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Wednesday, October 07, 2009
Pre Session Commentary - Oct 7 2009
Today domestic markets are likely to open positive on the back of second day overnight rally in the US markets that has backed the sentiments across Asian markets, which have also opened in green. There could be some broad based buying sentiment that would help majority of sectors trade with firmness. The weakness in Dollar has supported a lot of buying across stocks and commodities in US and the same has proved beneficial for other markets as well. Domestic markets are likely to trade positive today.
On Tuesday, Indian market ended on positive zone after showing high instability during the trading session. Stocks managed to regain strength as sentiments turned upbeat with the positive opening of European markets. Firm trading in US index futures also contributed to the upward journey. However, stocks were in negative terrain during most of the trading backed by heavy selling pressure mainly on telecom stocks on concerns that the lower call charges will reduce earnings. TRAI is contemplating ruling per second billing mandatory, which will impact earnings of companies of the sector. Meanwhile, According to Montek Singh Ahluwalia, deputy chairman of the Planning Commission, it is expected that India''''s economy will grow at 6.3% or more in the year to March 2010. BSE Sensex ended above 16,900 level and NSE Nifty closed above 5,000 level.
The BSE Sensex closed higher by 92.13 points or (0.55%) at 16,958.54 and NSE Nifty ended up 24.20 by points or (0.48%) at 5,027.40. BSE Mid Caps closed with gains of 11.64 points at 6,207.43 and Small Caps closed with losses of 53.51 points at 7,372.49. The BSE Sensex touched intraday high of 16,988.56 and intraday low of 16,622.05.
On Tuesday, the US stock market ended up for a second day as news that Australia has raised lending rates by 25 basis points revitalized hopes for the global recovery. Fall in dollar to its weakest level in almost two weeks against the Euro and against most other major currencies, also added to the sentiments. Besides, dollar decline also bolstered commodity prices. Stocks were able to report rise along with overseas gains, regardless of a downward drift in afternoon action. Materials stocks closed with a gain of 1.9% and financials finished 1.2% higher. All 30 Dow stocks ended higher, led by Alcoa, Intel and JP Morgan. US light crude oil futures for November delivery managed to report modest gains and closed up at $70.88 per barrel, on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) gained by 131.50 points at 9,731.25. NASDAQ index surged 35.42 points to 2,103.57 and the S&P 500 (SPX) closed higher by 14.26 points at 1,054.42.
Indian ADRs ended in green on Tuesday. In the banking space, HDFC Bank was up 4.3% and ICICI Bank was up 1.74%. In the IT space, Infosys was up 0.61%, Wipro was up 0.22%, Patni Computers was up 2.2% while Satyam Computers was flat. In the telecom space, Tata Communication was up 2.76% while MTNL was down 1.96%. In other sectors, Sterlite Industries was up 4.88%, Dr Reddy’s Labs was up 2.73% and Tata Motors was up 1.99%.
The FIIs on Tuesday stood as net sellers in equity and net buyers in debt. Gross equity purchased stood at Rs 3,709.60 Crore and gross debt purchased stood at Rs 371.90 Crore, while the gross equity sold stood at Rs 3,947.10 Crore and gross debt sold stood at Rs 272.90 Crore. Therefore, the net investment of equity and debt reported were Rs (237.50) Crore and Rs 99.10 Crore respectively.
On Tuesday, the partially convertible rupee ended at 46.89/90 per dollar, 1.3% stronger than Monday’s closing at 47.52/53. Reserve Bank of Australian`s (RBA`s) rate rise announcement also supported the rupee as it has raised the hopes that India could follow and pushed the dollar lower.
On BSE, total number of shares traded were 45.33 Crore and total turnover stood at Rs 6,388.20 Crore. On NSE, total number of shares traded were 99.00 Crore and total turnover was Rs 21,128.25 Crore.
Top traded volumes on NSE Nifty – Bharti Airtel with total volume traded 69639854 shares, followed by Unitech with 67363392, Idea Cellular with 36924209, Suzlon Energy with 34127546 and Reliance Comm with 31392514 shares.
On NSE Future and Options, total number of contracts traded in index futures was 928302 with a total turnover of Rs 22,145.79 Crore. Along with this total number of contracts traded in stock futures were 688236 with a total turnover of Rs 21,809.66 crore. Total numbers of contracts for index options were 1679682 with a total turnover of Rs 42,333.21 Crore and total numbers of contracts for stock options were 80680 and notional turnover was Rs 2,443.95 Crore.
Today, Nifty would have a support at 5,039 and resistance at 5,088 and BSE Sensex has support at 16,941 and resistance at 17,069.
Grey Market Premium - Pipavav Shipyard, Indiabulls Power
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Pipavav Shipyard | 58 | 4 to 4.50 |
| Thinksoft Global | 115 to 125 | 3 to 4 |
| Euro Multi Vision | 70 to 75 | 4.50 to 5 |
| Indiabulls Power | 40 to 50 (Approximate) | 4 to 5 |
Pre Market - Oct 7 2009
Indian equities pared intraday losses and ended on a positive note Tuesday. Losses in telecom, realty and IT stocks were offset by gains in FMCG, metals and banks. Market began trade on a positive note but the upmove was short-lived as the indices began to lose ground on sell-off in blue-chip telecom companies. Later, sentiments turned bullish as the European markets opened higher. However the broader market continued to remain weak. Today we expect the markets to open higher on firm global cues.
Wall Street rallied further on Tuesday, gaining for a second straight session as a weaker dollar boosted commodities and dollar-sensitive stocks, fostering a broad-based advance. Both Dow Jones Industrial Average & Nasdaq were up 1.4% & 1.7% respectively.
Asian markets are also trading higher at this point in time with Hang Seng & Nikkei up 1.5% & 0.9% respectively. Indian ADRs too were up across the board with the exception of MTNL which was down 2%. Financials continued their upward journey with both HDFC Bank & ICICI Bank registering gains of 4.3% & 1.7% respectively. Tech ADR’s remained in positive terrain with Wipro & Infosys up marginally while Satyam closed unchanged. Sterlite was up 4.9%, the biggest gainer amongst the ADR’s.
Daily News Roundup - Oct 7 2009
Reliance Industries told the Supreme Court that the family MoU signed by Mukesh Ambani to supply natural gas to Anil Ambani was in his personal capacity and the company’s board had not approved it. (ET)
Central Vigilance Commissioner has ordered a discreet inquiry by CBI into the allegations of a nexus between Reliance Industries and DGH. (FE)
Reliance Industries threatened to stop oil and gas exploration if it is not granted the promised drilling moratorium to cover for the acute shortage of rigs. (FE)
TCS Chairman and CEO said that the next phase of investments and growth for the company will be Japan, Europe and in areas such as platform BPO, where it will pursue acquisitions. (ET)
L&T’s building and factory construction division received a contract worth Rs15bn. (FE)
Supreme Court issued a notice to L&T as NHAI appealed against an order passed by Orissa High Court permitting it to encash only 50% of the unconditional and irrevocable bank guarantees furnished by L&T. (FE)
L&T may exit Mahindra Satyam by starting the process of selling its 6.9% stake soon after a lock-in period expires early next week. (BS)
JSW Steel’s production rose 54% to 1.5mn tons in Q2 FY10 on robust demand. (FE)
GAIL will start importing LNG from October end or November to meet growing local demand. (FE)
Government to split the Chiria iron ore mines in Jharkhand into two and give at least half the reserves to SAIL for its expansion plans. (BS)
Coal India hopes to complete the bidding process for contractual development and operation of seven high capacity underground mines by January. (BL)
Suzlon Energy won a repeat order of about Rs3bn for 57MW from Ayen Enerji of Turkey. (BS)
ACC raised Rs3bn via non convertible debentures to fund its expansion. (FE)
Under the recently announced restructuring plan, Ultratech will have greater flexibility to borrow from the market to fund its large scale future expansions. (ET)
Ultratech and Samruddhi merger expected to take about 7-9 months. (FE)
Zain Telecom has quickened with the Indian consortium led by Delhi-based Vavasi group to give a majority stake in the consortium to state-owned BSNL or MTNL. (BS)
IDFC and India Infrastructure Fund have picked up 20% stake in GMR Kamalanga Energy, a SPV of GMR Energy. (ET)
Idea Cellular has entered into a one year sponsorship deal with GMR Industries as the principal partner of Delhi Daredevils, starting with the forthcoming Champions League Twenty20. (FE)
The High Court of Gujarat has approved the scheme of demerger of Arvind Ltd into Arvind Lifestyle Brands (brands business) and Arvind Retail Ltd (retail business division). (FE)
Tata BlueScope Building Solutions, a division of Tata BlueScope Steel, tied up with Arshiya International to provide the Butler building systems for the upcoming warehousing projects of the latter in India. (FE)
Dr. Reddy’s launched two variants of Strea, a dermatological product, in India. (ET)
Japan’s Daiichi Sankyo will sell its products in Mexico through Ranbaxy as part of its plans to exploit its marketing strength. (ET)
Ranbaxy has objected to the appointment of two new directors to the board of Zenotech. (ET)
Lupin may earn upto US$53mn in clinical trial, new drug application and regulatory milestone payments for the bioadhesive drug delivery technology it licensed out to US based Salix Pharmaceuticals. (ET)
Raymond will invest Rs1bn to open about 300 stores across the country by the end of March 2011. (ET)
Pyramid Saimira has divested 40% stake in its production arm to RDB Group. (FE)
K S Oils has acquired an additional 53,000 acres for developing palm oil plantations in Indonesia through its wholly-owned Singapore subsidiary. (BS)
Cadila-Novavax JV can produce 250mn doses of H1N1 vaccine. (BS)
Meghmani’s chlor-alkali plant in Gujarat begins production. (BL)
Indiabulls Retail has rebranded its loss-making lifestyle stores, Indiabulls Megastore, as Store One. (BS)
Safexpress plans to invest Rs6bn for setting up logistics parks across the country, with about a third being invested in the southern states. (BS)
Essar Group said its Rs45bn non convertible debentures issue was oversubscribed within a few hours of opening. (ET)
Private equity firm Actis closed its second infrastructure fund of US$750mn to invest in power generation and transport companies in Africa, China, India, Latin America and South East Asia. (Et)
Special Undertaking of Unit Trust of India, the principal shareholder in Asset Reconstruction Company (ARC), has offered its shares in ARC to the existing shareholders. (ET)
Flughafen Zurich AG, operator of Zurich airport in Switzerland, which has a 17% stake in Bangalore International Airport Ltd, will reduce this to 5%, to fund its growth in India.(BS)
AT&T, Telstra and SK Telecom are expected to enter the Indian telecom market. (FE)
Center is likely to support the two tier duty structure suggested by the states for the proposed goods and service tax. (ET)
The CBDT reported 3.7% growth, lower than the growth target for 2009-10, in direct tax collections at Rs1.5trn in the first half of the current fiscal. (ET)
Delhi based think tank, IEG, says that the country’s growth momentum will pick to 7% in August and 9% in October. (ET)
Government has initiated a probe to impose anti dumping duties on imports of phenol, used in making plywood and particle boards. (ET)
The disinvestment policy and road map prepared by the disinvestment department, which has already received approval from the Prime Minister and finance minister, will be discussed by the Cabinet Committee on Economic Affairs. (ET)
Karnataka government estimates damage to crops due to floods in the state at Rs25bn. (FE)
CERC has reserved its order on a review petition filed by MCX challenging the exercise of jurisdiction by CERC over the forward contracts in electricity. (FE)
The department of fertilizers is mulling a proposal to pool the gas prices for fertilizer users in case the Ministry of Petroleum and Natural Gas is unable to come out with a uniform price. (BS)
The Directorate General of Civil Aviation (DGCA) has set up an advisory panel to review and upgrade rules and regulations to the meet the best global practices. (BS)
What's up! Smart start in store
Fear and greed can be your greatest enemy or your greatest asset.
After the Monday Mayhem, we witnessed a classic Tuesday Turnaround. The rebound was largely led by short covering and buying in defensives like FMCG shares. Derivative indicators show that 4900 will remain a key short-term support. So what’s up on Wednesday? We expect to see a firm start as most world markets are up smartly. Commodities have too resumed their northbound journey while the dollar is getting pummeled.
Trading screens have turned green again after the recent retreat that had seen indices pull back from multi-month highs. In the near-term, the Indian market will swing to the beats of the global markets and corporate earnings. Though the overall trend appears positive, volatility will remain elevated.
Australia has already blinked by raising rates. The RBI chief too has been talking of an exit from the accommodative monetary stance. Watch out for the mid-term policy review. Inflation will continue to have a bearing on equities and interest rates are also set to harden.
Quite a few experts have lately cautioned on the sharp run-up in stocks and even commodities, citing an anemic recovery in the advanced economies. Data points released over the past few days have not quite been all that comforting. Consumer spending remains subdued and the crucial housing market too is lackluster at best. At the same time, concerns prevail on the persistent weakness in the jobs market.
The ferocious price war may keep telecom stocks under pressure. IT stocks could hog the limelight ahead of Infosys results on Friday and due to a rising rupee. Grasim and UltraTech might continue to see some action as the market tries to digest the proposed restructuring.
FIIs were net sellers of Rs1.57bn in the cash segment on Tuesday on a provisional basis. The local funds were net sellers of Rs7.67bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs5.88bn. On Monday, FIIs were net sellers of Rs2.37bn in the cash segment. The net FII investments in Indian stocks this year have crossed $12.6bn.
US stocks closed higher on Tuesday, gaining for a second straight session as a weaker dollar boosted commodities and currency-sensitive stocks.
The Dow Jones Industrial Average rose 132 points, or 1.4%, to 9,731.25. The S&P 500 index gained 14 points, or 1.4%, to 1,054.72 and the Nasdaq Composite rose 35 points, or 1.7%, to 2,103.57.
The rally had been stronger through midday, but lost some steam as the dollar cut losses and financial shares turned mixed to negative. Gains were broad-based, with 29 of 30 Dow stocks rising. Materials and commodities stocks surged.
Worries that the rally had gotten ahead of the recovery caused the selloff at the end of the third quarter and start of the fourth. But that decline of just over 4% on the S&P 500 seemed to make stocks attractive for investors to jump back in.
Investors also welcomed reports that Australia became the first major economy to lift interest rates since the start of the financial crisis.
Meanwhile, the falling dollar boosted gold to an all-time high of $1,045 an ounce during the session and $1,039.70 at the close. The weak dollar was also good for the stocks of multi-national companies that benefit from a weaker dollar.
A weaker-than-expected response to a government debt auction dulled some of the shine on the rally.
An upbeat reading on the services sector helped spark Monday's advance, but there was little else on the docket until Wednesday when readings on consumer credit and the Treasury budget are due.
A rally in US stocks that started in March, petered out late September at the end of an otherwise upbeat third quarter. In the July-September period, the Dow and S&P 500 both jumped 15%, their best quarter in a decade, while the Nasdaq rose 15.7%, its best quarter in six years.
But the September selloff was modest amid the broader rally that's been in place since last March. Since bottoming at a 12-year low March 9, the S&P 500 has gained 56%, and the Dow has gained 49% as of Tuesday's close. After hitting a six-year low, the Nasdaq has gained nearly 68%.
Ahead of the first big batch of results, a few companies issued warnings about their just-completed quarter.
Dow component Boeing said it will take a $1 billion charge in the third quarter because of higher costs to produce its 747-8 airplanes amid rough market conditions. The stock was little changed.
St. Jude Medical warned that third-quarter results would miss earlier forecasts because hospitals bought fewer of its medical devices. Shares fell nearly 13% in unusually active New York Stock Exchange trading.
Global markets rallied after Australia became the first major economy to boost interest rates since the financial crisis began. Australia's central bank boosted its overnight lending rate by a quarter percentage point to 3.25%, saying it was time to start taking away the stimulus of low rates as the economy is no longer weakening.
The dollar tumbled versus the euro and the yen, resuming its recent plunge against a basket of currencies.
US light crude oil for November delivery settled up 47 cents to $70.88 a barrel on the New York Mercantile Exchange.
COMEX gold for December delivery rose $21.90 to settle at a record $1,039.70 an ounce, after rising as high as $1,045, an intraday record. The previous record close of $1,020.20 was set two weeks ago.
Treasury prices fell, raising the yield on the 10-year note to 3.25% from 3.22% late on Monday.
The government saw good, but not great, demand for its auction of $39 billion in 3-year notes. Treasury said the bid-to-cover ratio, which measures demand, was 2.76, short of the 3.02 ratio seen the last time it sold 3-year notes.
The third-quarter earnings reporting period unofficially kicks off on Wednesday with Dow component Alcoa. The aluminum maker is expected to post a loss versus a profit a year ago, demonstrating the weak quarter expected for the materials sector.
S&P 500 profits are expected to have dropped almost 25% from the third quarter of 2008.
European shares posted their largest one-day rise in six weeks, rising for the second straight session as a record high for gold futures boosted the mining sector and a broker upgrade helped the banking sector.
The pan-European Dow Jones Stoxx 600 index was up 2.1% at 241.13 in a broad-based advance, its strongest rise since Aug. 21. Germany's DAX index rose 2.7% to 5,657.64, the UK's FTSE 100 index climbed 2.3% to 5,137.98 and the French CAC-40 index advanced 2.6% to 3,770.21.
If Monday blues had the bulls running for cover, Tuesday witnessed a complete turnaround. Markets started off on a promising note tracking strong cues from the US and the Asian markets, but the up tick was short lived as telecom heavyweights like Bharti Airtel, RCom, Idea and MTNL plunged sharply after reports stated that TRAI may soon ask operators to compulsorily give the option of paying tariff based on usage per second instead of the current per minute pulse.
However, markets staged a V-Shaped recovery in the second half of the trading session led by the FMCG, Metals and the Banking stocks. The Mid-Cap stocks which were badly beaten down initially also attracted buying towards the end.
Technically speaking, the Nifty found strong support at the 4910-20 levels (its 21 DMA). Another positive signal is that the index managed to close above the 13 DMA and the 5,000 mark creating a hammer chart pattern (the Hammer indicates that the prior downtrend is about to end and may reverse to an uptrend or move sideways).
Finally, the BSE Sensex gained 92 points or 0.6% to end at 16,958 after touching a high of 16,988 and a low of 16,622. The index opened at 16,879 against the previous close of 16,866. The NSE Nifty added 24 points or 0.5% to shut shop at 5,027.
In Asia, the Nikkei in Japan was marginally up 0.2%, while Australia's S&P/ASX ended higher by 0.4% at 4,591. Shanghai SE Composite in China was closed on account of holiday. However, Hang Seng index in Hong Kong gained 1.8%.
In Europe, stocks were in the green. The FTSE in the UK was up 1.4%, The DAX in Germany was up 1.5% and the CAC 40 index in France was up 1.5%.
Coming back to India, among the BSE sectoral indices, the FMCG index was the top gainer, adding 3.5%, followed by the Metal index that was up 2.2% and the BSE Bankex index was up 2%. Even the BSE Mid-Cap index gained 0.2% however, the BSE Small-Cap index was down 0.7%.
BSE Teck index was the top loser, shedding 3.5% followed by BSE Realty and IT index down over 0.5% each.
Among the 30-components of Sensex, 16 stocks ended in the green and 14 ended in the negative terrain. Among the major gainers were Hindalco, HUL, Reliance Infra, ITC and BHEL.
On the other hand, RCom, Bharti Airtel, ACC and Wipro were among the major laggards.
The telecom stocks slumped after TRAI may ask operators to compulsorily give their customers the option of paying tariff based on usage per second instead of the current per minute pulse, sector regulator Trai said today.
"We may ask all the operators to consider per-second pulse as a mandatory tariff option along with their other tariff plans," Trai Chairman J S Sarma was quoted as saying. He said Trai may soon come out with a consultation paper on the subject and invite suggesstions about making it mandatory for operators to provide customers with this option.
The Trai chief further said that since the current regulations allow the operators to decide the tariffs on their own, "I cannot say whether the time has come to reconsider this particular clause."
L&T’s Buildings & Factories Operating Company - a part of its Construction Division - has bagged new orders aggregating Rs15.13bn during the second quarter of the year 2009-10 for the construction of high rise tower, luxury hotel, hospital & factory building projects.
Shares of L&T gained by 1.5% to Rs1680. The stock opened at Rs1655 and made an intra-day high of Rs1687 and a low of Rs1621. Total traded volumes stood at 0.37mn shares.
Shares of Prism Cement plunged by over 6.5% to Rs51 after earnings report. The Company posted a PAT of Rs349.7mn for the quarter ended September 30, 2009 as against a PAT of Rs150.1mn for the previous quarter ended and net sales increased to Rs2.28bn from Rs1.63bn during the corresponding quarter ended September 30, 2008.
The stock opened at Rs55.8 and made an intra-day high of Rs55.8 and a low of Rs48. Total traded volumes stood at 3.7mn shares.
Gammon Infrastructure announced that it has concluded the purchase of 2,28,77,500 equity shares of Rs10/- each of Vizag Seaport Pvt. Ltd. ("VSPL") from International Port Services Pvt. Ltd., the investment arm of Portia Management Services Ltd. of UK.
The shareholding of the Company in VSPL stand increased to 73.76%, making VSPL a subsidiary of the Company with effect from October 01, 2009.
Gammon Infra slipped by over 1.2% to Rs97. The stock opened at Rs99.9 and made an intra-day high of Rs99.9 and a low of Rs93. Total traded volumes stood at 15,000 shares.
Shares of Hindustan Dorr Oliver surged by over 5% to Rs137.6 after the company bagged an order from BALCO (a Vedanta Group of Company) worth Rs1.3bn for Design, Engineering, procurement, manufacturing, supply, civil works, erection/ construction, testing & commissioning of Fume Treatment plant for their Smelter Expansion Project at Korba. Fives Solios, France a world class expert in this field is the Technology partner for this project.
The total order value along with Fives Solios, France is worth Rs2.76bn. Execution of the said Project shall be completed within a period of 20 months.
The Company has already successfully completed similar project with Vedanta group for its existing smelter project at Jharsuguda, Orissa.
ITC
We recommend a buy in the stock of ITC from a short-term perspective. It is perceptible from the charts of ITC that the stock has been on a long-term uptrend since its October 2008 low of Rs 132, forming higher peaks and bottoms. After recording a life-time high of Rs 153 in late July, it saw a medium-term downtrend till late September. Taking support in the band of Rs 220 and Rs 225, the stock resumed its long-term uptrend recently. It gained 6 per cent accompanied with good volume in the last two sessions and is trading well above the 21-day and 50-day moving averages. The daily and weekly Relative Strength Indices are featuring in the bullish zone. The daily moving average convergence and divergence indicator is signalled a buy and is hovering in the positive territory. Considering that the stock’s intermediate-term up trendline is intact, we are bullish. We expect it to surpass its all-time high and rally until it hits our price target of Rs 270. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 235.
via BL
Copper rises for second straight day
Upbeat data and weak dollar hold red metal steady
Copper prices rose for second straight day on Tuesday, 06 October, 2009 at Comex and LME. Prices rose at Comex and LME on anticipation of higher demand in coming months and also the weak dollar.
At USA, copper futures for December delivery ended higher by 6 cents (2.7%) to 2.78 a pound. Copper dropped 2.2% last week. It was the fifth straight weekly drop for copper. Copper ended September, 2009, higher by 0.4%.
On the London Metal Exchange, copper for delivery in three months ended higher by $174 (2.4%) at $6,060 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
After September, it was the ninth straight monthly gain for copper. On a year to date basis, prices are higher by 87.7%.
The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.
The Institute for Supply Management non manufacturing index reported on Tuesday, 06 October, 2009 that the index rose to 50.9, higher than forecast, from 48.4 in August. Fifty is the dividing line between expansion and contraction.
In the currency market on Tuesday, the dollar index, which measures the strength of dollar against a basket of other currencies, fell by almost 0.6%. The dollar also fell after the Reserve Bank of Australia boosted its cash rate by a quarter of a percentage point to 3.25%, marking the first hike since March 2008.
Also weighing on the greenback was a report that said Gulf-area oil producers, in concert with China, Russia, Japan and France, are planning to end the practice of pricing oil in dollars.
In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.
At the MCX, copper for November delivery closed at Rs 287/Kg. The closing price was Rs 0.8/Kg (0.28%) higher than previous closing price. Prices rose to a high of Rs 289.9/ Kg and fell to a low of Rs 285.85/Kg during the day's trading.
Among other metals traded in the LME on Tuesday, lead added 2.4% to $2,140 a ton and zinc added 0.8% to end at $1,886 a ton. Nickel added 1.4% to end at $17,800. Aluminium rose 1.1% to $1,810 a ton.
Gold settles at record high
Weak dollar spikes up commodity prices
Precious metal prices ended higher for third straight day on Tuesday, 06 October, 2009. Prices rose as dollar fell to fresh lows once again today following hike in interest rate by Australia. Gold touched fresh highs today.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Tuesday, gold for December delivery ended at $1,039.7, higher by $21.9 (2.2%) an ounce on the New York Mercantile Exchange. During intra day trading, gold rose to a high of $1,045 crossing the earlier all time high of $1035 reached. Last week, gold ended higher by 1.3%. Year to date, gold prices are higher by 17.5%.
Gold ended September, 2009 higher by 5.9%. For the third quarter it ended higher by 8.7%. Before this, for the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (2.5%) since then.
On Tuesday, Comex silver futures for December delivery rose 30.5 cents (1.9%) to $16.535 an ounce.
Silver ended 11.8% higher for September, 2009. Year to date, silver has climbed 49.3% this year. For 2008, silver had lost 24%.
In the currency market on Tuesday, the dollar index, which measures the strength of dollar against a basket of other currencies, fell by almost 0.6%. The dollar also fell after the Reserve Bank of Australia boosted its cash rate by a quarter of a percentage point to 3.25%, marking the first hike since March 2008.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for December delivery closed higher by Rs 109 (0.7%) at Rs 15,768 per 10 grams. Prices rose to a high of Rs 15,810 per 10 grams and fell to a low of Rs 15,612 per 10 grams during the day's trading.
At the MCX, silver prices for December delivery closed Rs 543 (2.1%) higher at Rs 26,855/Kg. Prices opened at Rs 26,345/kg and rose to a high of Rs 26,980/Kg during the day's trading.
Crude remains above $70
Soft dollar helps crude remain strong
Crude prices ended higher at Nymex on Tuesday, 06 October, 2009. Prices rose as dollar fell to fresh lows once again today following hike in interest rate by Australia.
On Tuesday, crude-oil futures for light sweet crude for November delivery closed at $70.88/barrel (higher by $0.47 or 0.71%). During intra day trading, it rose to a high of $71.77. Last week, crude ended higher by 6%.
For the month of September, 2009, crude ended higher by a marginal 0.9%. For the third quarter, crude ended higher by just 1%. Crude prices had rallied 40% and 11.3% in the second and first quarter of 2009 respectively.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 65% since then. Year to date, in 2009, crude prices are higher by 44%.
In the currency market on Tuesday, the dollar index, which measures the strength of dollar against a basket of other currencies, fell by almost 0.6%. The dollar also fell after the Reserve Bank of Australia boosted its cash rate by a quarter of a percentage point to 3.25%, marking the first hike since March 2008.
Also weighing on the greenback was a report that said Gulf-area oil producers, in concert with China, Russia, Japan and France, are planning to end the practice of pricing oil in dollars.
Among other energy products on Tuesday, November reformulated gasoline rose 1.9 cents, or 1%, to $1.7727 a gallon. November heating oil gained 2 cents, or 1.3%, to $1.8142 a gallon.
Also on Tuesday, November natural-gas futures closed 11 cents, or 2.1%, lower at $4.88 per million British thermal units by the close of floor trading.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for October delivery closed lower by Rs 31(0.92%) at Rs 3,318/barrel. Natural gas for October delivery closed lower by Rs 8.5 (3.6%) at Rs 227/mmbtu.
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