A weaker dollar carried gold prices to a new record on Monday and also boosted silver and copper to their highest levels of the year.
Oil prices
finished slightly higher, while agricultural futures fell.
Gold for December delivery rose as high as $1,174 an ounce before settling at $1,164.70, up $17.90, or 1.6 percent, from Friday's close. Year to date, prices are up 31.7 percent.
December silver rose to its highest close of the year, gaining 17 cents to $18.61 an ounce. Earlier, prices rose as high as $18.935, the highest since July 2008.
March copper futures also finished at a fresh 2009 high, rising 2.8 cents to $3.162 a pound. Prices touched a fresh 14-month high of $3.204 earlier in the session.
The latest surge in metal prices came as the dollar resumed its decline against other major currencies. The dollar, which rose late last week, has been on a steady decline since March as record-low interest rates encourage investors to buy stocks, commodities and other assets that have the potential to earn higher returns than cash.
A weaker dollar makes commodities less expensive for foreign buyers. Gold's tie to the dollar, though, is different from other commodities. The precious metal is seen as an inflation hedge and an alternative to a weak currency. Investors have been padding their portfolios with more gold to protect themselves from a further decline in the dollar.
"Where most people get off track is looking at gold as a mere commodity," said Nick Barisheff, president and CEO of Toronto-based Bullion Management Group, a precious metals investment company. Barisheff sees gold rising as high as $1,400 in the near term, and as high as $2,000 a year from now.
The dollar fell Monday after Federal Reserve official James Bullard said the central bank should continue to buy mortgage-backed securities after the program is currently scheduled to expire in March. That would help keep U.S. interest rates low, further pressuring the dollar.
The ICE Futures US dollar index, which tracks the dollar against other major currencies, fell 0.7 percent in afternoon trading.
Though the spike in gold could be setting the market up for a pullback, most analysts say the long-term trend is a weaker dollar and higher gold. A continued drive for deficit spending from governments around the world will push gold prices even higher, Barisheff said.
In other Nymex trading, December platinum rose $25.70, or 1.8 percent, to $1,464.40 an ounce.
Crude oil for January delivery rose as high as $79.92 in early trading due to the weaker dollar before settling up 9 cents at $77.56 a barrel.
Other energy futures were little moved. Gasoline futures fell 0.12 cent to $1.9794 a gallon, while heating oil futures rose 0.43 cent to $1.9799 a gallon.
On the Chicago Board of Trade, March wheat futures dipped 2.25 cents to $5.785 a bushel, while corn for March delivery fell 3.75 cents to $4.0325 a bushel.
January soybeans lost 4 cents to $10.42 a bushel.
Among other soft commodities, January sugar slipped 0.33 cent to 21.57 cents per pound, while cocoa for December delivery fell $3 to $3,242 a ton.
http://www.sirfpaisa.com
Tuesday, November 24, 2009
Indian shares provisionally close down 0.6 pct
MUMBAI, Nov 24 (Reuters) - Indian shares provisionally dropped 0.6 percent on Tuesday as investors took profits in stocks such as Reliance Industries (RELI.BO: Quote, Profile, Research) and ICICI Bank (ICBK.BO: Quote, Profile, Research) after a recent rally.
The 30-share BSE index .BSESN provisionally ended down 0.57 percent or 98.06 points at 17,082.12, with 17 components losing.
The 50-share NSE index .NSEI provisionally closed down 0.5 percent at 5,078.65.
http://www.sirfpaisa.com/
The 30-share BSE index .BSESN provisionally ended down 0.57 percent or 98.06 points at 17,082.12, with 17 components losing.
The 50-share NSE index .NSEI provisionally closed down 0.5 percent at 5,078.65.
http://www.sirfpaisa.com/
Monday, November 23, 2009
Indian shares rise 0.4 pct early, Reliance rallies
Indian shares rose 0.4 percent early trade on Monday, led by gains in Reliance Industries (RELI.BO: Quote, Profile, Research) that made an offer to buy controlling interest in U.S.-based bankrupt petrochemicals company LyondellBasell Industries. [ID:nN21473364]
At 9:55 a.m. (0425 GMT), the 30-share BSE index .BSESN was up 0.44 percent at 17,096.45 points, with 27 components advancing.
Energy giant Reliance rose 1.3 percent to 2,152.80 rupees, after sources said it was offering about $12 billion to buy a controlling interest in LyondellBasell Industries.
At 9:55 a.m. (0425 GMT), the 30-share BSE index .BSESN was up 0.44 percent at 17,096.45 points, with 27 components advancing.
Energy giant Reliance rose 1.3 percent to 2,152.80 rupees, after sources said it was offering about $12 billion to buy a controlling interest in LyondellBasell Industries.
Sunday, November 22, 2009
Nifty hits 5100 led by RIL; ITC hits all-time high
At 11:55 hours IST, the Nifty touched the 5,100 mark after a month. Reliance Industries (RIL) was the leading counter with a gain of 3%, the company has made a preliminary, non-binding cash offer to buy Dutch company LyondellBasell (LB). There were reports that the company is planning USD 10 billion offer.
ITC gained 2.7% and hit an all-time high of Rs 268. ICICI Bank, HDFC Bank and ONGC were the other leading counters.
Brokerages views on RIL - CLSA in their report said the deal would be positive if enterprise value of LB is below USD 12 billion. However, Kotak Institutional report said there would be no real synergies between RIL and LB; they retained sell rating with a target of Rs 1,750/share.
On the sectoral front, auto, metal, power, banking (except SBI), cement and select pharma stocks were seeing buying interest. However, selling in Bharti Airtel (down 4%), Reliance Communications (down 1%), Idea Cellular (down 1.7%), Infosys, SBI and Hindalco (down 2%) limited the gains to some extent.
The Sensex went up 139 points to 17,160 and the Nifty rose 48 points to 5,100. The market breadth strengthened a bit further; about 1,767 shares advanced while 1,010 shares declined on the BSE. Nearly 655 shares were unchanged.
The Nifty November future was trading with 7 points premium. Among the broader indices, the BSE Midcap Index was up 0.4% and Smallcap up 1%.
In the midcap space, GMDC, BF Utilities, HMT, MRF and Aurobindo Pharma gained 6-8% while KGN Industries slipped 10%. Balrampur Chini, J&K Bank, Shree Renuka and Info Edge lost 3-4%.
In the smallcap space, Tata Sponge Iron, Mastek, Prime Securities, Indian Metals and Sahara One went up 7-12% while PVP Ventures, Webel SL Energy, Dhampur Sugar, Raj Oil Mills and Kalyani Steels declined 3-4.7%.
ITC gained 2.7% and hit an all-time high of Rs 268. ICICI Bank, HDFC Bank and ONGC were the other leading counters.
Brokerages views on RIL - CLSA in their report said the deal would be positive if enterprise value of LB is below USD 12 billion. However, Kotak Institutional report said there would be no real synergies between RIL and LB; they retained sell rating with a target of Rs 1,750/share.
On the sectoral front, auto, metal, power, banking (except SBI), cement and select pharma stocks were seeing buying interest. However, selling in Bharti Airtel (down 4%), Reliance Communications (down 1%), Idea Cellular (down 1.7%), Infosys, SBI and Hindalco (down 2%) limited the gains to some extent.
The Sensex went up 139 points to 17,160 and the Nifty rose 48 points to 5,100. The market breadth strengthened a bit further; about 1,767 shares advanced while 1,010 shares declined on the BSE. Nearly 655 shares were unchanged.
The Nifty November future was trading with 7 points premium. Among the broader indices, the BSE Midcap Index was up 0.4% and Smallcap up 1%.
In the midcap space, GMDC, BF Utilities, HMT, MRF and Aurobindo Pharma gained 6-8% while KGN Industries slipped 10%. Balrampur Chini, J&K Bank, Shree Renuka and Info Edge lost 3-4%.
In the smallcap space, Tata Sponge Iron, Mastek, Prime Securities, Indian Metals and Sahara One went up 7-12% while PVP Ventures, Webel SL Energy, Dhampur Sugar, Raj Oil Mills and Kalyani Steels declined 3-4.7%.
Markets inch higher, RIL leads gains
The key benchmark indices were trading higher today led by advances in Reliance Industries. The Sensex was up 81 points at 17,103 levels and the Nifty rose 0.5 per cent to 5,078.
Buying interest was seen in most sectors and oil & gas, metals and auto stocks led the gains. The oil & gas index on the BSE rose 1 per cent and the BSE auto index advanced 0.9 per cent. The metal index also surged 0.7 per cent.
Among the Sensex stocks, RIL was the top gainer. The stock rose 1.6 per cent in early trades. The company has offered more than $12 billion in cash to acquire a majority stake in bankrupt international petrochemical group LyondellBasell Industries.
Grasim, ACC and Tata Motors were the biggest gainers in the group. The stocks were up over 1 per cent each.
Bharti Airtel, however, was the biggest loser in the pack. The stock shed 2.4 per cent.
Asian markets also rose moderately. Hong Kong’s Hang Seng rose 0.5 per cent and China’s Shanghai Composite was also in the green turf. Markets in Japan were, however, closed today.
Buying interest was seen in most sectors and oil & gas, metals and auto stocks led the gains. The oil & gas index on the BSE rose 1 per cent and the BSE auto index advanced 0.9 per cent. The metal index also surged 0.7 per cent.
Among the Sensex stocks, RIL was the top gainer. The stock rose 1.6 per cent in early trades. The company has offered more than $12 billion in cash to acquire a majority stake in bankrupt international petrochemical group LyondellBasell Industries.
Grasim, ACC and Tata Motors were the biggest gainers in the group. The stocks were up over 1 per cent each.
Bharti Airtel, however, was the biggest loser in the pack. The stock shed 2.4 per cent.
Asian markets also rose moderately. Hong Kong’s Hang Seng rose 0.5 per cent and China’s Shanghai Composite was also in the green turf. Markets in Japan were, however, closed today.
Subscribe to:
Posts (Atom)