Gold price surges by Rs 250 on fresh buying

Gold price surges by Rs 250 on fresh buying, silver soars Rs 800 per kg

After falling for two straight days, gold on Saturday staged a comeback to close Rs 250 higher at Rs 28,350 per ten grams at the bullion market as jewellers made fresh buying at prevailing levels to meet wedding season demand amidst a firming global trend.

Silver followed suit and recovered by Rs 800 to Rs 38,350 per kg on increased offtake by industrial units and coin makers.

Traders said besides wedding season buying by jewellers, a firm global trend amid the US economy expanding at a slower pace than forecast in the fourth quarter reignited demand for the precious metal as a safe haven.

Gold in New York, which normally determines trend on the domestic front, rose 1.99 per cent to $1,283.10 an ounce, the biggest advance since January 15. Silver also rose 2.6 per cent to $17.20 an ounce.

In the national capital, gold of 99.9 and 99.5 per cent purity shot up by Rs 250 each to Rs 28,350 and Rs 28,150 per ten gram respectively. It had lost Rs 320 in last two days.

Sovereign recovered by Rs 100 to Rs 24,000 per piece of eight gram.

In a similar fashion, silver ready rebounded by Rs 800 to Rs 38,350 per kg and weekly-based delivery by Rs 860 to Rs 38,135 per kg.

On the other hand, silver coins traded at last level of Rs 63,000 for buying and Rs 64,000 for selling of 100 pieces.

Index Trends and Stocks in Action January 23, 2015

The Indian market continued its winning streak for sixth straight session led by heavyweights like Sun Pharma, DLF, Axis Bank and Tata Motors. Market continues to consolidate at higher level with positive bias. After opening with gap up, nifty traded in tight range of 40-50 points for entire session. Nifty formed a small body candlestick for second day in a row around the life time high levels, which is sign of indecisiveness at higher levels. Rsi momentum oscillator is showing negative divergence. For day trading resistance for nifty is around levels of 8830-8850. On downside important support level for index is placed in range of 8720-8740.

Polaris Consulting & Services (BSE Code: 532254) has reported a net profit of Rs 40 crore on revenue of Rs 476 crore for the third quarter ended December 31, 2014. Previous year numbers are not comparable with the current year consequent to the de-merger of the product business during the current year. The company added five new clients to end the quarter with 152 active clients, according to a press release. Most of the new engagements in the quarter came from four major focus areas: digital, payments, risk and analytics.

Cairn India (BSE Code: 532792) reported a 53% drop in December quarter net profit, crimped by the slump in global oil prices and drop in production. Net profit in October-December at Rs 1,350 crore, or Rs 10.72 per share, was 53% lower than Rs 2,884 crore, or Rs 16.86 a share, in the same period a year ago. Profits were down as the price of oil it realised fell 29% to USD 68.7 per barrel from USD 96.3 in third quarter of previous fiscal year. Revenue fell 30% to Rs 3,504 crore. Cairn's showpiece Rajasthan field output was 4% lower at 178,400 barrels of oil per day.

Essar Ports (BSE Code: 500630) reported a 4.6% jump in its net profit at Rs 98.34 crore Q3 FY15 on the back of higher sales. The company had posted a net profit of Rs 94.01 crore in the same period last fiscal. Revenues during the period under review went up to Rs 434.68 crore as against Rs 376.86 crore in the corresponding quarter of FY14.

Agro Tech Foods (BSE Code: 500215) announced a steep drop in standalone net profit for the quarter ended December 2014. During the quarter, the profit of the company declined 28.21% to Rs 9.4 crore from Rs 13.1 crore in the same quarter last year. Net sales for the quarter declined marginally 1.01% to Rs 195.5 crore compared with Rs 197.5 crore for the prior year period.

Biocon (BSE Code: 532523) has posted a net profit of Rs 90.9 crore for the quarter ended December 31, 2014 as compared to Rs 105 crore for the quarter ended December 31, 2013. Total Income has increased from Rs 719.6 crore for the quarter ended December 31, 2013 to Rs 779 crore for the quarter ended December 31, 2014.

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Twelve stocks in focus in Friday morning trade

Indian markets are expected to trade higher on Friday tracking positive trend seen in other Asian markets.

Benchmark indices extended their northward journey for fifth day in a row, the 50-share Nifty index gained close to half a percent on Wednesday.

"Investors across the globe are eyeing outcome of the European Central Bank (ECB) meet and expecting announcement of monetary stimulus, which will further improve the liquidity scenario. We shall be seeing its reaction in local markets on Friday," says says Jayant Manglik, President-retail distribution, Religare Securities Limited.

"After this sharp rally in index, we can't ignore the possibility of consolidation or profit taking prior to next directional move. Considering that, we reiterate our advice to keep positive yet cautious stance and trail stop losses with every rise," he adds.

Here is a list of twelve stocks which are likely to be in focus today:

IOCBSE -0.69 %, BHEL: Government on Thursday sought merchant bankers to assist it in sale of its stake in three blue-chip firms--IOC, BHELBSE 1.41 % and NALCO -- to help meet disinvestment target of Rs 43,425 crore set for this fiscal.

Biocon Ltd: Biotech firm reported a 13 per cent dip in net profit for October-December quarter at Rs 91 crore and said it will sell 10-15 per cent stake in its research services arm Syngene.

Tata Motors  .. The automobile giant on Thursday launched the Bolt, a premium hatchback that the nation's largest automobile manufacturer by revenue hopes would play a key part in driving it back to the path of high growth.

Emami Ltd: FMCG major Emami on Thursday said it has acquired a controlling stake of 66.67% in Australia-based Fravin Pty Ltd along with its three subsidiaries, said media reports.

Muthoot Finance Ltd: Kerala-headquartered Muthoot Finance LtdBSE -2.53 % today reported a dip in its net profit for the third quarter ended December 31, 2014 at Rs 154 crore.

Yes Bank Ltd: Yes Bank is the main suitor in the race for Deutsche Asset Management (India) Pvt. Ltd's mutual fund business in India, two sources who are directly involved in the process said, although talks are still at an early stage.

Cairn India Ltd: Cairn India on Thursday reported a 53 per cent drop in December quarter net profit, crimped by the slump in global oil prices and drop in production.

SpiceJet Ltd: In a big relief to the budget carrier SpiceJetBSE 1.36 %, aviation regulator Director General of Civil Aviation (DGCA) has allowed the airline to accept advance bookings beyond March 31, said media reports.

Polaris Consulting and Services: Formerly known as Polaris Financial Technology reported a net profit of Rs 39.25 crore for the quarter ended December 31, 2014. The company had posted a net profit of Rs 50.75 crore in the corresponding period of the last year, Polaris said in a statement.

Sterlite Technologies Ltd: Domestic optical fibre maker Sterlite TechnologiesBSE 0.07 % posted over four-fold jump in standalone profit after tax at Rs 23.06 crore in the quarter ended December 31, 2014 due to high demand for its products from various telecom and power infrastructure projects.

Orient Cement Ltd: A part of $1.6 billion diversified CK Birla Group, reported nearly 36 per cent rise in in the third quarter net profit at Rs 31 crore on account of higher sales.

Essar Ports Ltd: Essar PortsBSE -0.96 % today reported a 4.6 per cent jump in its net profit at Rs 98.34 crore for the third quarter ended December 31, 2014 on the back of higher sales. 

Should you invest in NCD?

In a falling interest rate scenario, non-convertible debentures (NCD) offer itself as lucrative investment avenue, when one could lock-in higher interest rates for a longer term. NCDs are normally issued by non-banking financial companies (NBFCs).

Higher interest rate

 The NCDs carry an investment term of five to ten years, while the interest rates are in the range of 9.30%-9.50%, which are 100-150 bps points higher than the rates offered on bank fixed deposits. NCDs come with the option of either annual coupon or premium on redemption. Credit agencies assign ratings to the NCDs and one with the highest rating is considered as a safe bet.

However, other than the coupon rate, there is one more benefit attached with NCD if invested now. NCDs could give capital appreciation benefits to the investors in the present environment, when the interest rates are set to go down, NCDs could comfortably provide 5-10% of capital appreciation. However, it is not advisable to retain NCD's until their maturity. Rather selling these instruments on the stock exchange after a year to get long-term capital appreciation for which exemption on long-term capital gain is also available. In this way, NCDs present itself as better options than debt-based mutual funds, where one has to wait for three years to get relief from capital gains tax exemption.

Tax-Free Bonds and FDs

 The post-tax interest rates on NCDs are lower than those offered by tax-free bonds. Hence, it makes sense to wait for the issuance of these bonds, which are expected to come later in the year; NCDs would become ideal investment if their coupon rate is in between 11.5-12%. Otherwise they fetch only 6.5-7% return post tax.

 Meanwhile, corporate fixed deposits are appropriate for senior citizens. As these deposits offer higher rates that are lucrative to senior citizens looking for interest income

RS Software Q3 net profit up 26%

RS Software India Ltd, the leading vertically integrated technology solution provider to the global electronic payments industry; today announced its results for the third quarter ended December 31, 2014.

The company’s consolidated PAT rose 25.85% to Rs. 17.62 crore in Q3FY15 compared to Rs. 14.00 crore in Q3FY14.

EBIDTA stood at Rs. 26.46 crore from Rs. 22.14 crore in the same period last year & EBIDTA margin was 27 % in Q3FY15 compared to 23 % Q3FY14.

Earnings per share (EPS) for the quarter are Rs. 13.75 against Rs. 11.39 in the same quarter of the previous year.

Commenting on the results, Raj Jain, Chairman & Managing Director, RS Software India Ltd said, “Our third quarter has achieved a record profit in the history of the company, highest profit after taxes, with EBIDTA margins at 27% as compared to 23% during the same quarter in the last fiscal year. This has been possible due to significant shift of business execution to India location, which does reward superior contribution but has the impact of lowering the top line, and hence revenue growth is 2%. The board has announced an interim dividend of 15%, which again creates a record for a cumulative interim dividend in a period of 9 months. The networth of the company has also gone up by 30% and profit after taxes have gone up by 36% as compared to 9 months of the last fiscal year.

The company is confident of achieving good returns for its shareholders for the long term. At its board meeting on 16th January the company has taken the decision to expand its strategy to leverage the next big opportunity in the payments industry, while accelerating lowering of the risk it has of client concentration.

According to Mckinsey the well-defined and well-bounded payments industry is rapidly becoming history. Indeed, it is becoming part of a much wider commerce ecosystem that comprises a host of well-established players and entrants, each flexing their unique strengths as they pursue what is fast becoming the holy grail of commerce. This is increasing significantly the growth potential for the trillion dollar payments industry. RS Software is committed to participate in building the digital payments infrastructure, just as it continues to build and enhance the electronic payment infrastructure for the brick and mortar retail.

The company is committed to achieving long term return to its shareholders. This strategy is all about the long term.  The winners in this evolution of payments industry might not be its strongest or most strategically savvy players, but rather those who respond best to industry change and market feedback. While Mcommerce is a little over 1% of the total retail today, but it has grown just in the last two years from 11% to 19% of Ecommerce. RS Software has taken the decision to transition its strategy to achieve its dual objective of progressing from  “pure outsourcer” model to a hybrid with new recurring product/services revenue streams – still within payments industry – via strategic partnerships, JVs, M&A.  Our decisions will be driven with focus on the long term value for our shareholders.” he further added.

Nifty ends above 8,500

Nifty ends above 8,500; L&T up 1%, Sun Pharma up 2.9%

The 30-share Sensex provisionally ended up 46 points to end at 28,122 and the 50-share Nifty gained 20 points to close at 8,514.

Further, trade deficit for the month of December decreased by 44% at $9.43 billion hitting a ten month low mainly on account of falling imports due to slump in crude prices.

Meanwhile, foreign institutional investors were net buyers in Indian equities worth Rs 1,738.24 crore on Thursday, as per provisional stock exchange data.

BSE Consumer Durables index was the top sectoral gainer up 2% followed by Capital Goods, Power, Healthcare and Realty among others.

Reliance Industries ended up 0.5% ahead of its third quarter earnings due for release later today.

HDFC Bank has extended gains from yesterday and ended up 1%. Axis Bank end flat with positive bias. Axis Bank today reported a Q3 net profit of Rs 1,900 crore compared to Rs 1,604 crore in the year-ago period, an uptick of 18.5%.

Metal stocks ended mixed. Sesa Sterlite gained 1.6% and Hindalco ended down 2.4% and Tata Steel dipped 0.4%.

Among the defensives, pharma shares witnessed renewed buying interest with Cipla, Dr Reddy's Labs and Sun Pharma up 1.5-2.9% each.

Hindustan Unilever which was the sole loser on Thursday ended 1% higher.

BHEL gained 2% after the company on Thursday announced it has bagged a contract from the Karnataka Power Corporation Limited (KPCL) for setting up a Combined Cycle Power Plant (CCPP), valued at Rs 1,202 crore.

Bharti Airtel which has exposure to swiss bonds ended down nearly 2% after the Swiss National Bank scrapped its cap on the franc in a sudden move, pushing the Swiss currency up sharply.

GAIL ended down 0.8%. A major fire broke out at GAIL's natural gas pipeline in South Delhi's Satyaniketan area after it was perforated by civic construction contractors but there were no casualties reported.

Among other shares, SpiceJet ended locked in upper circuit of 10% after Kalanithi Maran and his associates had decided to transfer the ownership and management control of the airline to former promoter Ajay Singh and a clutch of investors. Sun TV Network ended up 

Shares of housing finance companies such LIC Housing, Repco Home Finance, Indiabulls Housing Finance, Dewan Housing ended up 2-4% each on expectations that lower interest rates would help revive demand for home loans.

In the broader market, the BSE Mid-cap gained 0.3% and Small-cap ended marginally down.

Market breadth was marginally higher with 1,375 gainers and 1,546 losers on the BSE.

Gold prices spurt by Rs 565 to two-month high

Gold prices on Friday soared by Rs 565 to trade at over two-month highs around Rs 27,885 per 10 grams at the bullion market on brisk buying by jewellers and retailers to meet wedding season demand amidst a firming trends overseas.

Silver also rose sharply by Rs 620 to Rs 37,900 per kg on increased offtake by industrial units and coin makers.

Bullion traders said sentiment turned better after gold rallied to the highest since September in global markets as the dollar weakened after Switzerland decoupled its currency to the euro and lowered the deposit rate.

Gold in New York, which mostly set the price trend on the domestic front, jumped up by $33.50, or 2.73 per cent, to $1,262.60 an ounce  and silver by 0.68 per cent to $16.96 an ounce in Thursday's trade.

In the national capital, gold of 99.9 and 99.5 per cent purity zoomed up by Rs 565 each to Rs 27,885 and Rs 27,685 per 10 grams respectively, a level last seen on October 22.

Sovereign followed suit and edged up by Rs 50 to Rs 23,900 per piece of 8 grams.

Following gold, silver ready recorded a sharp rise of Rs 620 to Rs 37,900 per kg and weekly-based delivery by Rs 540 to Rs 37,840 per kg.

Silver coins also flared up by Rs 1,000 to Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces.

Tips for Getting Higher Returns from Trading

Tips for Getting Higher Returns from Share Trading

3 Trading Strategies to Optimize MCX Tips

A proud fact for you as an Indian trader or investor is that Multi Commodity Exchange lists as one of the top and biggest five commodity exchanges all over. Whether you dedicate this recognition to the large number of commodities being traded in the country, or the emergence of future contracts which became a profound trading alternate over the past few years. The Multi Commodity Exchange continues to stand tall amongst all major economies of the world.

Particularly if you are a trader in this market and use commodity tips for your trades, you got much more to know in addition to the above. One good factor here is that you got diverse commodity categories which are actually your prospects of benefiting the most from trading. Read on to find out which are they, how they match with your trading interests and what is the extent of profit they can bring you.

Bullion Trades and Tips:

In bullion trading, you deal with variety of metals, gold and silver being the highlight of all. Majority of world's trade today looks at these precious metals and therefore, be glad that you are trading in the most valuable assets on this planet. Additionally, your trading in this exchange also involves other metals like zinc, aluminum, nickel, lead, copper, etc. which too are some profound commodities for traders internationally. While using silver and gold tips to maximize your profitability, note following points for a better grasp over market:

1. Stay abreast with the latest market developments for gold trade. Keep a close eye on volatility, international interest rates, rate of inflation, energy prices, GDP growth, etc.

2. Though not this thorough for trading in silver yet it is desirable that you plan activities according to the annual supply versus demand.

3. Either learn technical analysis yourself or hire services of a good investment advisory for that purpose. Use the findings of this analysis coming by way of trending patterns, charts, etc. for your benefit.

Base Metals:

Experts cannot stress enough on how important base metals are for world's economy. Interestingly, we are familiar with most of the metals for centuries and they continue to be significant as essentials for our life. To make sure you keep hazards away, note the following pointers but also use base metal tips:

1. Gain some know how about the metal you want to trade in.

2. Stay update with latest news in this segment and ensure that your base metal calls are in accordance with them.

3. Associate with a professional trading advisory so that your investment is less risked.

Commodity Trading

About Commodity Trading and the Future of Commodity Markets