Gold: Rural gold demand likely to rise this Akshaya Tritiya

In the spot market, gold was trading at Rs 32,000 per 10 gram.

ET Bureau | Apr 11, 2019, 07.59 AM IST

– TFM News

Kolkata: Gold sales in India’s villages might climb this Akshaya Tritiya as targeted farm welfare programmes are expected to help enhance discretionary spending on the precious metal, traditionally the preferred store of value in the hinterland.

Analysts believe that financial assistance under the PM Kisan Samman Nidhi programme should leave farmers with some surplus cash, which might be used to buy gold in the festive season. Rural India’s preferred stores of value are gold and land. “We can expect higher rural demand for gold because of the recent populist measures by the Centre and various state governments, which have boosted farm and rural income,” said Tapan Patel, senior analyst (commodities) at HDFC Securities.

Akshay Tritiya falls on May 7. Rural India buys gold ahead of Akshay Tritiya on receipt of sale proceeds from the wintersown crop. Local gold prices, therefore, usually remain firm in this season.

“Gold prices could go up depending on the movement of US interest rates and the overall condition of the US economy…. Gold is likely to be priced about $1,300-1,320 per troy ounce in the short term,” said Shekhar Bhandari, senior vicepresident and business head (global transaction banking and precious metals), Kotak Mahindra Bank.

“Also, domestic gold price depends on the level of the rupee. Keeping all these factors in mind, gold may either become dearer or cheaper by Rs 500 per 10 gm.”

In the spot market, gold was trading at Rs 32,000 per 10 gram. Prices trended lower on Wednesday as the dollar firmed against the rupee, although the metal remained near a twoweek peak hit in the previous session. Internationally, spot gold was down 0.1 per cent at $1,302.36 per ounce. US gold futures slipped 0.2 per cent to $1,306 an ounce. Equities slipped on mounting concerns over global growth.

“…global growth concerns on Brexit and the trade war are bullish factors for higher international gold prices, which would limit the downside in India,” Patel said.

“We expect gold prices to trade higher in the medium term, with resistance at Rs 32,800. Above this level, prices may head toward Rs 34,450, with strong support at Rs 31,500.”

Source

TFMNews | The Future Markets

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India announced seven-phase national elections to be held in April and May

India announced seven-phase national elections to be held in April and May

The number of registered voters stood at around 900 million, Sunil Arora said. This is around 84.3 million more than in the 2014 elections, he said, adding that there are around 15 million new voters in the 18-19 years age group this time.

TFM News

Sunil Arora announces dates for the general elections, in New Delhi on March 10.Photographer: T. Narayan/Bloomberg

The election commission of India (ECI) on March 10th declared dates for a seven-phase national elections.

The polls to form the 17th Lok Sabha, the lower house of parliament, will be held on April 11, 18, 23, and 29, and May 06, 12, and 19, the ECI has said. The results of the elections will be declared on May 23, Sunil Arora, the chief election commissioner, said at a media briefing in New Delhi, the national capital.

Phase Date

Constituencies

I April 11 91 constituencies across 20 states (Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Jammu & Kashmir, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Sikkim, Telangana, Tripura, UP, Uttarakhand, West Bengal, Andaman & Nicobar, Lakshadweep)
II April 18 97 constituencies across 13 states (Assam, Bihar, Chhattisgarh, Jammu & Kashmir, Karnataka, Maharashtra, Manipur, Odisha, Tamil Nadu, Tripura, Uttar Pradesh, West Bengal, Puducherry)
III April 23 115 constituencies across 14 states (Assam, Bihar, Chhattisgarh, Gujarat, Goa, Jammu & Kashmir, Karnataka, Kerala, Maharashtra, Odisha, Uttar Pradesh, West Bengal, Dadra & Nagar Haveli, Daman & Diu)
IV April 29 71 constituencies across 9 states (Bihar, Jammu & Kashmir, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Uttar Pradesh, West Bengal)
V May 06 51 constituencies across 7 states (Bihar, Jammu & Kashmir, Jharkhand, Madhya Pradesh, Rajasthan, Uttar Pradesh, West Bengal)
VI May 12 59 constituencies across 7 states (Bihar, Haryana, Jharkhand, Madhya Pradesh, Uttar Pradesh, West Bengal, National Capital Territory of Delhi)
VII May 19 59 constituencies across 8 states (Bihar, Jharkhand, Madhya Pradesh, Punjab, West Bengal, Chandigarh, Uttar Pradesh, Himachal Pradesh)

Of the 545 seats in all, two are reserved for the Anglo-Indian community, to which the president of the country nominates members.

The number of registered voters stood at around 900 million, Arora said. This is around 84.3 million more than in the 2014 elections, he said, adding that there are around 15 million new voters in the 18-19 years age group this time.

There will be approximately one million voting booths during these elections and around 11 million personnel who will be part of the electoral machinery.

“VVPATs (voter verifiable paper audit trail) will accompany EVMs (electoral voting machines) in all polling booths this election,” Arora said, referring to the EC’s chosen method of providing feedback to voters.

The announcement of the election dates also immediately brings into effect the ECI’s model code of conduct. essentially rendering the Modi government lame duck. This code is a set of guidelines and rules to ensure free and fair conduct of elections and the campaigning preceding it. The code will remain effective till the day the results are announced. These guidelines includes a bar on the use of religious and caste sentiments to seek votes and announcement of fresh projects and schemes by the government.

“Any violation will be dealt with in the strictest manner,” Arora said.

There will be approximately one million voting booths during these elections and around 11 million personnel who will be part of the electoral machinery.

“VVPATs (voter verifiable paper audit trail) will accompany EVMs (electoral voting machines) in all polling booths this election,” Arora said, referring to the EC’s chosen method of providing feedback to voters.

The announcement of the election dates also immediately brings into effect the ECI’s model code of conduct. essentially rendering the Modi government lame duck. This code is a set of guidelines and rules to ensure free and fair conduct of elections and the campaigning preceding it. The code will remain effective till the day the results are announced. These guidelines includes a bar on the use of religious and caste sentiments to seek votes and announcement of fresh projects and schemes by the government.

“Any violation will be dealt with in the strictest manner,” Arora Said.

Source: Quartz India

– TFM Watch

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India State-run electricity distribution companies (discoms) posted losses over Rs.15,000 crore in the first half of FY19

India State-run electricity distribution companies (discoms) posted losses over Rs.15,000 crore in the first half of FY19

  • The UDAY schem has gone under a cloud as there is stagnation in the improvement of different operational parameters.
  • Losses of the discoms in Telangana, Tamil Nadu, Madhya Pradesh, Assam and Andhra Pradesh dramatically increased during first half of FY19 throughout the earlier year first half.
Financial Express – TFM Watch

energy.jpg

State-run power conveyance organizations (discoms) detailed budgetary losses of over Rs.15,000 crore in the first half of this financial – as much as the losses brought about by them during the entire last year – flagging an inversion of a declining pattern since the UDAY plot for these substances’ recovery was propelled in November 2015 and a conceivable unravelling of the plan itself.

Losses of the discoms in Telangana, Tamil Nadu, Madhya Pradesh, Assam and Andhra Pradesh dramatically increased during H1FY19 over earlier year first half, as indicated by an ongoing influence service report checked on by FE. Under UDAY, monetary losses of the discoms in 27 states have tumbled to Rs.15,049 crore in FY18 from Rs.36,905 crore in FY17 (Rs.51,480 crore in FY16), on account of the funds made through lower intrigue costs.

The UDAY plan’s viability goes under a cloud likewise in light of the fact that there is inactivity as for the various operational parameters it was intended to improve. The total specialized and business (AT&C) misfortunes – power units lost by virtue of pilferage – of discoms in 26 states and UTs were at 19.8% toward the finish of December 2018, down just 0.7 rate point from the dimension recorded a year sooner.

The objective to reduce these losses to 15% before the finish of March 2019 is plainly going to be missed by a huge edge. Increment in power buy and establishment costs, low gathering from remotely found shoppers (particularly after the family unit charge drive under the Saubhagya plot), inadequate tax climbs, moderate endowment distributions from the individual state governments and rising levy from the administration offices have been the fundamental explanations behind the plan losing energy.

State administrations of 16 states have taken over around Rs.2.32 lakh crore obligation of their discoms according to UDAY conditions, bringing about a bringing of the financing costs down to 7-8.5% from around 11-12%. Reserve funds through lower control buy cost, foundation cost and duty defense and improvement in charging proficiency additionally added to the misfortune decrease. Be that as it may, these endeavors are believed to invert with expanding entrance of power.

Remarkable payment from various bureaus of state governments to the discoms have expanded 21% every year to Rs.40,580 crore during H1FY19. The greatest slow pokes on this front are Uttar Pradesh (duty of Rs.12,166 crore), Maharashtra (Rs.6,084 crore), Telangana (Rs.4,143 crore), Andhra Pradesh (Rs.4,143 crore) and Chhattisgarh (Rs.2,011 crore).

Power controllers not raising force levies as per the direction concurred while marking into UDAY has likewise added to the discoms’ weight. Just 17 states have expanded their taxes for FY19 contrasted with 22 for FY18.

Source: Financial Express

– TFM Watch

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News should not be missed; Business Deals and Corporate Actions

Business Deals, Company Expansions, Stake Acquisitions and Corporate Actions – 25Th Feb – 27Th Feb

Prakash Poojary, TFM News

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Private placement norms allow an unlisted company to privately sell shares to a maximum of 49 people

HG Infra bags an EPC order worth Rs..189.49 crore

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BEML secures contract valued around Rs.400 crore

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India: DAC Approvs purchase of defence equipment worth Rs.2,700 cr ($378.7Mn)

India: DAC Approvs purchase of defence equipment worth Rs.2,700 cr ($378.7Mn)

The meeting of the council, the highest decision-making body for defence purchase, was chaired by Defence Minister Nirmala Sitharaman.

PTI – TFM Watch

defence-miniter.jpg

The Defence Acquisition Council (DAC) on Wednesday approved acquisition of defence equipment for about Rs.2,700 crore ($378.7Mn), official sources said.

The meeting of the council, the highest decision-making body for defence purchase, was chaired by Defence Minister Nirmala Sitharaman.

It granted approval for procurement of three cadet training ships for the Indian Navy, which would be utilised to provide basic sea training for officer cadets including women officer undertrainees.

The ships would be capable of undertaking hospital ship duties, providing humanitarian assistance and disaster relief, undertaking search and rescue (SAR) missions and non-combatant evacuation operations.

Source: PTI

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Iran buys Indian raw sugar for the first time in 5 years

Iran buys Indian raw sugar for the first time in five years

Iran is buying the sugar from India to use up the rupees it has received for oil sales to India, the world’s third-largest oil user.

TFM Watch

RawSugar.jpg

(Reuters) Indian traders will export raw sugar to Iran for March and April delivery, five trade sources said, the first Indian sugar sales to Tehran in at least five years as Iran struggles to secure food supplies under sanctions imposed by the United States.

Under the sanctions, Iran is blocked from the global financial system, including using U.S. dollars to transact its oil sales. Iran agreed to sell oil to India in exchange for rupees but it can only use those rupees to buy Indian goods, mainly items it cannot produce domestically.

Trading houses have contracted to export 150,000 tonnes of raw sugar for shipments arriving in March and April at $305 to $310 per tonne on a free-on-board basis, the trade sources told Reuters this week.

“Oil payments have piled up in UCO Bank. Iran is keen to utilize the payments to buy sugar and other food items,” said one of the sources, a Mumbai-based dealer with a global agricultural trading firm, who asked not to be identified as he was not authorized to speak to media.

Iran’s state buyer, the Government Trading Corporation (GTC), purchased the sugar to ensure ample supplies in the coming months, said a second source, a Mumbai-based exporter. Iran usually buys sugar from Brazil, the world’s biggest producer and exporter of the sweetener.

Cargill, Bunge and other global traders have halted food supply deals with Iran because the new U.S. sanctions have disrupted the banking systems used to settle payments, industry and Iranian government sources said in December.

Iran is paying a premium of as much as $7 per tonne compared to other buyers as traders are anticipating a risk of a delay in payments, said a third source, also based in Mumbai, who did not want to be identified because of the sensitive nature of the U.S. sanctions.

The exports will help reduce swelling sugar inventories in India, the world’s second-biggest sugar producer, but could weigh on global prices that have risen 8.9 percent so far in 2019 to 13.1 cents per pound as of Monday.

Source: Reuters

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Saudi prince foresees ‘good things’ with India and agrees on need to increase pressure on countries supporting terror

Modi-Salman.jpg
Saudi Crown Prince Mohammed bin Salman attends a meeting with Prime Minister Narendra Modi at Hyderabad House in New Delhi on February 20, 2019.  | Photo Credit: REUTERS

Saudi prince foresees ‘good things’ with India on visit overshadowed by Kashmir

Reporting by Sanjeev Miglani; Editing by Nick Macfie

NEW DELHI (Reuters) – India rolled out the red carpet for Saudi Arabia’s Crown Prince Mohammed bin Salman on Wednesday at a time when it is trying to build diplomatic support against Pakistan following a militant attack in the disputed region of Kashmir.

The crown prince this week was given a lavish welcome in Pakistan where the two sides signed memoranda of understanding valued at about $20 billion to help prop up Pakistan’s economy.

But the Kashmir attack threatens to overshadow the India trip as New Delhi seeks to drum up support against Pakistan. India will forcefully raise the issue of cross-border terrorism during the talks with the Saudi delegation later in the day, officials said.

Pakistan says it only gives diplomatic support to the Kashmiri people in their struggle for self-determination.

The crown prince hailed the relationship with India, a top consumer of Saudi crude oil, after a ceremonial welcome at the imposing red sandstone presidential palace.

“Today we want to be sure that this relation is maintained and improved for the sake of both countries. With the leadership of the president and the PM, I am sure we can create good things for Saudi Arabia and India,” he said in brief remarks before heading into talks with Indian leaders.

The prince is also expected to visit China during a tour that will be his first through the region since the storm over the murder of Jamal Khashoggi, a Washington Post columnist, at the Saudi consulate in Istanbul in October.

While the killing of Khashoggi, a known critic of the crown prince, has strained Saudi Arabia’s ties with the West and battered the prince’s image abroad, both India and Pakistan had expected a scaling up of investments during his trip.

Indian Prime Minister Narendra Modi, who broke with government protocol to welcome the crown prince at the airport on Tuesday, has vowed a strong response to the bombing of a security convoy in Kashmir in which 40 paramilitary police were killed in an attack claimed by a Pakistan-based militant group.

Pakistan has said it would retaliate if attacked.

India, Saudi Arabia agree on need to increase pressure on countries supporting terror: Modi

The Hindu News

Supporters of terrorism and safe havens should face all possible pressure from the international community, said Prime Minister Narendra Modi on Wednesday, welcoming Saudi Crown Prince Mohammed Bin Salman Abdulaziz Al Saud to India.

Mr. Salman arrived in New Delhi on February 19 night, a day after concluding his high-profile tour of Pakistan and going back to Riyadh. In a special gesture, Mr. Modi received Mr. Salman at the airport.

“In Pulwama, we saw an instance of heinous terrorism and according to us terrorists and supporters of terrorism should face all out pressure from the international community,” said Prime Minister Modi talking about the attack against CRPF personnel, at a press conference that he addressed along with with the Saudi Crown Prince.

In his press statement, Mr. Salman said his country would cooperate with India in tackling terrorism, including intelligence sharing.

Mr. Salman said that ties with India was in the blood of the Saudi people and that his country will invest around $100 billion in India. “We have common goals in the energy, and agriculture and we will diversify this spirit to other sectors. We have also diversified to petrochemical sector in India. Since 2016 we have invested $44 billion in India,” he said.

The visit is the first from the Saudi dignitary who is known for bringing in a different vision to the oil rich economy which is a crucial energy supplier to India. Prime Minister Modi described Saudi Arabia as one of the most valuable strategic partners of India

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