Posts Tagged ‘vegetables’

Weekly Update 23rd – 27th August 2010

The buying continued in the Indian markets and helped broader indices to surge to two and a half year highs. While negative sentiments in the global markets led to profit booking with major markets closing in the negative on weekly basis. The Federal Reserve Bank of Philadelphia’s general economic index dropped to the lowest reading since July 2009 to minus 7.7 this month, signaling contraction in the area covering eastern Pennsylvania, southern New Jersey and Delaware.

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The unemployment claims unexpectedly shot up by 12,000 to 500,000 last week more than the economist estimates. U.S. recovery is fading and European governments would struggle to reduce their deficits are the worrisome factors that are lingering on in the investors mind. The producer price index in U.S. increased 0.2 percent following a 0.5 percent drop in June.

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Excluding food and energy costs it climbed 0.3 percent signaling that world’s largest economy may not face deflation moving with slower growth. China, the Emerging Market frontier that saw an unparallel growth in the past is facing threats of faltering demand for exports as U.S. and European consumers are cutting spending, rising wages and the risk of bad loans from record lending by banks in the past. Japan Economy saw an expansion of an annualized 0.4 percent in the quarter ending June pushing it into third place behind the U.S. and China.

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In India, with good monsoon season the prospects of harvest have improved and now it is widely believed that inflation would come down by the end of this quarter. The primary articles index rose 14.85% in the year to 7 August 2010, lower than previous week’s annual rise of 15.66%. The food price index rose 10.35%, lower than previous week’s annual rise of 11.4%, as prices of vegetables, potatoes and onions fell.

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Going forward the domestic market is expected to remain firm with the support of foreign investment.

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However, investors will continuously monitor the global developments after some of the recent disappointing data coming from U.S.markets. Trend of Indian Stock Markets is up though other world markets are coming under pressure especially the European and US markets. Dollar index is showing some strength which is giving jitters to commodities. But till the trend of our stock markets is up, one should be playing on the long side with a cautious approach. Nifty has support between 5400-5350 and Sensex between 18000-17800 levels.

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Gold has benefited from last few weeks as investors are escalating the insurance like metals in their portfolio. However, gold silver ratio is rising once again as silver is moving in a range due to falling base metals. With the looming weakness in various economies, gold may invite bulls further. After touching many week highs, base metals washed off their previous gain on unexpected drop in Philadelphia Fed survey and bad employment data. Now the pulse of base metals is likely to be guided by the outcome of housing and durable goods data of US this week. Weakness in equity market, swelling inventories, slow recovery may weigh on the crude prices further, which already hit six week low last week. Dollar gain against euro is dampening the commodities demand, compelling CRB index to trade range bound with bearish bias.

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Nevertheless, lower level buying cannot be denied in between.

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Equity Market News 7th – 11th June

Economy

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·Food inflation rose to 16.55% for the week ended May 22 on account of high prices of pulses, fruits and vegetables. Inflation increased by 0.32 percentage point from 16.23% in the previous week.

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Information Technology

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·Take Solutions entered into a strategic partnership with Reliance Life Sciences to supply its unique PharmaReady eCTD, SPL and PPM modules.

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Pharmaceutical

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·Aurobindo Pharma has received a final approval from the US health regulator for sale of Ceftazidime, used to treat respiratory infections, in the American market. The company has bagged the final approval from US Food and Drug Administration for two variants of the drug.

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·Ranbaxy Laboratories’ UK-based subsidiary is recalling a single lot of its drug Gabapentin, used in the treatment of nerve pain, from the UK market for updating mandatory safety information on them.

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·Lupin has received the US Food and Drug Administration’s approval for marketing and distributing Lamotrigine tablets, used for treating bipolar disorders, in American markets. The company has received approval for Lamotrigine tablets in 25 mg, 100 mg, 150 mg and 200 mg strengths.

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Paints

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·Asian Paints has signed a MoU with the Maharashtra government to set up a Rs 735 crore mega project for manufacturing paints and intermediates.

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Realty/ Construction

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·Ahluwalia Contracts India is looking for acquisition or tie-up with a specialised construction firm to help it become an integrated urban infrastructure company. The acquisition will enable the construction company to execute value-added construction projects, like developing multi-level parking and building concrete roads.

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·Jaiprakash Associates will invest around Rs 10,000 crore in the next three years to increase its annual production capacity to 50 million tonnes from a little over 20 million tonnes at present.

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·Lanco Infratech has received an order worth Rs 91.66 crore from the Airports Authority of India for construction of a terminal in Orissa. The scope of work includes construction of a new terminal building at Biju Patnaik Airport, Bhubaneswar.

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Power

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·NTPC Ltd, India’s top power producer, is set to buy controlling stake in a coal field in Australia in a deal valued at $1 billion to $1.5 billion.

·GVK Power & Infrastructure’s subsidiary has bagged a Rs 850 crore contract for building a highway in Rajasthan. GVK Developmental Projects Pvt Ltd, a wholly owned subsidiary of the company, has won the bid for four-laning a portion of the national highway.

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Capital Goods

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·State-run power equipments giant BHEL, engineering major Larsen & Toubro (L&T), and Russian firm Power Machines, among others have evinced interest in supplying to Jindal Power’s two thermal plants in Jharkhand. Jindal Power, a subsidiary of Jindal Steel and Power, is executing two supercritical power projects of 1,320mw at Dumka and 660mw at Godda in Jharkhand by 2014. Supercritical power projects are environment-friendly and energy-efficient.

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·Bharat Earth Movers (BEML) has signed a MoU with the Karnataka government at the Global Investors Meet here for establishing another manufacturing complex in the city.

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Textile

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·S Kumars Nationwide Limited (SKNL) has launched its new apparel brand ‘World Player’ in Kerala. World Player’s product range comprises of formal, casual and occasion wear designed to give the customer a more upmarket trendy look.

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Refineries

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·Indian Oil Corp bought 6 million barrels of West African and 1 million barrels of Libyan crude oil via tender for July and August including its first purchase of Nigerian grade Okono.

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Capital Goods

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·Bharat Forge had formed a JV with KPIT Cummins Infosystems to produce a hybrid engine technology, which will hit the market in six months.

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Food Price Index Rose 16.23%

Food price index rose 16.23 per cent in the year to May 15.

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The fuel price index climbed 12.08 per cent.

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Meanwhile, the speed of rise in food prices slackened from the previous week”s annual rise of 16.49 per cent.

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The fuel price inflation also slowed to 12.08 per cent from the previous week”s 12.33 per cent.

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The primary articles index was up 15.90 per cent, compared with the previous week”s annual reading of 16.19 per cent.

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Wholesale prices, however, eased in line with expectations to 9.59 per cent in April from a year earlier.

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This in turn provided further evidence that the RBI will hold off from raising interest rates at least until its next scheduled meeting in July.

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Earlier, Planning Commission Member Abhijit Sen stated that food inflation is likely to decrease to 4 to 5 % by November.

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This is from the current over 16 % after the arrival of Kharif (summer) crops.

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Meanwhile, he added that farm sector growth will be altered upwards to 0.2 % in 2009-10.

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This, however, is from the earlier estimate of minus 0.2 %.

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Prices have started falling from March after good Rabi arrival.

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Moreover, for some commodities such as onion and potatoes, the decline is very sharp.

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But, however, the overall prices are very high and after Kharif season, prices will commence to decline.

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He also said that it is quite possible food inflation will decline to 4-5 % by November this year.

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On the other hand, experts had predicted a decrease in food inflation with the arrival of Rabi crops in April.

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Mainly due to high prices of vegetables and fruits, food inflation carried on increasing and rose to 16.49 % for the week ended May 8.

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Prime Minister Manmohan Singh had expressed optimism that overall inflation would decline to 5-6 % by December.

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In addition, on farm sector growth, Sen said growth is expected to be 0.2 % in 2009-10.

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This is due to the upward revision in production in third advance estimate.

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In 2010-11, the farm sector growth is likely to be 5-6 % if met department forecast on monsoon comes true.

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Foodgrains production has been revised upwards to 218.19 million tonnes from 216.85 million tonnes quoted in the second advance estimate released in February.

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Wheat production is projected at a record 80.98 million tonnes in 2009-10.

Milk, Fruits and Pulses Raised Food Inflation to 17.70%

Higher prices of milk, fruits and pulses raised food inflation to 17.70% for the week ended March 27.

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This was due to the expectations that RBI may further tighten rates in its annual monetary policy on April 20.

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Meanwhile, food inflation in the previous week stood at 16.35%.

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The overall inflation for March is likely to cross the double digit mark.

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This is with prices of vital items increasing and fears of food inflation spreading to manufactured goods.

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The overall inflation, which includes variation in prices of food and non-food items, was 9.89 per cent in February.

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On an annual basis, pulses became dearer by 32.60 per cent, milk by 21.12 per cent, fruits 14.95 and wheat by 13.34 per cent.

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Moreover, on a weekly basis, the index for food articles rose by 0.9 per cent as fish marine, milk, fruits, masur and vegetables became costlier.

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In order to rein in inflation, the PM is holding a meeting of the core committee of Chief Ministers with representations from 10 states and senior Cabinet ministers.

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The core group of chief ministers comprises Andhra Pradesh, Assam, Bihar, West Bengal, Punjab, Gujarat, Haryana, Tamil Nadu, Madhya Pradesh and Chhattisgarh.

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Besides CMs, the other members of the committee are Finance Minister Pranab Mukherjee, Food and Agriculture Minister Sharad Pawar and Planning Commission Deputy Chairman Montek Singh Ahluwalia.

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General inflation has already surpassed RBI”s March end projection of 8.5 per cent.

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On the other hand, RBI governor D Subbarao had also said that the apex bank will carry on its exit from monetary stimulus policy to check high inflation and ensure sustainable growth.

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Earlier, according to the government data, released yesterday states the India”s Consumer Price Index (CPI) increased by 14.86 % in the month of February 2010 as against a year ago, which is lower than January”s annual growth of 16.22 %.

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During the month of February 2010, the CPI for Industrial Workers reduced by 2 points to 170.

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Also, India”s annual wholesale inflation rose to 9.89 % in February 2010 as compared to an increase of 8.56 % in January 2010 and 3.50 % against a year ago.

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The wholesale price inflation is more closely watched in India because it covers a higher number of products.

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The Wholesale Price Index (WPI) based inflation rate is rising quite sharply ever since it came out of the negative territory in September 2009.

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Stay Tuned for More Updates :)

Oil Prices Increased in Asian trade, Firmly Above $79

As rising US energy demand helped sustain markets on the last day of 2009, oil prices increased in Asian trade.

However, New York”s light sweet crude for February delivery, was up 50 cents to $79.78 a barrel while Brent North Sea crude for delivery in February gained 22 cents to $78.25.

Meanwhile, a second consecutive week of falling energy inventories in the US boosted prices while declining stockpiles indicated rising demand in the US.

The US Department of Energy (DoE) data showed crude inventories declining by 1.5 million barrels in the week ending December 25.

On the other hand, due to increased demand resulting from cold winter weather gripping the US, distillates, which include heating fuel and diesel decreased 2 million barrels.

In Other major Commodities Updates, we have news of High potato, pulses rates push food inflation to 19.83%.

High potato, pulses rates push food inflation to 19.83%

Due to rise prices of potato and pulses, food inflation increased to 19.83% for the week ended December 19.

However, over the last year, potato prices more than doubled while pulses became costly by over 41% and onion rates rose by 40.75%.

Prices of vegetables rose by 46.7% while fruits became dearer by 10.35%.

Meanwhile, with bajra and wheat becoming costlier by 12% and 4% respectively, the rise in prices was significant on a weekly basis also, while rates of rice increased by 2%.

Similarly, barley and urad rose by 1% each while prices of fruit and vegetables declined by 5 per cent on weekly basis.

The food inflation had declined by 1.30% points to 18.65 per cent during the second week of December.

On the other hand, among the non-food articles, raw rubber turned expensive by 3% and rape and mustard seed by 1% while the fuel index remained unchanged.

Price rise a concern but downward trend noticed: Pranab

Union Finance Minister Pranab Mukherjee admitted that price rise has been a cause of concern for the Government but a downward trend has been noticed during the past fortnight.

However, he did not deny that certain essential commodities are having high prices but fortunately for the last one-and-a-half weeks they have been noticing a downward trend, though it will take some more time.

Meanwhile, noting that prices of cereals, fruits and vegetables have been on the higher side, he said if the shortage in supply was not made up through import or other measures, then the prices would go up.

For example pulses, the rate has been increased substantially while our total requirement is 18 million tonne, the total production is 14 MT, a huge shortfall of 4 MT.

On the other hand, he said that unfortunately, shortfall in sugar has happened at a time when the international production has also gone down while prices too remain high.