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Tag: Financial Market

  • US dollar clings to gains as bets on further Fed hikes firm

    The dollar fought for a footing in choppy trade on Thursday, with support from upbeat U.S. data and hawkish policymaker comments, while the prospect of higher energy prices helped exporters’ currencies and weighed on those of importers.

    The dollar rose 1% on the euro and 1.3% on sterling overnight and was trying to hold those gains in bumpy early trade in Asia. The euro has now made two unsuccessful attempts to regain parity this week and last bought $0.9916. Sterling’s rebound from record lows has paused just below $1.15.

    The U.S. services industry posted another month of expansion in September, data showed overnight, while labour market figures were solid and the trade deficit narrowed. San Francisco Fed President Mary Daly reiterated policymakers’ focus on inflation fighting and dismissed market hopes for rate cuts in 2023.

    “I think that just reminded people that you might be a bit premature in trying to price in rate cuts in the U.S.,” said Westpac currency strategist Imre Speizer.”That pushed up rates and pushed up the U.S. dollar,” he said, as the Federal Reserve’s aggressive moves to rein in inflation sets the pace for central banks around the globe.

    “Its one trade for the whole world,” said Speizer. “No one currency’s interest rates are really able to go off and do their own thing independently.“

    Bond markets globally sold sharply. Interest rate futures imply more than 130 basis points of tightening ahead for the Fed before the middle of next year. [US/][GVD/EUR][GB/]

    The U.S. dollar index wobbled 0.06% lower to 110.86, off lows near 110 from earlier in the week, though some distance below last week’s 20-year high of 114.78.

    Sterling last bought $1.1367, while the Australian and New Zealand dollars each rose about 0.4%, taking the Aussie to $0.6518 and the kiwi to $0.5772. [AUD/]

    The yen, which has been held steady by the risk of further Japanese intervention, sat at 144.57 per dollar.

    The Saudi Arabia-led cartel of oil producers agreed to steep production cuts on Wednesday, lifting Brent crude futures to a three-week high of $93.99 a barrel. [O/R]

    “Higher energy prices would have a much more direct impact on the European region given the more direct relationship to their finances,” said NatWest Markets’ strategist Jan Nevruzi.

    Later on Thursday the European Central Bank releases minutes from last month’s policy meeting. Traders are also awaiting Friday’s U.S. labour market data to gauge how fast and far the Fed might be willing to lift interest rates.

  • The stock prices of MRPL and Chennai Petroleum have risen by 19% as a result of positive business prospects

    The stock prices of MRPL and Chennai Petroleum have risen by 19% as a result of positive business prospects

    In an otherwise sluggish market, shares of Mangalore Refinery & Petrochemicals (MRPL) and Chennai Petroleum Corporation (CPCL) soared up to 19% and touched 52-week highs on Tuesday’s session on the BSE amid strong volumes The fact that the Singapore gross refining margin (GRM) has risen to a new high of $25.2 per barrel is good news for Indian refiners that transform crude oil into refined goods. Individual equities such as MRPL rose 19% to Rs 107.35, while CPCL rose 17% to Rs 374.80. The S&P BSE Sensex, on the other hand, was down 0.93 percent at 55,159 at 10:07 a.m. On good profits, CPCL has soared 234 percent and MRPL has soared 145 percent in the last three months, compared to a 4% rise in the benchmark index.





    When compared to the average trading volume over the previous 10 trading days, these counters’ trading volumes virtually tripled. On the NSE and BSE.

    a total of 24 million shares traded on the MRPL counter, while 8.02 million shares traded on the CPCL counter. With effect from today, the stock exchanges have increased the circuit limit on certain equities from. CPCL is a downstream petroleum company. It makes a variety of petroleum products with added value. MRPL is a subsidiary of Oil and Natural Gas Corporation Limited (ONGC), which owns 71.63 percent of the company’s ownership. CPCL recorded a four-fold increase in its consolidated net profit in the January-March quarter (Q4FY22), from Rs 242 crore in Q4FY21 to Rs 1,002 crore in Q4FY22. Year on year (YoY), revenue from operations increased by 43% to Rs 20,997 crore from Rs 14,705 crore in the preceding quarter.





    Higher crude output and greater gross refining margins helped MRPL achieve a standalone net profit of Rs 3,008 crore in Q4FY22, compared to Rs 268 crore in Q4FY21. MRPL adopted several steps to increase marketing margins in domestic, export and B2B (business to business) transactions. As a result, gross operating revenue increased 36% year on year to Rs 28,228 crore from Rs 20,793 crore in Transport fuel product cracks are now trading at multi-quarter highs. According to experts at ICICI Securities, GRMs are projected to gain from a refining landscape, and the MRPL is predicted to generate robust earnings in the short future Meanwhile, on the BSE, Oil and Natural Gas Corporation (ONGC) rose 6% to Rs 162.85. Oil India set a new 52-week high of Rs 288.95 in intraday trade Wednesday, up 4%, after soaring 15% in the previous two trading days.

  • The Sensex Drops 236 Points In Turbulent Trade, Reversing Early Gains

    The Sensex Drops 236 Points In Turbulent Trade, Reversing Early Gains

    On Tuesday, equity indices failed to hold onto their morning gains, with the Sensex dropping 236 points due to a sell-off in information technology firms and negative global market trends The opened higher but was unable to maintain its gains, falling 236 points, or 0.43 percent, to 54,052.61. It traded between 53,886.28 and 54,524.37 during the day. The broader NSE Nifty ended at 16,125.15, down 89.55 points, or 0.55 percent Among the Sensex pack’s biggest laggards were Tech Mahindra, Hindustan Unilever, HCL Technologies, Asian Paints, NTPC, Tata Steel, Infosys, Axis Bank.




    and Bajaj Finserv. Dr Reddy’s Laboratories, HDFC, Power Grid Corporation of India, Kotak Mahindra Bank, HDFC Bank, and Nestlé, on the other hand, were among the biggest gainers Hong Kong, Shanghai, Seoul, and Tokyo all finished lower in Asia. In the afternoon, European exchanges were also trading down. On Monday, US stock markets finished higher Brent crude, the international oil standard, fell 0.46 percent to $112.9 per barrel According to stock market data, foreign institutional investors continued their selling binge on Monday, offloading shares worth a net Rs 1,951.17 crore.

  • Bank of Baroda Expects ECB Inflows To Reduce As Iterest Rates Rise And The Currency Depreciates

    Bank of Baroda Expects ECB Inflows To Reduce As Iterest Rates Rise And The Currency Depreciates

    According to Bank of Baroda, corporate India’s offshore fundraising through external commercial borrowings (ECBs) may reduce in the coming months as monetary policy tightens and the rupee continues to depreciate ECBs have become a significant source of funding for businesses, including public sector entities. In reality, as of the end of December 2021, ECBs amounted for 36.8% of India’s external debt. According to RBI data, ECB approvals increased to $38.2 billion in FY22 from $34.8 billion the previous year.





    The relative cost advantage resulting from lower global interest rates for an extended period of time drove this increase in the use of the ECB route. It also supported growth by supplementing the country’s credit demand.

    With expected to rise, the relative appeal of ECB inflows may wane. In addition, the Indian currency’s recent devaluation will weigh on ECB inflows this year In a research note, BOB stated that on-lending/sub-lending is the most common reason for businesses to borrow cash from abroad. In FY22, its market share was 21.5 percent The firms also used monies raised through ECBs to fund previous ECBs. In FY22, this group had a share of 18.4 percent Rupee loan refinancing through new ECB approvals has climbed from from 6.5 percent in FY17 to 13.2 percent in FY22. According to BOB, ECBs are increasingly being used for new projects as well as modernization of existing ones.




    The capital market, banks, and foreign collaborators were the most common sources of ECB funding, according to data from the previous four year Lower global interest rates have prompted companies to look for funding in capital markets all over the world. Despite a substantial drop in global interest rates, the share of overseas capital markets in overall ECB approvals has risen sharply from 12.6 percent in FY19 to 33.2 percent in Other commercial banks’ market share has dropped from 44.4 percent in FY19 to 25.3 percent in FY22. Approvals from Indian commercial bank branches abroad, on the other hand, climbed from 14.7 percent to 19.8% in FY22.

  • India’s Foreign Exchange Reserves Have Plummeted By $1.7 Billion, Reaching A one-Year Low

    India’s Foreign Exchange Reserves Have Plummeted By $1.7 Billion, Reaching A one-Year Low

    According to Reserve Bank of India (RBI) data released on Friday, India’s forex reserves fell by USD 1.774 billion to USD 595.954 billion for the week ended May 6 due to a drop in core currency assets Overall reserves fell by USD 2.695 billion to USD 597.728 billion in the preceding reporting week, dropping below the USD 600 billion level RBI is apparently intervening across all markets to defend the rupee, which is under pressure due to large outflows by foreign investors. In the six months leading up to March 2022, foreign exchange reserves fell by USD 28.05 billion.




    According to RBI’s weekly data, the loss in reserves was due to a drop in Foreign Currency Assets (FCA), a major component of overall reserves, and gold reserves during the reporting week.

    In the week ending May 6, FCA fell by USD 1.968 billion to USD 530.855 billion The effect of appreciation or depreciation of non-US units held in foreign exchange reserves, such as the euro, pound, and yen, is included in the foreign currency assets when expressed in dollar terms The data showed that gold reserves climbed by USD 135 million to USD 41.739 billion in the reporting week. The International Monetary Fund’s (IMF) Special Drawing Rights (SDRs) increased by USD 70 million to USD 18.370 billion According to the data, the country’s reserve position with the IMF fell by USD 11 million to USD 4.99 billion in the reporting week.

  • Gokaldas Exports rises 9% to an all-time high, indicating a positive business outlook

    Gokaldas Exports rises 9% to an all-time high, indicating a positive business outlook

    On the back of a positive business outlook, Gokdaldas Exports’ stock hit an all-time high of Rs 505.65 on the BSE in intra-day trade on Wednesday The company’s stock, which is in the textiles and apparel business, has surpassed its previous high of Rs 488, which it reached on May 5, 2022. It has outpaced the market by 30 percent in the last month, compared to a 4 percent fall in the Gokaldas Exports achieved the greatest quarterly performance for the January-March quarter (Q4FY22), thanks to a growing order book and the ability to weather supply chain hiccups.




    In Q4FY22, the company’s consolidated profit after tax (PAT) more than doubled to Rs 61 crore, up from Rs 16 crore the previous quarter.

    Due to strong operating leverage, its consolidated earnings before interest, taxes, depreciation, and amortization (Ebitda) margin increased 170 basis points quarter over quarter and 365 basis points year over year to Revenue increased by 58% year on year (YoY) to Rs 588 crore, the largest quarterly revenue ever, compared to Rs 373 crore in Q4FY21. Export revenue grew by 58.3 percent year over year. According to the corporation, robust revenue growth was supported by deep interaction with key customers and capacity expansion Strong capacity expansion and a speedy ramp-up of production were the key drivers of growth. A higher operating profit was driven by increased volume, a better product mix, and enhanced operational efficiency. The company’s capacity to withstand production and supply chain disruptions is reflected in the year’s results, according to the company.





    For the entire fiscal year 2021-22 (FY22), consolidated profit after tax (PAT) increased by 342% year on year to Rs 117 crore, while operating revenue increased by 47.9% to Rs 1,790 crore. Ebitda’s margin increased 270 basis points to 12.0% from On the forecast, management stated that the order book for FY23 remains hopeful. Despite the predicted uncertainties from a combination of headwinds and tailwinds, the company sees growth potential in Continued global sourcing shift away from China, supplier consolidation towards efficient and well-capitalized players, supply-side instabilities in countries such as China, Vietnam, and Sri Lanka, strengthening Dollar, the announcement of Production Linked Incentive (PLI), and signing of free trade agreements (FTAs) with key markets are some of the opportunities.

  • Metal Stocks Rise On Renewed Demand Expectations; Hindalco And Vedanta Both Gain 7%

    Metal Stocks Rise On Renewed Demand Expectations; Hindalco And Vedanta Both Gain 7%

    Individual stocks like as Vedanta and Hindalco Industries both rose 7% to Rs 307.70 and Rs 419.70, respectively. Apart from that, Hindustan Copper, National Aluminium Company, JSW Steel, and Tata Steel also had gains of The Nifty Metal index was the highest gainer among sectoral indexes at 10:36 a.m., gaining 4.4 percent versus 1.3 percent for the Nifty50 index Despite today’s rally, most metal equities have had a 30% correction in the last month. Vedanta, Steel Authority of India (SAIL), Hindalco, JSW Steel, Hindustan Zinc, NMDC, Tata Steel, and Jindal Steel, on the other hand, were down between 13% and 30%. Meanwhile, the Nifty Metal index has dropped 15% in the last month, compared to an 8% drop in the Nifty50 index.





    Shanghai laid out plans on Monday for the return to normalcy on June 1 and declared the six-week-long COVID lockdown complete In April, China’s economic activity slowed drastically as lockdowns wreaked havoc on industrial production and employment, fueling predictions that the economy could contract in the second quarter Industrial metals prices surged on Monday as a result of China’s announcement that COVID restrictions would be eased.

  • As investors seek safe haven assets, the rupee hits a new all-time low

    As investors seek safe haven assets, the rupee hits a new all-time low

    The rupee struck a new all-time low versus the dollar in early trade on Tuesday, trading at 77.78/$, as the dollar strengthened against other foreign currencies, prompting investors to seek safe haven assets This is the second trading session in a row that the Indian currency has dropped to new lows. The rupee.





    touched an intraday low of 77.63/$ on Friday, the preceding trading day The Reserve Bank of India increased its currency market intervention, slowing the rate of decline. Following Russia’s invasion of Ukraine, the Indian currency, which has devalued by roughly 4% in 2022, came under pressure. Since the battle began in late February of this year, the foreign reserves have dropped by roughly $35 billion.

  • Sensex Stops 6-Day Losing Streak With A 180-Point Gain; DMart Rallies 10%, ACC 4%

    Sensex Stops 6-Day Losing Streak With A 180-Point Gain; DMart Rallies 10%, ACC 4%

    On Monday, equity markets closed a bumpy day in the green, increasing for the first time in seven days, as global markets backed up the trade sentiment. The benchmark S&P BSE Sensex fluctuated between 796 points and 52,974 points, or 0.34 percent higher. On the other side, the NSE Nifty closed at 15,842, up 60 points or 0.38 percent The biggest gainers on the Sensex index today were NTPC, Bajaj Finance, Maruti Suzuki, SBI, HDFC, Kotak Bank, M&M, and IndusInd Bank, which rose between 1.6 and 2.9 percent.





    Ultratech Cement, Asian Paints, ITC, TCS, HCL Tech, Nestle, and Dr Reddy’s Labs were the worst performers, with losses ranging from The BSE MidCap and SmallCap indexes outpaced the benchmarks by 1.5 percent and 1.15 percent, respectively, in the wider market. The Nifty PSU Bank index was the best performer, up 3%, while the Nifty IT index was the poorest performer, down 0.75 percent.

  • Today’s gold price is Rs 51,490 per 10 gramme, with silver at Rs 60,800 per kilogramme

    International gold prices

    On Friday, the price of 10 grammes of 24 carat gold increased by Rs 490 to Rs 51,490, while the price of 1 kilogramme of silver increased by Rs 400 to Rs 60,800.

    On Friday, the price of 10 grammes of 22 carat gold increased by Rs 450, bringing the price to Rs 47,200. The price of 10 grammes of 24 carat gold in Delhi and Mumbai is Rs 51,490, which is the same as the price of 10 grammes of 24 carat gold in Bangalore, Kolkata, and Hyderabad.

    In Chennai, however, 10 grammes of 24 carat gold costs Rs 52,750.
    The price of 10 grammes of 22 carat gold in Delhi and Mumbai is Rs 47,200, which is the same as the price of 10 grammes of 22 carat gold in Bangalore, Kolkata, and Hyderabad.

    In Chennai, however, 10 grammes of 22 carat gold costs Rs 48,350. In Delhi, Mumbai, and Kolkata, a kilogramme of silver costs Rs 60,800, while the precious metal costs Rs 65,000 in Bangalore, Hyderabad, Chennai, and Kerala. The price of gold varies by region due to numerous factors such as making costs, excise duty, state taxes, and so on. The gold rates in India are influenced by a variety of factors, including international gold prices, local levies, and currency fluctuations.