June WPI at 5.43%

Build up inflation rate in the financial year so far was 1.28% compared to a build up rate of 1.82% in the corresponding period of the previous year.

The annual rate of inflation, based on monthly WPI, stood at 5.43% (provisional) for the month of June, 2014 (over June,2013) as compared to 6.01% (provisional) for the previous month and 5.16% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 1.28% compared to a build up rate of 1.82% in the corresponding period of the previous year.

PRIMARY ARTICLES (Weight 20.12%)

The index for this major group rose by 1.3 percent to 249.9 (provisional) from 246.8 (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 2.2 percent to 249.7 (provisional) from 244.3 (provisional) for the previous month due to higher price of fruits & vegetables (6%), coffee (5%), masur (3%), poultry chicken, urad,      egg, pork, milk, condiments & spices and fish-marine (2% each) and rice, arhar and fish-inland (1% each).  However, the price of tea (3%), ragi and barley (2% each) and gram, wheat, bajra, jowar and moong (1% each) declined.

The index for ‘Non-Food Articles’  group declined by 1.1 percent to 216.4 (provisional) from 218.8  (provisional) for the previous month due to lower price of soyabean (9%), gingelly seed and raw silk (7% each), tobacco and flowers (4% each), copra (coconut) (3%), linseed (2%) and raw cotton (1%).  However, the price of fodder and castor seed (4% each), cotton seed, niger seed, groundnut seed and sunflower (2% each) and raw jute, raw rubber and rape & mustard seed   (1% each) moved up.

FUEL & POWER (Weight 14.91%)

The index for this major group rose by 0.1 percent to 212.3 (provisional) from 212.1  (provisional) for the previous month due to higher price of high speed diesel and lignite (1% each).  However, the price of aviation turbine fuel and bitumen (2% each) and kerosene (1%) declined.

MANUFACTURED PRODUCTS (Weight 64.97%)

The index for this major group rose by 0.2 percent to 154.9 (provisional) from 154.6 (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 0.4 percent to 171.6 (provisional) from 170.9 (provisional) for the previous month due to higher price of gur (6%), copra oil (5%), salt (4%), maida and wheat flour (atta) (3% each),  oil cakes (2%) and sooji (rawa), ghee and rice bran oil (1% each).  However, the price of gingelly oil (4%) and      cotton seed oil, vanaspati, groundnut oil, tea leaf (blended), sunflower oil and gola (cattle feed) (1% each) declined.

The index for ‘Basic Metals, Alloys & Metal Products’ group rose by 0.1 percent to 167.1 (provisional) from 166.9 (provisional) for the previous month due to higher price of steel (4%), ferro manganese (3%) and ferro chrome,     sheets, joist & beams, iron & steel wire, wire rods, angles, aluminium and steel castings (1% each).  However, the price of melting scrap (2%) and silver and gold & gold ornaments (1% each) declined.

The index for ‘Machinery & Machine Tools’ group rose by 0.4 percent to 133.8 (provisional) from 133.3 (provisional) for the previous month due to higher price of computers (6%), sprinkler (5%), ball/roller bearing,     fans and pvc insulated cable (4% each), grinding /wet coffee machinery and harvester (2% each) and fibre optic cable and boiler & accessories (1% each).  However, the price of insulators (2%) and batteries, electric switch gears and electrical pumps (1% each) declined.

FINAL INDEX FOR THE MONTH OF APRIL, 2014 (BASE YEAR: 2004-05=100)

 For the month of  April, 2014, the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) stood at 180.8 as compared to 180.2 (provisional) and annual rate of inflation based on final index stood at 5.55 percent as compared to 5.20 percent respectively as reported on 15.05.2014. 

Yen Weakens Most in Five Weeks Versus Euro

The yen weakened the most versus the euro in five weeks amid waning concern that a banking crisis is developing in the euro area, damping demand for the currency as a haven.

The yen depreciated against all but one of its 16 major counterparts as European and Asian stocks advanced. The euro rose for the first time in three days against the dollar before European Central Bank President Mario Draghi speaks to European Union lawmakers. Indonesia’s rupiah fell the most in two weeks after the central bank said the current-account deficit probably widened to near a record last quarter.

The yen dropped 0.4 percent to 138.35 per euro at 9:24 a.m. London time, the biggest decline since June 6. The yen slid 0.2 percent to 101.50 per dollar. The 18-nation shared currency rose 0.2 percent to $1.3629.

Portugal’s Banco Espirito Santo SA appointed a new management board yesterday after markets were roiled last week when a parent company missed some debt payments.

Gold falls 1.5 pct on stronger equities

 Gold slid 1.5 percent on Monday in its biggest one-day drop in nearly seven weeks on selling from stop-loss orders and as Asian share markets gained strength.

Spot gold fell as much as 1.6 percent to $1,317.00 an ounce, and was at $1,318.11 by 0705 GMT.

U.S. gold futures also fell 1.6 percent, while silver fell nearly 2 percent.

The sharp decline comes after gold posted its sixth straight weekly gain last week and after hitting $1,345 - its highest since March - last Thursday.

Gold climbed sharply on Thursday as worries about the financial stability of Portugal's largest listed bank Banco Espirito Santo hammered equities and stoked fears of an European banking crisis.

But the fears have now faded, with Asian shares gaining on Monday as investors put aside concerns about euro zone banks and looked forward to corporate earnings and a raft of global economic events.

Another trader said troubles at the Portugal bank were unlikely to become a widespread European crisis.

Gold is seen as an alternative investment to riskier assets at times of geopolitical and financial uncertainties. The metal has managed to stay above $1,300 an ounce in recent weeks on safe-haven bids arising from tensions in the Middle East and Ukraine.

Israel appeared to hold off on a threatened escalation of its week-old Gaza Strip barrage on Monday despite balking at Western calls for a ceasefire with an equally defiant Hamas.

On Sunday, the Israeli military had warned residents of the northern border town of Beit Lahiya to leave or risk their lives when, after nightfall, it planned to intensify air strikes against suspected Palestinian rocket sites among civilian homes.

Coal India unit starts production at 12 mtpa mine in Jharkhand

CIL has struggled to raise output fast enough to meet rising demand from power companies

Reports stated that Coal India has started production at a 12 million tonnes per year mine, which should help boost supplies to fuel-starved power plants. CIL has struggled to raise output fast enough to meet rising demand from power companies, the report added. CIL unit Central Coalfields took almost a decade to start digging out coal from the Amrapali open cast pit in the eastern state of Jharkhand, mainly due to delays in land acquisition and lack of a railway network to connect the mine.

Diesel price deregulation likely by December if global price trend stays

Diesel prices may be deregulated as early as December if the current trend in global prices continues, while the number of subsidised cylinders supplied to households may be cut again as the government strives to cut fuel subsidies and achieve the fiscal discipline targeted by the finance minister. 

Brent crude oil, which had soared above $115 last month due to the crisis in Iraq, has fallen to $106.7 as fears of supply disruption receded. Prospects of higher supply from Libya has also dampened prices. This is expected to reduce the gap between India's diesel price and the international price. The gap had fallen to Rs 1.6 a litre but rose to Rs 3.4 last month. 

Diesel is a major drag on the public exchequer as state oil firms incurred a revenue loss of Rs 62,837 crore in the previous fiscal year. 

The government also plans to cut cooking gas subsidies with steps such as checking its diversion and reducing the number of subsidised cylinders. On an average each household consumes 7.2 cylinder a year but they can buy 12 if they need. 

Canara Bank expands its Gramodaya scheme in Delhi.

State-owned Canara Bank today said it has expanded Gramodaya scheme in Delhi by bringing in more slums under the project. 

Gramodaya is a scheme floated by bank for identifying villages or slums for overall development, Canara Bank said in a statement. 

Accordingly in Delhi, Canara Bank has adopted one village and three slums, including one in Vasant Kunj. 


Recently, the bank conducted financial literacy camps and Training for various skill development activities like manufacturing artificial jewelry for the ladies in the slum. 

Certificates were also handed over to ladies who have undergone training on artificial jewelry under the Entrepreneurship Development Programme of the bank by the General Manager Hemant Kumar Tamta. 

To promote education and to create job avenue the bank is starting Training Centre in tailoring/stitching in the slums of Delhi. 

Gold eases but still near 4-month high on safe-haven bids.

Spot gold fell 0.2 percent to USD 1,334.89 an ounce by 0301 GMT after posting its sixth straight weekly gain last week.

Gold ticked lower on Monday as Asian share markets gained strength, but the metal stayed close to a four-month high hit last week on safe-haven demand from escalating tensions in the Middle East and Ukraine. Spot gold fell 0.2 percent to USD 1,334.89 an ounce by 0301 GMT after posting its sixth straight weekly gain last week. The metal had hit USD 1,345, its highest since March, on Thursday after worries about the financial stability of Portugal's largest listed bank Banco Espirito Santo hammered equities and stoked fears of an European banking crisis. "The Portugal fears have subsided as markets don't think it is going to be another widespread crisis," said one trader in Tokyo. "However, the safe-haven demand for gold is still there due to the tensions in the Middle East. Portugal was only one reason for safe-haven bids, the geopolitical situation has not changed," the trader said. Israel appeared to hold off on a threatened escalation of its week-old Gaza Strip barrage on Monday despite balking at Western calls for a ceasefire with an equally defiant Hamas. On Sunday, the Israeli military had warned residents of the northern border town of Beit Lahiya to leave or risk their lives when, after nightfall, it planned to intensify air strikes against suspected Palestinian rocket sites among civilian homes. Elsewhere, Russia threatened Ukraine on Sunday with "irreversible consequences" after a man was killed by a shell fired across the border from Ukraine, an incident Moscow described in warlike terms as aggression that must be met with a response. Gold is seen as an alternative investment to riskier assets at times of geopolitical and financial uncertainties. Data from the Commodity Futures Trading Commission showed that hedge funds and money managers increased their bullish bets on gold and silver futures and options in the week to July 8, underscoring the metal's safe-haven appeal. 

Amul sponsors Indian Contingent to 2014 Commonwealth Games and Asian Games

Amul has become the Official Sponsor of the Indian team in the category of Dairy products.

India’s largest food products marketing organization Amul announced its sponsorship of the Indian contingents to the Glasgow 2014 Commonwealth Games and Asian Games, Incheon, South Korea by signing a MoU with the Indian Olympic Association. The MoU was signed by Rajeev Mehta, Secretary General, IOA and RS Sodhi, Managing Director, Gujarat Cooperative Milk Marketing Federation (Amul) in a function graced by Rakesh Gupta, Joint Secretary and Anil Khanna, Treasurer, Indian Olympic Association. Amul has become the Official Sponsor of the Indian team in the category of Dairy products. Announcing Amul’s support for the Indian contingent to both these prestigious sporting events, RS Sodhi, Managing Director GCMMF said that  “Amul is committed to strengthening the support to sports in various forms and encourage young generation from all corners of the country to take up sports. I take great pleasure and pride in announcing our sponsorship of the Indian contingent to the XX Commonwealth Games and the XVII Asian Games.”  Explaining the rationale of this association, he said that milk is nature’s original energy drink and plays a pivotal role in building the physical and mental strength of the athletes. Amul has embarked upon an “Eat Milk with Every Meal” campaign to highlight the importance of milk and dairy products like cheese, yogurt, butter, ghee, paneer etc. in the daily diet. India is the largest producer of milk in the world and Amul is not only India’s but Asia’s largest milk brand. Further, he said that this association and activities around it will help in engaging the kids and youth so that they can enjoy a healthy life. Amul has associated with sports events like football, Cricket World Cup and Formula 1 to engage the youth. Mr Sodhi mentioned that the Amul had sponsored the Indian contingent to the London Olympic Games in 2012 which was India’s most successful Olympics. With the kind of investments made by our country to select, nurture and train the best athletes, we are confident that Indian contingents  to the forthcoming Commonwealth and Asian Games will deliver their best ever performances and make our country proud.  Amul will launch a series of advertising campaigns for milk and various dairy products to promote this association in the coming months. The XX Commonwealth Games will be held at Glasgow, Scotland from July 23 to August 3 and the XVII Asian Games scheduled to be held at Incheon, South Korea from 19thSept– 4th October, 2014.

Tata Steel slips ex-dividend

Tata Steel fell 0.78% to Rs 497.05 at 9:20 IST on BSE on turning ex-dividend today, 14 July 2014, for dividend of Rs 10 per share for the year ended 31 March 2014.

On BSE, so far 39,000 shares were traded in the counter, compared with an average volume of 9.61 lakh shares in the past one quarter.

The stock hit a high of Rs 498.90 and a low of Rs 493.65 so far during the day. The stock hit a 52-week high of Rs 578.60 on 9 June 2014. The stock hit a 52-week low of Rs 195.40 on 7 August 2013.

The stock had underperformed the market over the past one month till 11 July 2014, falling 8.79% compared with 1.76% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 19.25% as against Sensex's 10.59% rise.

The large-cap company has an equity capital of Rs 971.21 crore. Face value per share is Rs 10.

Before turning ex-dividend, the stock offered a dividend yield of 2% based on the closing price of Rs 500.95 on Friday, 11 July 2014.

On a consolidated basis, Tata Steel reported a net profit of Rs 1035.87 crore in Q4 March 2014 as against net loss of Rs 6528.51 crore in Q4 March 2013. Total income from operations rose 22.44% to Rs 42428.05 crore in Q4 March 2014 over Q4 March 2013.

Tata Steel Group is among the top-ten global steel companies with an annual crude steel capacity of over 29 million tonnes per annum. It is now the world's second-most geographically-diversified steel producer, with operations in 26 countries and a commercial presence in over 50 countries.

AirAsia and AirAsia X introduce 139 new Fly-Thru routes

The newly launched Fly-Thru services from India are available from Tiruchirappalli, Kochi, Kolkata and Chennai to Penang (via Kuala Lumpur), AirAsia and AirAsia X introduce 139 brand new Fly-Thru routes, making flying on multiple-city flights a seamless travel experience without the hassle of numerous check-ins, transit visas or multiple baggage transfers.   Effective immediately, AirAsia / AirAsia X Fly-Thru guests will receive an onward flight boarding pass from the first point of embarkation and will be allowed to bypass immigration clearance at the airline’s Fly-Thru hubs—Kuala Lumpur (klia2) or Bangkok-Don Mueang (DMK)—with all check-in baggage tagged for automatic transfer to the consecutive flight, all the way to the final destination. The newly launched Fly-Thru services from India are available from Tiruchirappalli, Kochi, Kolkata and Chennai to Penang (via Kuala Lumpur), from Kochi, Kolkata, Chennai to Langkawi / Bali (via Kuala Lumpur) and from Jakarta to Kolkata & Chennai (via Kuala Lumpur). With these brand new routes, AirAsia guests could enjoy more than 700 Fly-Thru routes, via the airline’s Fly-Thru hubs in Kuala Lumpur (klia2) and Bangkok-Don Mueang (DMK), with the initial and consecutive flights’ connecting time of between 90 minutes to six hours. Among popular AirAsia and AirAsia X Fly-Thru routes includes Phuket - Melbourne, Phuket – Sydney, Melbourne – Ho Chi Minh City, Bangkok-Don Mueang – Melbourne, Bangkok-Don Mueang – Osaka-Kansai, Jakarta – Tokyo-Haneda, Adelaide - Phuket and many more. AirAsia Berhad CEO Aireen Omar said, “The Fly-Thru service reflects our continuous effort to innovate and enhance our service offerings, presenting utmost convenience to our guests and making multiple-city flights easier and more efficient. Fly-Thru also allows guests to leverage on the strength of our network and connectivity to various destinations in Asean and beyond. “While creativity and effectiveness continue to drive AirAsia forward, we will also continue to pursue innovative approaches and platforms to make air travel simpler and convenient while providing the best service experience to all our guests.” Fly-Thru is available to guests travelling on selected AirAsia and all AirAsia X flights transiting through Kuala Lumpur (klia2) or Bangkok-Don Mueang (DMK), With Fly-Thru, guests can connect to their next flight without the need for immigration clearance or a transit visa in Malaysia or Thailand. Upon arrival at AirAsia’s Fly-Thru hub guests will be given access to the transfer hall which is connected to the departure hall and issued with a subsequent flight boarding pass. The service also eliminates the need to re-check-in luggage all the way through to the final disembarkation point. Fly-Thru guests are also able to enjoy guaranteed connection. In the event delays caused by the airline results in the missing of consecutive flights, AirAsia will automatically accommodate affected Fly-Thru passengers on the next available flight without any additional charges.