Crude drops

Prices end lower despite lower dollar 

Crude oil prices ended lower on Friday, 26 March 2010. Prices ended lower despite a lower dollar as it was bogged down by demand concerns. 

On Friday, crude-oil futures for light sweet crude for May delivery closed at $80/barrel (lower by $0.53 or 0.7%). Prices lost 1.2% for the week. 

Crude prices rose 9.3% in February as supply-and-demand issues began to take hold in a market for months dominated by moves in the dollar. Prices have ranged between $69 and $84 a barrel since October. Crude has risen 69.8% in last one year. 

In the currency market on Friday, the dollar index, which measures the strength of the dollar against basket of six other currencies fell by 0.6%. 

The EIA reported earlier during the week that crude-oil inventories rose by 7.245 million barrels last week against an expected buildup of 1.67 million barrels. Despite the surprising inventories number, traders had focused more on data declines in stockpiles of gasoline and distillates such as diesel and heating oil. The EIA showed a combined decline of 5.14 million barrels in stocks of gasoline and distillates. 

Among economic reports scheduled for the day, the Commerce Department reported on Friday that the U.S. economy grew at the fastest pace in six years during the final three months of 2009, fueled by a huge inventory adjustment, strong business investments and modest consumer spending. As per the report, U.S. real gross domestic product increased at a 5.6% annualized pace in the fourth quarter, revised down from the 5.9% pace reported a month ago. In the past year, real GDP has risen 0.1%. For all of 2009, GDP fell 2.4%.

Separately, the University of Michigan and Reuters reported that the consumer sentiment index remained at 73.6 in March, matching February's level, and up 28% from the prior year. While consumers said they expect the economy to continue to improve during the year ahead, according to the survey, recent readings on confidence have found persistent pessimism among Americans about their economic prospects and the labor market. 

Last week, Organization of Petroleum Exporting Countries decided to keep its production quota unchanged. 

Elsewhere, natural gas for May delivery ended 10 cents lower, or 2.5%, at $3.93 per British thermal units, while gasoline for May delivery decreased a penny, or 0.5%, to $2.2085. 

Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 45% since then. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

Bullion metals end higher

Prices end higher as dollar drops significantly 

Precious metal prices ended higher on Friday, 26 March 2010. Prices rose as the dollar slipped during the day. 

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 Friday, gold for April delivery ended at $1,105.4 an ounce, higher by $11.3 (1%) an ounce on the New York Mercantile Exchange. For the week, gold ended marginally lower by 0.2%. In FY 2010, gold touched a high of $1,154 in January. 

On Friday, May Comex silver futures ended higher by 17 cents (1%) at $16.91 an ounce. For the week, silver ended lower by 0.7% against last Friday's closing of $17.01. 

In the currency market on Friday, the dollar index, which measures the strength of the dollar against basket of six other currencies fell by 0.6%. 

Among economic reports scheduled for the day, the Commerce Department reported on Friday that the U.S. economy grew at the fastest pace in six years during the final three months of 2009, fueled by a huge inventory adjustment, strong business investments and modest consumer spending. As per the report, U.S. real gross domestic product increased at a 5.6% annualized pace in the fourth quarter, revised down from the 5.9% pace reported a month ago. In the past year, real GDP has risen 0.1%. For all of 2009, GDP fell 2.4%.

Separately, the University of Michigan and Reuters reported that the consumer sentiment index remained at 73.6 in March, matching February's level, and up 28% from the prior year. While consumers said they expect the economy to continue to improve during the year ahead, according to the survey, recent readings on confidence have found persistent pessimism among Americans about their economic prospects and the labor market. 

Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year.

FII inflow crosses Rs 18000 crore in March 2010

Inflow of Rs 1079.20 crore on 26 March 2010 

Foreign institutional investors (FIIs) bought shares worth a net Rs 1079.20 crore on Friday, 26 March 2010, lower slightly than Rs 1094.10 crore on Thursday, 25 March 2010. 

FII inflow of Rs 1079.20 crore on 26 March 2010 was a result of gross purchases Rs 3469.80 crore and gross sales Rs 2390.60 crore. There was an inflow of Rs 647.50 crore into secondary equity markets which was a result of gross purchases Rs 3033.60 crore and gross sales Rs 2386.10 crore. The BSE Sensex rose 85.91 points or 0.49% to 17,644.76 on that day. 

There was an inflow of Rs 431.70 crore in the category 'primary market & others', which was a result of gross purchases Rs 436.20 crore and gross sales Rs 4.50 crore. 

FII inflow in March 2010 totaled Rs 18,055.30 crore (till 26 March 2010). FIIs had bought equities worth Rs 2311 crore in February 2010. FII inflow in the calendar year 2010 totaled Rs 18,771.50 crore (till 26 March 2010). 

There are a total of 1,710 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Deutsche MF Unveils Global Agribusiness Offshore Fund

NFO Period from 6 April to 30 April 2010 

Deutsche Mutual Fund has unveiled a new fund named as DWS Global Agribusiness Offshore Fund, an open ended overseas fund o funds scheme. The face value of the new issue will be Rs 10 per unit. The new issue will be open for subscription from 6 April and close on 30 April 2010. 

The investment objective of the scheme is to generate long-term capital growth by investing predominantly in units of overseas mutual funds, focusing on agriculture and/or would be direct and indirect beneficiaries of the anticipated growth in the agriculture and/or affiliated/allied sectors. 

The scheme offers regular plan with dividend and growth option. Dividend option offers payout and reinvestment facility. 

The scheme would allocate 80% to 100% of assets in units / securities issued by overseas mutual funds or unit trusts with medium to high risk profile. It would further allocate upto 20% of assets in debt instruments including government securities, corporate debt, money market instruments (including cash and units of domestic money market mutual funds) with low to medium risk profile. 

The scheme shall initially invest predominantly in the units of DWS Invest Global Agribusiness Fund, domiciled in Luxembourg or similar mutual funds at the discretion of the Investment Manager. 

Investment in Securitised Debt would be up to a maximum of 70% of the debt allocation of the Scheme. The Scheme will not invest in foreign securitised debt. 

The minimum application amount for regular plan is Rs 5000 and in multiples of Re 1 thereafter. 

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 1 crore under the plan during the NFO period. 

Entry load charge will be nil for the scheme. The scheme will charge an exit load of 1% if exited within one year from the date of allotment. 

Benchmark Index for the scheme is MSCI World Index. 

The scheme will be managed by Kumaresh Ramakrishnan and Aniket Inamdar.

Bullion metals add little shine

Prices end higher as dollar registers modest drop 

Precious metal prices ended higher on Thursday, 25 March 2010. Prices rose as the dollar slipped earlier during the day. 

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 Thursday, gold for April delivery ended at $1,092.9 an ounce, higher by $4.1 (0.4%) an ounce on the New York Mercantile Exchange. Last week, gold gained 0.5%. In FY 2010, gold touched a high of $1,154 in January. 

On Thursday, May Comex silver futures ended higher by 10 cents (0.6%) at $16.74 an ounce. Last week, silver ended almost unchanged against last Friday's closing of $17.04. 

In the currency market on Thursday, the dollar index, which measures the strength of the dollar against basket of six other currencies fell by 0.3% earlier in the day. Then the dollar headed up after the commodity market wounded up its trading. 

Yesterday the dollar headed up strongly to its highest level in ten months following the resurface of Greece and Portugal's fiscal problems pressuring the euro. Portugal became the latest source of concern out of the European Union joining Greece in its fiscal problems. On last Wednesday, Fitch Ratings downgraded Portugal one notch to AA- on concerns about its budget, and warned further cuts could happen. 

Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year. 

Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end. Silver futures had hit a low at $10.42 on 15 January 2009 and hit a high at $19.30 per ounce on 2 December 2009. Like gold, silver also ended lower than its all time high level. 

At the MCX, gold prices for May delivery closed lower by Rs 34 (0.2%) at Rs 16,261 per ten grams. Prices rose to a high of Rs 16,337 per 10 grams and fell to a low of Rs 16,242 per 10 grams during the day's trading. 

At the MCX, silver prices for May delivery closed Rs 8 (0.03%) lower at Rs 26,222/Kg. Prices opened at Rs 26,261/kg and fell to a low of Rs 26,152/Kg during the day's trading.

Crude pares early gains

Prices remain volatile with fluctuating dollar 

Crude oil prices pared early gains and ended marginally lower on Thursday, 25 March 2010. Prices rose initially as the dollar slipped earlier during the day. Prices then pared gains as the dollar reversed its course later during the day. Better than expected jobless claims data also pushed up crude prices earlier during the day. 

On Thursday, crude-oil futures for light sweet crude for May delivery closed at $80.53/barrel (lower by $0.08 or 0.01%). Prices lost 0.7% last week. 

Crude prices rose 9.3% in February as supply-and-demand issues began to take hold in a market for months dominated by moves in the dollar. Prices have ranged between $69 and $84 a barrel since October. Crude has risen 70.5% in last one year. 

In the currency market on Thursday, the dollar index, which measures the strength of the dollar against basket of six other currencies fell by 0.3% earlier in the day. Then the dollar headed up after the commodity market wounded up its trading. 

Yesterday the dollar headed up strongly to its highest level in ten months following the resurface of Greece and Portugal's fiscal problems pressuring the euro. Portugal became the latest source of concern out of the European Union joining Greece in its fiscal problems. On last Wednesday, Fitch Ratings downgraded Portugal one notch to AA- on concerns about its budget, and warned further cuts could happen. 

The EIA reported yesterday that crude-oil inventories rose by 7.245 million barrels last week against an expected buildup of 1.67 million barrels. Despite the surprising inventories number, traders had focused more on data declines in stockpiles of gasoline and distillates such as diesel and heating oil. The EIA showed a combined decline of 5.14 million barrels in stocks of gasoline and distillates. 

Last week, Organization of Petroleum Exporting Countries decided to keep its production quota unchanged. 

Elsewhere, natural-gas futures slumped after the EIA reported that U.S. gas supplies rose by 11 million cubic feet in the latest week, in line with the average forecast. Natural gas futures for May deliver ended down 12.4 cents, or 2.9%, at $4.03 per million British thermal units. 

Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 45% since then. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex. 

At the MCX, crude oil for April delivery closed unchanged at Rs 3,692/barrel. Natural gas for March delivery closed at Rs 180.8/mmbtu, lower by Rs 7.3 (3.9%).

FIIs step up buying

Inflow of Rs 1094 crore on 25 March 2010 

Foreign institutional investors (FIIs) bought shares worth a net Rs 1094 crore on Thursday, 25 March 2010, much higher than Rs 485.50 crore on Tuesday, 23 March 2010. 

FII inflow of Rs 1094 crore on 25 March 2010 was a result of gross purchases Rs 5325.10 crore and gross sales Rs 4231.10 crore. There was an inflow of Rs 869 crore into secondary equity markets which was a result of gross purchases Rs 5099.80 crore and gross sales Rs 4230.80 crore. The BSE Sensex rose 107.83 points or 0.62% to 17558.85 on that day. 

There was an inflow of Rs 225 crore in the category 'primary market & others', which was a result of gross purchases Rs 225.30 crore and gross sales Rs 0.30 crore. 

FII inflow in March 2010 totaled Rs 16,976.10 crore (till 25 March 2010). FIIs had bought equities worth Rs 2311 crore in February 2010. FII inflow in the calendar year 2010 totaled Rs 17,692.30 crore (till 25 March 2010). 

There are a total of 1,714 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Financial News Flash

Stimulus Exit Won't `Kill' India's Stocks Rally, Prudential's Praveen Says India’s stocks will withstand the withdrawal of stimulus measures and extend last year’s rally, the biggest in 18 years, as domestic spending strengthens, said Prudential Financial Inc. 

First Indian Microfinance Company's Initial Offering to Raise $250 Million SKS Microfinance Ltd., the Indian lender backed by Sequoia Capital, plans to raise about $250 million in the first initial public offering by a financier for the nation’s poorest people. 

Emerging Bond Funds Received Second-Highest Inflows on Record, EPFR Says Emerging-market bond funds received $1.05 billion in the week through March 24, the second-biggest inflows on record, as near-zero U.S. interest rates fanned demand for higher-yielding assets, according to EPFR Global. 

Tata Motors, Hindustan Unilever Rise as Indian Stocks Climb for Third Day India’s stocks rose, driving the benchmark index to its highest level in more than two months, as investors bet economic growth will be sustained even as the central bank withdraws stimulus measures. 

Bain Capital-Backed Himadri Chemicals to Spend $55 Million on Tar Plant Himadri Chemicals and Industries Ltd., an Indian company partly owned by private equity firm Bain Capital LLC, plans to invest 2.5 billion rupees ($55 million) to add capacity at its coal tar distillation plant. 

Japan Lures Foreigners to Purchase Bonds With Buybacks: Chart of the Day Japanese bond-buying by foreigners rose to the highest since August 2008 last month amid expectations the Bank of Japan will repurchase more debt to stoke the economy, according to Credit Agricole CIB. 

Axis Bank Raises $350 Million Selling 5.25% Bonds Maturing in 5.5 Years Axis Bank Ltd. sold $350 million of 5.5-year bonds priced to yield 275 basis points more than similar maturity U.S. Treasuries, according to a person familiar with the transaction. 

Fortescue Returns Crushing Rio Tinto in Outback Where China Finds Its Ore Zeljko Zaic, a leathery-skinned surveyor at a Chinese-backed mining company, stands atop a sun- scorched ridge in the Australian Outback and kicks a lump of red iron ore lying on the trail. 

ICBC's Record $161 Billion Jump in Loans Drives Jiang to Increase Capital Industrial & Commercial Bank of China Ltd. Chairman Jiang Jianqing moved to bolster capital after expanding lending by $161 billion last year, almost equivalent to the gross domestic product of the Philippines. 

Ruchi Soya Industries Advances in Mumbai On Plan to Build Bio-Fuels Plant Ruchi Soya Industries Ltd. rose as much as 3.7 percent in Mumbai and traded at 99.75 rupees as of 9:07 a.m. local time. The country’s biggest edible oil importer and processor entered into an agreement with Indian Oil Corp. to set up a plant to produce bio-fuels at a cost of 4.37 billion rupees, the company said in a statement to the Bombay Stock Exchange. 

Greenspan Calls Treasury Yield Increases `Canary in Mine' for Higher Rates Former Federal Reserve Chairman Alan Greenspan said the recent rise in Treasury yields represents a “canary in the mine” that may signal further gains in interest rates. 

Confidence Among U.S. Consumers Is Unchanged This Month in Michigan Index Confidence among U.S. consumers was higher than anticipated in March as companies slowed the pace of job cuts and stocks advanced. 

Former Cazenove, UBS Workers Said to Face Charges in London Trading Probe As many as 11 people may be charged next week over an insider-trading ring that began at the London printers for UBS AG and JPMorgan Chase & Co.’s Cazenove unit, four people with direct knowledge of the case said. 

Pimco's Kiesel Buys Bonds Wishing `Next Life' as JPMorgan: Credit Markets Pacific Investment Management Co., manager of the world’s biggest bond fund, says bank securities are the best investments in credit markets. 

IMF Put on Standby to Help Greece as European Leaders Seek to Bolster Euro European chiefs put the International Monetary Fund on standby to aid debt-stricken Greece, seeking to snuff out a threat to the stability of the euro. 

BofA Bailout Warrants Gain 33% in Three Weeks, Topping JPMorgan's Returns Bank of America Corp. bailout warrants surged 33 percent in the first three weeks of trading, topping gains over a similar span following sales of securities tied to JPMorgan Chase & Co. and Capital One Financial Corp. 

source: Bloomberg

Sundaram BNP Paribas MF declares dividend

Record date for dividend is 30 March 2010 

Sundaram BNP Paribas Mutual Fund has announced 30 March 2010 as the record date for declaration of dividend under the dividend option of Sundaram BNP Paribas Balanced Fund. The fund house has decided to distribute 45% (Rs 4.50 per unit on face value of Rs 10 per unit) as dividend. 

The scheme recorded NAV of Rs 15.4520 per unit as on 23 March 2010. 

Sundaram BNP Paribas Balanced Fund is an open ended balanced scheme with an investment objective to generate capital appreciation and current income through a mix of investments in equities and fixed income securities.

Reliance MF Declares Dividend for Regular Savings Fund

Record date for dividend is 30 March 2010 

Reliance Mutual Fund has announced the declaration of dividend on the face value of Rs 10 per unit under dividend option in retail & institutional plan of Reliance Regular Savings Fund – Debt Option. The record date for dividend has been fixed as 30 March 2010. 

The quantum of dividend will be 1.3770% (Rs 0.1377 per unit) for retail plan and 1.5550% (Rs 0.1555 per unit) for institutional plan. 

Reliance Regular Savings Fund is an open ended scheme which has 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.

Reliance MF Declares Dividend For Growth Fund

Record date for dividend is 30 March 2010 

Reliance Mutual Fund has declared dividend on the face value of Rs. 10 per unit under dividend option in retail and institutional plan of Reliance Growth Fund. The record date for the dividend is 30 March 2010. 

The fund house has decided to distribute 25% (Rs. 2.50 per unit) as dividend for retail and institutional plan on the record date. The NAV of the scheme under retail plan was Rs. 55.8978 per unit and Rs. 426.7438 per unit for institutional plan as on 23 March 2010. 

Reliance Growth Fund is an open-ended equity scheme, which has the investment objective to achieve long term growth of capital by investing in equity and equity related securities through a research based investment approach.

Reliance MF Declares Dividend For Vision Fund

Record date for dividend is 30 March 2010 

Reliance Mutual Fund has declared dividend on the face value of Rs. 10 per unit under dividend option in retail and institutional plan of Reliance Vision Fund. The record date for the dividend is 30 March 2010. 

The fund house has decided to distribute 25% (Rs. 2.50 per unit) as dividend for retail and institutional plan on the record date. The NAV of the scheme under retail plan was Rs. 43.3710 per unit and Rs. 232.1624 per unit for institutional plan as on 23 March 2010. 

Reliance Vision Fund is an open ended equity growth scheme with a primary investment objective to achieve long-term growth of capital by investing in equity and equity-related securities through a research-based investment approach.

Reliance MF Declares Dividend For Diversified Power Sector Fund

Record date for dividend is 30 March 2010 

Reliance Mutual Fund has declared dividend on the face value of Rs. 10 per unit under dividend option in retail and institutional plan of Reliance Diversified Power Sector Fund. The record date for the dividend is 30 March 2010. 

The fund house has decided to distribute 25% (Rs. 2.50 per unit) as dividend for retail and institutional plan on the record date. The NAV of retail plan was Rs. 48.8429 per unit and Rs. 76.8703 per unit for institutional plan as on 23 March 2010. 

Reliance Diversified Power Sector Fund is an open-ended Power sector Scheme. The investment objective of the scheme is to seek to generate continuous returns by actively investing in equity and equity related or fixed income securities of power and other associated companies.

Reliance MF Declares Dividend For Regular Savings Fund

Record date for dividend is 30 March 2010 

Reliance Mutual Fund has declared dividend on the face value of Rs. 10 per unit under balanced option of Reliance Regular Savings Fund. The record date for the dividend is 30 March 2010. 

The fund house has decided to distribute 25% (Rs. 2.50 per unit) as dividend on the record date. The NAV of balanced option was at Rs. 16.8764 per unit as on 23 March 2010. 

Reliance Regular Savings Fund - Balanced Option has the objective to generate consistent return and appreciation of capital by investing in mix of securities comprising of equity, equity related instruments & fixed income instruments.

Mutual funds continue selling

Outflow of Rs 71.30 crore on 25 March 2010 

Mutual funds (MFs) sold shares worth a net Rs 71.30 crore on Thursday, 25 March 2010, lower than Rs 299.60 crore on Tuesday, 23 March 2010. 

The net outflow of Rs 71.30 crore on 25 March 2010 was a result of gross purchases Rs 1083.10 crore and gross sales Rs 1154.40 crore. The BSE Sensex rose 107.83 points or 0.62% to 17558.85 on that day. 

MFs sold shares worth net Rs 3123.10 crore in March 2010 (till 25 March 2010). MFs had sold shares worth net Rs 697.20 crore in February 2010.

Bullion metals rise for first time in three sessions

Prices end higher as dollar coughs up some of its gains 

Precious metal prices ended higher for first time in three sessions on Tuesday, 23 March 2010. Prices started the day lower earlier due to strong dollar but then managed to climb up tracking US equities and as the dollar pared some of its gains. 

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 Tuesday, gold for April delivery ended at $1,103.7 an ounce, higher by $4.2 (0.4%) an ounce on the New York Mercantile Exchange. Last week, gold gained 0.5%. In FY 2010, gold touched a high of $1,154 in January. 

On Tuesday, May Comex silver futures ended higher by 10 cents (0.5%) at $17.03 an ounce. Last week, silver ended almost unchanged against last Friday's closing of $17.04. 

In the currency market on Tuesday, the dollar index, which measures the strength of the dollar against basket of six other currencies rose by 0.3% earlier in the day. But at the end of the day, it did pare some of its gains. 

The National Association of Realtors in US reported on Tuesday, 23 March 2010 that resale of U.S. homes and condominiums fell 0.6% in February to a seasonally adjusted annual rate of 5.02 million, the lowest level in eight months, raising doubts about the durability of the housing recovery. 

Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year. 

Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end. Silver futures had hit a low at $10.42 on 15 January 2009 and hit a high at $19.30 per ounce on 2 December 2009. Like gold, silver also ended lower than its all time high level. 

At the MCX, gold prices for April delivery closed higher by Rs 29 (0.17%) at Rs 16,445 per ten grams. Prices rose to a high of Rs 16,504 per 10 grams and fell to a low of Rs 16,359 per 10 grams during the day's trading. 

At the MCX, silver prices for May delivery closed Rs 78 (0.3%) higher at Rs 26,616/Kg. Prices opened at Rs 26,545/kg and rose to a high of Rs 26,784/Kg during the day's trading.

Crude ends marginally higher

Prices stay volatile for the whole day 

Volatile crude managed to end marginally higher on Tuesday, 23 March 2010. Prices started the day lower earlier due to strong dollar but then managed to climb up tracking US equities and as the dollar pared some of its gains. 

On Tuesday, crude-oil futures for light sweet crude for April delivery closed at $81.91/barrel (higher by $0.31 or 0.4%). Prices lost 0.7% last week. 

Crude prices rose 9.3% in February as supply-and-demand issues began to take hold in a market for months dominated by moves in the dollar. Prices have ranged between $69 and $84 a barrel since October. Crude has risen 72% in last one year. 

In the currency market on Tuesday, the dollar index, which measures the strength of the dollar against basket of six other currencies rose by 0.3% earlier in the day. But at the end of the day, it did pare some of its gains.

The Energy Department will come out with the weekly inventory report on Wednesday, 24 March at Washington at 10.30 am. 

Last week, Organization of Petroleum Exporting Countries decided to keep its production quota unchanged. 

Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 45% since then. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex. 

At the MCX, crude oil for April delivery closed Rs 18 (0.59%) higher at Rs 3,729/barrel. Natural gas for March delivery closed at Rs 188.9/mmbtu, higher by Rs 0.9 (0.5%).

Bharti AXA MF Declares Dividend for Equity Fund

Record date for dividend is 29 March 2010 

Bharti AXA Mutual Fund has declared dividend on the face value of Rs 10 per unit under quarterly dividend option in Eco Plan & Regular Plan of Bharti AXA Equity Fund. The record date for the dividend is set as 29 March 2010. 

The quantum of dividend under both the plans will be 10% i.e. Rs 1 per unit as on the record date. The NAV for eco plan was at Rs 15.48 and Rs 15.44 for regular plan as on 22 March 2010. 

Bharti AXA Equity Fund is an open ended equity growth fund with the investment objective to generate income and long-term capital appreciation through a diversified portfolio of predominantly equity and equity related securities including equity derivatives, across all market capitalizations. The scheme is in the nature of diversified multi-cap fund

IDFC MF Declares Dividend For Premier Equity Fund

Record date for dividend is 29 March 2010 

IDFC Mutual Fund has announced the declaration of dividend under dividend option of IDFC Premier Equity Fund – Plan A & B. The record date for dividend has been fixed as 29 March 2010. 

The quantum of dividend will be Rs. 2.40 per unit for Plan A and Rs. 2.00 per unit for Plan B, subject to availability of distributable surplus as on the record date. The NAV of Plan A was at Rs 24.5263 and Rs 20.2906 for Plan B as on 22 March 2010. 

The investment objective of the scheme is to seek to generate long-term capital growth from an actively managed portfolio of predominantly equity and equity related instruments.

Financial News Flash

Subbarao Warns of `Hard Landing' as Goldman Expects India Rate Increases Reserve Bank Governor Duvvuri Subbarao said India risks a “hard landing” if inflation isn’t reined in as Goldman Sachs Group Inc. and Morgan Stanley said last week’s interest-rate rise isn’t sufficient to curb prices. 

Sensex Index Advances Amid Optimism India's Spending Will Expand Economy Indian stocks rose, rebounding from their steepest drop in six weeks, amid optimism that spending will drive demand, limiting the effect of the central bank’s decision to raise interest rates. 

Cricket Team Franchise `Tremendous' Advantage for India Cements Brands India Cements Ltd., franchisee of an Indian Premier League cricket team, said owning the Chennai- based sports group has helped the maker of the construction material attract new customers. 

Roads, Ports Investment Targets Lowered in India, Curbing Economic Growth India, ranked below war-ravaged Ivory Coast and Sri Lanka for the quality of infrastructure, lowered its target for spending on roads and ports after failing to complete planned projects. 

AT&T Exercises Option to Purchase 8.07 Percent Stake in Satyam's Owner AT&T Inc., the biggest U.S. phone company, exercised an option to acquire a stake in Tech Mahindra Ltd. by purchasing an 8.07 percent of the shares in the company that controls India’s Satyam Computer Services Ltd. 

Sugar Importers Likely to Defer Purchases as Price Slumps to 8-Month Low Sugar buyers in India, the world’s biggest consumer, and other importers will probably defer purchases until prices stabilize after falling to an eight-month low, according to broker Sucden India Pvt. 

Tata Motors Offers Early Conversion of $431 Million of Bonds to Pare Debt Tata Motors Ltd., India’s biggest commercial-vehicle maker, offered to convert $431 million of bonds into shares about a year early to help reduce debt and preserve cash. 

Edserv Softsystems Rises Most in Three Weeks on Plans to Expand in India Edserv Softsystems Ltd., an Indian online training company, rose the most in three weeks after saying it plans to open offices in six Indian cities to boost market share. 

Compact Disc Wins $82 Million Contract to Make Animation Film on Hitler Compact Disc India Ltd. won an order worth $82 million to make an animation feature film on Adolf Hitler, according to a statement on the Bombay Stock Exchange today. 

Germany, France Agree on IMF Role in Greece's Budget Crisis, Official Says Germany and France have agreed to back International Monetary Fund aid for Greece, a German Finance Ministry official said, signaling a joint position after weeks of dispute over how to resolve the Greek crisis. 

Moore Capital Employee Is Among Six Arrested in U.K. Insider-Trading Probe A hedge-fund employee from Moore Capital Management LLC’s London unit and two senior employees at London financial firms were arrested as part of Britain’s financial regulator’s largest crackdown on insider trading. 

Stocks Advance as Earnings Boost Economic Confidence; Dollar Trims Gains Stocks rose and the dollar trimmed gains as improved earnings at companies from Carnival Corp. to Bank of China Ltd. and growing demand for steel and computer chips boosted confidence in the economy. 

Ten-Year Swap Spread Turns Negative for First Time on Renewed Risk Demand The 10-year U.S. swap spread turned negative for the first time on record amid rising demand for higher-yielding assets such as corporate and emerging market securities. 

Feinberg Is Said to Cut Executive Cash Payments at AIG, GM, GMAC, Chrysler American International Group Inc. and four other companies overseen by Obama administration paymaster Kenneth Feinberg will cut cash payments to executives by 33 percent from last year. 

Daimler Is Accused by U.S. of Bribing Government Officials in 22 Countries The U.S. government filed charges against Daimler AG in U.S. District Court in Washington for alleged violations of the Federal Corrupt Practices Act, according to court records. 

Charles Schwab Is Seeking to Fend Off SEC Lawsuit Over YieldPlus Bond Fund Charles Schwab Corp. says it shouldn’t be sued by U.S. securities regulators for switching half of the assets in its YieldPlus mutual fund into mortgage- backed securities without gaining shareholder approval. 

source: Bloomberg

Crude pares early losses

Prices track rise in equities 

Crude oil prices pared earlier losses and ended higher on Monday, 22 March 2010. Prices fell initially as dollar stayed strong for most part of the day. Then, prices rose tracking Wall Street's gains and as the dollar coughed up its gains. 

On Monday, crude-oil futures for light sweet crude for April delivery closed at $81.25/barrel (higher by $0.57 or 0.7%). Prices fell to a low of $78.57 earlier during the day. Prices lost 0.7% last week. 

Crude prices rose 9.3% in February as supply-and-demand issues began to take hold in a market for months dominated by moves in the dollar. Prices have ranged between $69 and $84 a barrel since October. Crude has risen 71.7% in last one year. 

In the currency market on Monday, the dollar index, which measures the strength of the dollar against basket of six other currencies fell by 0.2% at the end of the day after staying strong earlier.

Last week, Organization of Petroleum Exporting Countries decided to keep its production quota unchanged. 

Among other energy products on Monday, gasoline for May gained 0.4% to $2.26 a gallon. Heating oil for May gained 1% to $2.10 a gallon. 

Also on Monday, natural gas for April bucked the upward trend in energy to end nearly 2% down, at $4.14 per million British thermal units. 

Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 45% since then. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex. 

At the MCX, crude oil for April delivery closed Rs 22 (0.59%) higher at Rs 3,711/barrel. Natural gas for March delivery closed at Rs 188/mmbtu, lower by Rs 1.2 (0.63%).

Bullion metals turn pale for second straight day

Prices end lower as dollar stays strong for most part of the day 

Precious metal prices ended lower for second straight day on Monday, 22 March 2010. Prices ended little lower as the dollar stayed strong for most part of the day. At the end, nevertheless, the dollar coughed up its gains. 

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 April delivery ended at $1,099.5 an ounce, lower by $8.1 (0.7%) an ounce on the New York Mercantile Exchange. This comes after last Friday's loss of 2%. Last week, gold gained 0.5%. In FY 2010, gold touched a high of $1,154 in January. 

On Monday, May Comex silver futures ended lower by 10 cents (0.5%) at $16.93 an ounce. Last week, silver ended almost unchanged against last Friday's closing of $17.04. 

In the currency market on Monday, the dollar index, which measures the strength of the dollar against basket of six other currencies fell by 0.2% at the end of the day after staying strong earlier. 

Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year. 

Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end. Silver futures had hit a low at $10.42 on 15 January 2009 and hit a high at $19.30 per ounce on 2 December 2009. Like gold, silver also ended lower than its all time high level. 

At the MCX, gold prices for April delivery closed lower by Rs 90 (0.54%) at Rs 16,416 per ten grams. Prices rose to a high of Rs 16,515 per 10 grams and fell to a low of Rs 16,345 per 10 grams during the day's trading. 

At the MCX, silver prices for May delivery closed Rs 51 (0.19%) lower at Rs 26,538/Kg. Prices opened at Rs 26,540/kg and fell to a low of Rs 26,180/Kg during the day's trading.

FII buying vigour slows down

Inflow of Rs 270.50 crore on 22 March 2010 

Foreign institutional investors (FIIs) bought shares worth a net Rs 270.50 crore on Monday, 22 March 2010, lower than Rs 393.50 crore on Friday, 19 March 2010. 

FII inflow of Rs 270.50 crore on 22 March 2010 was a result of gross purchases Rs 1992.90 crore and gross sales Rs 1722.40 crore. There was an inflow of Rs 237.40 crore into secondary equity markets which was a result of gross purchases Rs 1935.90 crore and gross sales Rs 1698.50 crore. The BSE Sensex lost 167.66 points or 0.95% to 17,410.57 on that day following a surprise hike in key short-term interest rates by the Reserve Bank of India. 

There was an inflow of Rs 33.10 crore in the category 'primary market & others', which was a result of gross purchases Rs 57 crore and gross sales Rs 23.90 crore. 

FII inflow in March 2010 totaled Rs 15,396.50 crore (till 22 March 2010). FII had bought equities worth Rs 2311 crore in February 2010. FII inflow in the calendar year 2010 totaled Rs 16,112.70 crore (till 22 March 2010). 

There are a total of 1,710 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Bharti AXA General Insurance ranked among Top Three in Home and Content Insurance

The new research jointly undertaken by Grant Thornton UK and Grant Thornton India and termed the "mystery buyer" survey, has shown that in the Indian Insurance market, customer service often plays a critical role in influencing customer buying decisions when it comes to Insurance products. 

Bharti AXA General Insurance has emerged as one among the top 3 Insurance Companies in a recent survey by Grant Thornton, for Home and Contents Insurance. The policies were judged on pricing, cover, and other benefits, including other additional products offered. In terms of quality of service - the overall experience of buying insurance for a customer, starting with time taken by the insurance agent to get in touch, the agent's product knowledge, phone etiquette and adherence to any follow up commitments were tested and scored. 

For home and contents insurance, the best three Indian companies in alphabetical order were Bharti AXA General Insurance, ICICI Lombard General Insurance and The New India Assurance.

Commenting on this, Dr. Amarnath Ananthanarayanan, CEO, Bharti AXA General Insurance said, "We are really proud that in less than a year of launching our Home Insurance product, we have become a preferred company in the segment."

The results show that products saw an obvious boost in their rankings as a direct result of better customer service. Interestingly, there were also examples in the home and contents insurance market that good products slipped down the rankings table because of relatively poor customer service.

Bharti AXA General Insurance's Home Insurance policy scored on this factor as it gives complete freedom from the hassles which are associated with buying a home insurance policy.
The SmartPlan Householder's Package policy offers various unique benefits that include Comprehensive coverage for all contents, valuables, appliances as well as pedigree pets, Personal Accident cover for family members, Cover for additional rent for alternate accommodation, Liability towards domestic servants, Cover for loss of documents like title deeds and passport, and Flexibility to pick and choose the coverage sections, in case of the underwritten products.

Bharti AXA General Insurance is also the first in the Indian General Insurance space to receive the dual certification of ISO 9001:2008 ; ISO 27001:2005 in the first full year of operation.

Mutual funds step up selling

Outflow of Rs 359.50 crore on 22 March 2010 

Mutual funds (MFs) sold shares worth a net Rs 359.50 crore on Monday, 22 March 2010, higher than Rs 101.80 crore on Friday, 19 March 2010. 

The net outflow of Rs 359.50 crore on 22 March 2010 was a result of gross purchases Rs 508.30 crore and gross sales Rs 867.80 crore. The BSE Sensex lost 167.66 points or 0.95% to 17,410.57 on that day following a surprise hike in key short-term interest rates by the Reserve Bank of India. 

MFs sold shares worth net Rs 2752.20 crore in March 2010 (till 22 March 2010). MFs had sold shares worth net Rs 697.20 crore in February 2010.

Get PAN or pay higher income tax

From the new financial year, assessees will have to pay a higher income tax at source if they do not have a Permanent Account Number (PAN). Tax at higher of the prescribed rate or 20 percent will be deducted on all transactions liable to tax deduction at source (TDS), if the person liable to the tax does not possess a PAN.

The new provisions related to TDS under the Income Tax Act will become applicable with effect from April 1, 2010.

All those liable to pay the tax, including non-residents, need to obtain a PAN by March 31, 2010. This number has to be communicated to those liable to deduct tax before the tax is actually deducted on transactions after that date.

Financial transactions without PAN will be taxed

As such, all financial transactions without PAN will attract tax from April 1, 2010. The Income Tax Department has already made it mandatory for employers to quote PAN of their employees and parties from whom tax is deducted while filing TDS returns.

The move of imposing penalty for not quoting PAN is aimed at strengthening the database of the revenue department and increasing tax compliance.

According to the new provisions, declaration by a taxpayer under Section 197A for non-deduction of TDS on payments will not be valid if it is given without quoting PAN. The certificate for deduction at a lower rate or no deduction will not be given by the assessing officer under Section 197 in the absence of PAN.

Non-quoting of PAN may lead to pay 20% TDS

To avoid disputes regarding quoting, non-quoting of PAN or accuracy, all eligible for the deduction and those liable to deduct will be required to quote PAN in all correspondence, bills, vouchers and other documents sent to each other.

If a person eligible for deduction fails to do so, he will have to pay 20 percent TDS instead of two percent on rental payments for plant and machinery and 10 percent on land and building.

PAN is a ten-digit alphanumeric number, issued in the form of a laminated card. It is mandatory to quote PAN on return of income, all correspondence with any income tax authority and challans for any payments due to Income Tax Department. 

Quote PAN in all documents

It is also compulsory to quote PAN in all documents pertaining to economic or financial transactions notified from time-to-time by the Central Board of Direct Taxes.

The effort is also seen as a step by the government to increase revenue collections. The 20 percent rate on TDS will be a deterrent and compel many to obtain and furnish PAN. Otherwise, it will directly impact their cash flows in terms of higher tax payout at source.

Those who still don't have a PAN should immediately apply for one before April 1, 2010.  

Oil Trips Below $80 On Weak Equities

Crude oil tripped below $80 as the US equity futures tumbled heavily today and the US currency surged against the Euro. 

U.S. stock futures pointed to a lower opening on Wall Street on Monday, as European equity markets posted losses. S&P 500 futures fell 7.6 points to 1,148.70 and Nasdaq 100 futures dropped 10.75 points to 1,921.50. Futures on the Dow Jones Industrial Average fell 53 points.

In the currencies the US dollar surged against the Euro and Pound. It is up 0.05% about to break the 1.3500 mark against the single currency as the Greece issue weighs on Euro.

Crude for May delivery, the most actively traded contract, dropped 94 cents to $80.03 a barrel. It was recently down 74 cents at $ 80.23. Oil prices dropped 1.8% on Friday, pressured by the U.S. dollar's strength and the decision of India's central bank to raise interest rates.

No major U.S. economic data are scheduled for release on Monday.

MCX Crude dropped to as low as Rs 3630 per barrel. The trades were recommended a sell in the morning update with the target around Rs 3610 levels. The next support comes around Rs 3570 levels.

Bullion metals hammered

Strong dollar takes away shine from precious metals 

Precious metal prices ended considerably lower on Friday, 19 March 2010. A strong dollar hammered precious metal prices as the euro fell following renewed concerns over Greece's fiscal problems. 

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 Friday, gold for April delivery ended at $1,107.6 an ounce, lower by $19.9 (1.8%) an ounce on the New York Mercantile Exchange. For the week, gold gained 0.5%. In FY 2010, gold touched a high of $1,154 in January. 

On Friday, May Comex silver futures ended lower by 39 cents (2.2%) at $17.03 an ounce. For the week, silver ended almost unchanged against last Friday's closing of $17.04. 

A day earlier on Thursday, precious metal prices had managed to gain inspite of s strong dollar. But that dynamics was missing a day later. 

Doubts about the euro zone's aid plan for the debt-strapped Greek government resurfaced amid talk that Greece might resort to help from the International Monetary Fund. 

In the currency market on Friday, the dollar index, which measures the strength of the dollar against basket of six other currencies rose by 0.5%. 

Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year. 

Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end. Silver futures had hit a low at $10.42 on 15 January 2009 and hit a high at $19.30 per ounce on 2 December 2009. Like gold, silver also ended lower than its all time high level.

FIIs continue buying

Inflow of Rs 393.40 crore on 19 March 2010 

Foreign institutional investors (FIIs) bought shares worth a net Rs 393.40 crore on Friday, 19 March 2010, lower than Rs 710.80 crore on Thursday, 18 March 2010. 

FII inflow of Rs 393.40 crore on 19 March 2010 was a result of gross purchases Rs 2671.60 crore and gross sales Rs 2278.20 crore. There was an inflow of Rs 393.60 crore into secondary equity markets which was a result of gross purchases Rs 2671.40 crore and gross sales Rs 2277.80 crore. The BSE Sensex rose 58.97 points or 0.34% to 17578.23 on that day. 

There was an outflow of Rs 0.20 crore in the category 'primary market & others', which was a result of gross purchases Rs 0.20 crore and gross sales Rs 0.40 crore. 

FII inflow in March 2010 totaled Rs 15,126 crore (till 19 March 2010). FII had bought equities worth Rs 2311 crore in February 2010. FII inflow in the calendar year 2010 totaled Rs 15,842.20 crore (till 19 March 2010). 

There are a total of 1,711 foreign funds registered with the Securities & Exchange Board of India (Sebi).