Gold futures down due to profit-booking

Gold prices fell by 0.31 per cent to Rs. 22,185 per 10 gram in futures trade today amid profit-booking by speculators and a weak trend overseas. At the Multi Commodity Exchange, gold for delivery in August declined by Rs. 69, or 0.31 per cent to Rs. 22,185 per 10 grams, with a business turnover of two lots.

Similarly, the yellow metal for delivery in June shed Rs. 63, or 0.29 per cent to Rs. 21,898 per 10 grams, with a business volume of a single lot. It had gained 0.20 per cent at Rs. 21,961 per 10 grams in the previous session. Gold for delivery in December also fell by Rs. 65, or 0.28 per cent to Rs. 22,891 per 10 gram, with a trade volume of two lots.

Analysts said besides profit-booking by speculators, a weakening trend overseas as a stronger dollar reduced the appeal of precious metals as an alternate investment.

In the Asian region, gold shed $ 6 to $ 1,489.20 an ounce.

Toyota to resume normal production in India from May 20

Japanese car giant Toyota today said it will resume normal production in India from May 20 after being compelled to slash output by 70 per cent since April 25 due to component supply constraints following the devastating earthquake and tsunami that hit the island nation.

During the period of low operations, production was curtailed by about 10,000 units, translating into a revenue loss of about Rs 650 crore for its Indian entity, Toyota Kirloskar Motor (TKM).

“The parts that we were not getting will start arriving in coming days. That is why we are confident of resuming normal operations earlier than expected,” TKM Deputy Managing Director (Commercial) Shekar Viswanathan told PTI.

In the wake of the disruption in supplies, the company had earlier suspended production on Mondays and Fridays between April 25 and June 4.

“We lost about 10,000 units of production across all models... Because of the production drop, the revenue loss was on an average Rs. 6,50,000 per vehicle,” Mr. Viswanathan said.

On that basis, the overall production loss of 10,000 units translates to about Rs. 650 crore.

TKM currently manufactures models like the Etios sedan, multi-utility vehicle Innova, premium sedan Corolla Altis and SUV Fortuner in India.

At present, the waiting periods for Etios and Fortuner are about four months each, while that of Innova and Corolla Altis are three months and one month, respectively, he said.

“Plans are afoot to recover the loss of production and reduce the waiting period. The plant will function on all weekdays and some of the non-working Saturdays,” the company said.

TKM primarily imports engine and transmissions from Japan and other regions.

The company also said the upcoming launch of its small car, Etios Liva, in India is on track.

“We are now all set to launch the Etios Liva. The launch will be as per schedule in the last week of June,” TKM Deputy Managing Director (Marketing) Sandeep Singh said.

The company’s first facility, which produces the Innova, Corolla Altis and Fortuner, in Bangalore has a production capacity of about 80,000 units per annum.

Asian Currencies Decline

Asian currencies dropped, led by Malaysia’s ringgit and Singapore’s dollar, as demand for emerging-market assets declined on concern Greece’s debt crisis will worsen.

The ringgit fell to its weakest level in almost two months and the Singapore dollar retreated to a one-month low after President Barack Obama said failure to raise the U.S. government debt ceiling by early August might disrupt the global financial system and plunge the world’s largest economy into another recession. Greece will plead today for a boost in its 110 billion-euro ($155 billion) financial lifeline from European governments and the International Monetary Fund

सोना 1500 डॉलर के नीचे

कमोडिटी बाजार में सोने और कच्चे तेल में नरमी देखी जा रही है। सोना एक बार फिर 1500 डॉलर के नीचे कारोबार करता दिख रहा है। कच्चा तेल भी 99 डॉलर के नीचे फिसल गया है। वहीं चांदी बढ़त के साथ 35 डॉलर के ऊपर बनी हुई है। यूरो के मुकाबले डॉलर में आई मजबूती की वजह से कमोडिटी पर दबाव बन रहा है।

मुनाफा वसूली जारी रखने का दबाव कालीमिर्च पर दिखाई दे रहा है। आज कालीमिर्च में कमजोर शुरूआत के आसार हैं। जून वायदा में आज कालीमिर्च 29800-30600 रुपये के बीच कारोबार कर सकती है। वहीं शनिवार को कालीमिर्च 30311 रुपये पर बंद हुई थी।

जीरे को निचले स्तर की खरीददारी का फायदा मिल रहा है। वहीं आज जीरे में बढ़त के आसार हैं। जून वायदा में आज जीरा 14700-15100 रुपये पर कारोबार के आसार हैं। वहीं शनिवार को जीरा हल्की गिरावट के साथ 14215 रुपये प्रति क्विंटल पर बंद हुआ था।

सोयातेल को अंतरराष्ट्रीय बाजारों में मजबूती का फायदा मिल रहा है। जून वायदा में आज सोयातेल को 626-636 रुपये के बीच कारोबार कर सकता है। जबकि शनिवार को सोयातेल 626 रुपये पर बंद हुआ था।

How traders can gain from tomorrow's Assembly polls

A day before the announcement of assembly results in West Bengal, Tamil Nadu and Assam, gains from betting on Congress-led United Progressive Alliance (UPA) is far less rewarding than betting on a Left Party win. The betting rates are 1:10 in favour of UPA and 1:80 for Left parties, market sources told Moneycontrol.com

This means, by betting on UPA win, a trader can earn 10 paisa on every one rupee invested while his bet on Left’s victory will fetch him 80 paisa. However, he has to pay 10 paisa and 80 paisa respectively if the said alliances lose.

The case is different in case of Tamil Nadu. M Karunanidhi-led Dravida Munnetra Kazhagam (DMK) and J Jayalalitha-led All India Anna Dravida Munnetra Kazhagam (AIADMK) command rates of 1:50 each for winning the Tamil Nadu Assembly polls. This suggests the market expects either of them to emerge a winner.


Most of the market participants believe market is fairly valued at this point of time. It might fall further 1% or 2% but upside can be as high as 5% in next one year. Hence, investors should stick to “buy at every decline” strategy.