Gold trades flat ahead United States nonfarm payroll data, ETF outflows

 

   Gold traded flat in morning trades Friday ahead of United States nonfarm payroll data which may give Federal Reserve's stance on interest rate hike and on weak investment demand, said analysts.

  "Gold trades flat ahead of NFP data while ETF outflows showed weaker investor interest which put pressure on the prices," said Madhavi Mehta an analyst with Kotak Commodities.

  Prices of the yellow metal were flat as investors are cautious ahead nonfarm payroll data unemployment rate data to be released later today.

  United States jobless claims dropped indicating improving job scenario in the world's biggest economy.

  Jobless claims came at 270,000 for the week ended Jul 31 lower than analysts' estimate of 273,000 and 267,000 a week ago, a government data showed.

  On Tuesday, Dennis Lockhart, Federal Reserve President of Atlanta expressed his support for an interest rate hike in September.

  Lockhart, a voting member of Federal Open Market Committee this year, said to Wall Street Journal that it would take 'significant deterioration' in the United States economy for him not to support a September rate hike.

  In its latest policy review last month, the central bank reiterated its resolve to hike rates later this year as the economy was poised for expansion and labour market was expected to improve further. A pick-up in US economy, the world's biggest, augurs well for emerging market especially for exporting companies.

  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'.

  However, subdued investment demand following sharp drop in SPDR Gold Trust holding put pressure on the yellow metal prices , said analysts.

  Holdings of SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, fell to 667.93 tons on Thursday compared to 670.62 tons on Wednesday, its lowest level since September 2008.

  At 10:50AM gold for October delivery rose 0.09% to Rs 24,762 per 10 grams on the MCX. The yellow metal traded as high as at Rs 24,739 per 10 grams on the MCX.

 

Jaypee Infratech slips as Q1 net profit drops 43% on weak sales

 

   By GuruvaishnaviJaypee Infratech Ltd., a local infrastructure development and real estate company, slipped after fiscal first quarter net profit dropped 43.2% on weak sales and higher finance costs.

  Net profit fell to Rs 260.9 million in the three months ended Jun 30 compared to Rs 459.6 million in the corresponding period a year earlier, Jaypee Infratech said in a statement to the stock exchanges on Thursday after market hours.

  The company's net sales slipped 27% to Rs 5.13 billion in the Apr-Jun period while finance costs climbed 9% to Rs 2.3 billion in the quarter from Rs 2.11 billion a year ago.

  Other income of the company declined 72% to Rs 10.5 million in the first quarter.

  At 10:50AM, Jaypee Infratech slipped 6% to Rs 14.85 on the Mumbai stock exchange. 

Crude may snap 2-day fall Fri lower US inventories, short-covering

  Crude oil prices are likely to snap two-day fall in opening session Fri on falling United States stockpile and as investors may cover short positions at lower level, analysts said.

  "Lower US inventories and lower level buying which will push the prices," 

 US oil inventories rose by 2.4 million barrels to 459.6 million barrels for week ended Jul 31 against analysts' expectation for an increase by 1.1 million barrels, data by American Petroleum Institute (API) showed.

  US oil inventories rose by 4.2 million barrels to 463.9 million barrels for week ended Jul 31 against analysts' expectation for an increase by 1.2 million barrels, data by Energy Information Association (EIA) showed.

  Crude oil prices were also supported on short-covering after prices fell to over four-month low, analysts said.

  Domestic crude oil prices fell by more than 3% to Rs 2,847 per barrel in past two straight trading sessions, its lowest level since Mar 19 on weak demand from global markets and increasing supplies from OPEC, analysts said.

  Crude oil may also be supported after United States jobless claims dropped indicating improving job scenario in the world's biggest economy.

  Jobless claims came at 270,000 for the week ended Jul 31 lower than analysts' estimate of 273,000 and 267,000 a week ago, a government data showed.

  West Texas Intermediate, the US benchmark, for September delivery slumped1.09% to $44.66 a barrel on the New York Mercantile Exchange Thursday.

  Brent, European benchmark for September contract fell 0.14% to $49.52 per barrel, on the London-based ICE Futures Europe Exchange Thursday.

  Crude oil for August delivery fell 1.45% to Rs 2,847 per barrel, at the closing of trades Thursday on Multi-Commodity Exchange (MCX).

  Crude oil prices for August delivery are likely to find support at Rs 2,787 per barrel and resistance at Rs 2,925 per barrel today on Multi-Commodity Exchange (MCX).

Seen flat ahead of NFP data; Q1 earnings, parliament session eyed

 

  Indian shares are expected to open lower ahead of United States nonfarm payroll data which may give Federal Reserve's stance on interest rate hike amid parliament session and earnings eyed.

  "Indian markets are expected to open negative tracking SGX Nifty," Angel Broking said in a report.

  A government data will release employment data and unemployment rate data later today.

  United States jobless claims dropped indicating improving job scenario in the world's biggest economy.

  Jobless claims came at 270,000 for the week ended Jul 31 lower than analysts' estimate of 273,000 and 267,000 a week ago, a government data showed.

  On Tuesday, Dennis Lockhart, Federal Reserve President of Atlanta expressed his support for an interest rate hike in September.

  Lockhart, a voting member of Federal Open Market Committee this year, said to Wall Street Journal that it would take 'significant deterioration' in the United States economy for him not to support a September rate hike.

  In its latest policy review last month, the central bank reiterated its resolve to hike rates later this year as the economy was poised for expansion and labour market was expected to improve further. A pick-up in US economy, the world's biggest, augurs well for emerging market especially for exporting companies.

  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'.

  Locally, investors will keep close watch on key earnings by apex companies and progress of parliament session.

  Mahindra & Mahindra, Tata Motors, Bharat Heavy Electricals, Grasim, Sobha and others will unveil their first quarter earnings later today.

   Nifty Put Call Ratio and Open Interest have increased to 1.50 from 1.10.

Rise in the ratio may be due to increase in Put Option of 8,200 and decrease in Call Option of 8,500.

  Put Option of 8,500 and Call Option of 8,700 are highest number of contracts traded.

  On Thursday, India's benchmark index, the S&P BSE Sensex rose 0.42% to 28,343.16 on the Mumbai stock exchange.

   The 50-share Nifty gained 0.044% to 8,605.15 on the National Stock exchange.

  Asian markets traded mixed with Hong Kong's Hang Seng index climbing 0.74% to 24,556.76 and Singapore's Straits Times index gaining 0.17% to 3,196.66.

  China's Shanghai Composite index dropped 0.88% to 3,662 and Japan's Nikkei fell 0.28% to 20,606.74.

  Nifty futures for August dropped 0.28% to 8,589.50 in Singapore.   

   Overseas investors net bought Rs 4.48 billion worth local shares Thursday, provisional data from the stock exchanges showed.

Fluctuate Fri on strong US jobs data; NFP data, Q1 earnings eyed

 

  Indian shares fluctuated in opening trades Friday as investors worried amid strong United States jobless claims data amid caution ahead of first quarter earnings of heavyweight companies.

  United States jobless claims dropped indicating improving job scenario in the world's biggest economy.

  Jobless claims came at 270,000 for the week ended Jul 31 lower than analysts' estimate of 273,000 and 267,000 a week ago, a government data showed.

  Meanwhile, investors also remained on the sidelines ahead of the first quarter earnings of apex companies including Tata Motors and Mahindra and Mahindra Ltd.

  At 9:30AM, India's benchmark index, the S&P BSE Sensex declined 0.11% to 28,320.33 on the Mumbai stock exchange. The measure opened at 28,327.11 compared to previous close of 28,298.13.

   The 50-share Nifty slipped 0.01% to 8,588.90 on the National Stock exchange. The measure opened at 8,580.80 compared to previous close of 8,588.65.