Weak Sentiment Witnessed in Bikaner Pulses Physical Market

At Bikaner market , Chana Desi opened lower at Rs. 4450 per quintal, down by 1.11 per cent as compared to previous day. Chana Dal started the day at Rs. 5250 per quintal, steady against previous close. Urad Split Dal at Bikaner market opened weak at Rs. 9100 per quintal, down by 1.09 per cent from previous dayn#39;s price level. Moong Split Dal at Bikaner market began at Rs. 8100 per quintal, unchanged as compared to previous close. nnbsp; Pulses in Bikaner Market (Prices in Rs. per quintal) Market Commodity/Variety Price Change Absolute Bikaner Chana Desi 4450 -50 Bikaner Chana Dal 5250 0 Bikaner Urad Split Dal 9100 -100 Bikaner Moong Split Dal 8100 0 nnbsp;

Steady Sentiment Witnessed in Khargone Red Chilli Physical Market

At Bedia market in Khargone, Red Chilli No. 12 is trading at Rs. 11800 per quintal, steady as against previous close. Red Chilli Indu 2070 is offered at Rs. 12000 per quintal, unchanged against previous close. Red Chilli MICO (Teja) at Bedia market is quoted at Rs. 12300 per quintal, unchanged as compared to previous close. Red Chilli in Khargone Market (Prices in Rs. per quintal) Market Commodity/Variety Price Change Absolute Bedia Red Chilli No. 12 11800 0 Bedia Red Chilli Indu 2070 12000 0 Bedia Red Chilli MICO (Teja) 12300 0 nnbsp;

SUGAR WEEKLY: May trade flat on weak demand, strong global cues

Sugar futures on the National Commodity and Derivatives Exchange are likely to trade flat next week after subdued demand for the sweetener from bulk consumers and as investors may cover short positions at lower levels, analysts said.

  "Subdued demand for the sweetener in domestic market will pressurise the prices of sugar," said Ravi Shankar Pandey, research analyst with Karvy Comtrade.

  Domestic demand for the sweetener has fallen as monsoon, which usually brings cold weather, has started in many areas, traders said.

  Also, total sugar supply is expected to touch 38.4 million tons in 2015-16 after accounting for 10.4 million tons of carry-over stock, from the current season, according to estimates released by Indian Sugar Mills Association (ISMA).

  Meanwhile, consumption on the other hand is seen at 25.2 million tons, leaving a huge surplus of 13.2 million tons in the new season.

  However, sharp fall in sugar prices may cushioned on strong international factors, analysts said.

  "Brazil sugar output is weak which is pushing global prices," Ajay Kumar Kedia, research analyst with Kedia Commodities.

  Sugar mills in Brazil's center-south region crushed much less cane in the first half of July compared with a year earlier because of heavy rains over cane-growing areas, according to sugar-industry group Unica.

  Mills in the region crushed 29.3 million tons of cane in the first half of this month, a decline of 29% from the same period a year earlier, according to Unica.

   Global sugar production plummeted 43.5% to 1.4 million tons in the same period, and ethanol output dropped 23.5% to 1.4 billion litres.

  Meanwhile, mounting arrears and surplus stocks of sugar forced sugar mills to sale their produce at depressed prices which accelerate the exportable supply due to lower price.

  Total cane arrear has dropped a bit due to aggressive sale by domestic mills but total arrear still stood at 181.12 billion till mid June, as per government officials.

  Moreover, the government plans to export 4 million tons of sugar during (Oct-Sep) 2015-16 season to support the domestic prices and help miller to pay arrears, government officials said.

  The government may link the incentives with fair and remunerative price of cane and market price of sugar and try to cover the gap by a subsidy mechanism.

  Raw sugar October contract on the Intercontinental Exchange (ICE) rose 0.53% to 11.31 cents per pound for the week ended Jul 31.

  White sugar October contract on the London International Financial Futures and Optional Exchange (LIFFE) jumped 2.16% to $354.10 per ton for the week ended Jul 31.

  Sugar is expected to find support at Rs 2,150 per quintal and resistance at Rs 2,300 per quintal next week, analysts said.

  Sugar for October delivery traded in Rs 2,165-2,268 per quintal range in the past five trading session on the National Commodity & Derivatives Exchange.

 

Base Metal/weekly: Copper may fall on demand worries, strong dollar

Copper may extend fall for a seventh-straight trading week on global demand concerns and on expectation of strong dollar index in next week following Fed rate hike fear, said analysts.

  "Base metals will fall on global demand worries and expectation of strong dollar," said Kaynat Chianwala an analyst with Angel Commodities.

  Prices of the industrial metals will be down on demand concerns from Euro-zone, the world's third biggest metal consumer, following weaker than expected economic data of Germany, the biggest metal consumer in Euro-zone, said analysts.

  Germany retail sales in month of June slipped 2.3% compared to analysts' expectation of 0.3% and 0.4% growth a month ago while Germany consumer prices index in month of July eased 0.2% compared to consensus expectation of 0.3% and 0.3% in the same period a year ago, government data showed.

  Industrial metals will also be under pressure on subdued demand from US, the second biggest metal consumer, after pending home sales in month of June fell unexpectedly, said analysts.

  US pending home sales in month of June dropped 1.8% compared to analysts' expectation of 1% growth and 0.6% a month ago, government showed on Wednesday.

  "Market continues to remain under pressure amid demand worries from top consumer China and gains in US dollar," said Priyanka Jhaveri an analyst with Kotak Commodities.

  Growing expectation of rate hike by US is lifting US Dollar higher, said analysts.

  Next week, dollar index, which measures the strength of greenback against its six major trading partners, expected to stay in the range of 98-98.5.

  Upbeat jobs data triggered fear that the Federal Reserve will be in course of raising interest rate in September.

  United States jobless claims came at 267,000 for the week ended Jul 24 compared to analysts' estimate of 270,000 and 255,000 a week ago, a government data showed.

  While, US gross domestic product annualized at 2.3% in second quarter compared to upward revision of 0.6% a quarter ago, a government data showed.

  On Thursday, the Federal Reserve reiterated its resolve to hike rates later this year as the economy was poised for expansion and labour market was expected to improve further.

   The central bank said it was seeing "solid" job gains and maintained its view that economic activity was expanding "moderately", with the risks to the outlook "nearly balanced".

  "Growth in household spending has been moderate and the housing sector has shown additional improvement; however, business fixed investment and net exports stayed soft. The labour market continued to improve, with solid job gains and declining unemployment," FOMC statement said.

  The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen some further improvement in the labour market and is reasonably confident that inflation will move back to its 2% objective over the medium term.

  Prices of base metals will also be under pressure after a private survey showed manufacturing activity contracted by the most in 15 months in July indicating weakening economic condition in Asia's biggest economy.

  The flash Caixin/Markit China manufacturing PMI came at 48.2, lowest reading since Apr 2014 compared to analysts' estimate of 49.7 and 49.4 a month ago.

  It is the fifth straight month reading below 50. Any reading above 50 signals expansion, while a reading under 50 shows contraction.

  China is the world's largest consumer of copper accounting for about 40% of total global demand and major consumer of other industrial metals

  Copper for August delivery traded in Rs 334.15-343.95 per kilograms range this week and are likely to find support at Rs 326-331 per kilograms next week. The metal prices may find resistance at Rs 350-360per kilograms next week, said Mihir Kansara a technical analyst with Phillip Commodities.

  For the past five trading sessions aluminium for August delivery traded in Rs 103.85-106.20 range on the Multi Commodity Exchange.

  Resistance for August aluminium prices is seen at Rs 107-110 per kilograms level and price may get support at Rs 102-99.50 per kilograms level in next week, said Kansara.

  Nickel for August delivery traded in Rs 705.10-732.30 per kilogram range in last week on the MCX.

  Resistance for August nickel prices is seen at Rs 735-770 per kilograms level and price may get support at Rs 680-655 per kilograms level in next week, said Kansara.

  Lead for August delivery traded in Rs 109.35-111.90 per kilogram range in last week on the MCX.

  Resistance for August lead prices is seen at Rs 112-115 per kilograms level and price may get support at Rs 108-105.50 per kilograms level in next week. Kansara said.

  In the past five trading sessions on the MCX, zinc for August delivery traded between Rs 124-127.80 per kilogram range.

   Resistance for August zinc prices is seen at Rs 128-132 per kilograms level and price may get support at Rs 122-119 per kilograms level in next week

Suzlon posts first profit in 14 quarters as expenses halves

Suzlon Energy late Friday posted its first profit in 14 quarters as expenses nearly halved and the company made one-time foreign currency gains.

   The wind turbine maker posted consolidated net profit of Rs 10.47 billion for the second quarter ended on Jun 30 compared with lose of Rs 7.51 billion same period a year ago.

   The company's total income was Rs 26.27 billion in the quarter under consideration compared with Rs 46.72 billion in the year ago period, while its total expenses nearly halved to Rs 25.22 billion in the June quarter compared with Rs 47.77 billion same period a year ago.

  The company also made a one-time foreign exchange gain of Rs 777.5 million compared with lose of Rs 292.4 million a year ago.

  Suzlon also said its consolidated net Debt (excluding foreign currency convertible bonds) was down to Rs 70.10 billion from Rs 148.21 billion as of Mar 31, 2015. It has also said that it has brought down interest cost down by 36% quarter-on-quarter.

   The company also said its net order intake has risen 28% on-year and 69% on-quarter to 188 MW with order book standing at 1.1GW worth Rs 68.39 billion.

  The board of directors also approved the proposal to issue bonds to the extent of Rs 50 billion subject to shareholders' approval.

   "Our Q1 performance reflects our turnaround journey. Our strategic vision incorporates the government's renewable energy target of 175 GW by 2022 and the conducive policy landscape ... This year, we expect to supply 100 turbines of the S111," said Tulsi Tanti, chairman, Suzlon Group in the release to the exchanges.

   The board also appointment of Kirti J Vagadia as Group CFO with effect from Aug 1, 2015 after the current CFO Amit Agarwal resigned, the release said.

   Friday, share prices of Suzlon Energy ended at 21.90, unchanged from previous close on the Mumbai Stock Exchange.

May extend fall on oversupply woes, weak demand

Crude futures on Multi-Commodity Exchange are likely to trade extend fall for sixth straight trading week on increasing supplies from global market and subdued demand from bulk consumers, analysts said.

  "Higher global supplies are likely to pressurise the prices of crude," said Madhavi Mehta, research analyst with Kotak Commodities.

  Global oil supply surged by 550,000 barrels per day in June, on higher output from both Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC producers, International Energy Agency (IEA) said.

  World oil production jumped by 3.1 million barrels per day to 96.6 million barrels per day, with OPEC crude and natural gas liquids accounting for 60% of the gain. Non-OPEC supply growth is expected to grind to a halt in 2016, as lower oil prices and spending cuts take a toll.

  OPEC, which pumps about a third of the world's crude, said its total production rose in June by 283,000 barrels a day compared with May, to 31.38 million barrels, driven mainly by higher output from Iraq, Nigeria and Saudi Arabia.

  OPEC members pumped 31.25 million barrels per day in the second quarter against demand of 28.26 million barrel per day, the Reuters data showed.

  The OPEC produced around 3 million barrels per day above demand in the second quarter.

  Crude oil prices may also be under pressure on weak global demand forecast, analysts said.

  "Demand for crude oil is very weak s prices are likely to fall," Kaynath Chainwala, research analyst with Angel Commodities.

  Global oil demand growth is forecast to slow to 1.2 million barrels per day in 2016, from an average 1.4 million barrels a day this year, International Energy Agency (IEA) said in its oil market report (OMR).

  World oil demand growth appears to have peaked in the first quarter at 1.8 million barrels a day and will continue to ease throughout the rest of 2015 and into 2016 as temporary support fades.

  Meanwhile, US oil inventories rose by 1.9 million barrels to 462 million barrels for week ended Jul 24 compared with analysts' expectations for a decline of 184,000 barrels, data by American Petroleum Institute (API) showed.

  US fuel stockpile rose by 4.2 million barrels to 468.1 million barrels for week ended Jul 24 compared with analysts' expectations for a decline of 850,000 barrels, data by Energy Information Administration (EIA) showed.

  West Texas Intermediate, the US benchmark, for September delivery slumped 0.82% to $47.74 a barrel on the New York Mercantile Exchange for the week ended Jul 25.

  Brent, European benchmark for September contract plunged 3.28% to $52.83 per barrel, on the London-based ICE Futures Europe exchange for the week ended Jul 25.

  However, any movement in the local currency will also impact crude oil prices, analysts said.

  The local currency fell 0.15% to Rs 64.13/$1 in the week ended Jul 31.

  Crude oil is expected to find support at Rs 2,910-2,960 per barrel and resistance at Rs 3,180-3,300 per barrel, analysts said.

  Crude for August delivery traded in Rs 3,008-3,177 per barrel range in the past five trading session on the Multi Commodity Exchange.

 

Bharati Shipyards changes name to Bharati Defence and Infrastructure

Bharati Shipyard late Friday said it will change its name to Bharati Defence and Infrastructure Ltd, indicating the company's greater focus on defence business.

  "The Board of Directors of the company at its meeting held on Jul 31 ... to change name of the company from Bharati Shipyard Ltd to Bharati Defence and Infrastructure Ltd," the company said in the releases to the exchanges.

  The board has also decided to issue convertible warrants to the lender.   

   Friday, share prices of Bharati Shipyard closed at Rs 18.20, up 4.90% on the Mumbai Stock Exchange.

 

May extend fall on weak export demand, higher sowing

Cotton futures on Multi-commodity Exchange are likely extend fall for fifth straight trading week on subdued demand from bulk consumers and increased sowing prospects, analysts said.

   "Poor response from global markets will pressurise the prices of cotton," said Sudha Acharya, research analyst with Kotak Commodities.

  India's total export estimate was lowered to 7 million bales as compared to previous estimates of 9 million bales on weak demand from China. China is the biggest cotton importer from India.

  Domestic mills are also buying only according to their immediate requirement as most of the mills are not able to buy huge quantity due to their poor financial condition.

  Also, the USDA trimmed India's exports for 2015-16 to 4.70 million bales as compared to previous forecast of 5 million bales.

  The yarn demand from India continues to be low. Also, there has been a good drop in the exports of Yarn in India.

  In June 2015, according to China customs data textile and apparel exports fell 8.79% to $233.92 billion.

  Cotton prices may also be under pressure on increasing sowing prospects in the country, analysts said.

  Total area planted so far under cotton is higher by 30% as compared to previous year as per Ministry of Agriculture.

   Around 9.95 million hectare land was sown under cotton against the 7.61 million hectare of land which was sown under cotton during same period in last year.

Global

   "Better sowing for coming season is likely to boost the cotton output in India which may negatively affect the cotton futures in coming days," said Aurobindo Gayan, research analyst with Kotak Commodities.   

   Meanwhile, cotton export to China from India has declined by 56.72% in 2014-15, which has caused cotton prices in domestic market to fall drastically.

   In 2014-15 India exported only 2.6 million bales of cotton to China against 6.1 million bales in 2013-14.

   Citing the situation, Commerce and Industry Minister Nirmala Sitharaman said in the written reply to Rajya Sabha that due to this reason cotton domestic prices are ruling weaker as compared to the previous year and cotton policy adopted by China is the major cause for less imports.

   Moreover, India is likely to sell its cotton to Thailand too, after succeeding in selling cotton to Bangladesh.

   One of the biggest mills in Thailand has shown interest in buying cotton from India.

   According to the CCI officials, samples of cotton from India have approved and CCI is all set to get buyers from Thailand, besides Bangladesh.

  From global front, total sales of upland cotton was recorded to 91,500 RB during last week ended on Jul 16, up by 79% from the previous week and 64% from the prior four-week average.

   Increases were reported for Vietnam (50,800 RB, including 3,400 RB switched from Japan and decreases of 100 RB), South Korea (13,400 RB), Turkey (13,000 RB), and China (8,200 RB, including 4,400 RB switched from Vietnam and decreases of 300 RB).

  Global cotton prices for October delivery fell by 2.08% to 63.42 cents per pound for the week ended Jul 31.

  Cotton is expected to find support at Rs 15,500 and resistance at Rs 16,350 per bale next week, analysts said.

  Cotton for October delivery traded in Rs 15,970-16,170 per bale range in the past five trading session on Multi-Commodity Exchange 

Gold may extend 7-wk fall on Fed rate hike fear

Gold may extend fall for seven-straight trading week on fear that Federal Reserve may hike interest rate in this year following better than expected economic data and on weak investment demand, said analysts.

  "Gold will fall on US rate hike fear and on weak investment demand," said Kaynat Chainwala an analyst with Angel Commodities.

  Bullion prices will be under pressure as upbeat jobs data triggered fear that the Federal Reserve will be in course of raising interest rate in September.

  United States jobless claims came at 267,000 for the week ended Jul 24 compared to analysts' estimate of 270,000 and 255,000 a week ago, a government data showed.

  While, US gross domestic product annualized at 2.3% in second quarter compared to upward revision of 0.6% a quarter ago, a government data showed.

  On Thursday, the Federal Reserve reiterated its resolve to hike rates later this year as the economy was poised for expansion and labour market was expected to improve further.

   The central bank said it was seeing "solid" job gains and maintained its view that economic activity was expanding "moderately", with the risks to the outlook "nearly balanced".

  "Growth in household spending has been moderate and the housing sector has shown additional improvement; however, business fixed investment and net exports stayed soft. The labour market continued to improve, with solid job gains and declining unemployment," FOMC statement said.

  The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen some further improvement in the labour market and is reasonably confident that inflation will move back to its 2% objective over the medium term.

  Prices of the yellow metal will also be down as gold exchange trade fund (ETF) investors remained on sidelines despite lower price showing weaker investor interest, said analysts.

  Holdings of SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, fell on Monday to 680.15 tons to 684.63 tons on Friday, its lowest level since 2008.   

   Gold prices are also expected to fall next week on expection of strong dollar, said analysts.

  Next week, dollar index, which measures the strength of greenback against its six major trading partners, expected to stay in the range of 98-98.5.

  Gold for October contract traded in Rs 24,705-25,263 per 10 grams range in this week.

  Resistance for October gold prices is seen at Rs 25,000-25,200 per 10 grams level and price may get support at Rs 24,350-24,100 per 10 grams level in next week, said Mihir Kansara a techinical analyst with Phillip Commodities.

  Prices of the silver are also expected to fall next week taking cues from gold and base metal prices, said analysts.

  In the last five trading sessions, silver for September delivery traded in Rs 33,566-34,250 per kilogram range.

   Resistance for September silver prices seen at Rs 34,500-35,500 per 10 grams level and price may get support at Rs 32,900-32,300 per 10 grams level in next week,

Maruti Suzuki total sales up 20.1% to 121,712 units in July

 Maruti Suzuki India Saturday said its total sales rose 20.1% to 121,712 units in July 2015 compared with total sales of 101.380 units same month a year ago.

  The car maker said in July, it sold total 110,405 units in the domestic market and 11,307 units in exports.

  This has taken the total sales so far till July in the current fiscal year to 463,041 units, up 15.4% from a year ago period.

  In the passenger car segment, Maruti Suzuki July sales rose 25.9% to 91,602 units from a year ago period, while utility vehicles sales rose to 6,916 units in July, up 22.8% from a year ago period.