Crude glides up

Prices rise as dollar slips 

Crude prices ended higher on Tuesday, 28 December 2010 at Nymex. Prices rose along with other commodities as the dollar slipped. 

On Tuesday, crude oil futures for light sweet crude for January delivery closed higher by $0.49 (0.5%) at $91.49/barrel. Last week, oil prices ended higher by 4%. 

For the third quarter, crude ended higher by 5.7%. Crude had ended second quarter of CY 2010 lower by 9.3%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 17.5%. 

In the currency market on Tuesday, the dollar index, which measures the strength of the dollar against a basket of six other currencies, slipped by 0.4%. 

The latest dose of data today consisted of the Conference Board's December Consumer Confidence Index, which fell to 52.5 from 54.3 in the prior month. The latest tally was also below the 56.1 that had been expected. 

During last weekend China's central bank tacked on another 25 basis points to its target lending rate and deposit rate. The decision, which is intended to stave off inflation, rekindled concern about slower growth in China and, in turn, a more sluggish global economic recovery. 

Natural gas made a strong, steady ascent throughout the day to settle with a 3.1% gain at $4.24 per ounce. 

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

At the MCX, crude oil for January closed lower by Rs 6 (0.14%) at Rs 4,138/barrel. Natural gas for January delivery closed at Rs 195.8, higher by Rs 9.6 (5.1%).

Precious metals glitter

Prices shoot up as dollar slips 

Precious metals ended substantially higher on Tuesday, 28 December 2010 at Comex. Prices shot up as the dollar fell considerably 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. But bullion metals have registered increase in prices despite strong dollar in recent times and vice versa. 

On Tuesday, gold for February delivery rose by $22.7 (1.6%) ending at $1,405.6 an ounce on the New York Mercantile Exchange. During intra day trading, it touched a high of $1,407.9. Last week, gold ended almost unchanged. In December, gold had struck a new all time high of $1,416.1. 

Gold prices had been doing well since late August on expectations that Federal Reserve efforts at monetary stimulus will depress the dollar, making gold more valuable as an alternative store of wealth. 

Gold ended the month of November higher by 2.1%. It had ended October 2010 higher by 3.8%. Before this, it ended September 2010 and the third quarter higher by 5%. It was eighth consecutive quarterly gain for gold. For the second quarter, gold ended up by 12%. For the first quarter of this year, gold rose by 1.7%. On a year to date basis, gold is higher by 28%. 

On Tuesday, December Comex silver futures ended higher by $1.07 (3.6%) at $30.27. Prices gained 0.7% last week. It gained 15% in November. 

Before this, for the month of October, silver gained 13%, its third consecutive monthly gain. In September, silver ended higher by 12%. For the third quarter, silver gained nearly 18%. For the second quarter, silver ended higher by 3.1%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 77%. 

In the currency market on Tuesday, the dollar index, which measures the strength of the dollar against a basket of six other currencies, slipped by 0.4%. 

At the MCX, gold prices for February delivery closed higher by Rs 197 (0.96%) at Rs 20,708 per ten grams. Prices rose to a high of Rs 20,718 per 10 grams and fell to a low of Rs 20,520 per 10 grams during the day's trading. 

At the MCX, silver prices for March delivery closed Rs 1,216 (2.7%) higher at Rs 45,586/Kg. Prices opened at Rs 44,415/kg and rose to a high of Rs 45,650/Kg during the day's trading.

Bharti AXA MF announces change in exit load under two schemes

With effect from 1 January 2011 

Bharti AXA Mutual Fund has announced change in exit load of Bharti AXA Equity Fund and Bharti AXA Focused Infrastructure Fund, with effect from 1 January 2011. 

The changes are: 

Bharti AXA Equity Fund: Eco Plan, Regular Plan and Institutional Plan: 

Current exit load: Nil 

Revised exit load: 1% if redeemed within 1 year from the date of allotment. 

Bharti AXA Focused Infrastructure Fund: 

Current exit load: Nil 

Revised exit load: 1% if redeemed within 1 year from the date of allotment. 

Bharti AXA Equity Fund is an open ended equity growth fund. The investment objective is 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 capitalization. 

Bharti AXA Focused Infrastructure Fund is an open ended equity scheme. The investment objective is to seek to generate long term capital appreciation through a portfolio of predominantly equity and equity related securities of companies engaged in infrastructure and infrastructure related sectors.

SBI Debt Fund Series – 18 Months-5 Floats On

NFO Period from 31 December 2010 to 6 January 2011 

SBI Mutual Fund has unveiled a new fund named as SBI Debt Fund Series – 18 Months-5, a close ended debt scheme with the duration of 180 days. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 31 December 2010 and close on 6 January 2011. 

The investment objective of the scheme is to provide regular income, liquidity and returns to the investors through investments in a portfolio comprising of debt instruments such as Government Securities, PSU & Corporate Bonds and Money Market Instruments maturing on or before the maturity of the scheme. 

The scheme offers two options viz. growth and dividend payout option. 

The scheme will invest up to 100% of assets in Government of India dated Securities and Treasury Bills, PSU & Corporate Bonds/Debt Instruments, Money Market instruments. 

Exposure to securitized debt may be to the extent of 40% of the net assets. 

The minimum application amount is Rs 5000 and in multiples of Rs 10 thereafter. 

Entry load and exit load charge will be not applicable for the scheme.

Crude slips down a little

Prices drop as China hikes rates 

Crude prices ended lower on Monday, 27 December 2010 at Nymex. News that China hiked its target lending rate and deposit rate by another 25 basis points sent prices lower as investors showed concern about how higher rates could crimp growth. 

On Monday, crude oil futures for light sweet crude for January delivery closed lower by $0.51 (0.6%) at $91/barrel. Earlier, prices hit a high of $91.88. Last week, oil prices ended higher by 4%. 

For the third quarter, crude ended higher by 5.7%. Crude had ended second quarter of CY 2010 lower by 9.3%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 17.1%. 

During the weekend China's central bank tacked on another 25 basis points to its target lending rate and deposit rate. The decision, which is intended to stave off inflation, rekindled concern about slower growth in China and, in turn, a more sluggish global economic recovery. 

In the currency market on Monday, the dollar index, which measures the strength of the dollar against a basket of six other currencies, ended down by 0.2%. 

Natural gas prices were weak for most of the session. They had actually dipped below their 50-day moving average to trade just below $4.00 per MMBtu, but the energy component made a late push into positive territory so that it settled with a 0.6% gain at $4.11 per MMBtu. 

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

At the MCX, crude oil for January closed higher by Rs 17 (0.4%) at Rs 4,144/barrel. Natural gas for December delivery closed at Rs 186.2, lower by Rs 2.7 (1.4%).

Mixed finish for precious metals

Gold ends marginally higher but silver slips 

Precious metals ended mixed on Monday, 27 December 2010 at Comex. Gold prices recovered as the dollar fell but silver turned a little pale. Market was closed last Friday tomorrow in observance of Christmas. 

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. But bullion metals have registered increase in prices despite strong dollar in recent times and vice versa. 

On Monday, gold for February delivery rose by $2.9 (0.2%) ending at $1,382.9 an ounce on the New York Mercantile Exchange. Last week, gold ended almost unchanged. In December, gold had struck a new all time high of $1,416.1. 

Gold prices had been doing well since late August on expectations that Federal Reserve efforts at monetary stimulus will depress the dollar, making gold more valuable as an alternative store of wealth. 

Gold ended the month of November higher by 2.1%. It had ended October 2010 higher by 3.8%. Before this, it ended September 2010 and the third quarter higher by 5%. It was eighth consecutive quarterly gain for gold. For the second quarter, gold ended up by 12%. For the first quarter of this year, gold rose by 1.7%. On a year to date basis, gold is higher by 25.5%. 

On Monday, December Comex silver futures ended lower by $0.08 (0.3%) at $29.25. Prices gained 0.7% last week. It gained 15% in November. 

Before this, for the month of October, silver gained 13%, its third consecutive monthly gain. In September, silver ended higher by 12%. For the third quarter, silver gained nearly 18%. For the second quarter, silver ended higher by 3.1%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 73.5%. 

In the currency market on Monday, the dollar index, which measures the strength of the dollar against a basket of six other currencies, pared earlier strength and ended down by 0.2%. 

 At the MCX, silver prices for March delivery closed Rs 50 (0.11%) lower at Rs 44,370/Kg. Prices opened at Rs 44,346/kg and fell to a low of Rs 44,240/Kg during the day's trading.

FIIs continue buying

Inflow of Rs 266.30 crore on 27 December 2010 

Foreign institutional investors (FIIs) bought shares worth a net Rs 266.30 crore on Monday, 27 December 2010, which was higher than an inflow of Rs 35.60 crore on Friday, 24 December 2010. 

The net inflow of Rs 266.30 crore on 27 December 2010 was a result of gross purchases Rs 1061.10 crore and gross sales Rs 794.80 crore. There was an inflow of Rs 267.10 crore into the secondary equity markets which was a result of gross purchases Rs 1055 crore and gross sales Rs 787.90 crore. The BSE Sensex declined 44.73 points or 0.22% to 20,028.93 on that day. 

There was an outflow of Rs 0.80 crore from the category 'primary market & others', which was a result of gross purchases Rs 6.10 crore and gross sales Rs 6.90 crore. 

FII outflow in December 2010 totaled Rs 1057.50 crore (till 27 December 2010). FIIs had bought equities worth Rs 18293.10 crore in November 2010. 

FII inflow in the calendar year 2010 totaled Rs 130158.90 crore (till 27 December 2010). In dollar terms the net equity inflow in 2010 stands at $28.67 billion, above last year's $17.45 billion. The annual inflow is at record level this year. 

There are a total of 1,718 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Birla Sun Life MF announces change in process for registration of SIP

With effect from 27 December 2010 

Birla Sun Life Mutual Fund has decided to modify the process for registration of Systematic Investment Plan (SIP) transactions by providing an additional feature to new/existing investors, whereby investors can start an SIP without any initial investment. Under this feature, investors can submit the application form for SIP through NECS/Auto Debit Facility atleast 30 days before the first debit. 

The above modified process shall be made available on an ongoing basis in all existing schemes where SIP facility is available as per scheme Information Document(s) with effect from 27 December 2010 and the same shall not be applicable to Century SIP (CSIP) facility offered by AMC.

Canara Robeco MF announces change in the registrar and transfer agent

With effect from 3 January 2011 

Canara Robeco Mutual Fund has announced change in the Registrar and Transfer Agent of all the schemes of Canara Robeco Mutual Fund except Canara Robeco Balance, Canara Robeco Multicap and Canara Robeco Equity Diversified. 

Accordingly, Karvy Computershare Private Limited (Karvy) has been appointed as new Registrar and Transfer Agent (RTA) in respect of all the schemes (except Canara Robeco Balance, Canara Robeco Multicap and Canara Robeco Equity Diversified) of Canara Robeco Mutual Fund (CRMF) with effect from the start of business hours of 3 January 2011. 

Consequently, Computer Age Management Services Private Limited (CAMS) will cease to be the Registrar and Transfer Agent in respect of the respective schemes of CRMF. 

From the effective date, all the schemes related transactions like purchases, redemptions, switches, change of address, change of bank mandate, registration of multiple bank accounts etc. shall be accepted at the Karvy and the offices of Canara Robeco MF.

Crude surpasses $90

Prices cross $90 for first time in over two years 

Crude prices ended higher on Wednesday, 22 December 2010 at Nymex. Prices surpassed the $90 mark for the first time in two years. Prices got support on hopes of sustained economic recovery in the coming year and as energy department reported a steep drop in crude inventories for last week.

On Wednesday, crude oil futures for light sweet crude for January delivery closed higher by $0.66 (0.7%) at $90.48/barrel. 

For the third quarter, crude ended higher by 5.7%. Crude had ended second quarter of CY 2010 lower by 9.3%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 16.6%. 

In the latest weekly inventory data, Energy Information Administration said crude-oil inventories fell 5.3 million barrels for the week ended 17 December while gasoline inventories increased 2.4 million barrels. Distillate inventories fell 600,000 barrels. 

In the currency market on Wednesday, the dollar had a quiet day. It was down only fractionally at the close. 

The Commerce Department in US reported on Wednesday, 22 December 2010 that The U.S. economy expanded at a 2.6% pace in the third quarter, slightly faster than previously reported mainly because of a higher inventory buildup. Market had expected growth to be revised up to 3.0%.The final third-quarter report released on Wednesday incorporates data not immediately available in two earlier readings of growth in GDP. 

January gasoline futures ended up 3 cents, or 1.1%, at $2.42 a gallon. January heating oil rose 1 cent, or 0.5%, to $2.53 a gallon. 

Natural gas for January delivery gained 9 cents, or 2.3%, to $4.15 per million British thermal units. The government reports weekly inventories data on Thursday morning. 

January natural gas shed 4.2% to end at $4.06 per MMBtu, giving back all of yesterday's gains, after it sold off throughout the session. It closed just above session lows at $4.05. 

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

At the MCX, crude oil for January closed higher by Rs 16 (0.4%) at Rs 4,100/barrel. Natural gas for December delivery closed at Rs 185.4, lower by Rs 1.3 (0.7%).

FIIs resume selling

Outflow of Rs 23.70 crore on 22 December 2010 

Foreign institutional investors (FIIs) sold shares worth a net Rs 23.70 crore on Wednesday, 22 December 2010 as against an inflow of Rs 224.60 crore on Tuesday, 21 December 2010. 

The net outflow of Rs 23.70 crore on 22 December 2010 was a result of gross purchases Rs 2402.90 crore and gross sales Rs 2426.60 crore. There was an outflow of Rs 44.50 crore from the secondary equity markets which was a result of gross purchases Rs 2381.80 crore and gross sales Rs 2426.20 crore. The BSE Sensex fell 44.52 points or 0.22% to 20015.80 on that day. 

There was an inflow of Rs 20.80 crore into the category 'primary market & others', which was a result of gross purchases Rs 21.20 crore and gross sales Rs 0.40 crore. 

FII outflow in December 2010 totaled Rs 1259.50 crore (till 22 December 2010). FIIs had bought equities worth Rs 18293.10 crore in November 2010. 

FII inflow in the calendar year 2010 totaled Rs 129956.90 crore (till 22 December 2010). In dollar terms the net equity inflow in 2010 stands at $28.63 billion, above last year's $17.45 billion. The annual inflows are at record levels this year. 

There are a total of 1,747 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Franklin India Smaller Companies Fund to be converted into an Open Ended Scheme

With effect from 14 January 2011 

Franklin Templeton Mutual Fund has announced that Franklin India Smaller Companies Fund which was launched as a close ended diversified equity scheme is completing 5 years on 13 January 2011 and with effect from 14 January 2011 it will become an open ended scheme. The investment objectives and asset allocation pattern of the scheme remain unchanged. 

The investment objective of the scheme is to provide long term capital appreciation by investing in mid and small cap companies.

UTI MF Announces Merger of Infrastructure Advantage Fund – Series I into Infrastructure Fund

With effect from 14 January 2011 

UTI Mutual Fund has announced the merger of UTI-Infrastructure Advantage Fund – Series I into UTI-Infrastructure Fund with effect from 14 January 2011. UTI- Infrastructure Advantage Fund – Series I is a 3 year close ended equity scheme launched in November – December 2007 is due for maturity on 17 January 2011. 

In pursuant to the merger of scheme, the option chosen by the investor (growth or dividend) will remain same in the merged scheme i.e., UTI-Infrastructure Fund. 

UTI-Infrastructure Advantage Fund – Series I investors will be allotted units of UTI-Infrastructure Fund as per the applicable NAV. As a result, UTI-Infrastructure Fund would have an increased investor base and corpus to the extent of switchover from UTI-Infrastructure Advantage Fund – Series I. 

Unitholders of the scheme who are not in agreement with the merger may redeem their units at applicable NAV without payment of exit load from 16 December 2010 and 14 January 2010 (both days inclusive). 

The conversion will be done at the NAV computed for UTI-Infrastructure Advantage Fund – Series I and UTI-Infrastructure Fund on 14 January 2011. 

Change in Fundamental Attributes of UTI-Infrastructure Fund

 

With effect from 14 January 2011the fundamental attributes of UTI-Infrastructure Fund will be changed as follows: 

Investment Objective: The investment objective of the scheme is to provide income distribution and / or medium to long term “capital appreciation” by investing predominantly in equity/equity related instruments in the companies engaged either directly or indirectly in the infrastructure growth of the Indian economy. 

Asset Allocation: The scheme would allocate 65% to 100% of assets in equity and equity related instruments of companies engaged directly or indirectly in the infrastructure sector. It would further allocate upto 35% of assets in debt and money market instruments including securitised debt.

Precious metals add back some gains

Prices get support from Ireland's fiscal health 

Precious metals recouped back part of their prior day's losses and climbed up on Thursday, 09 December 2010 at Comex. Precious metals got some support from continued concerns about Ireland's fiscal health and as the dollar added mild 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. But bullion metals have registered increase in prices despite strong dollar in recent times and vice versa. 

On Thursday, gold for February delivery ended at $1,392.8 an ounce, higher by $9.6 (0.7%) on the New York Mercantile Exchange. Earlier this week, gold had struck a new all time high of $1,416.1. Last week, gold ended higher by 3.2%. 

Gold prices had been on a roll since late August on expectations that Federal Reserve efforts at monetary stimulus will depress the dollar, making gold more valuable as an alternative store of wealth. 

Gold ended the month of November higher by 2.1%. It had ended October 2010 higher by 3.8%. Before this, it ended September 2010 and the third quarter higher by 5%. It was eighth consecutive quarterly gain for gold. For the second quarter, gold ended up by 12%. For the first quarter of this year, gold rose by 1.7%. On a year to date basis, gold is higher by 27.9%. 

 

On Thursday, December Comex silver futures ended higher by $0.56 (2%) at $28.82. Prices had touched a high of $30.75 during intra day trading earlier this week. It was a new thirty-year high figure for silver. Prices gained 9.7% last week after gaining 15% in November. 

Before this, for the month of October, silver gained 13%, its third consecutive monthly gain. In September, silver ended higher by 12%. For the third quarter, silver gained nearly 18%. For the second quarter, silver ended higher by 3.1%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 73%. 

In the currency market on Thursday, the dollar index, which weighs the strength of the dollar against a basket of six other competing currencies, ended higher by a marginal 0.1%. 

Fitch Ratings downgraded Ireland's debt to triple-B-plus, the third-lowest investment-grade rating, citing the costs of restructuring the country's banking system and the loss of access to affordable funding in the 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. 

At the MCX, gold prices for February delivery closed higher by Rs 66 (0.32%) at Rs 20,615 per ten grams. Prices rose to a high of Rs 20,644 per 10 grams and fell to a low of Rs 20,502 per 10 grams during the day's trading. 

At the MCX, silver prices for March delivery closed Rs 551 (1.3%) higher at Rs 43,692/Kg.

Prices opened at Rs 43,300/kg and rose to a high of Rs 43,895/Kg during the day's trading.

Crude ends marginally higher

Steady dollar and positive data pull up prices 

Crude prices pared ended mildly higher on Thursday, 09 December 2010 at Nymex. Prices rose as the dollar ended just with mild gains and the economic data for the day checked in better than expected. 

On Thursday, crude oil futures for light sweet crude for January delivery closed higher by $0.09 (0.1%) at $88.37/barrel. Prices gained 6.5% last week after gaining 3.2% in November.

For the month of October, crude ended higher by 1.8%. In September, crude prices ended higher by 11.2%. For the third quarter, crude ended higher by 5.7%. Crude had ended second quarter of CY 2010 lower by 9.3%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 9%. 

In the currency market on Thursday, the dollar index, which weighs the strength of the dollar against a basket of six other competing currencies, ended higher by a marginal 0.1%. 

Fitch Ratings downgraded Ireland's debt to triple-B-plus, the third-lowest investment-grade rating, citing the costs of restructuring the country's banking system and the loss of access to affordable funding in the market. 

The Labor Department in US reported on Thursday, 09 December 2010 that the number of U.S. workers who filed new applications for unemployment benefits fell by 17,000 last week to 421,000. Market had expected initial claims in the week to fall to a seasonally adjusted 425,000. Last week's number was revised up by 2,000 to 438,000. 

The report detailed that the four-week average of new claims, meanwhile, dropped 4,000 to 427,500, the lowest level since August 2008. The moving average is considered a more accurate barometer of employment trends because it smoothens out quirks in the weekly data.

In the weekly inventory report, the EIA reported yesterday a decrease for crude-oil inventories in the week ended 3 December. But there was a surprise increases in supplies of gasoline and distillates, which include heating oil and diesel fuel. The EIA said crude-oil inventories decreased by 3.8 million barrels, against expectations of a 1.2 million-barrel decline. Gasoline inventories increased by 3.8 million barrels, and supplies of distillates rose by 2.2 million barrels. That contrasted with expectations of an increase of 100,000 barrels for gasoline and a decline of 600,000 barrels for distillates.

In its monthly short-term outlook report, the EIA reported earlier during the week that OPEC supply is expected to increase by 400,000 barrels a day in 2011, 100,000 fewer than what the EIA predicted in November. The Energy Information Administration saw supplies from countries outside the Organization of Petroleum Exporting Countries rising by 1 million barrels a day in 2011, contrasting with expectations for a 250,000-barrel-a-day decrease in the EIA's November forecast. The EIA called for an increase of 300,000 barrels a day in OPEC supply for 2010, unchanged from the November outlook. 

The agency also kept the view that global oil consumption will slow to 1.4 million barrels a day in 2011 from a projected 2 million barrels a day in 2010. Among rich countries, consumption in the U.S. is expected to grow modestly by 200,000 barrels a day. 

Among other energy products on Thursday, January gasoline added 4 cents or 1.6%, to $2.34 a gallon. 

Natural gas for January delivery declined 17 cents, or 3.7%, to $4.44 per million British thermal units; it had earlier hovered around $4.59 per million Btus. The EIA reported today that natural gas in storage declined by 89 billion cubic feet. Market had expected to see a decline between 82 billion and 86 billion cubic feet last week. 

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. 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 closed higher by Rs 16 (0.34%) at Rs 4,023/barrel. 

Natural gas for December delivery closed at Rs 203.8, lower by Rs 3.3 (1.6%).

FII selling continues

Net outflow of Rs 1197.10 crore on 9 December 2010 

Foreign funds extended their selling spree for the second day in a row on Thursday, 9 December 2010, the latest data released by the Securities & Exchange Board of India (Sebi) showed. Foreign institutional investors (FIIs) sold shares worth net Rs 1197.10 crore on Thursday, 9 December 2010, on the top of an outflow of Rs 1297.80 crore on Wednesday, 8 December 2010. 

The net outflow of Rs 1197.10 crore on 9 December 2010, was a result of gross purchases Rs 3781.40 crore and gross sales Rs 4978.50 crore. There was a net outflow of Rs 1197.70 crore from the secondary equity markets, which was a result of gross purchases Rs 3780.50 crore and gross sales Rs 4978.30 crore. The key benchmark indices had tumbled more than 2% in a broad based sell-off on that, underperforming mostly higher global stocks, as data showing heavy selling by foreign funds dampened sentiments. 

There was an inflow of Rs 0.60 crore into the category 'primary market & others' on 9 December 2010, which was a result of gross purchases Rs 0.90 crore and gross sales Rs 0.30 crore. 

FIIs sold shares worth a net Rs 194.90 crore in the first few days this month (till 9 December 2010). FIIs had bought shares worth a net Rs 18293.10 crore in November 2010, which was lower than an inflow of Rs 28562.90 crore in October 2010. 

FII inflow in the calendar year 2010 totaled Rs 131021.30 crore (till 9 December 2010). In dollar terms, the net equity inflow in 2010 stands at $28.86 billion, far above last year's $17.45 billion. The annual inflows are at record level this year. 

There are a total of 1,750 foreign funds registered with the Securities & Exchange Board of India (Sebi).

IIP records 10.8% growth in October 2010

Consumer durables records 31% growth 

The General Index of industrial production stands at 331.5, which is 10.8% higher in October 2010 as compared to the level in the month of October 2009. The cumulative growth for the period April- October, 2010-11 stands at 10.3% over the corresponding period of the previous year.

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of October 2010 stand at 203.5, 357.4, and 261.5 respectively, with the corresponding growth rates of 6.5%, 11.3% and 8.8% as compared to October 2009. The cumulative growth during April- October, 2010-11 over the corresponding period of 2009-10 in these three sectors have been 8.3%, 11.0% and 4.6% respectively, which moved the overall growth in the General Index to 10.3%.

In terms of industries, as many as fifteen (15) out of the seventeen (17) industry groups (as per 2-digit NIC-1987) have shown positive growth during the month of October 2010 as compared to the corresponding month of the previous year. The industry group 'Transport Equipment and Parts' have shown the highest growth of 39.5%, followed by 26.0% in 'Leather and Leather & Fur Products' and 24.6% in 'Other Manufacturing Industries'. On the other hand, the industry group 'Wood and Wood Products; Furniture and Fixtures' have shown a negative growth of 25.7% followed by 0.5% in 'Jute and other vegetable fibre Textiles (except cotton)'. 

As per Use-based classification, the Sectoral growth rates in October 2010 over October 2009 are 7.7% in Basic goods, 22.0% in Capital goods and 9.5% in Intermediate goods. The Consumer durables and Consumer non-durables have recorded growth of 31.0% and 0.1% respectively, with the overall growth in Consumer goods being 9.6%.

Reliance MF Launches 368 Days FMP

NFO Period from 10 December to 14 December 2010 

Reliance Mutual Fund has launched a new fund named as Reliance Fixed Horizon Fund – XVI – Series 6, a close ended income scheme with the duration of 368 days from the date of allotment. During the New Fund Offer (NFO) the scheme will offer units at Rs 10 per unit. The new issue will be open for subscription from 10 December 2010 and close on 14 December 2010. 

The primary investment objective of the scheme is to generate regular returns and growth of capital by investing in a diversified portfolio of Central, State Government securities and other fixed income/ debt securities normally maturing in line with the time profile of the scheme with the objective of limiting interest rate volatility. 

The scheme offers two options viz. growth and dividend payout option. 

The scheme will allocate up-to 70% of assets in money market instruments and it would allocate 30% to 100% of assets in Government Securities issued by Central & or State Government & other fixed income/ debt securities including but not limited to Corporate bonds and securitized debt with low to medium risk profile. Debt Securities will also include securitised debt, which may go up to 50% of the portfolio. 

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

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the scheme during the NFO period. 

Entry and exit load charge will be nil for the scheme. 

Benchmark Index for the scheme is CRISIL Short Term Bond Fund Index. 

The fund manager of the scheme will be Amit Tripathi.

DSP BlackRock MF Unveils 3 Months Fund

NFO Period from 16 December to 20 December 2010 

DSP BlackRock Mutual Fund has unveiled a new scheme named as DSP BlackRock FMP – 3M – Series 25, a close-ended income scheme, with a maturity profile of 3 months from the date of allotment. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 16 December and close on 20 December 2010.

The primary investment objective of the scheme is to seek capital appreciation by investing in a portfolio of debt and money market securities. It is envisaged that the scheme will invest only in such securities which mature on or before the date of maturity of the schemes. The scheme may also use fixed income derivatives for hedging and portfolio balancing. 

The scheme offers a choice of two options, growth option and dividend payout option.

The scheme would allocate up to 100% of assets in debt securities and money market securities with low to medium risk profile. Debt securities may include fixed income derivatives (only for hedging and portfolio re-balancing) upto 50% of the net assets. 

The minimum application amount is Rs 10000 and in multiples of Rs 10 thereafter. 

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 10 crore under the scheme during the NFO period. 

Entry and exit load charge will be nil for the scheme. Units of scheme are proposed to be listed on the National Stock Exchange of India. 

Benchmark Index for the scheme is CRISIL Liquid Fund Index. 

The fund manager of the scheme will be Mr. Dhawal Dalal.

Franklin Templeton MF Announces Dividends in Templeton India Growth Fund & Templeton India Pension Plan

Record date for dividend is 16 December 2010 

Franklin Templeton Mutual Fund has announced dividends in Templeton India Growth Fund (TIGF) and Templeton India Pension Plan (TIPP) on the face value of Rs 10 per unit. All investors registered in the dividend plans of the respective funds as on 16 December 2010 will receive the dividend. Investment of up to Rs.1 lakh in TIPP during the current financial year (2010-11) would also be eligible for tax benefits under Section 80 C of the Income Tax Act. 

The quantum of dividend will be Rs 4.50 per unit for TIGF and Rs 1.30 per unit for TIPP. The record date for the dividend is 16 December 2010 and any purchases on or before this date will be eligible for the dividend. Under the dividend reinvestment options, the dividend declared will be reinvested in the respective funds at the NAV of 20 December 2010 and unitholders will be allotted units for the dividend amount. 

TIGF is an open end growth scheme to provide long-term capital growth to its unitholders. 

TIPP is an open end tax saving scheme to provide investors regular income under the dividend plan and capital appreciation under the growth plan.

Mutual funds in buying mode

Net purchases of Rs 149.60 crore on 9 December 2010 

Mutual funds bought shares worth a net Rs 149.60 crore on Thursday, 9 December 2010, compared with an outflow of Rs 33.60 crore on Wednesday, 8 December 2010. 

The net inflow of Rs 149.60 crore on 9 December 2010 was a result of gross purchases Rs 924.80 crore and gross sales Rs 775.20 crore. The key benchmark indices had tumbled more than 2% in a broad based sell-off on that, underperforming mostly higher global stocks, as data showing heavy selling by foreign funds dampened sentiments. 

Mutual funds bought shares worth a net Rs 100.89 crore during the first few trading sessions this month. Mutual funds sold shares worth a net Rs 100 crore in November 2010.

Crude ends marginally lower

Crude inventories drop more than expected for last week 

Crude prices pared ended mildly lower on Wednesday, 08 December 2010 at Nymex. Prices fell as the dollar pared earlier losses. Prices dropped as the dollar turned strong. Prices also fell with anticipation about China's interest are decisions and following the weekly energy inventory report. 

On Wednesday, crude oil futures for light sweet crude for January delivery closed lower by $0.41 (0.5%) at $88.28/barrel. Prices gained 6.5% last week after gaining 3.2% in November.

For the month of October, crude ended higher by 1.8%. In September, crude prices ended higher by 11.2%. For the third quarter, crude ended higher by 5.7%. Crude had ended second quarter of CY 2010 lower by 9.3%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 9%. 

In the weekly inventory report, the EIA reported a decrease for crude-oil inventories in the week ended 3 December. But there was a surprise increases in supplies of gasoline and distillates, which include heating oil and diesel fuel. The EIA said crude-oil inventories decreased by 3.8 million barrels, against expectations of a 1.2 million-barrel decline. Gasoline inventories increased by 3.8 million barrels, and supplies of distillates rose by 2.2 million barrels. That contrasted with expectations of an increase of 100,000 barrels for gasoline and a decline of 600,000 barrels for distillates. 

In the currency market on Wednesday, the dollar oscillated after strengthening earlier and oscillated thereafter and finished the day with fractional gain. The dollar index, which weighs the strength of the dollar against a basket of six other competing currencies, ultimately pared its losses and ended higher by 0.03%. 

The market's concerns, however, centered around China's announcement it was moving up the release date of key macroeconomic reports to Saturday from Monday. That fueled fears an interest-rate hike could come as early as this weekend, but China's statistics bureau said the change was aimed at keeping the date of the monthly release consistent with previous months. 

In its monthly short-term outlook report, the EIA reported yesterday that OPEC supply is expected to increase by 400,000 barrels a day in 2011, 100,000 fewer than what the EIA predicted in November. The Energy Information Administration saw supplies from countries outside the Organization of Petroleum Exporting Countries rising by 1 million barrels a day in 2011, contrasting with expectations for a 250,000-barrel-a-day decrease in the EIA's November forecast. The EIA called for an increase of 300,000 barrels a day in OPEC supply for 2010, unchanged from the November outlook. 

The agency also kept the view that global oil consumption will slow to 1.4 million barrels a day in 2011 from a projected 2 million barrels a day in 2010. Among rich countries, consumption in the U.S. is expected to grow modestly by 200,000 barrels a day. 

Among other energy products on Wednesday, gasoline for January delivery retreated 2 cents, or 0.8%, to end at $2.30 a gallon. 

Natural-gas futures bucked the downward trend, rising 21 cents, or 4.9%, to close at $4.61 per million British thermal units. The EIA is expected to report on Thursday that natural-gas stocks fell between 82 billion and 86 billion cubic feet last week. 

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

At the MCX, crude oil for November closed higher by Rs 24 (0.6%) at Rs 4,007/barrel. 

Natural gas for December delivery closed at Rs 207.1, higher by Rs 7 (3.5%).

Precious metals shed some glitter

Prices drop as dollar heads up and on interest rate worries 

Precious metals ended lower on Wednesday, 08 December 2010 at Comex. Yellow metal registered modest losses while silver dropped considerably as the dollar turned strong. Profit taking was also at play together with anticipation about China's interest are decisions. 

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. But bullion metals have registered increase in prices despite strong dollar in recent times and vice versa. 

On Wednesday, gold for December delivery ended at $1,383.2 an ounce, lower by $25.8 (1.8%) on the New York Mercantile Exchange. Earlier this week, gold had struck a new all time high of $1,416.1. Last week, gold ended higher by 3.2%. 

Gold has surged to record high of $1,410 in early November. Prices had been on a roll since late August on expectations that Federal Reserve efforts at monetary stimulus will depress the dollar, making gold more valuable as an alternative store of wealth. 

Gold ended the month of November higher by 2.1%. It had ended October 2010 higher by 3.8%. Before this, it ended September 2010 and the third quarter higher by 5%. It was eighth consecutive quarterly gain for gold. For the second quarter, gold ended up by 12%. For the first quarter of this year, gold rose by 1.7%. On a year to date basis, gold is higher by 27.2%.

On Wednesday, December Comex silver futures dropped from its thirty year high figures and ended lower by $1.52 (5.1%) at $28.25. Prices had touched a high of $30.75 during intra day trading earlier this week. It was a new thirty-year high figure for silver. Prices gained 9.7% last week after gaining 15% in November. 

Before this, for the month of October, silver gained 13%, its third consecutive monthly gain. In September, silver ended higher by 12%. For the third quarter, silver gained nearly 18%. For the second quarter, silver ended higher by 3.1%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 71%. 

In the currency market on Wednesday, the dollar oscillated after strengthening earlier and oscillated thereafter and finished the day with fractional gain. The dollar index, which weighs the strength of the dollar against a basket of six other competing currencies, ultimately pared its losses and ended higher by 0.03%. 

The market's concerns, however, centered around China's announcement it was moving up the release date of key macroeconomic reports to Saturday from Monday. That fueled fears an interest-rate hike could come as early as this weekend, but China's statistics bureau said the change was aimed at keeping the date of the monthly release consistent with previous months. 

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. 

At the MCX, gold prices for February delivery closed lower by Rs 130 (0.63%) at Rs 20,549 per ten grams. Prices rose to a high of Rs 20,690 per 10 grams and fell to a low of Rs 20,378 per 10 grams during the day's trading. 

At the MCX, silver prices for March delivery closed Rs 1,421 (3.2%) lower at Rs 43,141/Kg. Prices opened at Rs 44,400/kg and fell to a low of Rs 42,703/Kg during the day's trading.

FIIs step up selling

Dump shares worth net Rs 1297.80 crore on 8 December 2010 

Foreign institutional investors (FIIs) dumped shares worth net Rs 1297.80 crore on Wednesday, 8 December 2010, much higher than an outflow of Rs 419.70 crore on Tuesday, 7 December 2010. 

The net outflow of Rs 1297.80 crore on Wednesday, 8 December 2010, was a result of gross purchases Rs 2493.90 crore and gross sales Rs 3791.70 crore. There was a net outflow of Rs 1306 crore from the secondary equity markets, which was a result of gross purchases Rs 2485.70 crore and gross sales Rs 3791.70 crore. The BSE 30-share Sensex had lost 238.16 points or 1.19% to 19,696.48 on that day as a newspaper report that oil marketing companies are likely to hike fuel prices following rise in global crude oil prices stoked inflation concerns.

There was an inflow of Rs 8.20 crore into the category 'primary market & others'. 

FIIs bought shares worth a net Rs 1002.20 crore in the first few days this month (till 8 December 2010). FIIs had bought shares worth a net Rs 18293.10 crore in November 2010, which was lower than an inflow of Rs 28562.90 crore in October 2010. 

FII inflow in the calendar year 2010 totaled Rs 132218.41 crore (till 8 December 2010). In dollar terms, the net equity inflow in 2010 now stands at $29.12 billion, far above last year's $17.45 billion. The annual inflows are at record level this year. 

There are a total of 1,749 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Net Inflows into Income & Liquid Funds Pushes up Total AUM of MF Industry by Nearly 3% in November 2010

Mutual Fund (MF) Industry which was going through a rough time during the last two months due to huge redemption and fall in Assets Under Management (AUM), had some thing to smile for as it witnessed net inflows and surge in AUM in November 2010. 

Total Assets Under Management (AUM) of the mutual fund (MF) industry increased by 2.92% or by Rs 18887 crore to Rs 6.65 lakh crore in November against Rs 6.46 lakh crore in October. The AUM of the industry had surged primarily due to inflows into debt funds. In the industry the AUM of liquid funds surged the highest by 15.37%, followed by gold ETF by 11.85% and gilt Funds by 11.08% among others. While equity funds witnessed highest fall in AUM by 3.58%. In the month of November, the domestic stock market grappled with a series of global and local events, be it policy tightening, the Euro zone debt crisis, tensions on the Korean peninsula or the housing loan bribery case. Early in November, Sensex hit 21k for first time since January 2008 but since then, there had been selling by the investors due to various global issues. For the month, the Sensex and Nifty were down by over 2%.

The net inflow into the industry stood at Rs 18379 crore in November compared with net outflow of Rs 5742 crore in October. Huge inflows were seen in income funds (Rs 11307 crore) and liquid funds (Rs 6111 crore). 

Equity & Debt Investments by Domestic Mutual Funds

Domestic mutual funds investments in debt instruments surged once again in November, while they remained sellers in equities yet again. Mutual funds shopped debt instruments worth Rs 15182 crore in November as against net buying of Rs 10978 crore in October. Of the 20 trading sessions, mutual funds were net buyers in 15 sessions and net sellers in the remaining 5 sessions. On the flip side mutual funds selling in equities stood at Rs 100 crore in November, moreover the selling was lower than its Rs 5801 crore selling in October. Of the 21 trading sessions in November, mutual funds were net buyers in 8 sessions and net sellers in the remaining 13 sessions. 

With Sensex dipping below the 20,000 mark enabled mutual funds to buy equities at a cheaper rate. However, investors have kept booking profits from their equity schemes which lead mutual funds to end as net sellers in equities for the month of November.

Collections from New Launches

Funds mobilized from 44 newly launched schemes in November stood at Rs 11259 crore, out of which Rs 11187 crore came from 42 income funds. One open ended gold ETF - Axis Gold ETF mobilized Rs 68 crore and open ended fund of funds investing overseas - JP Morgan EEMA Equity Off Shore Fund mobilized Rs 4 crore.

The forty two close ended income funds which were launched and for which allotment was over includes Birla Sun Life FTP Series CG, Series CH and Series CI, Short Term FMP - Series 2; BNP Paribas FTF Series 19 B, Series 19C, Series 19D and Series 19E; DSP BlackRock FMP 3M Series 23 and 12M Series 9; DWS Fixed Term Fund - Series 76; Fidelity FMP - Series IV - Plan B; HDFC FMP 35D October 2010 (1) Series XVII, November 2010 (1) Series XVII, 100D October 2010 (3) Series XIV, November 2010 (1) Series XVII, November 2010 (2) Series XVII, 370D November 2010 (1) Series XVII and November 2010 (2) Series XVII; ICICI Prudential FMP Series 53 One Year Plan B and Series 54 18 Months Plan A; IDFC Fixed Maturity - EMS - 7 and HYS - 12, IDFC Fixed Maturity Bi-Monthly Series 1 and Series 2, IDFC Saving Scheme Series - 1; Kotak FMP 6M Series 10, 15M Series 6 and Series 7; L & T FMP II (November 91D A) and (November 12M A); Principal Pnb FMP 91 Days Series XXVI; Reliance Fixed Horizon Fund - XVI - Series 2, Series 3 and Series 4; Religare FMP - Series IV - Plan A (3 Months), Plan B (6 Months) and Plan C (3 Months) and Sundaram FTP AP 367 Days Series, AQ 367 Days Series and AR 367 Days Series; Tata FMP Series 29 Scheme A.

According to AMFI data on mutual funds, 247 closed ended income funds have been launched until the end of November for the calendar year 2010. These funds had collectively mobilized Rs 60817 crore. The rise in the interest rate during the calendar year had made fund houses to launch these funds. Investors have shown interest in subscribing for these funds to beat the interest rate risk.

 

Gold ETF:

Gold ETFs had put up a good show by posting an average return of about 6% in November as gold prices continue to scale to new heights. The assets under management of this category of fund have been moving upwards in this calendar year and moreover the investors have been showing desire in diverting their money into Gold ETFs. 

Gold ETFs had a net inflow of Rs 172 crore, moreover its total AUM increased by 11.85% to Rs 3464 crore in November against Rs 3097 crore in October. Another round of Quantitative Easing by the US Fed triggered the weakening of the dollar, and so, it came as no surprise that the investment demand for Gold soared, moving it past the $1400 an ounce mark for the first time ever in history.

For the fourth consecutive month, gold prices continued to rise. The month of November saw gold prices increase by 2.86%. However, factors such as, fluctuations in the dollar, FED announcement of QE II, sovereign debt fears surrounding Ireland, Chinese monetary tightening, the Korean conflict, etc. all added to higher volatility.

Liquid Funds:

Liquid fund category had seen net inflows of Rs 6111 crore in November compared with a net inflows of Rs 2283 crore in October. On the flipside, the AUM increased by 15.37% to Rs 99190 crore in November. Share of assets of liquid funds in total AUM jumped to 15% in November from 13% in October.

Income Funds:

Total AUM of income funds increased by 3.99% or Rs 12702 crore to Rs 3.31 lakh crore in November compared with October. Net inflows into this category have been to a tune of Rs 11307 crore which is higher than the net outflows of Rs 5305 crore in October. Moreover the net inflows from this category has surged to Rs 2736 crore for the year to date period of the current fiscal. Due to inflows into this category, its share in total AUM has increased to 50% in November from 49% in October.

Gilt Funds: 

AUM of gilt funds increased by 11.08% to Rs 4410 crore in November as against Rs 3970 crore in October. Net inflows into this category stood at Rs 431 crore in November as against Rs 117 crore in October. This category had witnessed net inflows for the fifth consecutive month in a row and its net inflow for the year to date period of the current fiscal stood at Rs 887 crore. 

Equity Funds:

Equity schemes of mutual funds continued to witness outflows for the sixth consecutive month, in November, following withdrawals by investors and lacklustre sales by distributors who market these schemes. However, the outflow was the smallest since June.

The net outflows from this category zoom to Rs 17534 crore for the current fiscal so far. On the other hand the total AUM of equity funds had declined by 3.58% or Rs 6587 crore to Rs 1.77 lakh crore in November. Moreover the weightage of equity funds declined to 27% of the total assets of the industry in November as against 29% in October. 

The month of November saw a lot of volatility in the market with the Sensex falling by 511.09 points (2.55%) and the Nifty by 155 points (2.58%). The fall in the equity markets impacted the performance of the funds which had exposure towards equity as well. However, Pharma Funds were the least impacted among the equity funds in November, this category of fund posted returns in range of 0.51% to 3.75%, with UTI-Pharma & Healthcare Fund ending as the top gainer in this category.

ELSS Equity:

AUM of ELSS - Equity funds declined by 3.34% to Rs 26515 crore in November from Rs 27431 crore in October. The net outflow from this category was at Rs 62 crore in November as against Rs 194 crore in October. The redemption from this category climbed to Rs 993 crore for the year to date period of the current fiscal. 

Other Funds 

Assets of balanced funds were had fell by 3.04% in November. However this category witnessed net inflows of Rs 255 crore in November. The net inflows have increased to 320 crore for the year to date period of the current fiscal which is much better than net outflows of Rs 562 crore in the year to date period of the previous fiscal.

The total AUM of Other ETFs climbed 9.59% in November. Moreover this category had net inflows of Rs 200 crore in November as against net inflows of Rs 73 crore in October.

Total AUM of MF Industry Increases by 2.92% in November 2010

Total Assets Under Management (AUM) of the mutual fund (MF) industry increased by 2.92% or Rs 18887 crore to Rs 6.65 lakh crore in November against Rs 6.46 lakh crore in October. The AUM of the industry had fell for two consecutive months prior to this increase. AUM of Liquid Funds surged the highest by 15.37%, followed by Gold ETF by 11.85% and Gilt Funds by 11.08% among others. While Equity Funds witnessed highest fall in AUM by 3.58%. 

On the other hand, the industry witnessed net inflows in November. The net inflow stood at Rs 18379 crore in November compared with net outflow of Rs 5742 crore in October. Huge inflows were seen in income funds (Rs 11307 crore) and liquid funds (Rs 6111 crore). 

Funds mobilized from 44 newly launched schemes in November stood at Rs 11259 crore, out of which Rs 11187 crore came from 42 income funds.

Precious metals witness new all time highs

Prices rise as dollar pares its gains partly 

Precious metals registered new all time highs on Monday, 06 December 2010 at Comex. Prices rose as the dollar pared its early gains to some extent. 

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. But bullion metals have registered increase in prices despite strong dollar in recent times and vice versa. 

On Monday, gold for December delivery ended at $1,416.1 an ounce, higher by $9.9 (0.7%) on the New York Mercantile Exchange. It was an all time new price for gold. The last record price it had was of $1409 it had registered on 9 November. Prices rose to a high of $1422.4 during intra day trading on Monday. Last week, gold ended higher by 3.2%. 

Gold has surged to record high of $1,410 in early November. Prices had been on a roll since late August on expectations that Federal Reserve efforts at monetary stimulus will depress the dollar, making gold more valuable as an alternative store of wealth. 

Gold ended the month of November higher by 2.1%. It had ended October 2010 higher by 3.8%. Before this, it ended September 2010 and the third quarter higher by 5%. It was eighth consecutive quarterly gain for gold. For the second quarter, gold ended up by 12%. For the first quarter of this year, gold rose by 1.7%. On a year to date basis, gold is higher by 28.6%. 

On Monday, December Comex silver futures ended higher by $0.46 (1.6%) at $29.73. It hit a high of $30.12 during intra day trading. It was a new thirty-year high figure for silver. Prices gained 9.7% last week after gaining 15% in November. Before today, silver has hit a string of 30-year highs in recent months, peaking at $28.91 on 9 November. 

Before this, for the month of October, silver gained 13%, its third consecutive monthly gain. In September, silver ended higher by 12%. For the third quarter, silver gained nearly 18%. 

For the second quarter, silver ended higher by 3.1%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 66.4%. 

In the currency market on Monday, the greenback was up as much as 0.7% against a basket of competing currencies after Fed Chairman Bernanke stated in a weekend interview that the Fed could provide further stimulus to the economy, if necessary. The dollar was also driven higher as the euro dropped in response to reports of division among European leaders on the matter of increasing Europe's recently announced bailout plan. The dollar index, which weighs the strength of the dollar against a basket of six other competing currencies, ended higher by 0.3%. 

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. 

At the MCX, gold prices for February delivery closed lower by Rs 15 (0.07%) at Rs 20,783 per ten grams. Prices rose to a high of Rs 20,873 per 10 grams and fell to a low of Rs 20,755 per 10 grams during the day's trading. 

At the MCX, silver prices for March delivery closed Rs 292 (0.66%) higher at Rs 44,553/Kg. Prices opened at Rs 44,300/kg and rose to a high of Rs 45,045/Kg during the day's trading.