Oil Prices Fall On Oversupply Concerns

Oil prices fell in Asian trade on Wednesday as concerns over global oversupply outweighed the impact of a likely larger than expected draw in US crude stocks and a weakening dollar.

Asian investors focused on OPEC production figures that showed members of the Organization of the Petroleum Exporting Countries produced around 3 million barrels of oil per day more than daily demand in the second quarter, a Reuters survey showed.

"Glut is the word," said Ric Spooner, chief market analyst at Sydney's CMC Markets.

OPEC members pumped 31.25 million barrels per day (bpd) in the second quarter against demand of 28.26 million bpd, the Reuters data showed.

Both Brent and U.S. crude came off session lows on Tuesday after data from industry group the American Petroleum Institute showed U.S. commercial crude stocks fell by 1.9 million barrels last week to 462 million, against analysts' expectations of a 184,000 barrel draw.

"It was the first time since July 14 the market has seen any sign of a bit of a bounce, albeit temporary," Spooner said.

The Department of Energy's Energy Information Administration will release official U.S. oil inventory data later on Wednesday.

Brent futures for September delivery fell 14 cents to $53.16 as of 0236 GMT after falling 17 cents in the previous session when it hit an intra-day low of $52.28, its lowest since Feb. 2, on concerns over China's stock market plunge.

U.S. crude for September delivery dropped 12 cents to $47.86 a barrel, after ending the previous session up 59 cents.

Investors were also awaiting the outcome of a U.S. Federal Reserve meeting later on Wednesday that could confirm a rise in U.S. interest rates as early as September.

A stronger dollar makes dollar-denominated commodities, including oil, more expensive for buyers using other currencies.

Spooner expected the Fed to confirm market expectations of an increase in interest rates this year.

"But the rate of increase will be very modest," he said.

"My view is the dollar is positioned for a bit of a decline," because any hike had already been priced into currency markets, Spooner said.

The dollar slipped against a basket of six major currencies in Asian trade on Wednesday, while the euro gained against the dollar. The dollar index fell to 96.505, or 0.27 percent, after closing up at 96.745 in the previous session.

Sensex Edges Higher, Nifty Hovers Around 8,350

9:15 a.m.: Sensex jumps over 100 points on higher Asian markets, Nifty moves above 8,350.

9:12 a.m.: Market expert Rajat Bose says that for a meaningful rally in the markets Nifty has to sustains above 8,413 levels.

9:08 a.m.: The Sensex jumps 81 points to 27,540 and Nifty advances 27 points to 8,364 in the pre-market session.

9:00 a.m.: Rupee opens higher at 63.87 per dollar against Tuesday's close of 63.91.

8:45 a.m.: PVR: PVR has planned to install Dolby Atmos in 50 screens in India and also plans to open 150 low cost screens.

Amtek Auto: Amtek Auto plans to raise funds via issue of equity and NCD's.

J Kumar Infra: J Kumar Infra bagged a construction orders worth Rs 281 crore.

8:35 a.m.: Biocon's clinical research arm Syngene's IPO was fully subscribed on its second day.

8:25 a.m.: Here's what analysts polled by NDTV expect from the companies reporting their quarterly numbers today:

Yes Bank: Analysts expect Yes Bank to post net interest income of Rs 1,030 crore compared to Rs 745 crore during the same quarter last year. Net profit is expected to come in at Rs 548 crore versus Rs 439 crore (YOY). Loan growth is expected to be above industry average at 30 per cent and net interest margins are expected to improve marginally.

Analysts say that von-interest income growth is expected to be 23 per cent year on year and deposit growth is expected at 24. per cent.

Vedanta: Net sales of Vedanta are expected to come in at Rs 17,512 crore compared to Rs 17,732 crore in the previous quarter. Net profit is expected to come in at Rs 743 crore compared to Rs 491 crore in previous quarter.

JSW Steel: JSW Steel is expected to post net profit of Rs 134 crore compared to Rs 188 crore in the previous quarter. Its EBITDA is expected to come in at Rs 1,471 crore compared to Rs 1,673 crore sequentially.

Nestle: Nestle will come out with its second quarter numbers. Nestle's sales are expected to come in at Rs 2,340 crore versus Rs 2,418 crore during the same quarter last year. Its net profit is expected to come in at Rs 385 crore compared to Rs 500 crore during the June quarter of last year.

8:00 a.m.: Foreign institutional investors sold shares worth Rs 1,375 crore on Tuesday while the domestic institutional investors purchased shares worth Rs 665 crore.

In the derivative segment, the FIIs sold index futures worth Rs 120 crore and also sold stock futures worth Rs 407 crore.

7:50 a.m.: The Sensex and Nifty are likely to open on a flat note in trades today tracking subdued trading of Nifty futures on the Singapore Stock Exchange. The Nifty traded on the Singapore Exchange also known as the SGX Nifty was down 0.1 per cent or 8 points at 8,336.

Meanwhile, other Asian markets were trading were trading on a subdued note. Hang Seng was up 0.1 per cent, Shanghai Composite was down 0.4 per cent, Shanghai Shenzen index fell 0.7 per cent and Nikkei was down 0.6 per cent.

Overnight, U.S. stocks ended sharply higher on Tuesday, breaking a five-day losing streak as attention shifted from trouble in Chinese equities to U.S. corporate earnings and to speculation the first Federal Reserve interest rate hike may not come until December.

The Dow Jones industrial average rose 1.09 per cent, to end the session at 17,630.27. The S&P 500 gained 1.24 per cent to 2,093.25 and the Nasdaq Composite added 0.98 per cent to finish at 5,089.21.

Back home, analysts say that there could be some volatility in the markets due to expiry of derivative contracts which is due tomorrow.

Ceat rallies after huge block deal

The BSE counter has witnessed a huge block deal of around 1.42 million equity shares around Rs. 804 per share this morning.

Ceat is trading on a gung-ho note on the back of huge block deal at the counter.

The BSE counter has witnessed a huge block deal of around 1.42 million equity shares around Rs. 804 per share this morning.

The stock so far has touched a high of Rs. 820, and is now up 3 percent at Rs. 814. The counter has seen trades of around 1.55 million shares as against the two-week daily average volume of around 117,000 shares on the BSE.

Meanwhile, the Sensex is up eight points at 27,569.

PFC slumps 2% despite strong response to OFS

According to data available from the NSE, the PFC OFS for 5 percent equity dilution was over-subscribed by 1.8-times

Power Finance Corporation (PFC) is trading on a slippery note a day after its OFS (Offer For Sale) received a strong response.

According to data available from the NSE, the PFC OFS for 5 percent equity dilution was over-subscribed by 1.8-times.

The stock so far this morning has touched a low of Rs. 245, and is now down 2.3 percent at Rs. 248. The counter has seen trades of around 792,000 shares as against the two-week daily average volume of around 140,000 shares on the BSE.

Meanwhile, the Sensex is up 109 points at 27,592.

Govt approves export of iron ore under LTA to Japan and South Korea

The foreign exchange expected to be earned is around US $311.05 million per annum at current sale prices against export of iron ore under LTAs.

Government has approved exports under the Long Term Agreements (LTAs) to Japan and South Korea through MMTC for supplying 16.5 million tonne (MT) of high grade iron ore.

The foreign exchange expected to be earned is around US $311.05 million per annum at current sale prices against export of iron ore under LTAs.

At present production of iron ore in the country is sufficient to meet the demand of domestic steel industry however there may be regional shortages in some states like Karnataka due to legal and regulatory issues.

Export duty at the rate of 30% ad valorem on all varieties of iron ore with effect from 30.12.2011 and 5% ad valorem on iron ore pellets with effect from 27.1.2014 is imposed. Further, export duty at the rate of 10% has been levied on iron ore containing Fe less than 58% with effect from 30.4.2015.

This Information was provided by the Minister of State for ministry of Steel and Mines, Vishnu Deo Sai, in reply to a question in Lok Sabha today. 

Sensex, Nifty volatile; auto, oil & gas stocks drag

Apart from the global cues, the market will be keenly awaiting the outcome from today's US Federal Open Market Committee (FOMC) meet for further cues on the rate hike. Big ticket corporate earnings and derivatives expiry too are likely to dictate terms as the day progresses.

Following yesterday's massive 550-point fall, the market this morning has started with a tinge of green amid mixed global cues.

In Asia so far, China's Shanghai index is down a percent at 3,688, and the Nikkei has slipped 0.2 percent to 20,307. The Hang Seng, however, has jumped 1.6 percent to 24,748.

Apart from the global cues, the market will be keenly awaiting the outcome from today's US Federal Open Market Committee (FOMC) meet for further cues on the rate hike. Big ticket corporate earnings and derivatives expiry too are likely to dictate terms as the day progresses.

The BSE Sensex opened 70-odd points higher at 27,630, and has so far touched a high of 27,661. The BSE index is now down 12 points at 27,549.

The NSE Nifty is down mere two points to 8,359.

Zee Entertainment, Bharti Airtel and Tech Mahindra are the major gainers in the opening trades.

On the flip side, NMDC has slipped nearly 2 percent to Rs. 109. Punjab National Bank, Tata Motors, ONGC, Lupin, Hindalco and Grasim are the other prominent losers.

Gold Stuck Near Five-And-A-Half-Year Low as Fed Hike Looms

 Gold languished near its weakest level since early 2010 on Tuesday, with no meaningful recovery seen as expectations for a U.S. interest rate increase grow.

The Federal Reserve begins a two-day meeting later in the day where policymakers are likely to signal further that a rate hike later in the year is certain as the U.S. economy strengthens.

Spot gold was flat at $1,093.45 an ounce by 0051 GMT. Bullion fell to as low as $1,077 on Friday, its cheapest since February 2010, stretching its losing run to a fifth straight week.

US gold for August delivery slipped 0.3 per cent to $1,093 an ounce.

Amid weaker gold prices, holdings of the world's biggest gold-backed exchange-traded fund, the SPDR Gold Trust, fell for a seventh day on Friday to 21.87 million ounces, the lowest since September 2008.

Also weighing on sentiment, China's net gold imports from main conduit Hong Kong fell to a 10-month low in June, reflecting weak demand from the major consuming nation.

Money managers, who have been cooling on gold for some time, last week held more short positions than long ones in the precious metal for the first time in nearly a decade, Bank of America said, suggesting an expectation prices will continue to fall.

Speculators have confirmed what everyone else has been thinking: expect more falls in commodities, as worries about China and higher interest rates combine with waning sentiment to suggest markets are heading further south.

Oil Hits Four-Month Low On China Concerns

New York: Crude oil futures hit four-month lows on Monday after a steep drop in China's stock markets sparked concern about the economic health of the world's biggest energy consumer, while evidence of a growing crude glut mounted.

Oil was also pressured by a sharp increase in US drilling activity with data on Friday showing producers added 21 rigs last week, the most in over a year, suggesting a ramp up in output as crude futures recovered from six-year lows seen in the first quarter.

A weaker dollar on Monday cushioned some of oil's losses as crude and other commodities denominated in the greenback saw higher demand from users of the euro.

Chinese stocks tumbled more than 8 per cent in Asian trading, the biggest one-day drop in eight years, driving European equities markets to a two-week low.

Brent crude oil settled down $1.15, or 2 percent, at $53.47 a barrel. In post-settlement, it fell to as low as $52.90, its lowest since mid-March.

U.S. crude closed down 75 cents, or 1.6 percent, at $47.39. It fell below $47 post-settlement, the lowest since late March.

"The combination of the Chinese stock market rout and creeping crude glut is weighing on oil," said Carl Larry, director of business Development for oil and gas at Frost & Sullivan.

"That said, Brent's still seeing support above $50 and U.S. crude is staying above $45. There's a lot of hedging going on at those levels."

Global oil supplies remain ample, with major producers in the Middle East Gulf competing for market share and pumping 2-3 percent more than needed, analysts say.

Exports from Iraq's southern oilfields were on track for a monthly record, having topped 3 million barrels per day so far this month.

"In the next couple of months, even if the global oversupply and seasonal weakness are becoming priced in, it is difficult to see where any price uplift will come from," said Societe Generale oil analyst Michael Wittner.

Speculators have cut their bets on a longer-term rise in oil prices, InterContinental Exchange data showed. Hedge funds and other money managers slashed their net long positions in Brent for the first time in four weeks in the week to July 21.

Investors will also look to the U.S. Federal Reserve for direction this week. The Fed starts a two-day policy meeting on Tuesday amid speculation of a September rate hike that could boost the dollar.

Shanghai Shares Extend Sell Off Plunge More Than 4%

China's benchmark Shanghai stock index slumped 4.09 per cent at the open on Tuesday, despite a renewed government vow to support the market following the biggest single-day fall in eight years a day earlier.

The Shanghai Composite Index -- which plunged 8.48 per cent on Monday -- dropped 152.42 points to 3,573.14. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 4.67 per cent, or 100.85 points, to 2,059.24.        

Sensex Likely to Witness Flat Start; Asian Markets Fall

8:45 a.m.
HDFC: India's largest mortgage lender HDFC will be reporting its first quarter numbers later in the day. HDFC's net interest income is expected to come in at Rs 1,985cr compared to Rs 1,744.9 crore during the same period last fiscal. Net profit is expected to come in at Rs 1,375 crore compared to Rs 1,344 crore. Q1 profits will be flat due to no dividend income from HDFC Bank.

8:30 a.m.: Below are the stocks which will be in focus today:

Tech Mahindra: Tech Mahindra reported net profit of Rs 676 crore compared to Rs 472 crore in the previous quarter. Company's dollar revenue grew by 0.5 per cent to $989 million (QoQ). The results were better than what the analysts had anticipated.

Just Dial: Just Dial's net profit jumped 18 per cent to Rs 33.2 crore compared to Rs 28.1 crore during the same period last year. The results were below what the analysts had anticipated.

Power Grid: Power Grid's board has approved investment proposal worth Rs 307.2 crore.

Axis Bank: Axis Bank has signed $200 million bilateral loan with Asian Development Bank.

IFCI: IFCI has cut its benchmark rate from 12.20 per cent to 12 per cent per annum. Rate cut will be effective from July 27.

8:15 a.m.: ONGC, Tata Motors, GAIL, NMDC, Tata Steel, Vedanta, JSW Steel, OBC and Bank of India registered their 52-week low price on Monday.

8:10 a.m.: The foreign institutional investors (FII) sold Indian shares worth Rs 859.9 crore on Monday while the domestic institutional investors bought shares worth Rs 238.9 crore.

In the derivative segment, the FIIs sold index futures worth Rs 1,414 crore and also sold stock futures worth Rs 800 crore.

8:00 a.m.: The Sensex and Nifty are likely to witness a flat opening tracking subdued trading on Nifty on the Singapore Stock Exchange. Nifty futures traded on the Singapore Stock Exchange also known as the SGX Nifty was down 0.07 per cent at 8,350.

Meanwhile, Asian stocks fell to three-week lows on Tuesday as a deepening rout in Chinese stocks erased risk appetite - sending investors flocking to safe-haven instruments such as government bonds and the Japanese yen.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.8 per cent in early deals, its lowest level since July 9 as mainland Chinese indexes opened 2-5 per cent lower.

China's benchmark Shanghai stock index slumped 4.09 per cent at the open on Tuesday, despite a renewed government vow to support the market following the biggest single-day fall in eight years a day earlier.

Investor sentiment was also cautious ahead of a two-day U.S. Federal Reserve meeting beginning later today where some investors believe the Fed's rate-setting Open Market Committee will make its case for hiking rates as early as September.