Zinc weakness, market under long liquidation: Kedia

inc is getting support at 133.2 and below same could see a test of 132.5 level, and resistance is now likely to be seen at 134.7, a move above could see prices testing 135.5.
MUMBAI: Zinc settled flat due to worries about Chinese demand as businesses wind down ahead of the Lunar New Year holidays next week. Major economic indicators released overnight were mixed. US job numbers were upbeat, but Greece rejected international bailout, causing market concerns over Greek exit from the eurozone to increase. When combined with Ukraine turmoil, risk aversion rose. US non-farm employment numbers released last Friday were upbeat, boosting the US dollar index and weighing on base metals prices. 

China Customs reported over the weekend that China’s exports decreased 3.3% YoY in January, down for the first time since April 2014, while imports tumbled 19.9% YoY to the lowest since May 2009. As a result, the trade surplus expanded to a record high of USD 60.03 billion largely due to plummeting commodities prices. This, together with the dispiriting manufacturing PMI released earlier, pointed to considerable downward pressure facing the Chinese economy. LME zinc prices opened at USD 2,151/mt, then edged up to USD 2,160-2,170/mt, and but fell back to close at USD 2,157.5/mt, down USD 0.5/mt or 0.02%.

Trading volumes were down 2,093 to 6,703 lots, and total positions increased 4,241 to 286,686. LME zinc inventories fell 3,925 to 612,150 mt.. Technically market is under long liquidation as market has witnessed drop in open interest by -2.36% to settled at 4465 while prices remain unchange0 rupee, now Zinc is getting support at 133.2 and below same could see a test of 132.5 level, and resistance is now likely to be seen at 134.7, a move above could see prices testing 135.5.

Trading Ideas: 
--Zinc trading range for the day is 132.5-135.5.
--Zinc settled flat due to worries about Chinese demand as businesses wind down ahead of the Lunar New Year holidays next week.
--China's annual consumer inflation hit a five-year low in January, underscoring persistent weakness in the economy after China's trade performance slumped in January. 
--Zinc daily stocks at Shanghai exchange came up by 723 tonnes.

Global situation favourable to Indian economy: Finance Minister

The Finance Minister said India's major challenges will be to boost investment especially in infrastructure sector and give further boost to both manufacturing and agriculture sector among others.

NEW DELHI(Commodity Online): Arun Jaitley, India Finance Minister, said global situation is favourable to India as more and more investors are showing curiosity and interest in the country. Jaitley said overall economic situation in the country is looking better and basic parameters of Indian economy are moving in the right direction.

He said current account deficit will be under control and will try to keep fiscal deficit also within the prescribed limit. The Finance Minister said that the growth rate would be better than the last year as per the old system.

The Finance Minster was making the Opening Remarks at the First Meeting of the Parliamentary Consultative Committee attached to his Ministry held here today to discuss ‘Suggestions for the Budget’.

The Finance Minister said India's major challenges will be to boost investment especially in infrastructure sector and give further boost to both manufacturing and agriculture sector among others.

Regarding bringing back the black money stashed abroad, the Finance Minister said that India will soon become part of international consortium where the focus would be on automatic transfer of information which would in turn help the Government in getting easy access to such foreign accounts of Indian residents.

Most of the members of the Consultative Committee congratulated the Government for the gradual turn-around of the Indian Economy taking place and also welcomed the increased inflows of FDIs and FIIs during the current year.

Various suggestions were given with regard to the forthcoming Union Budget by the participating members which include significant increase in allocation for judicial sector for setting- up fast track courts in order to clear the heavy back log of pending court cases in various courts; abolition of differential import tax levied on end use basis as this leads to misuse and corruption, steps be taken to broaden the tax base and impose small tax at flat rate on everyone including small businessmen so that everyone is a stakeholder in the country’s development.

It was also suggested to make big ticket announcements by the Finance Minister in his Budget Speech including policy reforms to keep the optimism going on.

Other suggestions included focus on inland waterways, rationalization of subsidies including in case of urea leading to its excessive use which in turn spoiled the quality of land and brought down the productivity, more concession for migrant workers and agricultural labourers, incentives for modernization of agriculture to make it viable, focus on creating strong rural infrastructure, incentives for agri-exports.

Moré tax benefits to cooperative sector, incentivize use of ethanol in petrol, boost to micro-irrigation, 50% subsidy by the Central Government for drip irrigation be extended to all farmers in all areas and financing of remaining 50% liberally by banks through soft loans to farmers among others.

Other suggestions include labour reforms, settlement of issue of wages etc of staff of public sector banks and insurance companies and focus on skill development programmes for workers and labourers among others

SRF stock surges 6% ahead of results

The stock has hit a high of Rs1005 and a low of Rs958.

Shares of SRF Ltd surged 6% to Rs1006 ahead of the results.

The stock has hit a high of Rs1010 and a low of Rs958.

The company has announced that a meeting of the Board of Directors of the Company will be held on February 10, 2015, inter-alia, for considering and approving the un-audited financial results for the quarter and nine months ended December 31, 2014 (Q3) and to consider a proposal relating to declaration of second interim dividend - 2014-15, on Equity Shares if any.

Top corporate news of the day - February 10, 2015

In sign of further deferment of its USD2.6bn order for 10 Boeing 787-9 Dreamliners, Jet Airways announced that the full-service airline has nothing on its order book till around 2017-18.

Drug major Cipla has inked a joint venture agreement with Morocco-based Societe Marocaine De Cooperation Pharmaceutique (Cooper Pharma) and The Pharmaceutical Institute (PHI) to enhance its position in the African country. 
 
Zensar Technologies announced that it has signed significant new business worth Rs.1.9bn in its Application Management Services business.
 
In sign of further deferment of its USD2.6bn order for 10 Boeing 787-9 Dreamliners, Jet Airways announced that the full-service airline has nothing on its order book till around 2017-18.
 
Adani Enterprises Ltd., the flagship company of the Adani Group has signed a memorandum of understanding (MoU) with Government of Rajasthan for a 10,000 Mw solar park in Rajasthan.
 
Chambal Fertilisers and Chemicals said it has shut down one of its urea units located in Kota district in Rajasthan due to unfavourable government policy for the 2014-15 fiscal.
 
Pharmaceutical firm Venus Remedies Ltd said it has received Indian product patent for its antibiotic research product Vancoplus. 
 
BK Birla flagship Kesoram Industries is planning to hive off manufacturing facility at Haridwar as part of its tyre business restructuring amid speculations that Apollo Tyres and MRF are in race to acquire the plant.
 
Siemens has secured three orders worth about Rs4.5bn from the Diesel Locomotive Works of the Indian Railways for locomotive equipment.
 
Force Motors plans to set up a manufacturing facility at Chakan near Pune to produce a range of parts including engines, gearboxes and axles with annual capacity of 50,000 sets.
 
State-owned Bank of India (BoI) said it will raise up to Rs6.4bn by selling shares to Life Insurance Corp and New India Assurance Company to fund its business growth and meet global risk norms.
 
Competition Commission has ordered a fresh probe against DLF Ltd with regard to alleged abuse of its dominant market position, after it found the realty major prima facie in violation of fair trade norms in a new case. 

Technical Comment For Day: Crude oil

Technical Comment For Day: Crude oil

Crude Oil continued gains for second straight trading day of the week. The prices  settled at Rs 3308 per barrel against Rs 3260 per barrel a day before.

Crude Oil tested a high of Rs 3340 and a low of Rs 3221 per barrel. The gains above Rs 3400 per barrel is the immediate resistance zone. Decline towards Rs 3250 will act as supports in Crude Oil. 

Volumes were at 175677 lots on 9 Feb 2015 lots against 230137 on 6 Feb 2015. Resistances for the contract that will be critical in medium term will be at Rs 3350, and Rs 3380 per barrel.  

Leaked HSBC documents reveals a culture of corruption in international banking

GFI research estimates that opacity in the global financial system, consisting of tax haven secrecy, anonymous companies, trade-based money laundering, and lax financial crime enforcement, drains roughly US$1 trillion per year out of developing and emerging economies—more than these countries receive in foreign direct investment or foreign aid combined.

Leaked HSBC documents revealed today by the International Consortium of Investigative Journalists (ICIJ) highlight a culture of corruption in the international banking system that goes far beyond the world’s second biggest bank, noted Global Financial Integrity (GFI), a Washington, DC-based research and advocacy organization. Featured Sunday evening on CBS News’ 60 Minutes program, the files allegedly highlight how the Swiss branch of the bank meticulously catered to some of the world’s biggest dictators and criminals, and they are but the latest example of a global bank gone rogue.
 
“While the leaks do really expose a culture of corruption at HSBC, it seems almost unfair at this point to single them out,” said GFI Policy Counsel Joshua Simmons. “From Credit Suisse to UBS and BNP Paribas to Standard Chartered, it feels like nearly every major bank is either under investigation or subject to settlements for engaging in serious financial crimes. Even HSBC acknowledged in 2012 that it let US$200 trillion—roughly 3 times global GDP—flow through its New York office over a three-year period without applying the legally required anti-money laundering controls. Nevertheless, not a single bank employee or executive has been prosecuted in any of these cases. Until the U.S. Department of Justice—and financial regulators worldwide—begin holding individuals accountable for their actions, we’re going to continue living in a financial Wild West.”
 
GFI research estimates that opacity in the global financial system, consisting of tax haven secrecy, anonymous companies, trade-based money laundering, and lax financial crime enforcement, drains roughly US$1 trillion per year out of developing and emerging economies—more than these countries receive in foreign direct investment or foreign aid combined. Beyond bleeding the world’s poorest economies, this propels crime, corruption, and tax evasion globally.
 
“Illicit financial flows are the most damaging economic problem plaguing the world’s developing and emerging economies,” added Mr. Simmons. “But tax haven secrecy and lax enforcement also take a toll on developed countries like the United States, where offshore tax haven abuses cost American taxpayers roughly US$150 billion in revenue each year. Enough is enough: Now is the time for regulators and legislators to act. 

Kaveri Seed stock hits 5% upper circuit

The stock has hit a high of Rs868 and a low of Rs823.

Shares of Kaveri Seed hit 5% upper circuit at Rs858.

The stock has hit a high of Rs868 and a low of Rs823.

The company has announced that the Company has fixed February 13, 2015 as the Record Date for the purpose of Payment of Second Interim Dividend