Gold Cataract As A Result Of 120 On Weak Global Cues - June 09, 2009

The gold prices on June 8 declined by Rs 120 to Rs 14,760 per 10 gram in the bullion market in New Delhi due to sustained selling by stockists. The marketmen said that the trading sentiment remained bearish as the gold dropped to the lowest in more than a week in the global markets. Moreover, the silver also followed the same trend and lost Rs 50 to Rs 22,950 per kg.

In the global markets, the gold lost 6.63 dollar to $948.63 an ounce while the silver by two per cent to $14.985 an ounce.

The standard gold and ornaments remained under selling pressure and tumbled by Rs 120 each to Rs 14,760 and Rs 14,610 per 10 gram, respectively. The Sovereign also lost Rs 50 to Rs 12,350 per piece of eight gram.

Meanwhile, the silver ready slipped by Rs 50 to Rs 22,950 per kg while the weekly-based delivery by Rs 550 to Rs 23,150 per kg, respectively. Silver coins fell Rs 100 at Rs 29,500 for buying while Rs 29,600 for selling of 100 pieces.

Ahluwalia Says Scope For Divestment, Higher Outlays - June 08, 2009

The government has the scope to raise funds by selling shares in state-run firms even as subsidies need to be recast to benefit the needy, Montek Singh Ahluwalia said today, 8 June 2009 taking over as deputy chairman of the Planning Commission for a second successive term.

The government has started some discussion with the finance ministry on what should be the appropriate size of the plan expenditure in the current fiscal year, Ahluwalia said.

Ahluwalia expects the country's growth to exceed last year's 6.7% added that subsidies needed to be recast, taking a cue from President Pratibha Patil's address to a joint session of parliament.

Car Sales Rise 2.5 Per Cent In May 2009 - June 08, 2009

May 2009 car sales increased 2.5% to 113,490 units in May 2009 over May 2008, data released by the Society of Indian Automobile Manufacturers (Siam) today, 8 June 2009 showed. Improved financing following of aggressive interest rate cuts and stimulus packages were attributed as the reasons for rise in car sales. However sales of trucks and buses fell 14.8% to 30,800 units in May 2009 over May 2008

Automobile sales are considered a key indicator of the health of India's economy.

Sebi Looking At Phased Redution Of Securities Transaction Tax - June 08, 2009

In order to develop the capital markets, the members of the Securities and Exchange Board of India (Sebi) have suggested a phased reduction of the securities transaction tax (STT). The STT removal is considered necessary to improve the retail participation in the capital markets by reducing the transaction costs, sources close to the development said.

In line with this, they also said that the regulator had proposed that the losses incurred in currency derivatives be treated as business losses and not speculative losses.

Moreover, Sebi has also suggested that the investments in real estate mutual funds by the retail as well as institutional investors should be given tax benefits for the development of the sector and the fund. Similarly, it was suggested that provident funds as well as pension funds be given tax benefits to invest in mutual fund units.

STT is a tax imposed on the sale and purchase of securities, which can be shares, derivatives or units of mutual funds traded on a recognised stock exchange.

Price Increases By The Side Of 0.48 Per Cent - June 06, 2009

The official Wholesale Price Index for all commodities for the week ended 23 May 2009 rose by 0.04% to 232.3 from 232.2 for the previous week. The annual rate of inflation, calculated on point-to-point basis, stood at 0.48% for the week ended 23 May 2009 as compared to 0.61% for the previous week and 8.90% during the corresponding week of the previous year.

The index for primary articles group rose by 0.2 % to 256.6 from 256.1 for the previous week on rising food articles index. The index for food articles group rose by 0.4 % to 252.3 from 251.4 for the previous week due to higher prices of tea (5%), jowar (2%) and eggs, maize, arhar, condiments & spices, fruits & vegetables and gram (1% each).

However index for non-food articles group declined by 0.1 % to 234.5 from 234.7 for the previous week due to lower prices of gingelly seed (1%).

Another two major index that is fuel; power light and Manufactured products remained unchanged at its previous week's level.

Among manufactured products the for textile, paper and paper product and non metallic mineral group registered an increased for the week ended 23 May 2009 compared to their previous week level.

The index for textiles group rose by 0.4% to 141.5 from 141.0 for the previous week due to higher prices of texturised yarn (9%) and nylon filament yarn, hessian cloth and hessian and sacking bags (1% each).

On the other hand index for leather and leather product group declined by 0.7 % to 166.2 from 167.4 for the previous week due to lower prices of footwear western type (1%).

The index for basic metals alloys and metal products group also declined marginally by 0.04 % to 255.6 from 255.7 for the previous week due to lower prices of zinc (5%) and zinc ingots and lead ingots (1% each).

In addition to this index for machinery and machine tools, transport equipment and parts group registered a decline for the week ended 23 May 2009 compared with a week ago.

The week on week fall in inflation level is unable to cheer the end users due to growing prices of food articles, which has increased the burden on daily consumption basket.

Also the double digit prime lending rate (PLRs) and near zero level inflation has resulted in higher real interest rate, which has restricted the end consumers to take ultimate benefit of lower inflation. Going forward the recent rise in oil prices may play a spoil sport.

However good monsoon expectations projection craft a glimmer of hope for easing primary article prices. Also Consumer Price Index (CPI) for all the groups (agriculture and rural labourers, urban non manual employees and for industrial workers as well) is showing signs of slowdown and is starting to fill the gap with the WPI rate.

The CPI for all groups has shown a single digit growth since last two months. The fall in consumer price index is adding more space for the rate cut which will assist the growth in long term.

Gold Continues To Loose As Dollar Recovers - June 06, 2009

Gold futures continued to loose today, as dollar gained little ahead of the non farm pay rolls. The firm trend in the crude oil futures was hardly of any help for the bullion, which is known as a hedge against oil led inflation. The May U.S. employment report is scheduled for release.

EDT (1230 GMT). Expectations are for a loss of 525,000 non-farm jobs and for the unemployment rate to rise to 9.2% from 8.9% in April.

An ounce of Gold on Comex division of the New York Mercantile Exchange is trading at $ 978.8 down $ 5.6 per ounce. In the New York trades yesterday, gold futures recouped most of the previous session's losses on inflation-hedge buying after quarter-end profit-taking and a much stronger dollar had pulled the metal off sharply the day before.

August gold rose $16.70 to settle at $982.30 an ounce, while July silver gained 58.5 cents to settle at $15.895 an ounce.

Comex gold warehouse stocks were down 4,005 ounces at 8,721,752 ounces Thursday, while silver stocks were down 1,003,931 ounces at 119,875,304 ounces.

In other markets that have the potential to impact metals in the short term, the euro is up slightly to $1.4198 from $1.4180 late Thursday afternoon.

In screen trading ahead of the pit open, the June S&P 500 futures are up 5 points to 945.50. July crude oil is up 38 cents to $69.19 a barrel.

MCX June Gold recouped some of it its days losses today and was right now trading at Rs 14860 down Rs 2 per 10 grams. A break above 14950 may take it near 15000 levels.

Direct Tax Receipts Grew By 5.8 Per Cent During Apr-May - June 05, 2009

The direct tax receipts of India between April-May grew by 5.77 per cent to Rs 241.58 billion, the Central Board of Direct Taxes said in a statement on Friday. In the first two months of 2009/10, the corporate tax receipts shot up 5.56 per cent to Rs 85.78 billion and income tax collections grew by 5.92 per cent to Rs 155.59 billion, it said. It also added “Growth during the month of May 2009 was 16.88 per cent at Rs 11,919 crore (119.19 billion) against Rs 10,198 crore, as against a negative growth of 3.19 per cent for the month of April 2009.

Union Financial Statement To Be To Be Had Taking Place - June 05, 2009

New Delhi: The Union Budget of India will be presented on July 3 by Pranab Mukherjee while the Railway Budget will be presented on July 1. Meanwhile the Economic Survey is said to be held on July 2. Earlier Finance Minister Pranab Mukherjee has said that this year''s budget will spell out policies as well as priorities of the new UPA government.

The minister further said that this budget would address the issues and the concerns about the economy raised by him in the interim budget, especially with regard to the sectors which are hit badly by the global financial crisis.

Noting that signs of economic recovery in Europe are not promising, the minister said, the problems of crisis-hit sectors like textiles, leather and gems and jewellery will be addressed in the budget.

The government seems to get the budget passed by July 31, the date when the vote on account approved by Parliament allowing government to withdraw money from the Consolidated Fund of India expires.

In case the budget is not approved before July 31, the government will have to seek another vote on account. The focus of the government policies and reforms, Mukherjee said, will be ''Aam Admi'' as has been mentioned in the Congress manifesto.

He said that the manifesto proposed to increase the minimum wages under the NREGA scheme to Rs 100 per day. Similarly, he also added that the issue of providing food security would get top priority.

Pound Falls Starting Seven-Month High - June 05, 2009

The pound hit its highest level against the dollar in the seven months before falling back as the greenback gained ground against various currencies. In the morning trade, one pound was worth $1.6664 but it had fallen to $1.6375 by mid-afternoon.

The dollar recovered after Asian monetary officials said that they would keep purchasing US Treasuries even if there were cut in US credit rating. The pound earlier had gained on hopes of easing of the UK recession. Moreover, Sterling was also stronger against the euro and touched a seven-month high against the Japanese yen of 160.47 before falling back.