Tag: Oil prices

Castrol India drops over 2 pct as promoter BP sells stake

Castrol India drops over 2 pct as promoter BP sells stake

19/05/2016 11:42

Shares of Castrol India fell over 2 per cent on Bombay Stock Exchange (BSE) after British Petroleum, the promoter of the company, sold 7 per cent stake in the company. The stake sale is worth Rs 2,000 crore or USD 287 million at Rs 355-Rs 385.5 a share.

The share sale took place on the bourses in six block deals with 7 per cent equity stake being sold for USD 191 million with BP holding the right to sell additional 3.5 per cent equity share for USD 96 million. Reacting to the news, shares of the company dropped 2.56 per cent to Rs 375.40 a piece on BSE. Shares of the company dipped 2.21 per cent to Rs 376.75 a piece on National Stock Exchange.

Meanwhile, the broader benchmark BSE Sensex was trading at 25,622.61, down 82 points, or 0.32 per cent at 11.30 hours.

Advertisements

Limited supplies lift Mentha oil futures by 1.75 pct

02/05/2016 14:41

Mentha oil prices rose by 1.75 per cent on Monday at the Multi Commodity Exchange (MCX) due to tight stocks position in the physical market due to restricted arrivals from producing belts. At MCX, Mentha oil futures for May 2016 contract, at MCX, were trading at Rs. 878.50 per kg, up by 1.75 per cent after opening at Rs. 868.90 against the previous closing price of Rs. 863.40. It touched the intra-day high of Rs. 886.70 till the trading. (At 2.40 PM today).

Sentiment improved further as traders engaged in creating positions on account of good demand from consuming industries and lower arrivals from Chandausi in Uttar Pradesh.

About 80 per cent of the crop in India comes from Uttar Pradesh (Rampur, Moradabad, Bareilly, Barabanki and Badaun) and the balance 20 per cent from Punjab, Himachal Pradesh and Haryana.

The Reason Global Banks are Selling Off

The Reason Global Banks are Selling Off

With another trading session comes another bloodbath for the banks. In the month of January, global share markets seemed to be at the mercy of the change in the oil price. In fact, the markets were closely monitoring the course followed by oil prices. In the month of February, the financials have gained more importance.

A rough session with the European investors showed that Deutsche Bank is yielding 9.5%. This in turn is dragging the German DAX index down by almost 3.3%. Wall Street took its hint from Europe and eventually the American bank stocks crumbled down. Goldman Sach suffered a fall of 7.5 percent and Morgan Stanley toppling over 6%. Thereby, the four big banks of America collapsed by 3% in the morning trade with the investors bracing up to sell off the banks.

Profitability of Banks in Europe

20% of the bank stocks have been shed this year. However, this is much more than bad debts, emerging market jitters and tumbling energy prices. Exceptional low interest rates in Europe are the cause behind the serious profitability crisis of the banks. The profit that they make on the loans is also slashed when the interest rate falls down to 0%. It seems that this monetary policy is going to stick around for some time. Investors are worried that these banks might not even be able to repay back their loans. The realtors have come to terms with the reality that negative are not going to help the profitability of the bank.

Oil Residue

Most of the banks have invested heavily in the large projects of oil. As the prices of oil slumped down, several companies that were behind the project crashed. As per the list complied by Hanes and Boone, the Houston law firm, about 42 companies of the United States have been bankrupted in the beginning of the year 2015. It is more likely that others will follow.

With oil price being the lowest in the last 12 years, banks like JPMorgan Chase, Citigroup and Well Fargo are stuck with huge loans in the energy sector and are hoarding money to cover up for the potential loss in their gas and oil loans.

The Absence of Liquidity

With US Federal Reserve putting an end to the quantitative easing program in the year 2014 and particularly after it began lifting the interest rate in December 2015; the liquidity in the financial market has been drying up. The new regulatory and the capital requirements that had been carried out restricted the bank trading activity and also cut down the number of rooms the banks appeared to have in their balance sheet to offer to the liquidity market. All of this was due to the fall in the commodity prices that led to the severe sell-offs in the potential market and also high-yield debt. This consecutively caused the shift of the liquidity risk to the buy-side from the bank.

Sovereign Funds

The sovereign wealth funds of the nations that produce oils are dragging out money from the market to fill the shortfalls in their budget that have been created by cheap oil. The fiercely selling asset is setting off the oil prices.

Sensex trades higher, Up nearly 500 points; FMCG shares gain

Sensex trades higher, Up nearly 500 points; FMCG shares gain

01/03/2016 10:38

The Indian benchmark was trading in green in the morning session of day’s trade as a result of rise in FMCG stocks led by ITC followed by Globus Spirits, Ess Dee Aluminium, Usher Agro and Advanta. Shares of ITC were trading nearly 8 per cent higher on the National Stock Exchange (NSE). The stock of cigarettes makers touched a 52-week low on Monday in intra-day trade, following the increase in excise duty on cigarettes in the Union Budget. The Union Budget announced an increase in additional excise duty (AED), which forms a very small portion of the overall excise duty on filter cigarettes while kept the Basic Excise Duty (BED) unchanged for FY17.

At 10:23AM BSE SENSEX was at 23502.86, up by 500.86 points or by 2.18 per cent while the NSE Nifty was at 7137.55, up by 150.5 points or by 2.15 per cent.

The BSE MIDCAP was at 9704.77, up by 129.67 points or by 1.35 per cent while the BSE SMLCAP was at 9709.1, up by 160.77 points or by 1.68 per cent.

Shares of BEML were trading higher after the company announced that it has bagged order valued at Rs 900 crore for the supply of metro coaches to Kolkata East-West Metro Line.

The top gainers of the BSE Sensex pack were ITC Ltd. (Rs. 318.80,+7.78 per cent), ICICI Bank Ltd. (Rs. 200.00,+5.26 per cent), GAIL (India) Ltd. (Rs. 316.80,+4.02 per cent), Hero MotoCorp Ltd. (Rs. 2586.50,+3.47 per cent), Maruti Suzuki India Ltd. (Rs. 3350.50,+3.33 per cent), among others.

The top losers of the BSE Sensex pack were Oil And Natural Gas Corporation Ltd. (Rs. 192.00,-1.08 per cent), Hindustan Unilever Ltd. (Rs. 826.00,-0.46 per cent), Mahindra & Mahindra Ltd. (Rs. 1224.00,-0.23 per cent), Housing Development Finance Corporation Ltd. (Rs. 1059.50,-0.19 per cent), Coal India Ltd. (Rs. 311.00,-0.06 per cent), among others.

The Market breadth, indicating the overall strength of the market, was strong. On BSE, out of total 1940 shares traded, 1506 shares advanced, 372 shares declined while 62 were unchanged.

Among the sectoral indices on BSE, BSE_FMCG index was at 7372.92, up by 258.47 points or by 3.63 per cent led by ITC Ltd. (Rs. 318.80,+7.78 per cent), Globus Spirits Ltd. (Rs. 54.00,+6.30 per cent), Ess Dee Aluminium Ltd. (Rs. 134.90,+4.98 per cent), Usher Agro Ltd. (Rs. 28.50,+4.59 per cent), Advanta Ltd. (Rs. 403.00,+4.28 per cent).

Dec IIP indicates industrial recovery is still fragile: Ind-Ra

16/02/2016 12:04

The Index of Industrial Production (IIP) grew negative 1.3 per cent in December 2015, as against India Ratings and Research’s (Ind-Ra) forecast of 0.8 per cent. A second consecutive month of negative growth in factory output once again demonstrates that the industrial recovery is still uneven and fragile, said the rating agency.

“A part of the negative growth in December 2015 is an outcome of floods inundating Chennai, a major manufacturing hub for electronics and automotive,” Ind-Ra said in a report.

Of the USD 38 billion annual production of auto components in India, almost 25 per cent (USD9.5bn) comes from Chennai and its surrounding automotive belt. However, cumulatively during April-December 2015, at 3.1 per cent factory output growth is still higher than the 2.6 per cent growth recorded during the same period in 2014. Ind-Ra expects industrial gross value added to grow at 7.3 per cent in FY16.

Manufacturing growth came in at negative 2.4 per cent in December 2015, lowest since October 2014. After a relatively robust performance till October this fiscal, the manufacturing sector growth has dwindled. Although the government is trying to accelerate the manufacturing sector growth with emphasis on ‘Make in India’ and stepped up spending on infrastructure, it is still besieged with a number of challenges. A number of manufacturing sectors are still saddled with excess capacity due to lack of demand while few others are facing the brunt of cheap Chinese imports. A depreciating yuan and growth slowdown have resulted in an uptick of imports from China.

10 of the 22 industry groups in the manufacturing sector showed a contraction in December 2015. The capital goods sector contracted by 19.7 per cent in December 2015. This is the second consecutive month of negative growth in capital goods. However, cumulatively for April-December 2015, capital good is still showing growth of 1.7 per cent albeit lower than the 5.1 per cent recorded during the same period in 2014.

The Reserve Bank of India had earlier noted that the buoyancy witnessed in the capital goods sector till October 2015 is primarily from the demand generated from the projects stalled earlier, but have been revived lately. Clearly so long as greenfield investments do not pick up, sustaining capital goods growth will remain a challenge. Yet, Ind-Ra believes with government focus on increased capex in the sectors vital for growth – roads, railways, ports, rural roads etc, we may have to wait for more data to discern a trend.

Sensex trades higher; up over 450 points

Sensex trades higher; up over 450 points

15/02/2016 10:36

The Indian benchmark was trading in green in the morning session of day’s trade as a result of rise in metal stocks led by NMDC followed by Vedanta, Tata Steel, Jindal Steel & Power and Hindalco Industries. Shares of Ceat were up on the Bombay Stock Exchange after the company reported 27 per cent growth in consolidated net profit at Rs 113 crore for the quarter ended December 31, 2015 compared with Rs 89 crore in the same quarter last fiscal on the back of lower finance costs. Finance costs for the quarter under review decreased 39 per cent to Rs 19 crore compared with Rs 31 crore in the quarter ended December 31, 2014.

At 10:28AM BSE SENSEX was at 23446.77, up by 460.65 points or by 2 per cent while the NSE Nifty was at 7126.75, up by 145.8 points or by 2.09 per cent.

The BSE MIDCAP was at 9884.82, up by 269.58 points or by 2.8 per cent while the BSE SMLCAP was at 9994.33, up by 311.78 points or by 3.22 per cent.

The top gainers of the BSE Sensex pack were Tata Steel Ltd. (Rs. 237.85,+9.18 per cent), Adani Ports & Special Economic Zone Ltd. (Rs. 191.00,+6.88 per cent), State Bank of India (Rs. 163.00,+5.20 per cent), Larsen & Toubro Ltd. (Rs. 1098.45,+4.25 per cent), Lupin Ltd. (Rs. 1817.15,+3.78 per cent), among others.

The top losers of the BSE Sensex pack were Bharti Airtel Ltd. (Rs. 321.55,-1.14 per cent), among others.

The Market breadth, indicating the overall strength of the market, was strong. On BSE, out of total 2142 shares traded, 1713 shares advanced, 372 shares declined while 57 were unchanged.

Among the sectoral indices on BSE, BSE Metal index was at 6686.13, up by 353.7 points or by 5.59 per cent led by NMDC Ltd. (Rs. 87.65,+11.37 per cent), Vedanta Ltd. (Rs. 69.20,+9.32 per cent), Tata Steel Ltd. (Rs. 237.85,+9.18 per cent), Jindal Steel & Power Ltd. (Rs. 60.00,+8.21 per cent), Hindalco Industries Ltd. (Rs. 64.60,+5.90 per cent).

Market Outlook for February 10, 2016.

  • Indian equities are likely to witness a gap down opening today after a hefty sell off yesterday following weak global cues and SGX Nifty which was trading lower at 7,264.50, down by 63.5 points or 0.87% at 11:00 am Singapore time, a sign that Dalal Street may witness a bearish opening today.
  • On the Asian market front, while markets in China and Hong Kong remained closed for Lunar New Year holidays, Japan’s Nikkei 225 extended yesterday’s slide, falling over 2% as fears over market volatility pushed up the yen, raising concerns over Japan’s economic recovery.
  • Traders also turned cautious ahead of Fed Chair Janet Yellen’s testimony to the Congress on Wednesday in which she may offer some cues over when the Fed is likely to raise interest rates next.
  • Further, a plunge in crude oil prices which fell below USD 28 a barrel mark after the IEA forecast the global oil surplus would be larger than previously expected in the first half of 2016 was weighing on the sentiments.
  • Back home, investors focus will be on ACC and Ambuja Cements ahead of the quarterly earnings today.
  • Further, shares of Apollo tyres would remian in focus in today’s trade as the company reported 51.35% increase in consolidated net profit at Rs 278.5 crore for the third quarter ended December 31, 2015. Further, the net sales during the quarter stood at Rs 2,929.45 crore as against Rs 3,037.29 crore in the corresponding period of the previous fiscal.
Markets rebound; Sensex up nearly 200 points

Markets rebound; Sensex up nearly 200 points

21/01/2016 09:55

The Indian markets were trading on a positive note during the morning trading session mirroring strength among the Asian equities after the crude oil prices saw stability after touching fresh 2003 lows yesterday. The rally was broad-based across the board. Banks were contributing the most to the rise with Axis Bank displaying a stupendous rally post its Q3 results. Foreign Direct Investment flows into India nearly doubled in 2015 while the US emerged as the top host country for FDI last year, according to the report by UN’s trade agency.

At 9:41AM BSE SENSEX was at 24247, up by 184.96 points or by 0.77 per cent while the NSE Nifty was at 7386.4, up by 77.1 points or by 1.05 per cent.

The BSE MIDCAP was at 10160.57, up by 128.12 points or by 1.28 per cent while the BSE SMLCAP was at 10481.63, up by 170.46 points or by 1.65 per cent.

The top gainers of the BSE Sensex pack were Axis Bank Ltd. (Rs. 407.90,+4.95 per cent), ICICI Bank Ltd. (Rs. 231.00,+3.06 per cent), Tata Steel Ltd. (Rs. 237.30,+2.42 per cent), Bharat Heavy Electricals Ltd. (Rs. 145.55,+2.03 per cent), State Bank of India (Rs. 176.95,+1.87 per cent), among others.

The top losers of the BSE Sensex pack were Hindustan Unilever Ltd. (Rs. 789.40,-0.89 per cent), ITC Ltd. (Rs. 306.35,-0.87 per cent), Mahindra & Mahindra Ltd. (Rs. 1142.60,-0.69 per cent), Oil And Natural Gas Corporation Ltd. (Rs. 211.70,-0.66 per cent), Coal India Ltd. (Rs. 296.80,-0.39 per cent), among others.

The Market breadth, indicating the overall strength of the market, was strong. On BSE, out of total 1727 shares traded, 1387 shares advanced, 289 shares declined while 51 were unchanged.

Among the sectoral indices on BSE, BSE_Bankex index was at 17326.25, up by 409.11 points or by 2.42 per cent led by Axis Bank Ltd. (Rs. 407.90,+4.95 per cent), IndusInd Bank Ltd. (Rs. 895.05,+3.24 per cent), YES Bank Ltd. (Rs. 664.60,+3.09 per cent), ICICI Bank Ltd. (Rs. 231.00,+3.06 per cent), Bank of Baroda (Rs. 124.15,+2.39 per cent).

Most Asian markets were trading in the green. Hong Kong’s Hang Seng was up 0.73 per cent, China’s CSI 300 index rose 0.65 per cent, while Japan’s Nikkei and Korea’s Kospi were up half-a-per cent each.

For more such news and updates on Industry, Economy & Stock market visit:http://www.csbhouse.com
What Lies In Store for the Global Economy In 2016

What Lies In Store for the Global Economy In 2016

Every New Year brings with it various economic events which tend to catch people by surprise. No matter how carefully you consider the data presented, it is not always possible to make an accurate prediction. For example, there weren’t many people who foresaw the slump in oil prices that began in the 2014 summer. Neither were they able to predict the sharp fall of the Chinese economic growth.

 

However, there are still other events that you can make a reasonable prediction based on careful consideration of economic data. As such, here are a few economic trends that might come to the fore in 2016 and thereby shape global economy.

 

The State of the Chinese Economy

For the last few years, China kept stunning the world with its economic growth rates. Sometimes, they were three times more than what the United States enjoyed. Of course, the capital investment directed by the government had a major role to play in this matter. When the global financial crisis stuck, China remained more or less unfazed thanks to the huge boost provided by the government

Unfortunately, most of this investment was made possible by growing the debt instead of profits. Now, China will have to shift the wealth from the powerful to the common Chinese household. Suffice to say, that will neither be politically easy nor fast. This trend is likely to be a recurring theme in 2016 and more.

 

The American Economy will affect the Global Economy

It may come as a surprise to many but it is a fact that the performance of the US economy is currently the best in its class. After all, the rest of the developed world is experiencing a slower growth compared to America, especially with the decline that China is experiencing.

More importantly, the largest trade deficit in the world currently belongs to the United States. In other words, the other major economies in the world such as China, Japan and Germany are depending on the demand in the United States in order for their economies to experience growth. This situation is likely to continue through 2016 where the global economy leans on the consumer in America.

 

The Indian Economy Can Experience Major Growth

The International Monetary Fund believes that the Indian economy is poised to grow at a rate of 7.3% in 2016. That will be faster than even what the Chinese can muster up with the inflated numbers produced by its government. It is likely that 2016 will become a turning point. India may not be as technologically advanced as China but it may turn out to become the fastest growing economic in the large sector.

India has also been affected by the same issues that have slowed down economies in other emerging markets. However, demographics have proven to be India’s advantage. In the coming decade, the Indian workforce may grow up to be bigger than even the Chinese.

 

Of course, nothing can be said to be certain about the future of the global economy. Europe might end up on the edge of an economic crisis, for example. One can only hope for the best.