Oil Tumbles as Iran, Global Powers Reach Nuclear Deal

Singapore: Oil prices tumbled more than a dollar on Tuesday as Iran and six global powers reached a nuclear deal that could see an easing of sanctions against Tehran and a gradual increase in its oil exports just as Asian economies showed further signs of weakness.

Iran and six major powers have reached a historic nuclear deal, which will grant Tehran sanctions relief in exchange for curbs on its nuclear programme, an Iranian diplomat said on Tuesday.

A spokeswoman for the European Union said that the foreign ministers of Iran and six major powers will meet for nuclear talks at 0830 GMT (2:00 p.m. in India) at the United Nations centre in Vienna to be followed by a news conference.

Front-month Brent crude futures dropped over 2 per cent and more than a dollar to $56.66 a barrel by 0637 GMT (12:07 p.m. in India). US crude was trading down $1.21 at $50.99 per barrel.

"Sanctions have crippled Iran's oil production, halving oil exports and severely limiting new development projects. The prospect of them being lifted is creating great excitement... as foreign trade and investment will allow Iran to make huge efficiencies and drive down the cost of production," said Sarosh Zaiwalla, a London-based sanctions lawyer.

Yet analysts say it would take Iran many months to fully ramp up its export capacity following any easing of sanctions. But even a modest initial increase would be enough to pull international oil prices down further as the market is already producing around 2.5 million barrels per day above demand.

"The Iranian deal is unlikely to bring back large volumes of oil yet, given the removal of upstream sanctions is complex and significant investment is needed for raising output," Energy Aspects said on Tuesday.

Slowing Asia

Meanwhile, the outlook for some Asian economies dimmed further, potentially eroding oil demand.

China's economic growth is forecast to be the weakest since the 2008-2009 global financial crisis in the second quarter, which together with a stock market rout raises pressure on authorities to do more despite little pay-off so far from a run of stimulus steps.

"Fears of hard landing in China (are) on the rise again," Energy Aspects said, adding that it expected China's oil demand growth to be 300,000 barrels per day.

In Singapore, Asia's main oil trading hub and one of the region's biggest ports, the economy unexpectedly contracted in the second quarter as sluggish global demand knocked the city-state's manufacturing sector.

"Asian distillate markets have started showing fatigue ... with Asian complex refining margins falling sharply to near breakeven levels," Energy Aspects said. 

Banking, Auto Stocks Fall as Rate Cut Hopes Fade

Banking and auto stocks came under pressure in noon trade after consumer inflation rose to an 8-month high in June, dampening hopes of a rate cut in near future.

The BSE banking index was down 0.50 per cent while auto index fell 0.80 per cent.

Among banking stocks, Kotak Mahindra Bank, State Bank of India, Federal Bank, ICICI Bank, HDFC Bank and Yes Bank were among the prominent losers, down 0.3-1 per cent each.

Tata Motors led the decline in auto stocks. The stock fell 2.3 per cent to Rs 393. Bharat Forge, Eicher Motors, Motherson Sumi Systems, Maruti Suzuki, Mahindra & Mahindra and MRF were also among the losers from the auto pack.

The consumer inflation, which is mostly tracked by the RBI, rose to 5.4 per cent in June, led by higher food prices. Food prices were up 5.48 per cent from 4.8 per cent in May. The consumer inflation data was released on Monday.

"Any hope of a rate cut in the near future is off the table now, given this kind of number, combined with the fact the monsoon has been weaker in the last couple of weeks," said Gaurav Kapur, senior economist at the Royal Bank of Scotland.

The RBI next policy review is scheduled for August 4.

Corruption in coal block allocation: Madhu Koda, 8 others to be put on trial

Madhu Koda reportedly took huge bribes for illegally allotting iron ore and coal mining contracts in Jharkhand when he was the chief minister of the state.

A special court today ordered that former Jharkhand chief minister Madhu Koda, ex-Coal Secretary H C Gupta, former Jharkhand Chief Secretary Ashok Kumar Basu and six others be put on trial on charges of corruption, criminal conspiracy and cheating in connection with a coal block allocation scam case. 
 
The court has now fixed July 31 for formal framing of charges.
 
Madhu Koda reportedly took huge bribes for illegally allotting iron ore and coal mining contracts in Jharkhand when he was the chief minister of the state.
 
Special CBI Judge Bharat Parashar ordered framing of charges against two public servants, Basant Kumar Bhattacharya and Bipin Bihari Singh, Vini Iron and Steel Udyog Ltd (VISUL), its director Vaibhav Tulsyan, Koda's aide Vijay Joshi and chartered accountant Navin Kumar Tulsyan, a report added. 

Deflationary trend continues! June WPI comes at -2.40% vs -2.36% in May

The annual rate of inflation, based on monthly WPI, stood at -2.40% (provisional) for the month of June, 2015 (over June, 2014) as compared to -2.36% (provisional) for the previous month and 5.66% during the corresponding month of the previous year.

In a lowest since November 2014, the annual rate of inflation, based on monthly WPI, extended its deflationary trend for eight successive month and eased further to -2.40% for June as compared to -2.36% for May. The same stood at 5.66% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 1.42% compared to a build up rate of 1.50% in the corresponding period of the previous year.

The annual rate of inflation, based on monthly WPI, stood at -2.40% (provisional) for the month of June, 2015 (over June, 2014) as compared to -2.36% (provisional) for the previous month and 5.66% during the corresponding month of the previous year.

Build up inflation rate in the financial year so far was 1.42% compared to a build up rate of 1.50% in the corresponding period of the previous year.

PRIMARY ARTICLES (Weight 20.12%)

The index for this major group rose by 1.4 percent to 248.4 (provisional) from 244.9 (provisional) for the previous month.  The groups and items which showed variations during the month are as follows:-

The index for ‘Food Articles’ group rose by 1.3 percent to 257.3 (provisional) from 253.9  (provisional) for the previous month due to higher price of arhar (11%), poultry chicken, masur, urad and gram (9% each),  tea (7%), moong and egg (6 % each), condiments & spices and fruits & vegetables (4% each), fish-marine (3%), maize (2%) and rice and coffee (1% each).

However, the price of fish-inland (13%), barley, bajra and wheat (2% each) and beef & buffalo meat,  jowar and ragi (1% each) declined.

The index for ‘Non-Food Articles’  group rose by 2.2 percent to 218.5 (provisional) from 213.9 (provisional) for the previous month due to higher price of  niger seed (16%), raw jute (15%), sugarcane and gingelly seed (7% each), safflower (kardi seed), raw rubber and groundnut seed (5% each), rape & mustard seed, raw wool, castor seed and cotton seed (4% each), fodder (3%) and sunflower and mesta (1% each).  However, the price of copra (coconut) and soyabean (6% each) and       raw cotton (1%) declined.

The index for  ‘Minerals’  group rose by 0.3 percent to  248.5 (provisional) from 247.7  (provisional) for the previous month due to higher price of sillimanite (17%), crude petroleum (3%), copper ore (2%) and chromite (1%).  However, the price of      manganese ore (8%), magnesite (7%), barytes (6%), iron ore (4%) and zinc concentrate and phosphorite (1% each) declined.

FUEL & POWER (Weight 14.91%)

The index for this major group rose by  0.6 percent to 191.0 (provisional) from 189.8 (provisional) for the previous month due to higher price of aviation turbine fuel (9%), petrol (2%) and kerosene, lignite, high speed diesel and bitumen (1% each).

MANUFACTURED PRODUCTS (Weight 64.97%)

The index for this major group rose by  0.1 percent to 154.2 (provisional) from 154.1  (provisional) for the previous month. The groups and items for which the index showed variations during the month are as follows:-

The index for ‘Food Products’ group rose by  0.8  percent to 173.1 (provisional) from 171.7 (provisional) for the previous month due to higher price of gram powder (besan) (17%), tea leaf (blended) and tea leaf (unblended) (13% each), mustard & rapeseed oil (6%), oil cakes and cotton seed oil (5% each), gur (4%), groundnut oil (3%), sunflower oil (2%) and      processed prawn, sugar confectionary and ghee (1% each).  However, the price of gingelly oil (6%), mixed spices (5%), bakery products (4%), sugar (3%), khandsari (2%) and sooji (rawa), wheat flour (atta) and maida (1% each) declined.

The index for ‘Beverages, Tobacco & Tobacco Products’ group rose by 1.8 percent to 206.7 (provisional) from 203.0 (provisional) for the previous month due to higher price of cigarette (5%), zarda and beer (2% each) and bidi (1%).  However, the price of rectified spirit (1%) declined.

The index for ‘Textiles’ group rose by 0.6 percent to 140.9 (provisional) from 140.1 (provisional) for the previous month due to higher price of gunny and hessian cloth and man made fibre (3% each) and man made fabric and cotton fabric (1% each). However, the price of tyre cord fabric (4%), jute yarn (3%) and jute sacking cloth (1%) declined.

The index for ‘Wood & Wood Products’ group rose by 1.8 percent to 196.3 (provisional) from 192.9 (provisional) for the previous month due to higher price of plywood & fibre board (4%).

The index for ‘Paper & Paper Products’ group rose by 0.1 percent to 152.9 (provisional) from 152.8 (provisional) for the previous month due to higher price of kraft  paper & bags (1%).  However, the price of newsprint (4%) declined.

The index for ‘Leather & Leather Products’ group rose by 1.3 percent to 145.3 (provisional) from 143.5 (provisional) for the previous month due to higher price of leathers (4%) and leather footwear (1%).

The index for ‘Rubber & Plastic Products’ group rose by  0.4  percent to 149.4 (provisional) from 148.8 (provisional) for the previous month due to higher price of plastic products and tubes (1% each).

The index for ‘Chemicals & Chemical Products’ group rose by 0.3 percent to 151.4 (provisional) from 150.9 (provisional) for the previous month due to higher price of non-cyclic compound (6%) and vitamins, washing soap, rubber chemicals,     washing powder, organic manure, basic inorganic chemicals and toilet soap (1% each).  However, the price of      ammonium sulphate (5%), antacid and digestive preparations (4%) and paints and turpentine oil (1% each) declined.

The index for ‘Non-Metallic Mineral Products’ group declined by 0.6 percent to 175.8 (provisional) from 176.9 (provisional) for the previous month due to lower price of marbles (6%), slag  cement (4%) and bricks & tiles and glass bottles & bottleware (1% each).  However, the price of railway sleeper (2%) moved up.

The index for ‘Basic Metals, Alloys & Metal Products’ group declined by 1.9 percent to 158.7 (provisional) from 161.8 (provisional) for the previous month due to lower price of copper products (other than wire) (13%), steel rods (12%),     ferro manganese (4%), wire rods, HRC, pig iron and CRC (3% each), aluminium, melting scrap, billets, rounds, angles,     sponge iron, iron castings, plates and silver (2% each) and pencil  ingots, sheets, ferro chrome, nuts/bolts/screw/ washers,     gp/gc sheets, rebars, steel castings, joist & beams and steel: pipes & tubes (1% each).

The index for ‘Machinery & Machine Tools’ group rose by  0.1 percent to 135.0 (provisional) from 134.9 (provisional) for the previous month due to higher price of industrial furnaces (4%), insulators (3%) and t.v.sets, pvc insulated cable and ball/roller bearing (1% each).  However, the price of electric switch gears and fibre optic cable (2% each) and electric motors (1%) declined.

The index for ‘Transport, Equipment & Parts’ group rose by  0.1 percent to 137.7 (provisional) from 137.6 (provisional) for the previous month due to higher price of bi-cycles (2%) and railway brake gear (1%).  However, the price of shafts (all kinds) (2%) and railway  axle & wheel (1%) declined.

JSW Steel gains on good steel production in Q1

So far, the stock has touched an intra-day high at Rs. 843 on the BSE.

JSW Steel is currently trading at the highest level of the day - with a gain of almost a percent at Rs. 843 on the BSE, after the firm reported good steel production.
 
Yesterday after market hours, JSW Steel informed BSE that is has reported highest ever quarterly Crude Steel production at 3.40 million tonnes for Q1 FY 2015-16 showing a growth of 10 percent over corresponding quarter of previous year.
 
On the BSE, the counter has seen trades of around 22,000 shares as against the two-week daily average volume of 80,000 shares.
 
Meanwhile, the BSE Sensex is down 42 points at 27,919.

Sensex, Nifty recover early losses

So far, the BSE benchmark index has touched a low at 27,877 and a high at 27,995. The NSE Nifty has also registered an intra-day low at 8,433 and 8,470.

The broader market however is out-performing the BSE Sensex​. The Midcap and Smallcap indices have advanced 0.5-0.6 percent each at 11,078 and 11,551, respectively.

The key benchmark index BSE Sensex and the NSE Nifty have recovered all-the -losses and are trading on a flat note at 27,960 and 8,459, respectively.

So far, the BSE benchmark index has touched a low at 27,877 and a high at 27,995. The NSE Nifty has also registered an intra-day low at 8,433 and 8,470.

The broader market however is out-performing the BSE Sensex, the Midcap and Smallcap indices have advanced 0.5-0.6 percent each at 11,078 and 11,551, respectively.

Sectorwise, the BSE Metal index has spurted almost a percent at 8,993. The Power, Capital Goods and Healthcare indices have gained over 0.5 percent each at 2,089, 18,513 and 17,354, respectively.

The Bankex, FMCG, Oil & Gas and Realty indices have added 0.2-0.4 percent each.

On the other hand, The Auto index is the only loser, down 0.3 percent at 18,634.

The breadth is positive in morning deals - out of 2,119 stocks traded on the BSE so far 1,376 stocks have advanced, while 671 stocks have declined.

Among Metal shares - Coal India has jumped almost 2 percent at Rs. 428. Hindustan Zinc has spurted 1.5 percent at Rs. 162.

JSW Steel and SAIL have advanced almost a percent each at Rs. 843 and Rs. 59, respectively.

Jindal Steel, NMDC, Tata Steel and National Aluminiun are the other notable gainers.

Hindalco, however, bucked the trend and is down over 0.5 percent at Rs. 106.

Top economy news of the day - July 14, 2015

Consumer price index-based inflation for the month of June rose to 5.40%, the highest level in seven months, on the back of increased rate of price rise in food items, data released by the Ministry of Statistics and Programme Implementation showed

Consumer price index-based inflation for the month of June rose to 5.40%, the highest level in seven months, on the back of increased rate of price rise in food items, data released by the Ministry of Statistics and Programme Implementation showed.

Euro zone leaders clinched a deal with Greece to negotiate a third bailout to keep the near-bankrupt country in the euro zone after all-night talks at an emergency summit.

Oil ministry expects a subsidy burden of Rs 50-60bn for state-run oil and gas producers this fiscal year if world oil prices stay at current levels, a senior oil ministry source said.

Dr Reddy's Lab Gains Nearly 2% on US Drug Launch

Shares of Dr Reddy's Laboratories on Tuesday rose as much as 2 per cent to a day's high of Rs 3,828.35 after the drug firm launched the generic memantine hydrochloride tablets in the US market.

The drug is used in the treatment of Alzheimer's disease.

Dr Reddy's has launched the tablets in the strengths of 5 mg and 10 mg after getting the approval from the US FDA, it said in a filing to the BSE. The tablets are generic versions of Merz Pharma GmbH & Co KGaA's Namenda tablets.

The Namenda (memantine HCl) tablets brand had US sales of approximately $1.4 billion for the most recent twelve months ending in May 2015, according to IMS Health," Dr Reddy's Laboratories said.

At 9:45 a.m., shares of Dr Reddy's Laboratories were trading 1.4 per cent higher as compared to a 0.20 per cent decline in Sensex

Dollar Rises after Greek Deal, Safe-Haven Yen Sags

 The dollar strengthened against the yen and euro on Tuesday after Greece finally agreed to a debt deal with its creditors and allowed the market focus to shift back towards U.S. and European yield differentials.

The greenback performed well against the yen, which lost its safe-haven appeal with the worst-case-scenario of Greece exiting the euro seemingly averted.

The U.S. currency also stood tall against the euro. With the Greek debt saga off centre stage, the spotlight returned to when the Federal Reserve will begin hiking interest rates.

The dollar hovered just below a 12-day high of 123.74 yen, having pulled away from a near two-month low of 120.41 struck last week.

The euro was steady at $1.0985 after shedding about 1.5 per cent overnight, weighed down in part by a decline in German Bund yields.

Dollar bulls had been given some fodder after Fed Chair Janet Yellen said Friday she expects a rate hike at some point this year - comments partially drowned out initially by the weekend's Greek debt negotiations.

Some focus will shift to U.S. retail sales data due later in the session, which would give investors a chance to see if fundamentals are backing up Yellen's views.

Also awaited is congressional testimony by Yellen on Wednesday and whether she drops further hints regarding the timing of a rate hike.

"The dollar should have a relatively easy time topping 124 yen, especially if Yellen sounds hawkish during the testimony," said Junichi Ishikawa, market analyst at IG Securities in Tokyo.

"Breaching 125 yen, however, is a different story. Japanese authorities have spoken out when the dollar nears 125," he said, adding that another factory to watch is volatility in Chinese stocks.

The dollar index was up 0.1 per cent at 96.918 after touching a one-week high of 96.957.

The Australian dollar was little changed at $0.7399. The Aussie, strongly impacted by Chinese stocks, hovered above a six-year trough of $0.7372 struck last week as Shanghai and other mainland indexes have for now stopped their recent massive slide.

Wall Street Ends Higher on Greek Deal

New York: U.S. stocks ended sharply higher on Monday, with the Dow Jones industrial average re-emerging in positive territory for the year, after euro zone leaders reached a tentative deal to bail out Greece.

The Dow Jones industrial average rose 217.27 points, or 1.22 percent, to 17,977.68, the S&P 500 gained 22.97 points, or 1.11 percent, to 2,099.59 and the Nasdaq Composite added 73.82 points, or 1.48 percent, to 5,071.51.

Asian Stocks Mixed in Early Trades Despite Greek Deal

Tokyo stocks opened 1.32 per cent higher on Tuesday after Greece reached a long-awaited new bailout deal, while the euro slipped further against the dollar.

The Nikkei 225 index at the Tokyo Stock Exchange rose 265.56 points, to 20,355.33 in the first few minutes of trade.

The rally came after eurozone leaders struck a deal Monday on a bailout to prevent Greece crashing out of the eurozone while forcing Athens to push through tough reforms within days.

On forex markets, the euro stood at $1.0986 compared with $1.1004 in New York late Monday.

The euro had jumped to nearly $1.12 in the moments after the deal was announced but quickly fell back to the $1.10 level.

The unit eased to 135.74 yen against 135.84 yen in US trade, while the dollar rose to 123.59 yen from 123.45 yen.

European and US stocks powered higher over the new bailout deal, with Frankfurt's DAX 30 climbing 1.49 per cent, London's FTSE 100 index up 0.97 per cent and the Dow Jones Industrial Average surging 1.22 per cent.

Chinese shares were mixed on Tuesday morning ahead of the release of second quarter growth figures later this week, with Shanghai slightly lower after three sessions of gains, dealers said.

The benchmark Shanghai Composite Index edged down 0.30 per cent, or 12.02 points, to 3,958.37.

The Shenzhen Composite Index, which tracks stocks on China's second exchange, gained 1.67 per cent, or 35.44 points, to 2,155.69.

Hong Kong equities slipped 0.53 per cent in the first few minutes of trade Tuesday after a more than seven per cent rally in the previous three sessions, while traders remain on edge about volatility in mainland markets.

The Hang Seng Index eased 132.99 points to 25,091.02.