Equity Market Tips

Oil Trades Near Three-Day Low on Europe Concern, Iranian Talks

commodity charts Oil traded near the lowest close in three days in New York as rising bad loans in Spain fueled speculation that Europe’s debt crisis will spread and threaten global economic growth.

Futures were little changed after falling for the first time in three days yesterday. Spanish bad loans in April jumped to 8.72 percent of lending, the highest level since 1994, data from the Bank of Spain showed. That overshadowed election wins by pro-bailout parties in Greece. International talks with Iran resume today in Moscow over the country’s nuclear program, with President Barack Obama saying there is still time for a diplomatic resolution.

“The focus has shifted from Greece to Spain,” Jonathan Barratt, chief executive officer of Barratt’s Bulletin, a commodity-nifty live chart with buy sell signals markets newsletter in Sydney, said in a telephone interview today. “Iran has been put on the back burner. There’s no Middle Eastern premium being built in.”

Oil for July delivery, which expires tomorrow, was at $83.11 a barrel, down 16 cents, in electronic trading on the New York Mercantile Exchange at 12:25 p.m. Sydney time. It slipped 0.9 percent yesterday to $83.27, the lowest close since June 13. The more-actively nifty buy sell signals traded August contract fell 21 cents to $83.39 a barrel today. Front-month prices are 16 percent lower this year.

Brent oil for August settlement was at $95.90 a barrel, down 15 cents, on the London-based ICE Futures Europe exchange. It slipped $1.56 yesterday to $96.05. The front-month nifty signals price for the European benchmark contract was at a premium to West Texas Intermediate of $12.51, from $12.45 yesterday.
Iran Talks

Spain’s borrowing costs rose to a euro-era record. The yield on 10-year mcx charts bonds climbed as much as 41 basis points to 7.29 percent. Yields on five-year and 30-year notes also jumped to the highest since the euro was introduced in 1999.

Brent crude prices have dropped 21 percent since April 14, when the first international talks with Iran on its nuclear program in 15 months were held in Istanbul. Chinese, French, German, Russian, British and U.S. delegates met with their Iranian counterparts yesterday for a third round of discussions over two days at a hotel near Russia’s Foreign Ministry.

Obama said he and Russian President Vladimir Putin agreed at the Group of 20 summit in Mexico that “there’s still time and space” for a diplomatic resolution to tensions over Iran’s “potential development” of nuclear weapons.
‘Very Intense’

The five hours of meetings in Moscow were “constructive and serious,” Ali Bagheri, Iran’s deputy negotiator, told reporters. The talks were “very intense, tough,” and more substantive than those in Baghdad last month, according to Michael Mann, a foreign-nifty buy sell chart policy spokesman for the European Union.

The so-called P5+1 group wants Iran to suspend production of uranium enriched to 20 percent, while the Islamic republic is pressing for relief from sanctions set to tighten when an EU oil embargo kicks in on July 1. European insurers and shipping companies carrying Iranian crude to other parts of the world will be affected and shouldn’t expect relief, Mann said.

U.S. crude supplies probably dropped 1.3 million barrels last week, according to the median estimate of 7 analysts in a Bloomberg News survey before a report from the Energy Department tomorrow. Gasoline and distillate stockpiles each rose 1 million barrels, the survey shows.

The American Petroleum Institute will release separate inventory data today. The API collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department for its weekly survey.
Seaway Plans

Enbridge Inc. (ENB) said it expects to boost capacity on its Seaway pipeline to 400,000 barrels a day by the end of this year. The line is transporting 150,000 barrels a day now, it’s current capacity, Enbridge President Al Monaco said yesterday in Toronto.

Enterprise Products Partners LP (EPD), which owns the pipeline along with Enbridge, previously said the line’s capacity would be increased by the first quarter of 2013. Oil began flowing on the reversed line from Cushing, Oklahoma, to the U.S. Gulf Coast on May 19 and the first delivery reached the destination by June 6, the companies said in a statement at the time.

Stock indices rose to their highest in three years on Friday on continued foreign institutional purchases, amid hopes the 16-day US government shutdown might prompt the Federal Reserve to defer the withdrawal of its monetary stimulus.

Foreign institutional investors (FIIs) pumped Rs 1,752 crore into Indian stocks on Friday, according to provisional data, extending their purchases for the 11th straight day.

In October (till Thursday), FIIs have put about Rs 7,500 crore into Indian equities, taking the overall tally to Rs 78,600 crore since January. nifty buy sell signals Analysts said the stability in the rupee vis-à-vis the dollar, which had weakened since the US shutdown early in October, played a key role in ensuring the deluge of FII money. Economic weakness due to the shutdown, coupled with uncertainty over negotiations to increase the US debt ceiling, might prompt the US central bank to delay the start of the rollback of its monetary stimulus, or Quantitative Easing (QE) 3, to the first quarter of 2014, they said. (DANCING TO FII TUNE)

“commodity charts Investors feel the US shutdown has lowered the odds of a Fed tapering this year," said Tirthankar Patnaik, director & strategist, Religare Capital mcx commodity charts Markets. “They are seeing a three-month window to put money into Indian stocks."

BSE’s 30-share Sensex on Friday rose 467.38 points, or 2.29 per cent, to close at 20,882.89, its highest since November 2010. The National Stock Exchange’s 50-share Nifty gained 143.50 points, or 2.37 per cent, to end at 6,189.35.

Elsewhere in Asia, nifty buy sell signals markets ended mostly higher on Friday mcx charts tracking Wall Street’s strong close the previous night, after the US managed to avoid a debt default by increasing the debt ceiling. A pick-up in China’s gross domestic product at 7.8 per cent in July-September, in line with forecasts, also lifted sentiment.

US treasuries rose, pushing the yield on the 10-year benchmark to the lowest in 12 weeks, suggesting nifty buy sell chart investors did not expect an immediate reversal of the QE3.

At home, a large chunk of the foreign institutional inflows in the recent days has been by passive funds such as exchange-traded funds, said brokers and nifty signals analysts.

“Most of the money coming in has been through global exchange-traded funds. These mcx commodity charts funds have been buying across sectors," said Vivek Mahajan, head of research, Aditya Birla Money. “Globally, risk appetite has come back with the debt ceiling issue being postponed for the time being."

Fund managers and nifty buy sell signals analysts said earnings’ performances of companies did not warrant sharp upsides in stock prices, though results had not disappointed.

Banks were among the leading gainers, sending the NSE bank index up 3.95 per cent. The bank index fell 17.2 per cent in the September quarter. ICICI Bank jumped 4.6 per cent, while HDFC Bank rose 3.4 per cent. Some commodity charts investors also bought defensive stock such as those of drugmakers and consumer goods, expecting uncertainty ahead of the Reserve Bank of India (RBI)’s nifty buy sell signals policy review at the end of the month. RBI is largely expected to raise the repo rate by 25 basis points, its second consecutive monthly hike.

The rupee on Friday ended five paise weaker than its previous close, at 61.27 a dollar. The currency had touched an intra-day high of Rs 60.93, a level last seen more than two months ago, on August 8 , but slipped on speculation RBI might close the special dollar-swap window for oil marketing companies, which was opened on August 28 when the rupee had touched almost 69 a dollar. A swift clarification that the nifty live chart with buy sell signals swap window would remain helped the rupee rebound a bit.

Ace investor Rakesh Jhunjhunwala on Friday picked up 2.5 million shares of the mortgage lender Dewan Housing Finance Corporation Ltd (DHFL)for nearly Rs 34 crore.

Jhunjhunwala purchased the shares of DHFL through the open market route, according to information available with the stock exchanges.

The scrips were bought on an average price of Rs 135.32 valuing the transaction at Rs 33.83 crore, according to the data. Meanwhile, Jwalamukhi Investment Holdings offloaded 2.275 million shares of DHFL for an estimated Rs 30.25 crore.

Shares of DHFL surged by 13.02% to settle at Rs 147.10 apiece on the BSE. At the end of today's trade, the company's market valuation stood at Rs 1,887 crore.

In July, realty major had exited the life insurance business by selling 74% stake in its joint venture DLF Pramerica Life Insurance to Dewan Housing Finance for an undisclosed amount.