Crude climbs back

Crude ends November in a steady mode 

Crude prices rose at Nymex on Monday, 30 November, 2009. Prices rose as the dollar once again fell weak following part ease of the debt crisis in Dubai over the weekend.

On Monday, crude-oil futures for light sweet crude for January delivery closed at $77.28/barrel (higher by $1.23 or 1.6%). Earlier during the day, the contract dropped to a low of $75.13. Last week, crude ended lower by 1.8%. Crude ended month of November, higher by 0.4%.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 48% since then.

In the currency market on Monday, the dollar weakened as concerns eased over Dubai's debt problem, and as upbeat economic data in the Chicago region reduced investors' appetite for the greenback.

Worries over Dubai's debt crisis eased Monday after the central bank of the United Arab Emirates said during the weekend that it will make available a special liquidity facility for banks of the city state. Dubai World, the largest corporate entity in the Persian Gulf emirate, asked creditors last Wednesday for a six-month stay on repayment of $60 billion in debts.

In economic news, as per the Chicago purchasing managers index released on Monday by the Institute for Supply Management of Chicago, more businesses in the Chicago region were expanding in November than at any time in the past 15 months.

Among other energy products, December reformulated gasoline gained 7.46 cents, or 3.9%, to $2.0008 a gallon and December heating oil added 5.59 cents, or 2.8%, to $2.0181 a gallon. Both contracts expired at the end of trading on Monday.

Also on Monday, natural gas for January delivery dropped 34.4 cents, or 6.6%, to $4.848 per million British thermal units.

Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

At the MCX, crude oil for December delivery closed lower by Rs 24 (0.7%) at Rs 3,542/barrel. Natural gas for December delivery closed higher by Rs 0.9 (0.4%) at Rs 243.2/mmbtu.

Bullion metals glitter again

Price metal prices register sharp rise in November 

Precious metal prices registered good increase on Monday, 30 November, 2009. With Monday's increase, bullion metals registered good rise for the month of November. The dollar remained relatively weak for the day thereby imparting more glitter to precious metals.

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.

On Monday, gold for December delivery ended at $1,181.1, higher by $6.9 (0.6%) an ounce on the New York Mercantile Exchange.

Gold ended November, 2009 higher by 13%. Gold just lost in three sessions in the entire month of November. For the third quarter it ended higher by 8.7%. Before this, for the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year. On a year to date basis, gold price is higher by 33%.

On Monday, December Comex silver futures ended higher by 19.3 cents (1.1%) at $18.495 an ounce. For the month of November, 2009, silver rose 14%.

In the currency market on Monday, the dollar weakened as concerns eased over Dubai's debt problem, and as upbeat economic data in the Chicago region reduced investors' appetite for the greenback.

Worries over Dubai's debt crisis eased Monday after the central bank of the United Arab Emirates said during the weekend that it will make available a special liquidity facility for banks of the city state. Dubai World, the largest corporate entity in the Persian Gulf emirate, asked creditors last Wednesday for a six-month stay on repayment of $60 billion in debts.

In economic news, as per the Chicago purchasing managers index released Monday by the Institute for Supply Management of Chicago, more businesses in the Chicago region were expanding in November than at any time in the past 15 months.

In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.

At the MCX, gold prices for February delivery closed lower by Rs 326 (1.8%) at Rs 17,711 per ten grams.

Prices rose to a high of Rs 18,004 per 10 grams and fell to a low of Rs 17,205 per 10 grams during the day's trading.

At the MCX, silver prices for March delivery closed Rs 575 (1.98%) lower at Rs 28,373/Kg. Prices opened at Rs 28,810/kg and fell to a low of Rs 27,800/Kg during the day's trading.

FII inflow crosses Rs 5400 crore in November 2009

Inflow of Rs 707.70 crore on 30 November 2009 

Foreign institutional investors (FIIs) bought shares worth a net Rs 707.70 crore on Monday, 30 November 2009, as against an outflow of Rs 730.30 crore on Friday, 27 November 2009.

FII inflow of Rs 707.70 crore on 30 November 2009 was a result of gross purchases Rs 2983.90 crore and gross sales Rs 2276.20 crore. The BSE Sensex surged 294.21 points or 1.77% to 16,926.22 on that day.

FII inflow in November 2009 totaled Rs 5469 crore. FII had bought equities worth Rs 8303.80 crore in October 2009. FII inflow in the calendar year 2009 totaled Rs 73,910.10 crore (till 30 November 2009).

There are a total of 1,698 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Financial News Flash

India's Exports, Manufacturing Data Point To Recovery as Asia Exits Slump India’s exports declined the least this year and manufacturing output gained for an eighth month, adding to evidence that Asia’s third-largest economy is recovering from the global recession.

India's 7.9% Economic Growth May Force Subbarao to `Sit Up, Take Notice' India’s central bank may withdraw more stimulus measures by the end of the year after Asia’s third-biggest economy grew at the fastest pace in six quarters.

Posco Invited to Build Steel Factory in South Indian State of Karnataka Posco, Asia’s fifth-largest steelmaker, said the government of India’s southern state of Karnataka invited it to build a mill, its second planned factory in the country.

Sensex Index Climbs for Second Day as Economy Expands, Reliance Leads Gain India’s stocks rose for a second day as Morgan Stanley and Kotak Mahindra Bank Ltd. raised their growth estimates after Asia’s third-largest economy expanded at the fastest pace in 1 1/2 years.

Sugar Mills in India Delay Imports Waiting for Domestic Prices to Decline Sugar mills in India’s biggest cane- growing state are delaying imports after resolving a dispute with cane suppliers, reducing demand that’s helped send global prices to a 28-year high.

Indian Factory Output Rises for Eighth Straight Month on Rates, Tax Cuts India’s manufacturing output rose for an eighth straight month in November as record-low interest rates and tax cuts spurred consumer spending.

IDBI Said to Hire Three Banks to Help Get $225 Million of Five-Year Loans IDBI Bank Ltd. hired three banks to help it get $225 million of five-year loans, according to three people familiar with the matter.

Bond Yields at Two-Week High Before India Auctions $2.15 Billion of Debt India’s benchmark bonds headed lower for a third day before the government auctions 100 billion rupees ($2.15 billion) of debt later this week.

Rupee Gains for Second Day as Accelerating India Growth May Lure Investors India’s rupee rose the most in more than two weeks on speculation accelerating growth will boost the attraction of the nation’s assets for overseas investors.

Government Bond Yields Climbs to Two-week High Before India's Debt Auction India’s benchmark bonds fell for a third day, the longest stretch in almost a month, before the government auctions 100 billion rupees ($2.15 billion) of debt later this week.

Stocks Rise Worldwide as Dubai Concern Wanes, China Expands; Dollar Drops Stocks rallied from Shanghai to New York and the dollar slid as Dubai World said it’s in talks to restructure less than half its debt and Chinese manufacturing grew at the fastest pace in five years. Treasury 10-year notes dropped for the first time in six days.

U.S. Manufacturing Expands for a Fourth Month as Factories Propel Recovery Manufacturing in the U.S. expanded in November for a fourth consecutive month, putting factories at the forefront of the recovery.

Pending Sales of Existing Homes in U.S. Unexpectedly Climb on Tax Credit The number of contracts to buy U.S. previously owned homes unexpectedly rose in October as consumers rushed to take advantage of a tax credit that was due to expire.

CBOE Board Is Said to Plan Discussion of Selling Stock to Public Next Week Directors of the Chicago Board Options Exchange, the largest U.S. options market, will be presented with a plan to shed its members-only structure and become a public company at a meeting Dec. 10, according to a person familiar with the matter.

Thomson Default Swaps Have Been Triggered by Bankruptcy Event, ISDA Says Credit-default swaps insuring about $887 million of Thomson SA debt have been triggered by a bankruptcy event and will be settled at auction, according to the International Swaps & Derivatives Association.

Comcast-NBC Deal Would Face `Gauntlet' of Regulatory Reviews, Moffett Says Comcast Corp.’s planned takeover of NBC Universal will draw scrutiny from Obama administration regulators who have said consolidation of U.S. media companies may thwart competition.

Russia May Cut Planned Bond Sale in Half on Higher Oil Price, Klepach Says Russia may reduce next year’s planned debt sale by as much as 50 percent because higher oil prices are raising revenue for the world’s biggest energy supplier, Deputy Economy Minister Andrei Klepach said.

source: Bloomberg

Reliance Regular Savings Fund – Debt Option Revises Maximum Investment Amount

With effect from 1 December 2009 

Reliance Mutual Fund has decided to revise the maximum investment amount per investor (across all folios) for Reliance Regular Savings Fund – Debt Option. The changes will be effective from 1 December 2009.

Existing Feature

 

Maximum investment amount per investor (across folios) is Rs 1 crore.

Revised Feature

 

Accordingly the maximum investment amount per investor (across all folios) in a single calendar month is Rs 3 crore.

Reliance Regular Savings Fund – Debt Option is an open ended scheme with the primary investment objective to generate optimal returns consistent with moderate level of risk. This income may be complemented by capital appreciation of the portfolio. Accordingly investments shall predominantly be made in debt & money market instruments.