Achiievers Equities' daily commodity report brings to you market round up and daily trading ideas for MCX, NCDEX futures and options. Get technical analysis on gold, silver,Crudeoil and more.

1. Daily Commodity Report as on Tuesday, December 30, 2014
Date : Tuesday, December 30, 2014 URL : www.achiieversequitiesltd.com Page No - 1

2. Open High Low Close % Cng OI
Gold 27031 27070 26725 26764 -1.14 7123
Silver 37377 37534 36431 36484 -2.23 9048
Alum. 117.5 117.85 116.35 117.25 0.21 2009
Copper 401.45 403.95 399.35 401.15 0.17 11810
Lead 117.9 118.1 115.25 115.4 -1.87 2584
Nickel 970 980 955.1 956.3 -0.94 4346
Zinc 137.5 138.2 135.8 136 -0.84 2210
Crude 3555 3568 3396 3414 -3.75 29126
Nat. Gas 195.8 204.8 195.4 203.8 3.98 11744
Chana 27031 27070 26725 26764 -1.14 7123
Cardamom 947 969.8 943.6 962.1 2.17 1272
Turmeric 8932 9070 8710 8802 -1.46 25350
Jeera 15120 15680 14780 15680 3.98 6489
Wheat 1712 1716 1693 1703 -0.70 2280
Soyabean 3450 3476 3430 3438 1.06 104680
Ref. Oil 642.5 654.35 642 644.15 1.39 71065
CPO 461 471.3 459 468.5 3.38 4025
RMSeed 4355 4397 4333 4358 0.72 19950
Menthol 728.7 730.9 721.2 726.6 -0.97 9666
Cotton 15870 15880 15650 15700 -0.63 1111
USDINR 64.10 64.12 64.01 64.08 0.09 1263280
EURINR 78.04 78.28 77.98 78.11 0.08 37316
GBPINR 99.60 99.83 99.52 99.57 -0.03 29152
JPYINR 53.16 53.40 53.16 53.19 -0.08 12086
Chana rallied more than 3% as improved demand and lower sowing supported prices
Turmeric dropped on profit booking after 4days gain as falling stocks amidst rise in Festive season domestic & export
demand.Currency
Jeera continuous it's 7th days rally to settled again up by +4% on good demand and concerns about production.
Date : Tuesday, December 30, 2014 URL : www.achiieversequitiesltd.com Page No - 2
Natural gas rose on speculation that an outbreak of cold January weather will stoke demand for the heating fuel.
Ref soyoil prices gained as support seen after Government has raised the import tax on crude edible oils and refined
oils by 5 percentage points each.Cereals
Menthaoil dropped on profit booking as export demand will hit on account of Christmas and New Year holiday in
International.Oil and Oilseeds & Others
Soyabean gained as good demand continued also hike in import duty on Edible Oil had a bullish impact on the Oil
complex
Energy Copper dropped below 400 level in yesterday's session on concern that a slowing economy will cut metals demand in
China.
Zinc prices dropped as pressure seen as the US dollar index hit a new high overnight due to market optimism toward
US economyPulses
Nickel prices dropped after declines for industrial profits raised concern that a slowing economy will cut metals
demand in ChinaSpices
Market Round upPrecious Metals
Gold fell giving back last weeks gains, as a strong U.S. dollar signals offset uncertainty over the prospect of fresh
elections in Greece.
Base Metal
Silver dropped as Dollar hit fresh highs as traders expecting tighter monetary policy in the US compared to other
economies.
Crude oil dropped on speculations that supply disruption from Libya could offset the global supply glut.

3. Silver settled down -2.23% at 36484 reversing earlier gains and extending losses after breaking through support at $16. Silver dropped as dollar hit fresh highs against the euro on Monday, while the dollar index, which
measures the greenback against a basket of six major currencies, hit its highest since April 2006. Also hurting bullion was stronger equities. Shares edged higher in major markets on Monday, while crude oil prices tumbled
after a short-lived bounce. The U.S. benchmark S&P 500 closed at a record high. Greek Prime Minister Antonis Samaras failed to get enough support for his presidential nominee and will call a national election for Jan. 25.
Stocks in Athens plunged, while yields on 10-year Greek bonds touched their highest since September 2013. The news failed to trigger enough safe-haven bids for gold to offset the strength in the dollar. Bullion trading
volumes were thin due to the Christmas and year-end holidays. Floor trading for CME Group's precious metals futures and options products will be closed on Jan. 1. Also the U.S. dollar hit fresh highs against the euro not
touched in nearly 29 months on Monday as traders expecting tighter monetary policy in the United States compared to other economies saw little reason to halt this year's rally in the greenback. Technically market is under
fresh selling as market has witnessed gain in open interest by 4.28% to settled at 9048 while prices down -831 rupee, now Silver is getting support at 36098 and below same could see a test of 35713 level, And resistance is
now likely to be seen at 37201, a move above could see prices testing 37919.
Date : Tuesday, December 30, 2014 URL : www.achiieversequitiesltd.com Page No - 3
CLOSE 36484 RES-1 37201 Bullion trading volumes were thin due to the Christmas and year-end holidays.
% CNG -2.23 RES-2 37919 SELL SILVER MAR @ 36600 SL 36950 TGT 36320-36050.MCX
HIGH 37534 SUP-1 36098
Silver dropped as Dollar hit fresh highs as traders expecting tighter monetary policy in the
US compared to other economies.
LOW 36431 P.P. 36816
Strong data recently, including a report showing U.S. GDP to have grown much more than
expected in Q3, the prospects of a rate hike next year.
Gold settled down -1.14% at 26764 giving back most of the previous session's sharp short-covering gains, as a strong U.S. dollar and bearish chart signals offset uncertainty over the prospect of fresh elections in Greece.
Trading volumes were thin due to the Christmas and year-end holidays. Floor trading for CME Group's precious and base metals futures and options products will be closed on Jan. 1. After some strong data recently, including
a report showing U.S. gross domestic product to have grown much more than expected in the third quarter, the prospects of a rate hike next year seem to get more definite with the greenback continuing to gain consistently
against most major currencies. A higher interest rate supports the dollar and is a drag on gold. Greece was once again pushed into a political crisis on Monday after the parliament failed to elect presidential candidate, Stavros
Dimas, paving the way for a snap general election early 2015. Prime Minister Antonis Samaras' candidate, Dimas - a former European Commissioner and the only candidate in the fray, was rejected by a vote of 162 in favor
and 132 against, but woefully short of the required 180 votes in the 300 member house. China's gold imports from Hong Kong in November rose to their highest level since February on strong demand in the world's top
bullion consumer. Net gold imports from Hong Kong to the mainland rose to 99.111 tonnes in November, compared with 77.628 tonnes in October, according to Hong Kong Census and Statistics Department. Technically
market is getting support at 26636 and below same could see a test of 26508 level, And resistance is now likely to be seen at 26981, a move above could see prices testing 27198.
MCX Silver Mar 2015 TRADING IDEA
OPEN 37377 SUP-2 35713 Silver trading range for the day is 35713-37919.
CLOSE 26764 RES-1 26981
Holdings of SPDR Gold Trust, edged lower to 712.30 tons on Monday, from its previous
close of 712.90 tons.
% CNG -1.14 RES-2 27198 SELL GOLD FEB @ 26850 SL 26980 TGT 26720-26560.MCX
HIGH 27070 SUP-1 26636
Gold fell giving back last weeks gains, as a strong U.S. dollar signals offset uncertainty
over the prospect of fresh elections in Greece.
LOW 26725 P.P. 26853
Dollar gained after strong data recently, including a report showing U.S. gross domestic
product to have grown much more than expected in Q3.
MCX Gold Feb 2015 TRADING IDEA
OPEN 27031 SUP-2 26508 Gold trading range for the day is 26508-27198.

4. Copper settled at 401.15 while outlook remain weak as pressured by weak demand from top consumer China and a strong U.S. dollar. Growth in China's economy is expected to slow to 7 percent next year from a forecast
7.3 percent this year, in part due to weakness in global economies, a top Chinese government think tank said on Monday. China's cooling economy, which grew at its slowest pace since the global financial crisis in the third
quarter, has pinched the country's demand for copper imports this year. A slew of lacklustre economic indicators this month suggests full-year growth may fall short of Beijing's official 7.5 percent target for the first time in
15 years. Copper inventories stored in the Shanghai Futures Exchange's affiliated warehouses jumped some 14 percent from a week ago to hit a near-five-month high of 105,522 tonnes on Friday. Also China’s industrial
profits fell the most in more than two years last month, according to National Bureau of Statistics data published last week. A private report scheduled for later this week is expected to show manufacturing in the country
contracted. The London Metal Exchange resumed trading on Monday after a two-day holiday. Looking ahead, market said the market would keep an eye on a string of economic data, including U.S. home prices on Tuesday
and U.S. weekly jobless claims as well as China's HSBC PMI on Wednesday. The dollar began the final week of 2014 on a firm footing on Monday as the euro flirted with two-year lows. Technically market is getting support at
399.1 and below same could see a test of 396.9 level, And resistance is now likely to be seen at 403.7, a move above could see prices testing 406.1.
Date : Tuesday, December 30, 2014 URL : www.achiieversequitiesltd.com Page No - 4
CLOSE 401.2 RES-1 403.7
A slew of lacklustre economic indicators this month suggests full-year growth may fall
short of Beijing's official 7.5 percent target for the first time in 15 years.
% CNG 0.17 RES-2 406.1 SELL COPPER FEB @ 403 SL 406.50 TGT 399.80-396-392.50.MCX
HIGH 404.0 SUP-1 399.1
Copper dropped below 400 level in yesterday's session on concern that a slowing economy
will cut metals demand in China.
LOW 399.4 P.P. 401.5
Growth in China's economy is expected to slow to 7 percent next year from a forecast 7.3
percent this year, in part due to weakness in global economies
Crudeoil settled down -3.75% at 3414 with investors brushing aside speculations that supply disruption from Libya could offset the global supply glut, after reports of a fire at oil-storage terminals. The dollar's continued
uptick against some major currencies, also contributed to the drop in oil prices. Earlier, crude oil prices trended higher amid prospects of supply disruption from Libya where militants set fire to some oil tanks at the country's
largest port, Es Sider, last week. According to reports, the fire has since been extinguished at three of the tanks. Meanwhile, the Chinese central bank's decision to adjust rules for calculating bank deposits in order to increase
liquidity also contributed to oil's turmoil. While now Iran could become a "very successful regional power" if it reached a deal with world powers to curb its nuclear program, U.S. President Barack Obama said in a still-to-air
interview with NPR News. Also Ukraine President Petro Poroshenko will meet leaders from Russia, France and Germany on Jan. 15 to seek stable peace in Kiev's restive eastern territories, but ruled out military action to
regain control of east Ukraine and Crimea. US led forces launched 18 air strikes in Syria and Iraq against Islamic State on Monday as Iraqi security and militia forces regained control of large parts of the Tigris River town of
Dhuluiya north of Baghdad, military sources said. Among data due this week are the consumer confidence index for December from the Conference Board, the weekly jobless claims, the NAR's pending home sales index for
November and the results of the ISM's national and MNI Indicators' regional manufacturing surveys. Technically market is getting support at 3350 and below same could see a test of 3287 level, And resistance is now likely to
be seen at 3522, a move above could see prices testing 3631.
MCX Copper Feb 2015 TRADING IDEA
OPEN 401.5 SUP-2 396.9 Copper trading range for the day is 396.9-406.1.
CLOSE 3414 RES-1 3522
The number of rigs drilling for oil in the United States dipped in the latest week, data from
oil services firm Baker Hughes Inc showed.
% CNG -3.75 RES-2 3631 SELL CRUDE OIL JAN @ 3450 SL 3498 TGT 3410-3360-3320.MCX
HIGH 3568 SUP-1 3350
Crude oil dropped on speculations that supply disruption from Libya could offset the global
supply glut.
LOW 3396 P.P. 3459
News of further damage Libya's oil infrastructure prompted the early rally that was quickly
erased as pervasive fears of global oversupply trumped concerns
MCX Crudeoil Jan 2015 TRADING IDEA
OPEN 3555 SUP-2 3287 Crudeoil trading range for the day is 3287-3631.

5. Nickel settled down -0.94% at 956.30 on the macro front, the euro fell as failure to elect president in Greece added to political risks in the country. The US dollar gained ground due to optimism over US economy and
softening non-US currencies. As a consequence, base metals fell across the board, which finished with gains due to technical correction following sharp declines. Nickel started with a range bound trade on Monday as thin
trading but weak demand from top consumer China and a strong US dollar could put downward pressure on prices. Growth in China's economy is expected to slow to 7 percent next year from a forecast 7.3 percent this year,
in part due to weakness in global economies, a top Chinese government think tank said on Monday. China's cooling economy, which grew at its slowest pace since the global financial crisis in the third quarter, has pinched the
country's demand for imports this year. A slew of lacklustre economic indicators this month suggest full-year growth may fall short of Beijing's official 7.5 percent target for the first time in 15 years. The US dollar index
closed Monday at 90.19, the highest since 2006, piling pressure on base metals prices. The presidential candidate, Stavros Dimas, nominated by Greece’s prime minister, secured only 168 votes in the third round of poll,
slightly below the 180 votes required for election. The election due early in 2015 thus may be won by the nation’s leftist party that is opposed to fiscal austerity, which is likely to rekindle a crisis in the euro zone. Technically
market is getting support at 947.6 and below same could see a test of 938.9 level, And resistance is now likely to be seen at 972.5, a move above could see prices testing 988.7.
Date : Tuesday, December 30, 2014 URL : www.achiieversequitiesltd.com Page No - 5
CLOSE 956.3 RES-1 972.5
A string of economic indicators from the US slated for release are promising, which will
give support to US dollar index and weigh down base metals prices
% CNG -0.94 RES-2 988.7 SELL NICKEL DEC @ 970 SL 988 TGT 956-940.MCX
HIGH 980.0 SUP-1 947.6
Nickel prices dropped after declines for industrial profits raised concern that a slowing
economy will cut metals demand in China
LOW 955.1 P.P. 963.8
The nominee for Greek president failed to win 180 votes, meaning Greece will advance
general election.
Zinc settled down -0.84% at 136 in the line of expectation as US dollar index hit a new high overnight due to market optimism toward US economy, weighing down prices. When combined with falling crude prices, base
metals prices pulled down. The US dollar index closed Monday at 90.19, the highest since 2006, piling pressure on base metals prices. The presidential candidate, Stavros Dimas, nominated by Greece’s prime minister,
secured only 168 votes in the third round of poll, slightly below the 180 votes required for election. The election due early in 2015 thus may be won by the nation’s leftist party that is opposed to fiscal austerity, which is likely
to rekindle a crisis in the euro zone. The euro zone’s November PPI, US housing data and the Conference Board’s Consumer Confidence Index for December all will be released Tuesday. China’s manufacturing PMI due for
release Wednesday should be disappointing, while the US dollar index remains high. A string of economic indicators from the US slated for release today are promising, which will give support to the US dollar index and weigh
down base metals prices. Also Growth in China's economy is expected to slow to 7 percent next year from a forecast 7.3 percent this year, in part due to weakness in global economies, a top Chinese government think tank
said on Monday. Technically market is under long liquidation as market has witnessed drop in open interest by -22.1% to settled at 2210 while prices down -1.15 rupee, now Zinc is getting support at 135.2 and below same
could see a test of 134.3 level, And resistance is now likely to be seen at 137.6, a move above could see prices testing 139.1.
MCX Nickel Dec 2014 TRADING IDEA
OPEN 970.0 SUP-2 938.9 Nickel trading range for the day is 938.9-988.7.
CLOSE 136.0 RES-1 137.6
Growth in China's manufacturing sector likely slowed to 18-month low in December,
adding to signs of a protracted economic malaise.
% CNG -0.84 RES-2 139.1 SELL ZINC DEC @ 137.70-138 SL ABV 138.80 TGT 136.60-136-135.40. MCX (1-2 DAYS)
HIGH 138.2 SUP-1 135.2
Zinc prices dropped as pressure seen as the US dollar index hit a new high overnight due
to market optimism toward US economy
LOW 135.8 P.P. 136.7
A top Chinese government think tank said the country's economy is expected to slow to 7
percent growth next year from a forecast 7.3 percent this year.
MCX Zinc Dec 2014 TRADING IDEA
OPEN 137.5 SUP-2 134.3 Zinc trading range for the day is 134.3-139.1.

6. Turmeric settled down -1.7% at 8780 on profit booking after prices rallied since last week as falling stocks amidst rise in Festive season domestic and export demand and lower production reports kept trend positive. Also
demand is expected to pick up further in coming weeks against falling stocks. A fall in sowing area in Tamil Nadu and Karnataka due to the cyclone in October amidst delayed Monsoon could affect the production
adversely—as per market sources. Even as area in Andhra Pradesh goes up, overall production is expected to come down—lending medium term support to the prices. Spot turmeric prices increased in Erode markets last
week due to arrival of good quality turmeric. Traders, especially exporters, procured good number of turmeric due to arrival of good quality produce. Many buyers were keen on buying quality hybrid turmeric and also local
root variety turmeric. Sowing of Turmeric in AP for the 2014-15 season is reported at 0.13 lakh ha, as against 0.1 lakh ha last year. The area in Telanaga stood at 0.446 lakh ha against 0.431 lakh ha last year. Exports in
turmeric have increased by 10% to 43000 tonnes during Apr-Sep 2014 as compared to last year. The export target for the 2014-15 is 80000 tonnes according to Spice Board. At Nizamabad market, Turmeric Nizam is trading
strong at Rs. 7500 per quintal, higher by 4.17 per cent as against previous day. Total arrivals are at 1500 quintals, higher by 300 quintals as against previous day. Technically market is under long liquidation as market has
witnessed drop in open interest by -3.21% to settled at 25350 while prices down -152 rupee, now Turmeric is getting support at 8637 and below same could see a test of 8493 level, And resistance is now likely to be seen at
8997, a move above could see prices testing 9213.
Date : Tuesday, December 30, 2014 URL : www.achiieversequitiesltd.com Page No - 6
CLOSE 8802 RES-1 9010
Demand from North India and Export demand expected to rise in coming weeks, it can
support prices.
% CNG -1.46 RES-2 9220 BUY TURMERIC APR @ 8740 SL 8650 TGT 8840-8950-9080.NCDEX
HIGH 9070 SUP-1 8650
Turmeric dropped on profit booking after 4days gain as falling stocks amidst rise in Festive
season domestic & export demand.
LOW 8710 P.P. 8860
A fall in sowing area in TN and Karnataka due to the cyclone in October amidst delayed
Monsoon could affect the production adversely.
Chana settled up 3.39% at 3596 on improved demand and lower sowing due to prevailing low rates, good demand from millers and Govt agencies and a rise in MSP from Rs 3100/Q to Rs 3175/Q had supported prices. India
2014-15 rabi gram sowing until Dec 26 at 7.78 million hectares as compared to 9.06 million hectare previous year, while the acreage of the crop harvested in 2015 is forecasted 12% lower at 8.90 million hectare as compared
to 10.19 million hectare in previous season. Pulses sowing fell by 7% to 12.4 million hectare as compared to last year due to lower rains and late harvesting to kharif crops in MP, Maharashtra and AP. Lower prices on the
back of record output and comfortable supplies may force farmers to switch over to other remunerative crops such as mustard and coriander which could yield better returns. Due to this, the government has set a target of
9.3mts for chana output for 2014-15 rabi season, down 5.87% compared to previous year. Also after Edible oil's hike in the Import duty traders are under fears of imposition of import duty in pulses also. In September,
government extended facility of duty free import for chana till Dec end and for other pulses till March 2015. As per 1st Advanced crop estimates for 2014-15 by Govt of India, India is likely to produce Kharif Food grains of
120.27mtns, which is down by 8.97mts from the record 129.24mtns achieved in Kharif 2013-14. Also Weather so far has been conducive for the growth of Chana crop. Chana prices in the Delhi physical market Monday for
Rajasthan variety jumped by Rs 250-275 per quintal while MP surged by Rs 150 per quintal on improved demand. Chana arrivals were steady at 25 trucks as compared to previous day. Technically market is getting support
at 3552 and below same could see a test of 3509 level, And resistance is now likely to be seen at 3628, a move above could see prices testing 3661.
NCDEX Turmeric Apr 2015 TRADING IDEA
OPEN 8932 SUP-2 8500 Turmeric trading range for the day is 8500-9220.
CLOSE 3600 RES-1 3631 Chana production to hover around 84- 86 lakh tonnes in 2014-15
% CNG 3.51 RES-2 3662 BUY CHANA JAN @ 3560 SL 3500 TGT 3610-3660-3700.NCDEX
HIGH 3617 SUP-1 3555 Chana rallied more than 3% as improved demand and lower sowing supported prices
LOW 3541 P.P. 3586
India 2014-15 rabi gram sowing until Dec 26 at 7.78 million hectares as compared to 9.06
million hectare previous year
NCDEX Chana Jan 2015 TRADING IDEA
OPEN 3575 SUP-2 3510 Chana trading range for the day is 3510-3662.

7. 120.3
119.2
117.4
111.6
113.4
114.5
2584
116.3
1.4
Date : Tuesday, December 30, 2014 URL : www.achiieversequitiesltd.com Page No - 7
Positive Positive
SPREAD 257 670 57.00 1.30 4.10 0.20 9.00
TREND Positive Positive Positive Positive Positive Positive Positive
0.90
938.9 115.7
26636 36098 3350 197.8 399.1
OI 7123 9048 29126 11744 11810 2210 4346 2009
132.8 922.7 115.1
135.2 947.6 116.6
134.3
P. POINT 26853 36816 3459 201.3 401.5
26291 34995 3178 188.4 394.5
SUPPORT 26508 35713 3287 191.9 396.9
403.7 137.6 972.5 118.1
136.7 963.8 117.2
RESISTANCE
27326 38304 3694 216.6 408.3 140.0 997.4 119.6
27198 37919 3631 210.7 406.1 139.1 988.7 118.7
26981 37201 3522 207.2
CLOSE 26764 36484 3414 203.8 401.15 136 956.3 117.25
Menthaoil settled down -1.1% at 725.60 on profit booking after prices rallied last week. Outlook remain weak for for next couple of day's as exports expected to pick up in Jan 2nd week as International markets are closed
now on account of Christmas and New Year which is adversely affecting the export demand which had picked up recently. However, domestic demand from pharmaceutical Industries in Indian markets may support the falling
rates in coming days. While High stocks are keeping uptrend limited. As per the Latest reports from Spice Board indicate that for the period April/December last year, exports for Mint value-added products like Oil, Menthol
and its crystals rose 94% in volumes at 17,850 tonnes and 39% in value at Rs 2202 Cr w.r.t. same period the previous year. Prices had been in corrective mode since last 3years after Govt stated banning of Gutkha in some
states which continues having negative impact on Mentha Oil demand. As farmers are not getting lucrative returns from the crop due to weakness in the prices and poor demand with High carry stock this year farmers can
divert to some other cash crop that can support the prices in Q1Y15 as that can reduce the production from 60000 tonnes to ~45-50000 tonnes as compare to last year. At Sambhal market, Mentha Oil is trading weak at Rs.
836 per Kg, lower by 0.48 per cent as against previous day. Estimated market supply was at 60 Drums, unchanged as compared to previous day's arrival.Technically market is under fresh selling as market has witnessed gain
in open interest by 3.91% to settled at 9666 while prices down -8.1 rupee, now Menthaoil is getting support at 720.9 and below same could see a test of 716.2 level, And resistance is now likely to be seen at 730.6, a move
above could see prices testing 735.6.
DAILY MARKET LEVEL FOR METAL AND ENERGY
COMMODITIES GOLD SILVER CRUDE NAT.GAS COPPER ZINC NICKEL ALUMINUM LEAD
115.4
CLOSE 726.6 RES-1 731.2
Area under planting can see a decline to 1.80 lakh ha this season resulting into a
proportionate fall in mentha oil production.
% CNG -0.97 RES-2 735.9 BUY MENTHA OIL JAN @ 725-726 SL BELOW 716 TGT 734-742-756. MCX (BTST)
HIGH 730.9 SUP-1 721.5 Menthaoil spot is at 836/-. Spot market prices remains unchanged.
LOW 721.2 P.P. 726.2
Menthaoil dropped on profit booking as export demand will hit on account of Christmas
and New Year holiday in International.
MCX Menthaoil Jan 2015 TRADING IDEA
OPEN 728.7 SUP-2 716.5 Menthaoil trading range for the day is 716.5-735.9.

8. 1:30pm EUR -0.007 -0.004
2:30pm EUR 0.026 0.025
2:30pm EUR -0.009 -0.011
Tentative EUR 0 2.08|1.6
7:30pm USD 0.044 0.049
8:30pm USD 94.6 88.7
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
8
Waning FII Interest Takes Toll On Investor Sentiment: Indian equities fell last week amid profit
booking by foreign funds ahead of the year end. With the Modi government's reforms program in
limbo and the Chinese market riding high on stimulus hopes, overseas investors seem to have lost
their appetite for Indian shares this month. The waning investor interest and growing expectations
that the Federal Reserve will raise interest rates in the middle of 2015 are exerting downward
pressure on the rupee, leaving less room for rate cuts. The benchmark index S&P BSE Sensex fell
about half a percent in the week ended Friday, while the broader CNX Nifty slid 0.3 percent. The
Sensex and Nifty rose over a percent each to extend gains for the third straight session on Monday
despite persistent selling by foreign funds. Sentiment was bolstered after major exit polls predicted
the formation of a BJP government in Jharkhand and Finance Minister Arun Jaitley said the
government will push ahead with crucial reforms, notwithstanding political obstructionism in the Rajya
Sabha. Global cues remained supportive as crude prices rebounded and the Russian ruble steadied
against the U.S. dollar. The Sensex and Nifty erased early gains to end down about 0.7 percent each
on Tuesday as investors took some profits off the table following three sessions of sharp gains. With
both the Houses of Parliament adjourning sine die, big electoral gains for the BJP in Jharkhand and
Jammu & Kashmir failed to bring cheer to investors. Stocks tumbled on Wednesday amid the expiry of
Sowing for Rabi season, which is still on, is slightly lower as compared to same time last year, which
may translate into lower production and put pressure on prices, Care Ratings said. “The sowing for
the Rabi season is currently on and the progress has not been very satisfactory. As on December 19,
a total of 511 lakh hectares of land was under cultivation, compared with 540 lakh hectares at the
same time last year,” Care Ratings said in a report here. Rabi season accounts for roughly half of the
overall agricultural production, compared to last year. The Kharif output has been sub—optimal as per
the First Advance Estimates of the Agriculture Ministry, it said. However, this has not translated as yet
into any adverse impact on inflation. Any deficit in area that is cropped can lead to lower production
and put pressure on prices, it said. However, it said, even as the Rabi crop progress as per area under
cultivation has been lower than last year, there are still around 3—4 weeks left before sowing is
completed. Wheat is likely to make up for the shortfall and move closer to normal. Area under wheat
till December 19, stood at 268.3 lakh hectares, compared to 273.1 lakh hectares in the same period
last year, it said. The Rabi harvest is also important as it has to compensate for the lower Kharif
harvest to average out overall growth in agricultural production, which also goes into the Gross
Domestic Product (GDP). Agriculture growth was 4.6 per cent last year and with Kharif output
declining, Rabi will have to grow by at least 2—3 per cent to ensure that overall production remains in
Unseasonal rain damages cash crops in Maharashtra : The unseasonal rains and hailstorms in
northern Maharashtra during the last few weeks have wreaked havoc with the cash crops. In Nashik,
the largest onion producing district of the country, about 20 per cent of rabi crop as been damaged.
Over the last three years, climate change has ravaged the district. Unseasonal rains, hailstorms and
exceedingly cold winter have taken a major toll on cash crops such as onions and grapes thus,
impacting prices across the country. On an average, about 90,000 hectares of rabi crop of onion get
planted in the district between October and November, which will be ready for harvest by April and
May. However, the impact of crop damage will not be reflected in the prices in the market
immediately, the official said. Umakant Dangat, Agriculture Commissioner of Maharashtra, told that
the survey work for assessing crop damage is still under way but initial estimates suggest that it has
impacted over 15,000 hectares of farm land. Only after panchnamas, the real picture will emerge, he
said. A senior officer with the Revenue Department of the Maharashtra government said that the crop
damage could be much higher, as the State administrative machinery is taking time in recording the
evidence. Farmers, who have been hit by crop failure last year, will suffer further, the official said.
Board member of National Agricultural Cooperative Marketing Federation of India, Nanasaheb Patil,
Russia's grain exports have stopped due to curbs brought in to protect domestic supply, putting big
deals at risk, an influential farm lobby group said. Russia's main wheat buyers are Turkey, Iran and,
very vulnerable to supply disruption, Egypt. Moscow imposed informal grain export controls with
tougher quality monitoring and limits on railroad loadings earlier this month, as it tackles a financial
crisis linked to plunging oil and Western sanctions. Officials also plan to impose duty on grain exports.
Zlochevsky said its exact level was an unimportant detail, as he was sure it would be prohibitive.
Russia imposed a duty on wheat exports in 2008 and an official ban in 2010 when a drought hit its
crop. The 2010 ban was partially responsible for triggering social unrest and a revolution in Egypt, as
more than 500,000 tonnes were not supplied and global prices rose damaging Egypt's state bread
subsidy programme, Zlochevsky said. About 3 million tonnes of grain due for export until the end of
January were now stuck, Zlochevsky said. As a result, Russia may fail to supply wheat to Egypt's
General Authority for Supply Commodities (GASC), the state buyer of the world's largest wheat
importer, in January, he added.
Date : Tuesday, December 30, 2014 URL : www.achiieversequitiesltd.com Page No -
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India's FinMin Says Raising GDP Growth Immediate Challenge To Government: The immediate
challenges before the India government is to increase the growth rate as it will boost both the
economic activities and the revenue collections, Finance Minister Arun Jaitley said at the pre budget
consultation meeting on Friday. Based on different estimates, he said the economy is likely to grow in
the range of 6 to 6.5 percent in 2015-16 even though it has a potential to grow at much higher rate.
He urged regional finance ministers to work with the central government for putting India back on the
higher growth path. The minister noted that the growth in service sector is quite good while growth in
agriculture is reasonable. He referred to the patchy growth in the manufacturing sector and stated
that this was one of the biggest challenge for the government. In an interview, Reserve Bank of India
Governor Raghuram Rajan said India is currently not in a phase of strong growth, but there is high
possibility that the country will return to strong growth in next two years.
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9. Date : Tuesday, December 30, 2014 URL : www.achiieversequitiesltd.com Page No - 9