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Showing posts from August, 2013

CRUDE OIL PRICES CHART

RUPEE vs DOLLAR FROM 1947-2013

SENSEX UP BY 219 POINTS
Stock markets today rose for the third day with S&P BSE benchmark Sensex jumping 218.68 points to end at over two-week high of 18,619.72 after Prime Minister Manmohan Singh assured that the rupee's decline will be addressed without capital controls or reversal of reforms. The currency markets also appeared to strengthen with the rupee gaining over 50 paise to trade at 66.05/06 levels against the US dollar compared to yesterday's close of 66.55. While the stock markets were volatile as the Prime Minister began his speech in the Parliament shortly after noon, share prices surged on heavy buying in the last 90 minutes of trade with sectors like consumer durables, healthcare, banking, IT and FMCG seeing good enquiries. The 30-share Sensex ended at 18,619.72, up 218.68 points or 1.19 per cent, extending gains to the third session in which the index has rose over 650 points. Today is the highest close for Sensex since August 14 (19,367.59).  Broad-based Na…
ECONOMIC GROWTH SLIDES TO 4.4 PERCENT
Pulled down by a drop in mining and manufacturing output, economic growth in the April-June quarter slid to 4.4 per cent, Growth was at the slowest pace since the 2008 financial crisis, with all but one of the eight sectors registering a lower rate of expansion or contraction. The country's gross domestic product (GDP) had expanded by 5.4 per cent in the April-June quarter of the last fiscal. On a sequential basis, the growth rate declined from 4.8 per cent in the January-March period of 2012-13. The biggest drag on growth came from mining and quarrying, which contracted by 2.8 per cent in the April-June quarter against a 0.4 per cent growth in the same period of the last fiscal, according to data released today by the Central Statistical Organisation (CSO). Contraction in the manufacturing sector widened to 1.2 per cent from 1 per cent a year earlier. Other sectors, including construction, power generation, hotels and transport, showed a marke…
NEW CPI NOT ENOUGH The new series of consumer price index (CPI) is not enough for a robust statistical analysis of of prices, Reserve Bank Governor D Subbarao said today. He also said the new CPI has an excess focus on food prices, which has a 50 per cent weight. House rents, which account for 10 per cent, are also a cause for concern given doubts over the efficacy of the prices, he added. "The new CPI has only 19 data points which is not sufficient for a statistically robust analysis," Subbarao, who demits office on September 5, said while speaking at the Statistics Day conference at the RBI headquarters here. Posing the question if there is a case for shifting focus to the CPI, Subbarao said even in case of such an eventuality, the central bank will not abandon the wholesale price index (WPI) as a tool to monitor producer prices. "My own view is we will not, because analytically we need to develop a series of producer price indices that will help us gauge how price mo…
INVEST WITH 12-18 MONTH TIMELINE

In the face of increasing volatility in the debt market, industry leaders have advised investors to keep a 12-18 months horizon in short-term and long-term debt funds for stable returns. "In the short-term (income) funds, investors should have a horizon of not less than one year. Similarly, in the long-term funds, investors should stay invested for 18 months or beyond," Amit Tripathi, Fixed Income Head at Reliance Mutual Fund, told PTI today. He said volatility could stay for another three-four months. To contain rupee volatility, the Reserve Bank, since mid- July, squeezed liquidity from the financial system through a slew of measures, which in turn, pushed up yields both in the short and long-end bonds. While short-term rates have gone up by around 300 basis points, long-term rates have increased by around 120 basis points since RBI's announcements. While short-term rates are hovering around 10.5 per cent, 10-year benchmark yield is at a…

RUPEE FALL CAN BE TACKLED LIKE THIS

Fall in rupee to record lows has raised the prospect of government or RBI taking steps to support the currency, seen vulnerable because of a record high current account deficit. Below are some measures the Reserve Bank of India and government could consider to protect the rupee
* Dollar window for oil cos
RBI could open a dollar window for oil companies to buy dollars directly from it instead of markets, but it would drain foreign exchange reserves
* Dollar for oil bonds
RBI could hold auctions to buy bonds from oil companies, providing them dollars or other non-rupee currencies, but the outstanding amount of oil bonds is small as the government has been giving direct cash subsidy to oil companies
* Asking exporters to buy Indian rupee
RBI could ask exporters to convert part, or their entire, overseas foreign currency earnings in the market immediately, providing near-term relief to the rupee
* Curbing net open position limit for banks
It could ask banks to limit th…
SUBBARAO HITS HARD ON GOVT
In a forthright "last public lecture" before he retires next week, RBI Governor D Subbarao was today sharply critical of the government, blaming its "loose fiscal stance" for the current economic woes, and warned that the root cause of rupee depreciation is "domestic structural factors." While the speed and timing of the rupee's depreciation was due to the markets reacting to US Fed announcements, Subbarao said, "We will go astray, both in the diagnosis and remedy, if we do not acknowledge that the root cause of the problem is domestic structural factors." He said it would be "misleading" to blame recent policy pronouncements of the US Federal Reserve for the decline in rupee, which has slid 23 per cent against dollar this fiscal. "...there has been a growing tendency to attribute all of this (ferocity of rupee depreciation) to the 'tapering' of ultra easy monetary policy by the US Fed. Such a…
RUPEE ZOOMS 225 PAISE
The battered rupee gained 225 paise to 66.55 against the dollar today, the most in at least 15 years, after the Reserve Bank of India eased pressure in the currency market by starting a facility for state-run oil refiners to buy foreign exchange. The rupee, which closed at a record low yesterday, ended a three-day losing streak even as the dollar strengthened overseas and capital outflows continued. Fresh dollar sales by exporters on expectations of a further rise in the rupee also helped the local currency. The RBI last night said PSU oil companies could buy dollars through a special swap window effective immediately. Indian Oil, Bharat Petroleum and Hindustan Petroleum are the biggest buyers of dollars, requiring about USD 8.5 billion every month to import an average 7.5 million tonnes of oil. "The decision is aimed at removing a major source of dollar demand from the spot market," said Abhishek Goenka, CEO of India Forex Advisors. "The sust…
FOOD SECURITY BILL ILL TIMED
 Former RBI Governor Bimal Jalan today said the Food Security Bill is ill-timed and will further aggravate the economic situation by increasing fiscal stress. "Given the macroeconomic situation just now, whether we can afford it (food security plan) right now ? Timing is not right, timing is an issue," Jalan told PTI while replying to a query whether the food security plan will increase government's fiscal stress."We should not do this because of electoral considerations. We should do it because it can be done, it needs to be done. And this is a desirable thing to happen. We should not do this because of electoral considerations. We should do it because it can be done, it needs to be done. And this is a desirable thing to happen," he added.  Jalan further said: "The current macroeconomic situation is very distressing as of now. India's GDP growth is low, CPI s high, current account deficit (CAD) is high, fiscal deficit is hig…
AURUNDHATI BHATTACHARYA TO BE SBI CHIEF?
The Appointments Committee of the Cabinet, headed by the Prime Minister, has suggested that the Finance Ministry interview all the four SBI Managing Directors for the post of Chairman of the country's largest bank. The incumbent Chairman Pratip Chaudhuri is retiring next month. The Finance Ministry had sought exemption in regulatory guidelines so that more candidates could be interviewed for the top post in State Bank of India (SBI). Based on the exemption sought, the Appointments Committee of the Cabinet (ACC) suggested that the Finance Ministry invite all the four MDs for interview, sources said. ACC comprises the Home Minister and the administrative ministry in-charge (the Finance Ministry in this case). As per the existing norms, a candidate for the post of Chairman is eligible for the interview only if he/she has at least two years of service left before retirement. Going by this rule, only one of the four Managing Directors, Arundhati …
SEBI ADVISORY FOR INVESTMENT ADVISORS
Market regulator Sebi today directed all investment advisers to get registered with itself by October 21 to continue their services. The Securities and Exchange Board of India (Sebi) in a notification in January had made it compulsory for investment advisers to first obtain a certificate of registration for the same in a move to weed out unauthorised entities giving advice to investors.
"All the persons acting as an investment adviser before the commencement of Investment Advisers Regulations are advised to make their application for grant of registration before October 21, 2013 to continue to do so," Sebi said in a statement.
It also said that they "shall comply with the requirement of obtaining a certificate of registration for acting as investment adviser under the IA regulations, it added. As a part of its efforts to make it convenient for genuine entities to get the registration, Sebi has allowed filing appl…
INDIA HAS LOST CONFIDENCE
With the economy in distress, leading industrialist Ratan Tata has said India has lost the confidence of the world and the government has been slow to recognise it. He also said the government has "swayed" under the influence of vested interests in private sector and policies have been "changed, delayed and manipulated". Tata, who demitted office as Tata group Chairman last December, said Prime Minister Manmohan Singh has held India's "esteem high but in recent times we have lost that esteem We have lost the confidence of the world. We have been slow to recognise that in the government," he told CNN-IBN while responding to a query on PM's silence on investors losing confidence.
He further said it would be good for the country if policies were implemented as they were written. "The government has issued policy which vested interests, quite often in private sector have changed, delayed or manipulated that policy. So, f…
RUPEE HITS LIFETIME LOWThe rupee collapsed to a lifetime low of 68.85 against the dollar and closed at 68.80, registering its biggest single-day loss of 256 paise The rupee today collapsed to a lifetime low of 68.85 against the dollar and closed at 68.80, registering its biggest single-day loss of 256 paise, as global oil prices jumped, deepening concerns about the current account deficit and capital outflows. Consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices, kept the rupee under pressure.
At the interbank foreign exchange market, the rupee opened at 66.90 a dollar against 66.24 previously and dropped to 68.75 in late morning deals. It recovered some ground in the afternoon after the central bank was said to have intervened but dropped to an all-time intra-day low of 68.85 before ending at 68.80, a fall of 256 paise or 3.86 per cent. In three trading days in a row, the rupee has lost 560 paise, or 8.86 per cent…

GOLD RECORDS SINGLE BIGGEST EVER RISE

Gold prices zoomed to a record high of Rs 34,500 per ten gram with a biggest ever single day surge of Rs 2,500 in opening trade in bullion market today amid the rupee hitting historic low of 68.75 a dollar. The current upsurge surpassed its record price of Rs 32,975 per ten gram, set on November 27 last year, with its biggest ever single day surge as panic-striken investors rushed to purchase gold as a safe haven during current financial crisis when forex and equity melting fast. The rupee has been witnessing an unprecedented plunge in its value as it dropped to an all-time intra-day low of 68.75 per dollar today, while the BSE benchmark Sensex also declined sharply. "The bullion demand has got a boost as the rupee hit fresh record low and equities tumbled, leaving no place for investors but to park their funds in gold as a safe-haven," Surender Jain, Vice President, All India Sarafa Bazar told PTI. He said the yellow metal climbed to over three-month high in global markets …

SENSEX REBOUNDS AFTER CRASH

The benchmark S&P BSE Sensex ended 28 points higher today, staging a dramatic recovery after plunging more than 500 points in intra-day trade, as the rupee rebounded from a new low against the dollar. The gains were led by IT, metal and teck sector stocks, while public-sector and consumer durable shares fell. Initially, market sentiment was weighed down after US stocks closed lower yesterday and key Asian indices fell amid indications of military action against Syria for its alleged use of chemical weapons against civilians. Investors were also concerned about the Food Security Bill's subsidy burden and capital outflows with the likely tapering of bond buying by the US Federal Reserve next month. The rupee recovered some ground after falling to a new lifetime low of 68.75 against the dollar as oil prices rose on concern about the possible military action against Syria. Higher oil prices increase India's import bill and put pressure on the current account deficit. The 30-sh…

RUPEE HITS RECORD LOW OF 66.30

Worries about the food subsidy bill dragged the rupee to a fresh lifetime low of 66.30 to the dollar today before closing at 66.24 as the market ignored government assurances on keeping the fiscal deficit in check. The rupee fell amid weak local equities, dollar demand from importers and banks, outflows and rising oil prices. At the interbank foreign exchange market, the rupee resumed lower at 65 a dollar from the previous close of 64.30 and remained in negative terrain through the day. It dropped to a record intra-day low of 66.30 before settling a tad better at 66.24, a fall of 194 paise or 3.02 per cent. The rupee had plunged 148 paise on August 19. The previous lifetime low was 65.56 on August 22.
The rupee slipped below the 103- level to touch a new bottom of Rs 103.29 against the British pound today amid sharp plunge in equities and fresh investor concerns over foreign capital outflows.It finally ended the day at Rs 102.8 against the UK currency, a fall of Rs 2.6…

WHAT AN IDEA ANAND...

An out-of-the-box idea to help contain the widening current account deficit (CAD) is monetising 500 tonnes of gold at the current value, Commerce and Industry Minister Anand Sharma said today. "It is for the banking secretary, bankers and the RBI to see how you can monetise gold, (from) the country with over 31,000 tonnes of declared gold. That is the declared part. So, even if 500 tonnes is monetised, then in today's value, I think it takes care of CAD," he said at a meeting of the Board of Trade. He, however, added that this "decision (of monetising gold) is beyond me... but I am just pointing in that direction. Can we do something there? I think we can, because you have to think out of the box." At current market rates, 500 tonnes of gold is valued at about USD 25 billion. Globally, demand for gold in April-June was 856 tonnes, down 12 per cent from a year earlier, the World Gold Council said in a statement on August 15. The government has …

HOUSING PRICES DOWN IN MAJOR CITIES

Housing prices in 22 major cities, including Delhi and Mumbai, are witnessing downward trend in April-June period compared to the previous quarter due to slowdown in demand, National Housing Bank said today. Property prices in majority of the cities, 22 out of 26 are witnessing marginal downward trend, quarterly update of NHB Residex said. The movement in prices of residential properties for the quarter has shown declining trend in majority of the cities, ranging from -0.45 per cent in Mumbai to -5.99 per cent in Ludhiana, it said. On the contrary, there was a price rise in four cities, 0.55 per cent in Dehradun and 3.07 per cent in Nagpur during the quarter April-June, 2013. In term of price decline, property prices in Indore declined by (-5.64 per cent), Vijaywada (-5.43 per cent), Hyderabad (-4.55 per cent), Kolkata (-4.06 per cent) and Guwahati (-3.92 per cent). Among others, residential property in Kochi declined by (-3.37 per cent), Patna (-3.29 per cent), Coi…

BIG FALL

The benchmark S&P BSE Sensex today plunged 590 points to end below the 18,000 mark as the rupee fell past the 66-mark to a lifetime low and concerns were raised about the subsidy burden after passage of the Food Security Bill. Chaos returned to the stock markets after three sessions of gains as foreign funds sold heavily. Investor sentiment was unchanged after Finance Minister P Chidambaram said the fiscal deficit would be contained at 4.8 per cent of GDP even after doling out subsidies to implement the Food Security Bill. The 30-share Sensex remained in negative terrain since the opening and touched a low of 17,921.82 before ending at 17,968.08, a fall of 590.05 points or 3.18 per cent. In the previous three sessions, the index added 652.22 points. The broader Nifty on the National Stock Exchange slumped 189.05 points or 3.45 per cent to 5,287.45. The SX40 on the MCX-SX closed down 391.41 points at 10,629.77. "The Food Security Bill was passed yesterday, which is expected to…

RUPEE @ 64.10-FELL BY 110 PAISE

The rupee today tumbled 110 paise to once again close below the 64 mark against the dollar, giving up a major part of Friday's gains amid heavy month-end dollar demand from importers and capital outflows. A strengthening dollar overseas and late weakness in local stocks also put pressure on the rupee, a forex dealer said. Global ratings agency Fitch today said India's fiscal numbers "look weak" and warned of a downgrade if the country is unable to meet the fiscal deficit target. At the interbank foreign exchange market, the rupee opened lower at 63.65 a dollar from the previous close of 63.20 and dipped further to the day's low of 64.75. The local currency recovered some ground after the Reserve Bank of India (RBI) was said to have stepped in through state-run banks, helping the rupee to end at 64.30, a fall of 110 paise or 1.74 per cent. "The RBI, which was there in the market on Friday, was not seen today, at least till 4.30 pm today. After that, there was…

DOWNGRADING INDIA RATING ON CARDS?

Stating that the space to contain expenditure is very limited in the second half of the fiscal, global ratings agency Fitch today said the fiscal numbers "look weak" and warned of a downgrade if the country is unable to meet fiscal deficit target. "India's fiscal numbers look weak...fiscal slippage could trigger negative rating action," Fitch Ratings' head of Asia-Pacific Sovereigns Andrew Colquhoun said on a conference call today. The agency's lead analyst Art Woo added that fiscal management is a challenging task. "The fiscal side is proving more challenging...a slowdown in fiscal expenditure in the second half of the year remains quite challenging," Woo said. It can be noted that last fiscal, due to a pressure from international rating agencies threatening to cut the country's sovereign rating to junk status if the fiscal deficit worsens, the government had massively cut its expenditure to meet its fiscal deficit target. The P Chidambar…

NEW TYPHOID VACCINE FROM BHARAT BIOTECH

Bharat Biotech, a city-based vaccine manufacturer, today announced the launch of Typbar-TCV, the world's first clinically proven typhoid conjugate vaccine for six months old infants and adults. Bharat Biotech CMD Krishna M Ella said the new vaccine brings hope to millions by protecting them against typhoid caused by salmonella typhi, a highly virulent and invasive enteric bacterium. Ella said that this is a fourth generation vaccine against typhoid disease which has been proven to provide long term protection to adults and infants. Typhoid vaccines fall short in two major counts, namely long-term protection and protection of children below two years of age. "We hope this vaccine will reach millions of people and help reduce the burden of this devastating disease in infants and children," Ella told reporters at a press conference here, adding that his company had commenced commercial production of Typbar-TCV in pre-filled syringes at its vaccine productio…

ONE TIME HIKE IN DIESEL PRICE NEEDED

With 12 per cent drop in rupee value against the US dollar making imports costlier, state- owned oil firms have demanded a one-time steep increase in diesel rates to make for the widening losses. Losses on sale of diesel at government controlled rates, had dropped to under Rs 3 per litre in May following monthly increases of up to 50 paise a litre. But with the rupee depreciating against the US dollar, the losses have widened to Rs 10.22 per litre. "We had requested the government for an increase in prices on ad-hoc basis. The decision on the increase rests with the government. The government of India has to take a decision on it. I have no comments on it," IOC Director (Finance) P K Goyal said.
Losses on diesel sales have widened to Rs 10.22 from Rs 9.29 a litre in the bigging of the month. Besides diesel, the oil companies are losing Rs 33.54 per litre on kerosene and Rs 412 per 14.2-kg cooking gas (LPG) cylinder. Speaking to reporters after flagging off a…

LESS DEMAND FOR BRANDED SMART PHONES

The rising demand for affordable smartphones in the major emerging markets of India and China has helped local mobile manufacturers surpass shipments by the established global brands like Samsung and Apple in April-June quarter this year, research firm IDC says. According to IDC data in the Asia/Pacific excluding Japan region, homegrown vendors shipped 46 million units, while Samsung and apple combined shipped 35 million units in second quarter this year. Other global brands like HTC, BlackBerry, Nokia, Sony, LG and Motorala shipped a combined 10 million units, whereas, the internal vendors from China like Huawei, ZTE and Lenovo shipped a total of 27 million units in April-June 2013. IDC identified Micromax, Karbonn, Lava, Maxx and Intex as the rising players in the emerging smartphone market in India and brands like Coolpad, K-Touch, Xiaomi, Gionee and OPPO in China. The research firm said local brands in the world's two most populous country, part of Asia/Pacif…

MF's LINE UP FIXED MATURITY PLANS

Aiming to attract risk-averse investors seeking short-term returns, mutual fund companies have lined up at least 26 Fixed Maturity Plans (FMP) and have filed draft documents for them with market regulator Sebi. The documents for these New Fund Offers (NFOs) have been submitted with the Securities and Exchange Board of India (Sebi) since July and the schemes will be opened for subscription soon after the necessary clearances. Of these, 16 draft offers have been filed in August so far, while the other 10 were filed in July. The fund houses that have lined up these FMPs and Fixed Tenure Plans (FTPs) include HDFC, ICICI Prudential, L&T, Peerless, IDFC, Tata, Kotak, IDBI, Baroda Pioneer and Religare. Besides, LIC Nomura, J P Morgan and Birla Sun Life are launching more than one NFO in the fixed-maturity plan segment.
FMPs mainly invest in specified duration instruments like bank certificates of deposit (CDs) and commercial papers (CPs), which are issued by companies a…

PER CAPITA INCOME ROSE BY 6.7 %

The per capita income in the country increased by 6.7 per cent per annum during 2004-05 to 2011-12, while the percentage of poor declined by 2.2 per cent over the period. "The growth in employment and GDP is expected to raise the levels of income/consumption and hence results in decreasing the percentage of poor in the country," according to official sources. The per capita income measured by net national income (NNI) has increased by 6.7 per cent per annum between 2004-05 and 2011-12 and poverty reduced by 2.2 per cent per annum during the same period, according to sources. For 2011-12, the Planning Commission has estimated percentage of people living below the poverty line at 21.9 per cent. The poverty line in 2011-12 in terms of monthly per capita consumption expenditure was estimated at Rs 816 in rural areas and Rs 1,000 in urban areas. State-wise, Uttar Pradesh had highest number of people living below poverty line during 2011-12 at 598.19 people belo…

IMPORTED BICYCLES MAY BE DEARER

Imported bicycles are set to get dearer soon with importers deciding to hike prices of bicycles, including of high-end ones, by at least 10 per cent in the wake of depreciation of the rupee against the dollar. "Definitely, there is going to be a hike in prices of imported bicycles in view of the weakening of rupee. There will be a 10 per cent increase in prices of bicycles," LA Sovereign, MD, Rohit Kalra told PTI. Expressing concern over the Centre's policies for not being able to contain spiralling increase in dollar versus rupee, Kalra said his company had to make payment at the current rate of 63-64 for orders, which were booked when the rupee was 55 against dollar. LA Sovereign Bicycles is one of the largest importers of bicycles which imports from China, Thailand and Sri Lanka. Price range starts from Rs 6,000 and goes up till Rs 2 lakh a bicycle. Bicycle importers said the price hike may affect the demand of bicycles which are priced below Rs 10,0…

REALTORS CALLS FOR REIT TRUSTS

With investor sentiment waning and the rupee plunging to new lows everyday, there is an urgent need for implementing the real estate investment trusts (REITs) to ensure more liquidity in the sector, say experts. The government and market watchdog Sebi are actively working on a regulatory framework for REITs -- an asset class that buys income generating real estate assets and passes on the yield to investors. "The finance ministry and Sebi are working actively on its implementation. If implemented, we believe it will encourage both foreign and domestic investors to invest in the real estate sector," National Real Estate Development Council Vice-President Sunil Mantri said at an industry summit over the weekend here. According to Mantri, the sector can attract investments worth USD 10 billion in the next thee-four years after its implementation. "In the present scenario, if the sector has to bounce back from the lows, there is a need to bring in such a me…

AIR INDIA EXPRESS ON DOMESTIC EXPANSION

State-run Air India is mulling expanding operations of its international low-cost arm AI Express in the domestic market, where three budget carriers dominate the space and AirAsia India also expected to compete by year-end with launch of its operations here. The flag-carrier has recently set up a three-member committee to explore the feasibility of such an expansion plan and also review the routes of the two carriers, to leverage synergies and avoid eating into each other's market shares, they say. "Air India has set up a committee and mandated it to explore the possibilities of Air India expanding its operations in the LCC (low-cost carrier) segment," highly placed AI sources told PTI. Air India regained the third slot with 19.2 per cent market share beating budget carrier SpiceJet (17.5 per cent) in July. At the same time, the Delhi-based IndiGo continues to retain its leadership with 29.5 per cent market share in the month. However, the three low cos…

TECHNICAL GLITCH HALTS NASDAQ TRADE

A technology glitch earlier today shut down trade on the Nasdaq for more than three hours, an unprecedented halt on the second-largest US stock exchange. Full trading resumed around 3:25 pm. The tech-rich exchange at around 12:15 pm halted trade in all "Tape C" securities, which includes options and securities due to a problem with its SIP, or securities information processing, system, which interfaces with other exchanges on stock quotes. The suspension froze values on big technology stocks like Apple, Google and Facebook as well as the value of the Nasdaq Composite index. The Nasdaq index was up 0.87 per cent at 3,631.17 when trading was halted. Shortly after it resumed, the index was up 0.95 per cent at 3,633.92. The glitch promises to increase scrutiny on Nasdaq, which came under fire following technical difficulties with Facebook's initial public offering in May 2012. After that debacle, Nasdaq paid the Securities and Exchange Commission a USD 1…

INDIAN EQUITY RATING DOWNGRADES

Global financial services major HSBC has downgraded Indian equities from "overweight" to "neutral" citing that the country would struggle to defend a falling currency and declining growth. "We lower our weighting in India from overweight to neutral. In our view, India will continue to struggle with the trade-off between defending a currency and supporting growth," HSBC said in a research note today. According to HSBC, the volatility in Indian markets since May can be attributed to the initial talk about tapering of bond purchase by the US Federal Reserve but the catalyst for recent volatility in Indian equities was when policymakers decided to tighten liquidity to stem capital outflows. Since the beginning of the current fiscal in April 2013, though the rupee valuation of Indian stock market has fallen by 6.55 per cent, its dollar valuation has plunged 22 per cent. The rupee has depreciated by over 16 per cent during this period. "…

EGG EXPORTS UP ON RUPEE VOLITA;LITY

Egg exporters from Tamil Nadu have doubled their shipments, mainly due to rupee volatility and increase in demand from overseas markets. Namakkal, considered as one of the export hub for white shell eggs in India, produces high quality white and brown eggs.From this town, eggs are exported to countries like Afghanistan, the Middle East, officials of Namakkal Egg Merchant Traders Association said. "Rupee depreciation against the US Dollar is also one of the reasons. Last month, I shipped about 30 containers. Each container has a capacity of 7.20 lakh eggs. This month we will be shipping about 80 containers..", one of the representatives of the Association and Namakkal-based NS Exports, Managing Director, S Kesavan told. He said most of the exports were made to Afghanistan, Oman, Bahrain.
Season for egg demand in countries like Afghanistan begins this month and it will be on till December this year. "So, along with demand and rupee volatility we are seeing a…

PHISHING ATTACK ON RISE IN INDIA

Facing over 1,200 phishing attacks every month, India is the fifth most targeted country for such attacks, a report by leading IT services firm EMC said. Globally, 1,81,600 phishing attacks were identified in the first half of 2013, with May witnessing the maximum 36,966 attacks, says the Anti-Fraud Command Center's (AFCC) fraud report for the first half of 2013, prepared by EMC's security division RSA. Phishing is the illegal practice of sending e-mails, purporting to be from legitimate companies or organisations in order to lure individuals to reveal personal information. "RSA announced the findings of its H1 2013 Fraud Report, ranking India fifth most targeted country for phishing attacks, receiving 4 per cent of the total attack volume," EMC said in a statement. The US was the most targeted country, accounting 52 per cent of the attacks followed by the UK (11 per cent), South Africa (6 per cent) and Canada (5 per cent), it added. "RSA iden…

STOCK MARKET ON RECOVERY PATH

Ignoring the rupee's further descent to a fresh record low, the benchmark S&P BSE Sensex today gained for the first time in five days surging 407 points on the back of metal shares, which got a boost from encouraging data from China. The 30-share Sensex opened at 17,896.84, lower than the previous close of 17,905.91, and dropped to a low of 17,759.59. Value buying saw the index recover and touch the day's high of 18,349.82 before it closed at 18,312.94, a gain of 407.03 points, or 2.27 per cent. The biggest gain for the index in almost two months helped investors become richer by Rs 1.17 lakh crore. The index had gained 519.86 points on June 28. Brokers said the rally was backed by metal stocks after a manufacturing index in China, the biggest consumer of metals, increased in August from an 11-month low. They said higher openings in the European stock markets as manufacturing in Germany expanded at a faster-than-expected pace also influenced the Indian mar…

RUPEE HITS RECORD LOW

The rupee remained in the doldrums for the sixth session in a row today as it breached the 65 mark to an all-time intra-day low of 65.56 before recovering to settle at 64.55 against the dollar, still down 44 paise. Even as local stocks recovered, the rupee's declined on dollar sales by exporters and capital outflows. Steps taken by the Reserve Bank and the government to curb volatility in the exchange rate appeared to have had little effect. The dollar strengthened overseas after minutes showed the U.S. central bank remains on course to start trimming its stimulus before the year end. The dollar index, consisting of six major global currencies, was up 0.32 per cent. At the interbank foreign exchange market, the rupee resumed weaker at 64.85 a dollar from the previous close of 64.11 and crossed the 65 mark to a historic low of 65.56. It recovered some ground and ended at 64.55, still a fall of 44 paise or 0.69 per cent. In six straight sessions, the rupee has tanke…