Page 5 - Commodity Prices

Results preview: Order-book booster to stay for capital goods firms

Key monitorables include tender pipeline and emerging supply-chain scenario, say analysts and players

Is India's external account becoming vulnerable?

Rising global commodity prices have widened India's current account deficit to 2.8% of GDP in Q1. But RBI Governor says, forex reserves compared favourably with most peer economies. Here's more

Investment via P-notes rises to Rs 84,810 cr in Aug after 3-month decline

After three consecutive monthly declines, investment in the Indian capital markets through participatory notes rose to Rs 84,810 crore at the end of August on the back of a drop in oil and commodity prices. However, the month of September might be subdued for P-note participation as the Foreign Portfolio Investors (FPIs) have turned cautious, Sonam Srivastava, Co-Founder at Wright Research, Sebi-registered research investment adviser, said. Participatory notes (P-notes) are issued by registered FPIs to overseas investors who wish to be a part of the Indian stock market without registering themselves directly. They, however, need to go through a due diligence process. According to Securities and Exchange Board of India (Sebi) data, the value of P-note investments in Indian markets -- equity, debt, and hybrid securities -- stood at Rs 84,810 crore in August compared to Rs 75,725 crore in July-end. In comparison, investment through the route was Rs 80,092 crore in June-end, Rs 86,706

'Investors are building all data points into their market assessment'

Ajay Argal of Franklin Templeton believes that any change in stance to lower the pace or the quantum of rate hikes could provide an interim positive trigger for the markets.

India's current account deficit likely jumped to a near-decade high: Poll

India's current account deficit likely widened to its highest in nearly a decade in the April-June quarter, driven by soaring global commodity prices and the biggest capital outflows

Ceat hits over 4-year high on healthy outlook; stock jumps 60% in 3 months

The company expects the overall tyre industry to perform well due to easing of pandemic-led curbs, pent-up demand from OEMs, and replacement segment.

Use the rally in Vedanta to exit the stock: Analysts

Vedanta on Tuesday inked a pact with the Gujarat government under which the company, along with Taiwan's Foxconn, will jointly invest $19.5 billion to set up a semiconductor project in the state.

No proof that commodity derivatives trade causes price spikes, finds study

Suspension of their futures does not bring down price volatility either, finds study conducted on behalf of NCDEX Investor Protection Fund

Easing commodity prices, supply snags to lift auto ancillary stks: Analysts

Thus far in 2022, key raw materials used in automobile manufacturing like steel, iron ore, aluminum, nickel, and rubber have dropped in the range of 16 per cent to 45 per cent.

Recalibrating policy priorities

As the global storm rages, emerging markets will have to quickly pivot from addressing the pandemic's scars to focusing on the 'twin deficits' to preserve macroeconomic stability

PAC sees no unusual price change, rejects call for ban on turmeric futures

Finds that even though prices vary between different grades, overall price trend remains more or less same, making the availability of reference price crucial

High commodity prices to keep rupee under pressure: BofA Securities

"India has continued to post wide trade deficits due to higher prices of oil and other commodities, which have eroded INR's basic balance buffer," the research house said.

MCX Crude Oil has to hold above Rs 7,350; Natural Gas may see sharp moves

The overall bias for Crude Oil remains negative, however, select momentum oscillators have turned positive on the daily chart. Natural Gas futures could see sharp directinal moves, hints ADX indicator

Deflating commodity costs to aid FMCG firms in H2FY23: Analysts

With commodity prices deflating from their March peak levels, analysts expect the margin profile across consumer goods companies to improve going ahead.

CAD of 2.5-3% can be sustained without external sector crisis: RBI DG Patra

India's economy is predicted to overtake that of the US by 2048, said Patra

Godrej Consumer Q1 net profit down 17% at Rs 345 cr; revenue up 8%

FMCG major Godrej Consumer Products Ltd (GCPL) on Wednesday reported a 16.56 per cent decline in its consolidated net profit at Rs 345.12 crore for the first quarter ended June 30, 2022, on account of commodity inflation and upfront marketing investments. It had posted a net profit of Rs 413.66 crore in the April-June quarter a year ago, GCPL said in a regulatory filing. The revenue from the sale of products of the Godrej group's FMCG arm was up 8.08 per cent at Rs 3,094.31 crore during the quarter under review, as against Rs 2,862.83 crore in the corresponding period last fiscal. GCPL's total expenses were at Rs 2,696.29 crore in Q1/FY 2022-23, up 13.64 per cent from Rs 2,372.65 crore in the corresponding quarter a year ago. "Our overall EBITDA declined by 13 per cent driven by unprecedented global commodity inflation, upfront marketing investments and a weak performance in our Indonesia and Latin America & SAARC businesses," GCPL Managing Director and CEO Sudhir Sitapati ...

Easing raw material costs promising for Indian consumer companies

While reporting a 4.5% fall in second-quarter profit and higher expenses, Nestle India said on July 28 it could see softening of prices in such commodities as edible oil and packaging materials.

Falling commodity prices may soften inflation, but it may remain elevated

Parliament likely to discuss the matter today; MPC to consider matter at 3-day meet that begins on Wednesday

Market sentiment gets a boost as FPI selloff stems in July after 10 months

What led to such record outflows? "Rising global central banks' rates, rupee depreciation, expensive valuations and geopolitical risks," says BofA in a note.

Is the FMCG sector coming out of the woods?

The FMCG sector went through a difficult phase in the last two years. But, after the recent drop in commodity prices, are things looking up for the sector now? Our next report takes a deep dive