markets make a strong opening; Sensex soars 200 points

Business standard has published by Markets make a strong opening; Sensex soars 200 points The S&P BSE Sensex has gained 217 points to trade at 26,958 and the Nifty50 climbed 59 points to quote at 8,263 Markets opened the session on a steady note mirroring strength in the global equities as near term worries over Brexit eased. Meanwhile, volatility is likely to be witnessed going ahead as today is the expiry of June F&O series.

At 9:15 am, the S&P BSE Sensex has gained 217 points to trade at 26,958 and the Nifty50 climbed 59 points to quote at 8,263.

"The ongoing rally relief rally have continued to add on to previous day’s gains all through this week. Oscillators remain unconvincing, and 8,330 shall continue to pose medium term challenge, and but the ability to float above 8,200 could lend a positive bias," said Geojit BNP Paribas in a technical note.

Also, sentiment improved after the Cabinet approved the recommendations of the 7th Pay Commission yesterday.

KEY POINTS

The Union Cabinet, led by Prime Minister Narendra Modi, on Wednesday approved the recommendations of the Seventh Pay Commission, a move which will boost consumption by putting extra disposable income in the hands of the central government’s 4.7 million employees.

The Cabinet has also approved the National Mineral Exploration Policy (NMEP) on Wednesday, which will pave the way for auction of 100 prospective mineral blocks, boosting India’s mining potential.

The Cabinet cleared the model Shops and Establishment Act that would allow cinema halls, restaurants, shops, banks and other such workplaces to be open 24X7.

Further, participants are waiting for the auto sales volume data for June and India Manufacturing PMI for June due on Friday, respectively.

Meanwhile, the government on Wednesday asserted it has "enough" support for passage of the GST bill in the Monsoon session of Parliament that will commence from July 18 till August 12.

GLOBAL MARKETS

Asian markets were trading higher tracking overnight gains on Wall Street with Singapore and Hong Kong stocks gaining the most with over 1.5% gains while Nikkei was up nearly 1% amid a softening yen while trading in Chinese shares remained lacklustre with the benchmark Shanghai Composite trading flat with positive bias.

US stocks extended gains on Wednesday to end over 1.5% higher and recover all the losses of 2016 after near term worries over Brexit started easing. The Dow Jones industrial average ended up 1.6% at 17,695, the S&P 500 ended up 1.7% at 2,071 and the Nasdaq ended up 1.9% at 4,779.

BUZZING STOCKS

Larsen & Toubro gained nearly 1% after the company's IT subsidiary L&T Infotech is set to hit the capital market with an IPO in July.

Sugar stocks such as Dalmia Sugar, Dwarikesh Sugar, Dhampur Sugar, DCM Shriram, Shree Renuka Sugars and Bajaj Hindusthan Sugar gained between 2%-6% after global sugar prices rose further.

Consumer driven stocks are likely to extend gains after the Cabinet's approval to the recommendations of the Seventh Pay Commission will boost spending across various sectors. In the auto pack, Tata Motors, Bajaj Auto, Hero Motocorp and Maruti Suzuki have climbed between 0.5%-1.5%.

Titan, PVR, Asian Paints, Future Retail and Trent have gained up to 1.5%.

Minda Industries surged 3% after the board approved stock split of equity shares of Rs 10 each into five shares of Rs 2 each.

Coal India and Solar Energy Corporation has signed two agreements for solar power project in Madhya Pradesh. Coal India is up 1%.

LT Foods jumped over 5% after the company said it has incorporated a subsidiary named as "LT Foods International Limited" in United Kingdom for strengthening its presence in Europe.

A government overhaul of the British Steel Pension Scheme - crucial to convincing anyone to buy Tata's British assets - is in jeopardy after Britons' vote to leave the European Union deepened the fund's debts and depleted its assets. Tata Steel is up nearly 1%.

The State Bank of India pleaded before the Debt Recovery Tribunal here for granting recovery certificate to start the proceedings against liquor baron Vijay Mallya to recover debts from him in the alleged bank loan default case. SBI climbed over 1%.

JSW Steel has gained 0.5% as it plans to raise Rs 27,600 crore in a mix of Indian and foreign currencies through issues of bonds and debentures during this financial year.

Commodity Mcx Copper Basic Fundamentals Factors

Commodity Mcx Copper Basic Fundamentals Factors:

What Market Fundamentals Can Affect The Copper Futures?   

In free market economies, supply and demand is the essential empowering enabler for value trend. Any outside forces that influence supply and demand activity in the long run influence costs. When you are thinking about an exchange the copper advertise a portion of the essential fundamentals that you ought to consider are:

1. Supply The major refining countries incorporate the United States, Japan, Chile, Canada, Zambia, and the European Union. Copper and copper amalgam scrap make a noteworthy share out of the world's supply. The biggest global hotspots for scrap are the United States and Europe. Chile, Indonesia, Canada and Australia are the major exporters while Japan, China, the European Union and Philippines are the significant importers. World copper mine industry through consideration of fresh mines and extension of existing mines is a main point that influences copper supply and evaluating.

2. Supply Disruptions Hit periods that happen with expiration of labor contracts significantly affect copper costs. Moreover, quakes, shipping issues, and political agitation in Chile, Peru, and South Africa can bring about a reduction in supplies of copper and cause copper futures to rally.

3. Demand The biggest refined copper-expending countries have for quite some time been the industrialized nations with extensive manufacturing bases. The significant copper-consuming countries are the European Union, the United States, Japan, Russia, and China. Since the 1950's, the pattern has been toward expanded consumption by the Asian nations, especially Japan, South Korea, and Taiwan, principally to bolster export-oriented fabrication industries. All the more as of late, China has turned into a noteworthy client of copper and accounts for an expanding measure of demand for copper.

4.Inventory Stocks LME and NYMEX are the 2 global markets where copper exchanges. Changes in the inventory shares in LME and NYMEX warehouses centers give future value bearing to the copper market.

5. Copper Supply Reports The principle report for copper futures is the Copper - High Grade Warehouse shares. This note shows whether copper supplies are expanding or diminishing.

These are only a portion of the essential fundamentals to remember when you are thinking about an deal the copper market. Consequently, before opening up an commodity account to trade copper you ought to research with an authorized commodity broker that takes after the copper Bazar to talk about speculation strategies.

6.Currency: For the reasons outlined above, the Chinese currency might sliprather dramatically versus USD in the coming months and could put other currencies under downward pressure as well.  If this does indeed happen, it wouldliable be awful news for copper.On the other hand, those with an economic stake in being ‘long' copper might be cheered by the performance of the euro and yen versus USD.  Neither currency moved much after the Fed rate rise.

PC shipments dip 7.4% in Q1, 2016

Business standard has published by PC shipments dip 7.4% in Q1, 2016 According to Gartner, personal computer (PC) shipments in India totalled nearly two million units in the first quarter of 2016, a 7.4 per cent decrease over the corresponding period in 2015. “Consumers accounted for 45 per cent of the total PC sales, down from 48 per cent in the first quarter of 2015,” said Vishal Tripathi, research director at Gartner.

“There was a decline in both the enterprise and consumer segments in buying. With the first quarter being the end of the financial year for some companies, there were expectations that enterprises would exhaust their budgets. However, it did not have much of an impact on the market, and it continues to face a challenging time.”

White boxes (including parallel imports), which accounted for 28 per cent of the overall desktop market, declined 6 per cent. Mobile PCs declined by 13 per cent year-on-year mainly due to lack of enthusiasm in consumer buying. Gartner analysts believe the first quarter of 2016 saw an excess inventory which was carried forward from the fourth quarter of 2015 and believe this to be carried into the second quarter of 2016 as well.

HP was the leader in PC shipments in India due to a strong presence in channels and online consumer purchases.

Ashok Leyland impaired Rs 558 crore in 2015-16

Business standard has Published by Ashok Leyland impaired Rs 558 crore in 2015-16 Commercial vehicle (CV) major Ashok Leyland has said it made an impairment charge on its balance sheet of Rs 558 crore in 2015-16. And, had disposed of the shares in Ashok Leyland John Deere at a loss of Rs 233 crore.

In a letter to the shareholders, Chairman Dheeraj G Hinduja said in 2016-17 and beyond, the cornerstone of the growth plan would focus on the core business of CVs. A portfolio rationalisation, already in process, would see progressive exit from non-core and non-performing businesses. The impairment charge of Rs 558 crore in 2015-16 included one of Rs 107 crore towards Albonair Germany, Rs 150 crore towards Optare Plc of the UK and Rs 5 crore towards Albonair India.

“The company and its joint venture (JV) partner (Nissan Motors) are in discussion to resolve the uncertainty with respect to the continuity of the JV operations represented by three companies,” it said. These companies are Ashok Leyland Nissan Vehicles, Nissan Ashok Leyland Powertrain and Nissan Ashok Leyland Technologies.

Leyland said considering the significant uncertainty in continuity of the JV operations and the accumulated losses of the JV entities, it had provided for the carrying value of the investment in the said companies, aggregating Rs 296 crore. In 2014-15, it said it had made an impairment provision of Rs 214 crore in the three Nissan JV entities.

The loss at Ashok Leyland Nissan Vehicles came down to Rs 61.9 crore in 2015-16 from Rs 791.2 crore a year before. AL has 51 per cent stake in this company. Nissan Ashok Leyland Powertrain's profit was Rs 71.9 lakh in 2015-16 as compared to a Rs 3.1 crore loss a year before. Nissan Ashok Leyland Technologies made a profit of Rs 5.05 crore, as compared to a Rs 9.8 crore loss a year before.

In the major JV, for construction equipment with John Deere, the company said as mentioned earlier that it had disposed the shares in Ashok Leyland John Deere at a loss of Rs 233 crore. The JV company has reported a loss of Rs 75.9 crore in 2015-16 as against Rs 29.6 crore a year before. AL attributed the poor performance to market conditions. It also said two of the JVs/associates under liquidation were Ashley Airways and Automotive Infortronics.

Managing Director Vinod K Dasari earlier said AL had decided to focus on its core business of CVs, with related diversification.  He agreed it was a bad decision to get into unrelated areas; it was done with good intent, “but somehow things didn't work out...instead of spending the time and energy to revive a dead business, let it go and focus on the core business.”

Hinduja said AL would give more thrust in international markets. In the target clusters, it would develop products specifically for the identified markets. It is doubling the capacity of its Ras-Al-Khaimah plant (in the UAE) this year and a new assembly unit in Bangladesh is in the offing. Further units in Africa are under active consideration.

To leverage availability of the in-house developed Neptune engines and respond to growing application needs, the power solutions business would be implementing an updated strategic road map, he added.

Future plans include introduction of Euro VI-compliant engines and exhaust system variants, commercialisation of hybrid and electric buses, and introduction of a modular business programme for both truck and bus variants.

Sensex climbs 100 points as global equities gain ground

Business standard has Posted By Sensex climbs 100 points as global equities gain ground

Markets have opened the session on a strong note mirroring strength in the global equities after the near term impact of Brexit eased.

Meanwhile, the revision in US Gross domestic product (GDP) further lifted the mood at D-Street as it indicated an improvement in the health of the global economy. GDP increased at a 1.1% annual rate, rather than the 0.8% pace reported last month, the Commerce Department said on Tuesday in its third GDP estimate.

At 9:15 am, the S&P BSE Sensex gained 129 points to trade at 26,654 and the Nifty50 climbed 37 points to quote at 8,165

Angel Broking in a technical note said “Our markets are clearly showing their out performance over the global peers since last three sessions. However, if we meticulously observe the hourly chart, we can clear see a cluster of resistances around it. Technical evidences such as, the '89 EMA' and the 61.8% Fibonacci retracement level of the recent fall converges at 8,150. Thus, at least for a day or two, it would be a daunting task for the bulls to overcome it. Although, we maintain our positive stance on the market directionally, we expect a minor a pull back towards 8,070 – 8,050 levels. On the flipside, 8,150 – 8,180 would be seen as immediate resistances for the index.”

Participants are keenly watching the rollovers to the next series ahead of the expiry of June F&O series due on Thursday, auto sales volume data for June and India Manufacturing PMI for June due on Friday, respectively.

GLOBAL MARKETS

Asian markets rallied on Wednesday tracking robust gains in overnight trades on Wall Street as investors turned to equities after the near term impact of Brexit began to subside. Shares in Japan gained the most with the benchmark Nikkei up 1.4% and Singapore's Straits Times was up nearly 0.9%. China's Shanghai Composite was trading with marginal gains up 0.5% while Hang Seng was up 0.6%.

US stocks surged in overnight trades to end higher on bargain hunting at lower levels after sharp losses in the previous two sessions post the shocking outcome of the referendum in which Britain voted to exit the European Union. The Dow Jones industrial average ended up 1.6% at 17,410 and the S&P 500 ended up 1.8% at 2,036 while the Nasdaq surged 2.1% to settle at 4,692.

STOCKS

US-based fund house Janus Capital has sold its entire stake in DLF. The stock is up 6%.

India’s third largest private sector bank Axis Bank has forayed into urban microfinance programme by providing TAB based solution to low-income women groups in urban cities. The stock has gained 0.5%.

Drug major Dr Reddy's Laboratories said it has bought back nearly 51 lakh shares for Rs 1,569.41 crore as part of a 'share buyback' offer launched earlier this year. The stock climbed over 1%.

Bosch's Board of Directors will meet on July 01, 2016, to consider a proposal for Buyback of the Company's equity shares. The stock is trading 3% higher.

Banking major SBI plans to divest its sell non-core investments of around Rs 3,000 crore to shore up its capital, according to media reports. The stock is up 0.5%. 

Shareholders of Strides Shasun have approved divestment of Shasun Pharma Solutions Ltd, UK via postal ballot. The stock has gained over 1%.

Realty company Sobha is set to launch Sobha City - its First Luxury Apartment Project in Delhi-NCR. Sobha has surged 4%.

GE Shipping said that it has bought back and extinguished 100 Secured and 550 Unsecured Debentures of Rs. 10,00,000 each, aggregating to Rs. 65 crore. The stock has surged 1%.

The board of directors of Kesar Terminals & Infrastructure will meet on July 01, 2016, inter alia, to consider Sub-Division of Equity Shares of the Company. The stock is up 2.5%.

Thomas Cook will be in focus after its subsidiary Quess Corp IPO opens for subscription today.

Oil prices rebound in post-Brexit bargain hunting

By Ron Bousso has posted by Oil prices rebound in post-Brexit bargain hunting

LONDON (Reuters) - Oil prices topped $48 a barrel on Tuesday as investors took advantage of a two-day slide in crude triggered by Britain's vote to leave the European Union.

The vote's impact on oil, despite sending global stocks and currencies spiralling, has so far been limited due to expectations of strong summer demand in Asia and the United States and tightening supplies after a two-year rout.

A looming strike at several Norwegian oil and gas fields which threatened to cut output in western Europe's biggest producer also helped support prices on Tuesday.

Brent crude futures were up 2.5 percent, or $1.17, at $48.33 per barrel at 1116 GMT.

U.S. West Texas Intermediate (WTI) futures were 2.6 percent higher, up $1.22 at $47.55 a barrel.

A report by industry monitor Genscape that showed a 1.3 million barrel fall in crude inventories at the benchmark's pricing hub in Cushing, Oklahoma, added further support, brokerage PVM said.

Sterling and London's FTSE 100 stock market index also rose on hopes of a coordinated central bank response to financial market losses.

"Oil is recovering on some bargain hunting after the drop below $47 a barrel proved unsustainable and news of a possible strike in Norwegian oil and gas industry," said Commerzbank analyst Carsten Fritsch.

He said the turmoil in Europe was not expected to have a "meaningful impact on the physical global supply and demand balances".

Over its two previous sessions oil fell more than 7 percent to seven-week lows as the Brexit vote cooled investor appetite for volatile commodities such as oil.

A strike in Norway, which could start on Saturday, would add to a number of production outages in oil-producing countries including Nigeria.

Still, news that a successful ceasefire in Nigeria had allowed repairs to oil pipelines weighed on the market, ANZ Bank said.

Oil production in Nigeria has risen to about 1.9 million barrels per day from 1.6 million, a state oil company spokesman said on Monday.

(Additional reporting by Henning Gloystein in Singapore; editing by David Clarke and Jason Neely)

Mcx Crude Oil Price Fundamental Factors?

Mcx Crude Oil Price Fundamental Factors?: OPEC, a consortium of 13 nations: Algeria, Angola, Ecuador, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela, is the single biggest substance affecting the world's oil supplies .

Volkswagen reaches $14.7B emissions settlement

Business standard has posted by Volkswagen reaches $14.7B emissions settlement would repair or buy back polluting vehicles and pay each owner as much as $10,000 under a $14.7 billion deal the car maker has reached to settle lawsuits stemming from its emissions cheating scandal, a person briefed on the settlement talks said.

The deal sets aside $10 billion to repair or buy back roughly 475,000 polluting Volkswagen vehicles with 2-litre diesel engines, and to compensate each owner with an additional payment of between $5,100 and $10,000, the person said.

The person asked not to be identified because the deal will not be filed in court until Tuesday, and a judge has ordered attorneys not to talk about it before then.

Owners who pick the buybacks would get the clean trade-in value of their cars from before the scandal became public on September 18, 2015. The average value of a VW diesel has dropped 19% since just before the scandal began. In August of 2015, the average was $13,196, and this May it was $10,674, according to Kelley Blue Book.

The settlement still requires a judge's approval before it can go into effect.

The scandal erupted in September when it was learnt that the German automaker had fitted many of its cars with software to fool emissions tests and had put dirty vehicles on the road.

Investigators determined that the cars emitted more than 40 times the legal limit of nitrogen oxide, which can cause respiratory problems in humans. Car owners and the U.S. Department of Justice sued.

The settlement also includes $2.7 billion for environmental mitigation and another $2 billion for research on zero-emissions technology, the person said.

The $14.7 billion would eclipse the cost of all recent automotive scandals. But VW is still facing billions of dollars in fines and penalties that are not part of the deal.

The company has admitted developing sophisticated software that determined when the cars were being tested by the EPA on a treadmill-like device called a dynamometer and turned on the pollution controls. Once all wheels began spinning and the steering wheel was turned, the controls were turned off.

The company, which knew the EPA's testing routine, got away with the scam for seven years before being caught by the International Council on Clean Transportation, which hired West Virginia University to test a VW in real roads conditions.

The settlement does not include another roughly 90,000 3-litre Volkswagen diesels, which had another version of cheating software.

Viacom board rejected offer for director to meet Sumner Redstone

Business standard has posted by Viacom board rejected offer for director to meet Sumner Redstone Board's dismissal of a possible route toward a settlement shows how far apart the two sides are in the legal fight for control over Redstone's $40 billion media empire Viacom Inc's board rejected an offer by Sumner Redstone's attorneys to have one of Viacom's independent directors meet face-to-face with the 93-year-old media mogul to get an understanding of his views on the media company, a spokesman for Redstone confirmed on Monday.

The board's dismissal of a possible route toward a settlement shows how far apart the two sides are in the legal fight for control over Redstone's $40 billion media empire, amid questions over whether the magnate is making his own decisions or is even of sound enough mind to do so.

Redstone offered to meet Viacom Independent Director Charles Phillips in the days after Viacom lead independent director Fred Salerno filed suit over Redstone's June 16 move to oust him and four other directors, including Viacom CEO Philippe Dauman, from the Viacom board, Reuters exclusively reported Monday.

Last week Salerno vetoed the idea, opting instead to continue with litigation, sources told Reuters.

Salerno and Phillips declined to comment. In a statement, Viacom did not confirm or deny it received such an offer from Redstone. But did say it would be wrong to suggest such a meeting could "actually assess" Redstone's capacity.

Salerno has sent a number of letters to Redstone over the past several weeks requesting a meeting with him to discuss his views of the business, and to go over the rationale for Dauman's planned stake sale of Viacom's Paramount movie studio.

"We are quite concerned that your voice — and views — are not being heard," Salerno wrote in a June 14 letter, made public by Viacom.

The fact that the Viacom board rejected Redstone's offer of a meeting with Phillips showed claims by Viacom executives and Salerno that they are being blocked from meeting with Redstone are "fiction," said Mike Lawrence, a spokesman for Redstone, in a statement.

"Fred Salerno, Philippe Dauman, and (Viacom board member) George Abrams have repeatedly told the courts that the Viacom board is being blocked from meeting with Sumner, leaving them no choice but to pursue claims," Lawrence said in the statement. "That fiction has been shattered."

Viacom called those statements both inaccurate and incomplete.

"The one fact not in question is that an examination to assess Mr. Redstone's capacity and undue influence needs to happen," the company said in a statement.

For investors, the impasse could mark the beginning of a long legal battle that will prolong the uncertainty over the future of Viacom. The company's shares closed down 5.1% on Monday, in a broadly lower market.

Redstone's privately held movie holding company, National Amusements Inc, owns 80% of the voting shares of Viacom as well as CBS Corp . On June 16, when National Amusements moved to oust the five directors from the board, investors told Reuters they hoped a change in management or a merger between CBS and Viacom could be on the horizon.

On the same day, National Amusements asked a Delaware court to affirm the changes, while Salerno shot back with his own suit seeking to block the move, calling it "invalid" and the result of Redstone's daughter Shari Redstone manipulating her father.

A Delaware judge said last week that he would schedule a hearing in July in a case about whether National Amusements' move was valid.

Market firms up led by financials; Nifty above 8,100

Business standard has posted by Market firms up led by financials; Nifty above 8,100 Financial shares witnessed buying interest while IT majors remained subdued in early trades Markets firmed up with financial shares leading the gains even as losses in IT exporters amid demand concerns post the Brexit capped further upsides.

Meanwhile, volatility is seen ahead of the June derviative contracts due for expiry on Thursday.

At 9:30am, the S&P BSE Sensex was up 31 points at 26,433 and the Nifty50 was up 13 points at 8,108. In the broader markets, the BSE Midcap index was up 0.4% while the Smallcap index was up 0.6%.

"Asian markets are in red with Nikkei and Shanghai both down as investors continue to weigh on Brexit. US markets fell and ended lower. Two-day European council meeting to commence today. Indian markets are braced for expiry if June contract on June 30," Geojit BNP Paribas said in a note.

ALSO READ: Chart Check: ACC, Bharti Airtel, Dr Reddy's Labs, Emami

Financial shares witnessed short covering with HDFC Bank and HDFC leading the gains along with SBI and Axis Bank.

FMCG majors ITC and Hindustan Unilever continued to trade firm on expectation that rural volume growth would pick up pace after the MET department said that monsoon rains are likely to retreat later than normal.

Reliance Industries was up 0.5%. The owner of the world's biggest refining complex, imported 13.2% less oil in May compared with a year earlier.

Larsen & Toubro extended gains and was trading higher after the company said its construction division has won orders worth Rs 2,416 crore.

IT exporters extended losses on concerns over demand uncertainty from Europe and volatility in the British pound post the Brexit. Wipro eased 1% while Infosys was down 0.7% and TCS which has a substantial exposure to UK was down 0.3%.

ALSO READ: Buy BPCL; sell Infosys, Hindalco: Motilal Oswal

GLOBAL MARKETS

Asia markets are trading mixed with Japan’s Nikkei down 0.3% and Hong Kong’s Hang Seng slipping 1% after Britain shocked the world in a historic referendum vote where it decided to exit the European Union.

Meanwhile, China’s Shanghai Composite has lost 0.5%. China's official June manufacturing purchasing managers' index will be announced on Friday, 1 July 2016. On the same day, Markit Economics will announce Caixin China General Manufacturing PMI for June 2016.

Overnight, US stocks closed about 1.5% lower extending Friday’s fall after Britain shocked the world by voting to exit the European Union in a historic referendum last week. The Dow Jones and S&P 500 ended at their lowest since mid-March.

10 reasons why gold price will go up in the future

Business-standard has Posted by 10 reasons why gold price will go up in the future The price of gold in India has seen a highest single day jump in the last five years, with the previous one being in August 2011. 

Globally, too, following the UK votes favoring exit from EU, which is an unprecedented event, has seen nearly $100 per ounce jump in gold prices, which was not a usual phenomenon. After closing at $1313 on Friday, today it is trading 1% higher in early trade around $1325 per ounce.

There are several factors that suggest gold will be a preferred asset for all kind of investors — retail, institutional or even central banks.

1. In terms of sterling, the price of gold soared nearly 20% to GBP 1,000/oz on Friday, which fell later. However, it again went up today as lower pound meant higher gold price in pound terms, a better hedge against currency for UK investors. Sterling or British pound is trading at three-decade low. 

2. Bank of England and other central banks are preparing to take all actions to address fears in market, which according to the World Gold Council report released on Friday evening said, “Central bank action has already capped the gain in other safe haven assets." This means gold will shine. 

3. According to an analysis on implications of Brexit by S & P Platts, the environment will now be favouring low interest rates and "a lower interest rate environment on the back of elevated economic and financial market uncertainty, has a "more fundamental and sustainable positive impact" on gold." It however said, "A strong dollar should provide a headwind, however, while the increased volatility and prices should keep physical buyers out of the market for now. Yet as uncertainty in financial markets is expected to only increase in the months ahead, gold prices could benefit strongly in the medium term."

4. Institutional investors' gold buying has however increased as reflected in the rise in holding in world's largest exchange traded fund SPDR. On Friday, net addition in that fund was 18.5 tons to total 934.31 tons which in start of the June was 868 tons, largely believed to be bought by European and British institutions ahead of referendum. The SPDR holding was just 630 tons six month ago when US Fed raised rates first time after a decade. 

5. WGC believes that, "Pension funds could start buying gold, a class not traditionally investing in gold," as portfolio diversifier. 

6. The Council also said that, Pound Sterling is one of the few reserve currencies and central bank buying more gold is very likely. This will be true for all countries' central banks which need to diversify reserves to hedge currency risk. Brexit results has already started raising demand for separation from EU from other European nations like Italy, France and so on which is expected to increase global uncertainty.

7. Along with rise in gold prices, gold mining companies’ share prices were also rising as value of the gold stock with them, mined or un-mined has risen and now prices are well above their gross cost of production. Many of them may soon be out of debt and start making money. This means they may not be in a hurry now to sell gold for liquidity. 

8. Another expectation is that when prices were $1200 and above, many of them had started hedging their future production in forward markets which means that the gold they were to mine in future were sold by them in advance. Now prices are quite above that level and a feeling will start evolving that they would have been better off had they not have hedged. This could result in de-hedging or buying back their forward sales which will further push up gold prices. That may happen in every correction, when profit taking happens, which will provide support to falling gold prices as overall perception about gold has improved.

9. Data on Shanghai Gold Exchange shows that volumes on its spot gold segment have increased to 346 tons on Friday against usual 100 tons daily volumes, suggesting Chinese demand resuming. 

10. In India, however, gold was quoted at $40 per ounce discount, which means higher arbitrage by buying spot gold and selling on MCX and gold demand for exports that could be round tripping in nature. For a few weeks global uncertainty will support gold. The demand could see a boost once monsoon spreads and hopes emerge of a better agriculture crops, resulting in higher rural income. This coupled with festive season beginning in early July could further support gold market and hence push up prices.

Market ends flat amid volatility; IT shares weigh

Market ends flat amid volatility; IT shares weigh Benchmark share indices ended flat, amid a volatile trading session, after weakness in IT exporters post Brexit capped further upsides.

The S&P BSE Sensex ended up 5 points at 26,403 and the Nifty50 edged up 6 points to settle  at 8,095. However, the broader markets outperformed with the BSE Midcap and Smallcap indices ended up 0.8%-1.5% each. Market breadth ended positive with 1812 gainers and 797 losers on the BSE.

Business standard has posted by


"Markets are likely to remain volatile within a range with support seen at 8,000 for the Nifty and strong resistance seen at 8,300. Companies that have exposure to the UK will have to rework their models either to increase productivity or gain market share to offset headwinds from the falling British currency," said Ajay Bodke, CEO & Chief Portfolio Manager-PMS, Prabhudas Lilladher.

National Stock Exchange of India Ltd (NSE), the country's biggest bourse, will file for a domestic initial public offering (IPO) by January 2017 and also look to file for overseas listing.

The rupee pared intra-day gains against the US dollar. The Indian currency was up 2 paise at Rs 67.94 to the US dollar compared to the previous close. Meanwhile, the Reserve Bank of India on Monday fixed the reference rate of the rupee at Rs 67.9000 against the US dollar and Rs 74.8801 for the euro.

Global crude oil prices extended losses amid selling pressure post Britain's exit from the EU and weakness in the British pound. Both the Brent and Nymex were trading just above $48 a barrel.

European stocks extended losses on Monday in the aftermath of Brexit. London's FTSE was down 1.2% followed by DAX and CAC down over 1.3% each.

STOCKS

IT exporters were among the top Sensex losers on concerns over demand uncertainty from Europe and volatility in the British pound post the Brexit. TCS which has a substantial exposure to UK was the top loser down over 3% followed by Infosys, Wipro and HCL Technologies.

FMCG shares gained on hopes of higher rural volume growth after the IMD said that the monsoon rains will retreat later than normal. ITC gained 1.7% while HUL ended flat.

Engineering major L&T ended up 2.2% after the company announced that L&T Construction has won orders worth Rs 2,416 crore.

Bank shares also staged a recovery after losses in the previous session with SBI up over 2.6% followed by ICICI Bank and Axis Bank.

Maruti Suzuki ended down over 1% on concerns that increase in import costs and royalty payments amid an appreciating yen would hurt profitability.

Among other shares, Bajaj Finserv rallied 5.6% on reports that the company is likely to buy out its German partner Allianz SE’s stakes in two insurance units—Bajaj Allianz Life Insurance Co. Ltd and Bajaj Allianz General Insurance.

JB Chemicals & Pharmaceuticals ended nearly 6% higher after the company said its Panoli tablet manufacturing facility received approval from United States Food and Drug Administration (USFDA).

Aviation and state-owned oil marketing companies gained amid slide in global crude oil prices. InterGlobe Aviation, Jet Airways and SpiceJet ended up 1% each. IOC, BPCL and HPCL ended up 0.7%-4% each.

Tata Sponge ended nearly 4% higher after the company said it has received a letter-of-intent from Coal India's subsidiary Eastern Coalfields stating that the company has emerged as a successful bidder for award of 24,000 tonnes per annum of coal at a notified price.

Hester Biosciences rallied over 7% after the pharmaceutical company said that it is planning to raise funds by issuing shares via qualified institutional placement (QIP).

Aban Offshore ended up 3.7% after the company announced that its arm has received order from Oil Natural Gas Corporation (ONGC) for the deployment of the Drillship Aban Abraham for a firm period of 2 years.

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State-owned oil marketing companies gain; BPCL hits new high

Business standard has posted by State-owned oil marketing companies gain; BPCL hits new high Shares of state-owned oil marketing companies such has Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC) were trading higher between 2%-5% on the bourses as oil prices dropped on Monday, extending Friday’s sharp decline after Britain's vote to leave the European Union.

“Brent crude futures were down 15 cents at $48.26 a barrel by 0238 GMT on Monday, after settling down $2.50, or 4.9 percent, at $48.41 on Friday,” the Reuters report suggests. LINK Lower crude oil prices could reduce under-recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.

Among the individual stocks, BPCL has moved higher to its record high of Rs 1,044, up 3% on the BSE. The stock has outperformed the market by gaining 14% post bonus announcements on May 26, 2016, as compared to 2% rise in the S&P BSE Sensex.

BPCL has fixed July 14, as the record date for the purpose of determining members who would be entitled to the bonus shares in the ratio of 1:1 i.e. 1 (one) new bonus equity share of Rs 10 each for every existing 1 (one) fully paid up equity share of Rs 10 each. The stock will turn ex-bonus on July 13.

HPCL has surged 5% to Rs 984 on the BSE in intra-day trade, currently nears to its all-time high of Rs 991 touched on August last year. IOC was up 2% at Rs 428, as compared to 0.14% decline in the benchmark index at 10:19 AM.

Nifty holds 8,050 amid lacklustre trades; IT shares weigh

Business standard has posted by Nifty holds 8,050 amid lacklustre trades; IT shares weigh FII stance, progress of monsoon, crude oil and rupee movement are likely to dictate the trend on the bourses Markets continue to trade in a narrow range with Nifty holding on to the 8,050 mark. Weakness in technology shares amid an appreciating rupee is offsetting gains in the FMCG stocks.

At 10:10 am, the S&P BSE Sensex lost 53 points to quote at 26,345 and the Nifty50 shed 16 points to trade at 8,073.

The rupee shook off some of its earlier weakness and recovered 12 paise to 67.84 against the dollar today on increased selling of the US currency by banks and exporters.

Top 5 losers in the 30-share Sensex pack include TCS, Infosys, Tata Steel, Maruti Suzuki and Wipro down between 1%-2.5%. On the flip side, Dr Reddy’s Lab, HUL, SBI, NTPC and Axis Bank are up between 0.7%-2%.

Among other shares, Tata Sponge is up nearly 4% after the company said it has received a letter-of-intent from Coal India's subsidiary Eastern Coalfields stating that the company has emerged as a successful bidder for award of 24,000 tonnes per annum of coal at a notified price.

Hester Biosciences has rallied 9% to Rs 777 on the BSE after the pharmaceutical company said that it is planning to raise funds by issuing shares via qualified institutional placement (QIP).

Aban Offshore is trading higher by 4% after the company announced that its arm has received order from Oil Natural Gas Corporation (ONGC) for the deployment of the Drillship Aban Abraham for a firm period of 2 years.

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(updated at 9:15 am

Markets have opened the session on a cautious note amid global turmoil after Britain decided to exit the European Union in a historic referendum on June 24.

At 9:15 am, the S&P BSE Sensex lost 45 points to quote at 26,352 and the Nifty50 shed 15 points to trade at 8,073.

“Nifty50 has to hold above 7,960-7,980 zones to witness a range bound move while on upside holding above 8,150 may open a scope for testing next hurdle of 8,242 zones. But now till it doesn’t reclaim 8,150 zone, street may remain shaky with the fear of retesting recent lows of 7,980-7,960 then 7,927 levels,” according to Anad Rathi morning note.

FII stance, progress of monsoon, crude oil and rupee movement are likely to dictate the trend on the bourses.

The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near month June 2016 series to July 2016 series. The near month June 2016 derivatives contracts expire on Thursday, 30 June 2016.

Concerns further mounted as commentators said Britain's exit, commonly referred to as Brexit, and would mean that the EU could slip into recession. Britain has been a member of the trading bloc since 1973. Voting in the referendum was concluded in a single day yesterday

On Friday, the S&P BSE Sensex lost 2.2% or 605 points to end at 26,398, while the Nifty50 index plunged 2.2% or 182 points to close at 8,089. 

GLOBAL MARKET

Asian equities have slipped and the British pound tumbled more than 2% as indices struggled to digest the uncertainty triggered by Britain's decision to exit the European Union. Japan’s Nikkei and China’s Shanghai Composite gained 0.7%-2%. On the flip side, Singapore’s Straits Times, Hong Kong’s Hang Seng slipped between 0.3%-1%.

Meanwhile, following the Britain exit from the European Union, US market tumbled over 3% with the Dow losing over 600 points on Friday.

STOCKS

Bharti Airtel and Malaysian firm Axiata have deferred the agreement for merger of their Bangladesh operations till September 26, 2016. Bharti Airtel is trading flat with positive bias. 

Brexit impacted stocks include Tata Motors, Tata Steel, Bharat Forge, Kitex Garments, KPR Mill, Wockhardt and Torrent Pharma. 

Tata Motors which dropped over 8% on Friday has rebounded in today’s trade and is trading 0.2% higher. The company earns 25% of its total revenue from its UK-based subsidiary Jaguar Land Rover in Europe.

Tata Steel lost 0.5% as the Brexit development last week could result in delay in sale of its loss-making UK steel business.

Among auto component manufacturers Motherson Sumi which earns nearly 70% of its revenues from exports to the Europe could still some selling pressure. The stock is trading nearly 1% lower.

Max Ventures may see some uptick after large investors and mutual funds bought stake in the company from the open market post its listing. The stock has jumped 5%.

Aban Offshore gained 3% after the company said that its subsidiary has received a Firm Letter of Award from ONGC for the deployment of the Drillship Aban Abraham for a firm period of 2 years.

Parag Milk Foods is up 2% after the company reported revenue of Rs 414 crore for the quarter ended March 2016 compared with Rs 387.5 crore in the same quarter last fiscal.

Tata Sponge soared 5% after the company said that it has emerged as a successful bidder for award of 24,000 Tonnes per annum of coal from Eastern Coalfields Ltd, a subsidiary of Coal India, at a notified price.

ARSS Infrastructure surged 4% after the company announced that it has won a work order amounting to Rs. 44.04 Crores.

Wind turbine maker Suzlon Group announced the completion and commissioning of its 4.20 MW maiden wind project for Ahmedabad Municipal Corporation, said a media report.  The stock climbed 1%

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Commodity brokers worry as clients' bets go wrong in opening

Business standard has posted by Commodity brokers worry as clients' bets go wrong in opening Early indications indicating a win with a marginal difference for the ‘Leave’ vote for Britain has created a situation where many traders’ positions could go wrong. Current trends suggest Britain may exit the European Union, leading to gold rising 5.6% to trade at $1335 over yesterday's close and dollar rupee down below 68 or 1.4%. 

This means gold on MCX will open in higher circuit or hit high circuit of 6% in opening. Margin cover with brokers for precious metals is usually 6% and hence when circuit opens after a breathing period, if additional margin is not deposited, exchanges most likely to block brokers' terminals if they can't cough up additional margins. 

Silver is up 4.5% to $ 18.4er ounce.

On MCX Thursday night, gold closed at Rs.29914 per 10 gram and silver closed Rs.41190 per kg. Gold could open Rs 1,000 higher. Over the past few days, the sentiment in Britain seemed to be turning to ‘Remain’ in EU, which prompted traders in India to go short in gold and long in oil and metals. All bets could go wrong. 

Brent crude was down over 6% to $47.6 and other metals were also down 2-4%. Hence commodity traders could see losses in opening. 

Ajay Kedia, director Kedia commodities said while final results are yet to be out and reports suggest urban vote counting is yet to be known and in case of very close result where difference is in decimal points, that could create dilemmas for decision makers. Still if trend continues they way initial indicators suggest than it is time to remain cautious for market players.

SEBI officials have said they have already asked their exchanges to remain alert and put its own surveillance mechanism on high alert to handle any unforeseen eventualities. 

India focusing on market dislocations from Brexit, says Jayant Sinha

Business standard has Posted by India focusing on market dislocations from Brexit, says Jayant Sinha India is focusing on the market dislocations arising from a likely British referendum vote to leave the European Union, junior finance minister Jayant Sinha said on Friday, saying it was too early to assess the trade impact.

"There's going to be market dislocation and we are going to have to focus on that," Sinha told news channel ET Now in the first official comment on the UK plebiscite.

India's benchmark stock indexes opened down 3%. Listed companies with exposure to Britain suffered the heaviest losses with Tata Motors tanking nearly 10%.

Sensex slumps 1,000 points as Brexit fears emerge; Nifty below 7,950

Business standard has Posted by Sensex slumps 1,000 points as Brexit fears emerge; Nifty below 7,950 At 10:30 am, the S&P BSE Sensex lost 1034 points to quote at 25,968 and the Nifty50 shed 328 points to trade at 7,942. In the broader market, BSE Midcap and Smallcap indices are trading lower by over 3 % each in line with the larger counterparts.

"Market has breached 8,000 levels and once the event is out of the way so any recovery one should reduce position as 7,500 could be on cards," said AK Prabhakar, head-research, IDBI Capital.

ALSO READ: Investors lose over Rs 3 lakh crore as Sensex tanks nearly 1,000 points

The Indian rupee lost 1% in opening trade on early trends that Britain would leave the European Union following a nationwide referendum.

The rupee opened at 67.88 a dollar, from its previous close of 67.25 a dollar, but fell to 68 a dollar within a few minutes of opening trade,  not very far from its lifetime low of 68.85 a dollar reached on 28 August 2013. At 9.17, rupee was trading at 68.18 a dollar.

ALSO READ: India ready to deal with EU referendum

"As good deal of negativity may have been priced in at open, potential for value buying or a bounce back, is higher than the potential for extended downside. With only a few stocks have significant exposure to EU/UK, the impact on Indian stocks may not be en masse, with strong domestic cues in the backdrop. However, companies that have exposure to yen could see significant volatility. Rupee is likely to weaken against US Dollar, as the greenback is expected to see demand as a safe haven currency in the Brexit backdrop. But with forex reserves near record peaks, and with recent instances of RBI stepping in to arrest volatility, rupee is less expected to weaken much beyond 68," says Anand James, Chief Investment Strategist, Geojit BNP Paribas.

Meanwhile, as gold at the highest level since July 14, 2015 as official results so far from a British referendum pointed to a victory for a campaign to exit the European Union.

ALSO READ: Rupee crosses 68, loses more than 1% on Brexit trends

GLOBAL MARKETS

Asian markets pared early gains and turned negative after investors turned sellers after initial results of the EU referendum indicated probability of Britain leaving the European Union compared to the earlier opinion poll predictions of 'remain'. Shares in Japan were the top losers with the Nikkei down over 3% while the Shanghai Composite was down 0.6%. Shares in Hong Kong were also sharply lower with the Hang Seng down nearly 3% while the Straits Times eased nearly 1%.

US stocks ended over 1% higher on Thursday after opinion polls indicated that the Britain is most likely to remain a member of the European Union. The Down Jones industrial average ended up 1.3% at 18,011, the S&P 500 ended up 1.3% at 2,113 and Nasdaq Composite ended up 1.6% at 4,910.

ALSO READ: Brexit: Britain votes to 'leave' EU in historic divorce, reports BBC

US stock futures plunged, as results of the UK referendum on European Union membership pointed toward a vote to leave the bloc after more than four decades of membership, fanning speculation that a divided Europe would put another brake on already fragile global growth. S&P 500 Index contracts slumped 4.9%, joining losses in equity futures in the UK.

ALSO READ: Pound collapses to lowest since 1985 on Brexit shock

BREXIT LINKED STOCKS

Metal companies like Tata Steel and Hindalco, auto majors such as Tata Motors, Motherson Sumi, IT companies like TCS, Tech Mahindra, HCL Tech and Pharma companies like Lupin, Dr Reddy’s Laboratories are likely to get impacted the most in case Britain decides to leave European Union (EU). Tata Motors cracked 8%, Tata Steel slumped 61%, Hindalco lost 4%, Motherson Sumi lost 9%, Lupin and Dr Reddy’s Lab lost 2% and 1.3% respectively.

ALSO READ: Commodity brokers worry as clients' bets go wrong in opening

Other stocks in news include Sun Pharma whose board approved announced a Rs 675-crore buyback offer, to purchase up to 7.5 million equity shares. The board fixed a price of Rs 900 a share, a premium of 19.7% over Thursday's closing Rs 751.70. The stock is trading with marginal losses.

State Bank of India  plans to raise $1.5 billion from foreign markets via bonds to fund its expansion and pay off securities maturing in the year. The stock lost over 3%.

India on Thursday launched a pilot project aimed at introducing compressed natural gas (CNG) as fuel for two-wheelers. The project, nick-named "Hawa Badlo", is being implemented by Delhi's city gas distributor Indraprastha Gas Ltd (IGL) and its parent firm, GAIL (India). GAIL is down 2%.

ONGC, IOC, HPCL, BPCL: Indian state oil firms may buy a stake in Russian oil major Rosneft, oil minister Dharmendra Pradhan said, signaling a move that would hoist the country's overseas energy portfolio to a new high as the company pumps more oil than ExxonMobil. ONGC, HPCL, BPCL,IOC have declined up to 3.5%.

Car major Maruti Suzuki India has lost 3% as the Japanese yen strengthened against the dollar. The Japanese yen surged against the dollar on global risk aversion generated by Brexit fears.

The Japanese currency is perceived as a haven in times of global financial and global economic worries.

Tata Motors and Tata Steel have plummeted between 9%-12% ahead of the Brexit referendum outcome. Both Tata Steel and Tata Motors have large operations in UK and Europe.

Tata Motors derives majority of its revenue from its British luxury car unit Jaguar Land Rover (JLR). JLR is the largest automotive manufacturer in Britain. It is one of the UK's largest exporters and generates over 80% of its revenue from exports.

Shares of ten IT companies have fallen between 2%-5% as early voting returns on the Brexit referendum suggested Britain was on the brink of leaving the European Union

TCS (down 2.41%), MphasiS (down 4.01%), HCL Technologies (down 4.61%), Tech Mahindra (down 3.85%), Oracle Financial Services Software (down 2.42%), Wipro (down 2.09%), Infosys (down 2.23%), Persistent Systems (down 4.6%), MindTree (down 3.01%) and Hexaware Technologies (down 2.34%) edged lower. The UK is the second biggest IT outsourcing market after the United States for the IT companies.

Stocks of four companies involved in oil exploration & production activities are down upto 4% as global crude oil prices dropped post referendum results suggesting a vote for Brexit.

Cairn India (down 4.05%), ONGC (down 3.9%), Oil India (down 2.22%) and Reliance Industries (RIL) (down 3.33%) dropped.

Lower crude oil prices will result in lower realization from crude oil sales for oil exploration & production (E&P) firm.

With Reuters & Capital Market input