Gold Gains in London as Investors Weigh Ukraine Against U.S.

Gold rose for a second day in London as investors weighed haven demand from tension over Ukraine against signs the U.S. economy is improving.

Geopolitical unrest helped gold gain 7.5 percent this year. Russian President Vladimir Putin ordered his government to respond to U.S. and European sanctions as Poland said yesterday a renewed buildup of Russian troops on Ukraine’s border raises the specter of a possible invasion.Israel withdrew troops from the Gaza Strip on the first day of a 72-hour cease-fire.

Prices have retreated from a three-month high set July 10 amid signs the U.S. economy is strengthening. The dollar traded near a five-month high versus 10 major currencies after Federal Reserve Bank of Dallas President Richard Fisher said yesterday U.S. policy makers were becoming more “hawkish” and data showed factory orders and service activity increased.

“With the Russians once again massing troops on the Ukraine border and the world watching to see if Israel/Hamas keep to the cease-fire, I doubt many people will want to short gold here,” David Govett, head of precious metals at Marex Spectron Group in London, said in a note today. Still, a stronger dollar curbed the appeal of precious metals, he said.

Gold for immediate delivery rose 0.2 percent to $1,291.81 an ounce by 8:51 a.m. in London, according to Bloomberg generic pricing. It’s rebounded from $1,279.30 on Aug. 1, the lowest since June 19. Gold for December delivery gained 0.6 percent to $1,292.70 on the Comex in New York.

Futures trading volume was 50 percent below the average for the past 100 days for this time of day.

Facebook joins Cellular Operators Association of India as an associate member

 GSM industry body COAI today said it has inducted social networking giant Facebook as an associate member of the association. 

COAI's associate membership comprises of companies that manufacture or support the functioning, promotion, research development and evolution of mobile communications services. 

The Cellular Operators Association of India's (COAI) other associate members include Alcatel Lucent India, Cisco Systems India, Ericsson India, IBM India, GTL Infrastructure, Huawei Technologies, Indus Towers, Intel Corporation, Nokia Solutions and Networks, Qualcomm India and ZTE India. 

Facebook has more than 1.32 billion monthly active users globally, including over 100 million monthly active users in India. 

Adani Ports Q1 profit up 36 per cent on higher cargo

Adani Ports and Special Economic Zone reported a consolidated profit of Rs. 568 crore for the quarter ended June, compared with Rs 417.50 crore during the same quarter last year, helped by a strong cargo volume growth. 

Analysts, on an average, were expecting earnings of Rs. 512.7 crore on revenue of Rs. 1250 crore, according to a poll conducted by Bloomberg. Net sales for the quarter fell 14 per cent to 1261.6 crore. 

the company reported a net profit of Rs. 505.10 crore, down 24 per cent in the corresponding quarter. 

Adani Ports handled 33.83 million tonnes of cargo on consolidated basis during the quarter, up 27 per cent from the same quarter last year. Consolidated cargo includes volumes from flagship Mundra port and its ports at Hazira and Dahej. 

Shares of the company were trading up 1.6 per cent at Rs. 270.95 per share on BSE on Wednesday. 

IDBI Bank Q1 net profit at Rs. 1.05bn

Total Income has decreased from Rs. 74.45 billion for the quarter ended June 30, 2013 to Rs. 72.31 billion for the quarter ended June 30, 2014

IDBI Bank Ltd has announced the following results for the quarter ended June 30, 2014. The Unaudited Standalone results for the Quarter ended June 30, 2014. The Bank has posted a Net Profit of Rs. 1048.10 million for the quarter ended June 30, 2014 as compared to Rs. 3069.50 million for the quarter ended June 30, 2013. Total Income has decreased from Rs. 74454.20 million for the quarter ended June 30, 2013 to Rs. 72313.70 million for the quarter ended June 30, 2014.

Piramal Enterprises Q1 net profit at Rs28963.20 mn

Total Income has increased from Rs. 10842.10 million for the quarter ended June 30, 2013 to Rs. 12829.00 million for the quarter ended June 30, 2014.

Piramal Enterprises Ltd has posted a net profit of Rs. 28963.20 mn for the quarter ended June 30, 2014 as compared to Net Loss of Rs. (1466.60) mn for the quarter ended June 30, 2013. Total Income has increased from Rs. 10842.10 million for the quarter ended June 30, 2013 to Rs. 12829.00 million for the quarter ended June 30, 2014.

Bhushan Steel tumbles to 52-week low

Bhushan Steel was locked in 20% lower circuit at Rs 304.60 at 12:55 IST on BSE, with the stock resuming fall after a seeing a small recovery on Tuesday, 5 August 2014.

Shares of Bhushan Steel had dropped 4.23% to Rs 378.15 on Monday, 4 August 2014 after the Central Bureau of Investigation (CBI) on Saturday, 2 August 2014 arrested the now-suspended Chairman-cum-Managing Director of Syndicate Bank SK Jain, after he allegedly demanded Rs 50 lakh from Bhushan Steel in exchange for providing extensions on loans to the company that had defaulted on payments. Apart from SK Jain, CBI had taken eight others into custody on Saturday, 2 August 2014 including an alleged representative of Bhushan Steel, two employees from another private firm, and some middlemen, reports added. Shares of Bhushan Steel rose 0.69% to Rs 380.75 Tuesday, 5 August 2014.

Meanwhile, CBI Director Ranjit Sinha has reportedly ordered an internal inquiry after his team did not arrest Bhushan Steel vice-chairman Neeraj Singhal during searches at his residence in the Syndicate Bank bribery case, despite clear instructions to pick him up. Neeraj Singhal is on the run from the time of the raid and the CBI has been trying to trace him since, so that he can be arrested, reports added. Neeraj Singhal has filed an anticipatory bail application in a local court which will come for hearing today, 6 August 2014.

Bhushan Steel reported net loss of Rs 19.57 crore in Q4 March 2014 as compared to net profit of Rs 280.21 crore in Q4 March 2013. Net sales fell 10.9% to Rs 2399.73 crore in Q4 March 2014 over Q4 March 2013.

Bhushan Steel is one of the leading prominent player in steel industry. The company is now India's 3rd largest secondary steel producer company with an existing steel production capacity of 2 million tonne per annum (approx.).

Government plans Rs 500-crore outlay to develop five tourist circuits

Government plans to develop five tourist circuits with an investment of Rs 500 crore in current fiscal, Rajya Sabha was informed today. 

Tourism Minister Shripad Naik said during Question Hour that these circuits will be developed around specific themes. 

He said the government also proposed to spend Rs 100 crore to beautify and improve amenities and infrastructure at pilgrimage centres of all faiths. 

"...a National Mission on Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASAD) has been announced and an amount of Rs 100 crore has been proposed in this year's Budget," he said. 

, Naik said there was no proposal before the government to revise the National Tourism Policy, 2002, which was formulated after consulting industry associations, ministries concerned at the Centre, state governments and other stakeholders. 

City Union Bank Q1 PAT up 10% at Rs 99.5 cr

The company's gross NPA rose by 100 bps at 1.91 percent versus 1.81 percent and net NPA was up 30 bps at 1.28 percent versus 1.23 percent, Q-o-Q.

City Union Bank  's April-June quarter (Q1FY15) net profit was up 10 percent at Rs 99.5 crore against Rs 90.3 crore in the same quarter last fiscal. NII was down marginally at Rs 186.7 crore versus Rs 187.3 crore, Y-o-Y. The company's gross NPA rose by 100 bps at 1.91 percent versus 1.81 percent and net NPA was up 30 bps at 1.28 percent versus 1.23 percent, Q-o-Q.

The provisions increased by 44 percent at Rs 42.7 crore versus Rs 29.6 crore, Q-o-Q and shown a rise of 108 percent against Rs 20.5 crore, Y-o-Y. The capital adequacy ratio (Basel III) stood at 14.51 percent versus 15.01 percent, Q-o-Q.

LIC may invest Rs 60,000 crore in equities in FY15: Chairman SK Roy

The Life Insurance Corporation ( LIC) of India is likely to invest around Rs 60,000 crore in equities in the current financial year, said the financial behemoth's chairman SK Roy.

Roy said, "FY15 has started on a high note. We see further upside for the market in this financial year." Roy is on the opinion that infrastructure and real estate sectors will be the top gainers. 

LIC's overall investments in 2014-2015 may cross Rs 3 lakh crore, Roy said. Roy also said that he does not see the impact of poor monsoon on the economy. "Fear of poor monsoon has reduced."Asked about RBI's decision to hold key rates, Roy said, "This is positive for the markets."

Indian stock markets may need to brace for more turbulence over the next few months as rich valuations and global uncertainties could prompt investors — mainly foreign institutions — to lock in some profits.

Gold rises on safe-haven bids as Ukraine tensions hurt equities

Gold ticked up slightly on Wednesday and could benefit from a bout of market risk aversion as fears of increasing military action along the Ukraine border put global equities under pressure.

Asian stocks slipped on Wednesday while the U.S. dollar held near a 11-month high, after Polish foreign minister Radoslaw Sikorski said Russia has gathered military forces at the border with Ukraine to either put pressure on the neighbouring country or to enter it.

Spot gold rose 0.3 percent to $1,291.80 an ounce by 0623 GMT, after closing flat in the previous session. U.S. gold was up about $7 to $1,292.70.

Geopolitical tensions in Ukraine and the Middle East have largely been responsible for gold's 7 percent gain this year.

Gold, often seen as alternative investment to riskier assets such as equities, could gain if stocks fall further.

Bullion investors continued to keep an eye on economic data, after a Tuesday report showed new orders for U.S. factory goods rose more than expected in June.

Recent U.S. data pointing to strengthening economic activity has weighed on gold's appeal on fears that monetary policy could soon be tightened.

The physical markets have failed to provide support to prices recently due to the seasonally quiet summer period.

Premiums in top buyer China have been stuck at $2-$3 an ounce and demand is much weaker than last year, dealers said.

Chinese gold jewellery demand fell for the first time in eight years in the second quarter and could drop as much as 20 percent in the full year, a leading precious metals consultancy said last week.

Among other precious metals, silver ticked up after dropping to a seven-week low in the previous session on strong U.S. data and a higher dollar.

Aurobindo Pharma gains on aiming $2 billion turnover in FY15

Leveraging on its large state-of-the-art manufacturing infrastructure for APIs and formulations, wide and diversified basket of products and confidence of its customers, Aurobindo Pharma is targeting to achieve $2 billion turnover during the current financial year. The city-based drug maker is also hoping to seek approvals for nine more injectables from US FDA.

The consolidated revenue (net) from operations was higher over the previous year by 38.3% at nearly Rs 8,100 crore ($1.4 billon at Rs 58 per dollar) during 2013-14 as against Rs 5,855 crore in the previous year.

The company has achieved a remarkable milestone of 300 submissions to the US FDA at the end of 2013 and as at end of March 2014 the submissions totaled 336 ANDA filings.

Aurobindo Pharma manufactures generic pharmaceuticals and active pharmaceutical ingredients. The company’s robust product portfolio is spread over 6 major therapeutic/product areas encompassing Antibiotics, Anti-Retrovirals, CVS, CNS, Gastroenterologicals, and Anti-Allergics, supported by an outstanding R&D set-up.

Sanofi India gains 2% on partnership with Emcure Pharma

Sanofi India has entered into a marketing and distribution agreement with Emcure Pharmaceuticals for its oncology portfolio in India.

Healthcare firm  Sanofi India  gained nearly 2 percent on Wednesday after it has entered into a marketing and distribution agreement with Emcure Pharmaceuticals for its oncology portfolio in India. As per the agreement, while Sanofi will continue to own its oncology range (comprising four brands namely Taxotere, Jevtana, Fludara and Fasturtec), Emcure will market and distribute these brands through its specialty unit.

"Realising that managing the complexities of cancer necessitates the availability of a wide range of products and supporting therapies, we found that combining our efforts and product range with that of Emcure Oncology, makes immense sense for both companies," said Shailesh Ayyangar, vice president - South Asia and Managing Director - Sanofi India Limited and Sanofi – Synthelabo (India). Sanofi will continue to provide strong scientific and medical support to Emcure’s already well-established and fast growing Oncology business, he added.

Rupee falls to near 5-month low; foreign funds pull out money

 The rupee fell to 61.33/34 after hitting 61.41, its lowest since March 14 and weaker than its 60.8450/8550 close on Tuesday.

Good dollar buying was seen from foreign banks likely on behalf of clients looking to exit their equity and debt investments in India.

The Nifty was down 0.2 percent and will be watched for cues on fund flows.

The pair is seen moving in 61.10 to 61.40 range during the rest of the session.

Most Asian currencies were also trading weaker compared with the dollar.

Infosys gets share buyback demand from ex-CFOs

Report stated that three former senior employees believe company must do so because there is a "dramatic valuation disconnect"

Three former senior employees of Infosys -former chief financial officers T V Mohandas Pai and V Balakrishnan and former senior vice-president D N Prahlad - have written to the company's board to "immediately" consider a buyback of shares, according to reports.

Report stated that three former senior employees believe company must do so because there is a "dramatic valuation disconnect" between the shares of Infosys and its peers.

Earlier, Timothy D Cook, who succeeded Steve Jobs as the CEO of Apple, had to go for a massive share buyback programme - of around $14 billion - soon after taking over, following pressure from shareholders.

Brent rebounds towards $105; US oil stocks eyed

Brent crude rose towards $105 a barrel on Wednesday, bouncing off a nine-month low hit in the previous session after industry data showed a large drop in U.S. crude stocks last week. 

The rebound came after oil prices tumbled on Tuesday as investors grew increasingly nervous about weak seasonal demand and poor refinery margins in a well-supplied global market. 

The Brent oil contract for prompt delivery advanced 20 cents to $104.81 per barrel by 0506 GMT, after settling on Tuesday at its lowest since Nov. 7 last year. 

U.S. crude for September delivery gained 10 cents to $97.48 a barrel after falling to as low as $97 on Tuesday, its weakest point since early February. 

Oil prices have fallen more than $10 a barrel over the past month and a half. Global supply has been running above demand, creating a glut in the Atlantic Basin and Asia. 

China's yuan hits 4-1/2-month high

China's yuan firmed against the dollar for the third straight day on Wednesday, trading at its highest level since mid-March, despite the central bank setting a weaker guidance rate. 

The People's Bank of China set the midpoint rate at 6.1681 per dollar prior to market open, down 0.04 percent from the previous fix. The spot rate is currently allowed to trade 2 percent above or below the midpoint. 

The spot market opened at 6.1719 per dollar and was changing hands at 6.1690 by midday, 0.04 percent stronger from the previous close. 

The spot rate and the midpoint continued to converge, with the spot only 4 points above the midpoint fixing at midday, representing the closest level the two rates have been trading since the central bank widened the trading band to 2 percent in the mid-March. 

NHPC quarterly profit slumps 14% to Rs 616 cr

The company's finance costs went up to Rs 322.10 crore in the latest quarter under review compared to Rs 116.06 crore in the year-ago period.

Hydel power producer  NHPC reported a 14 percent decline in net profit at Rs 616.03 crore in the three months ended June, mainly on account of higher finance costs. The state-owned company had a net profit of Rs 719.26 crore. In the first quarter of current financial year, total income from operations rose to Rs 2,054.85 crore from Rs 1,619.60 crore in the same period a year ago, according to a regulatory filing. The company's finance costs went up to Rs 322.10 crore in the latest quarter under review compared to Rs 116.06 crore in the year-ago period. According to the filing, borrowing cost of Rs 101.88 crore related to Subansiri Lower project has been charged to the statement of profit & loss. Besides, administration and other costs of Rs 35.91 crore with regard to this project have also been charged. The work at 2,000 MW Subansiri Lower project has been stalled since December 2011 on account of protests by anti-dam activists and the central government is pursuing the matter.

Rupee opens weaker tracking broad dollar rise

 The rupee is trading at 61.11/12 versus its Tuesday's close of 60.8450/8550, tracking broad gains in the dollar.

The Nifty is trading down 0.3 percent in preopen trade. Shares to be watched for cues on fund flows.

The rupee/dollar pair is seen moving in 60.90 to 61.30 range during the session.

Most Asian currencies are trading weaker compared with the dollar.

Asian stocks slip while the U.S. dollar holds firm after a slump on Wall Street and tensions over Ukraine instil a mood of risk aversion across markets.

Canadian Dollar Weakens to 3-Month Low on Crude Oil Drop

Canada’s dollar weakened to the lowest level in three months versus its U.S. counterpart as crude oil fell and concern increased that economic growth is accelerating faster in the nation’s largest trading partner.

The currency declined against most of its major peers after a report showed U.S factory orders rose 1.1 percent in June versus a revised 0.6 decline in the previous month. Crude oil, Canada’s biggest export, fell to a six-month low.

“General risk-off sentiment has people buying U.S. dollars,” Greg Anderson, New York-based head of global foreign-exchange strategy at Bank of Montreal, said in a phone interview. “Normally when the dollar rallies, the Canadian dollar is somewhere in the middle of the pack. Today, it was towards the bottom of the pack.”

The loonie, as the Canadian currency is nicknamed for the image of the aquatic bird on the C$1 coin, depreciated to as low as C$1.0977 per U.S. dollar, the weakest since May 5, before trading down 0.5 percent at C$1.0962 at 4:31 p.m. in Toronto. One loonie buys 91.23 U.S. cents.

The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major counterparts,climbed 0.3 percent to 1,023.17 and rose to 1,024.01, the highest level since Feb. 13.

Canada’s dollar lost 2.2 percent in July, the biggest monthly decline since January. The American economy climbed 4 percent at an annual rate in the second quarter, data showed last month.

If the loonie weakens past C$1.10 this week, “there should be very good resistance,” Anderson said. A move past that level will be the result of a weaker-than-forecast jobs report due Aug. 8, he said.

Canadian employers added 20,000 jobs in July, economists in a Bloomberg survey forecast before the report. U.S employers added 209,000 jobs last month, the Labor Department said Aug. 1.

Crude futures declined 0.8 percent to $97.53 a dollar in New York, the least since Feb. 5.