Archive for April, 2012
The Reserve Bank of India (RBI) is planning to set up a committee to look into the issue of facilitating the development of fixed rate loan products in the banking system, RBI Deputy Governor, Anand Sinha said.
“We will set up a committee soon to facilitate the development of fixed rate loan products in the market, which are presently absent in the system,” Sinha told reporters on the sidelines of an Assocham event.
Explaining the rationale behind the move, he said it is the question of market development as consumer should get a range of products to make a choice.
In its last credit policy review in April, the central bank had announced to set up a committee to look into the issue.
Referring to the issue of hedging, Sinha said the central bank has asked banks to have a board mandated hedging policy to protect corporate clients from currency fluctuations. “We know that the corporates take a view on the exchange rate movement based on the currency movement and then decide whether to hedge or not to hedge. Point is that if we are looking for a safer system then we will have to gear up on our hedging in a better way…,” Sinha said.
He also said the central bank doesn’t have any fixed level for rupee and will only intervene to check excess volatility. “RBI doesn’t look for a fixed level of rupee. We will only intervene if there is excess volatility,” he said adding that it is closely watching the liquidity situation.
Presently, banks are borrowing around Rs 1 lakh crore from the liquid adjustment facility (LAF) route, which is above RBI’s comfort level of around Rs 60,000 crore.
GOLD held near a 2-week high on Monday on the prospect of more safe haven buying, with the dollar under pressure from weaker-than-expected U.S. economic data and speculation the Federal Reserve could ease policy further to boost growth.
Although the slowdown may not be bad enough to prompt the Fed to launch a third round of bond buying, or quantitative easing, expectations for such a move plus fears about the debt crisis in Europe could offer Gold much-needed impetus to break free from the current range.
Money managers in gold futures and options had slashed net long positions in the week ended April 24 for a third decline in four weeks, after gold failed to break out of a narrow range.
Gold added $2.07 an ounce to $1,664.39 by 0620 GMT, but the metal was heading for its third monthly decline. Bullion had risen to $1,667.11 on Friday, its strongest since April 13, on disappointing U.S. growth and European debt jitters.
“In the short run, you can have one or two weeks for the market to get excited about QE. It’s fair enough. I am still going to call for a lower gold price,” said Dominic Schnider, head of commodity research at UBS Wealth Management in Singapore.
“The target is still $1,520. But that really goes in line with the view the economy is on a better footing. If there’s no need for QE, then our call will be spot on. But if you look for QE, we are going to have a situation where prices will trend higher.”
The U.S. economy, the world’s largest, expanded at a 2.2 percent annual rate in the first three months of the year, below economists’ expectations of a 2.5 percent pace, raising the prospect of further stimulus from the Fed.
Gold rallied to its highest level in 2012 around $1,790 in late February after the Fed at the time said it would keep interest rates near zero until at least the end of 2014.
The dollar hit a fresh two-month low versus the yen and eight-month trough against sterling on Monday, staying under pressure after data last week showed disappointing first-quarter U.S economic growth. The euro was still stuck in a range because of the lingering debt crisis in Europe.
Spain, the euro zone’s fourth-largest economy and current focus of the debt crisis, will face a challenge selling bonds this week after a surprise two-notch credit rating downgrade pushed up yields on its debt.
Standard & Poor’s cut Spain to triple-B plus – three notches above “junk” – citing expectations government finances will deteriorate even more as the economy contracts and as a result of an ailing banking sector.
Gold raced to a record of around $1,920 last September on fears the euro debt crisis could spiral out of control and stall global growth.
U.S. gold for June was little changed at $1,665.40 an ounce.
“We don’t know whether there will be QE3, so we have to wait for more economic data to come out. If the economic performance continues to be good, then there will be a diminishing prospect for QE,” said a physical dealer in Hong Kong.
“There’s no support from the physical market for the time being. The festival season is coming in India but physical buying is not aggressive.”
Gold traders in India, the world’s top buyer of the bullion, refrained from buying despite the peak of the wedding season, hit by a huge stock pile and high domestic prices.
Gold jewellery is an essential part of the dowry basket Indian parents give their daughters at weddings.
Friday we boldly written Sell at higher level…
Same trend we gave sell call @ 10250 My target is 10100…….
After my alert slide and kissed 10070………….
My clients mind fully on Money Money Money…….
Today’s Resistance 10250 if stays above the level 10300 & 10345 will be tested……
Today’s Support 10175 if trade below the level 10100 & 10040 next levels…….
Higher level what will do ???? More update during market hrs to my clients…..
WOCKPHARMA Looking very HOT STOCK
Closely watch on 724, Once if break the level
Catch it !!!
Target 730,735 thereafter 750
PFC Traded near by Strong Support level
Support at 167.50, Anybody can buy with SL of 167.50
If break the level Sell Sell Sell
Down side target 163, 160
GITANJALI now Ready to FREE FALL mode
Trades strong support near…….
Once if stays below the level…….. Non stop slide will expect !!!
Which level will break ???
Clients special call !!!
Another FREE FALL Stock RELCAPITAL
Last few days taking support at lower level
Now if break the support level Sell Sell Sell
Target 308, 300
Which level is support ????
Surly we will update to my clients !!!
JUBLFOOD our Darling Stock……
Looking very HOT movement
Closely watch on 1196 if cross the level
Buy Buy with target of 1210, 1220 thereafter 1250
Updated : 08.14am / 30th April