Sensex snaps four-week loosing streak; zooms over 400 points

 Indian stocks rose nearly 2 percent on Friday, posting their first weekly gain in four, as a rebound in commodity prices and Bank of Japan`s bold move to adopt negative interest rates ended a tough month for markets with a flourish.  Sensex ended at 24, 870, up 401.12 points

The Nifty ended at 7,563 points, 1.87 percent higher, its biggest single-day percentage gain in a week. 

For the week, the index gained 1.9 percent, its first weekly gain in four. It shed 4.8 percent in January in its worst monthly performance since August 2015.

The Sensex ended 1.64 percent higher on Friday. For the week, it rose 1.78 percent but fell 4.77 percent in January. 

World Bank cuts 2016 oil forecast, Indian basket at 14-year low.

Washington/New Delhi: With global crude oil prices in free fall through most of 2015, the World Bank has sharply revised downwards its forecast for oil price in 2016, at an average of $37 a barrel from $51 predicted in October, in the context of the continuing supply glut and low demand prospects from emerging economies.

"World Bank is lowering its 2016 forecast for crude oil prices to $37 per barrel in its latest Commodity Markets Outlook report from $51 per barrel in its October projections," the multilateral lender said in a release here on Tuesday.

In this regard, the bank also scaled down its growth forecast for emerging and developing economies to 4 percent in 2016, from an expected 4.6 percent previously, and said the prediction was "subject to considerable downside risks in a fragile global environment".

Explaining that the lower forecast reflects various supply and demand factors, the World Bank said "these include sooner-than-anticipated resumption of exports by Iran, greater resilience in US production due to cost cuts and efficiency gains, a mild winter in the Northern Hemisphere, and weak growth prospects in major emerging market economies".

The bank forecast crude oil prices at $37 a barrel for 2016 by using an average of UK Brent, Dubai and the US West Texas Intermediate (WTI) oil prices, equally weighted.

"Many of the factors underpinning the slowdown in recent years -- including low commodity prices, weak global trade and slow productivity growth -- are expected to persist," the report said.

Besides, deteriorating growth prospects in many emerging economies were eroding their fiscal and monetary policy buffers, it added.

The Indian basket, comprising 73 percent sour-grade Dubai and Oman crudes and the balance in sweet-grade Brent, fell on Tuesday at $26.63 for a barrel of nearly 160 litres, official data showed on Wednesday. It had touched exactly the same monthly price in June, 2001.

The price of the Organisation of Petroleum Exporting Countries (OPEC) basket of 12 crudes closed at $25.11 a barrel, marking a 13-year low, on Tuesday, compared to $25.58 on Monday, said the organisation`s secretariat said.

At Wednesday`s morning trade, WTI crude was trading down nearly 2 percent at $30.86 a barrel, while Brent crude was down 1.35 percent at $31.37 a barrel.

With OPEC deciding last December against cutting output, traders are betting the cartel is less likely to cut output now to prevent easy passage of Iranian crude into the market, particularly at a time of tensions between Iran and Saudi Arabia.

In comments posted on the Iranian petroleum ministry`s website last week, Deputy Minister Roknoddin Javadi said Iran is determined to regain its market share, which collapsed after the international sanctions were imposed.

He said Iran plans to increase oil production by 500,000 barrels a day.

Gold price hits 3-month high, zooms past Rs 27,000 per 10 grams level

 Gold prices again zoomed past the Rs 27,000-level by surging Rs 380 to close at a three-month high of Rs 27,130 per 10 grams at the bullion market Wednesday, tracking a firm trend overseas and increased buying by jewellers to meet the ongoing wedding season demand.

Moreover, a weaker rupee against the dollar that made the import costlier, led to rise in gold prices.

The rupee was quoting lower by 20 paise to 68.03 against the dollar (intra-day) at the forex market today.

Silver followed suit and recaptured the Rs 35,000-mark by surging Rs 760 to Rs 35,260 per kg on increased offtake by industrial units and coin makers.

Bullion traders said a firming global trend where gold soared to a two-month high ahead of the first Federal Open Market Committee meeting this year, influenced the precious metal prices.

Gold in New York, which normally determines price trend on the domestic front, climbed 1.07 per cent to USD 1,119.70 an ounce in New York in yesterday's trade.

Moreover, increased buying by jewellers and retailers driven by the ongoing wedding season demand, supported the uptrend, they said.

In the national capital, gold of 99.9 and 99.5 percent purity surged by Rs 380 each to Rs 27,130 and Rs 26,980 per ten grams respectively, a level last seen on October 29 last year.

Sovereign also moved up by Rs 100 at Rs 22,500 per piece of eight grams.

Following gold, silver ready surged by Rs 760 to Rs 35,260 per kg and weekly-based delivery by Rs 925 to Rs 35,270 per kg.

On the other hand, silver coins spurted by Rs 2,000 to Rs 51,000 for buying and Rs 52,000 for selling of 100 pieces.

Wipro Q3 net profit up 1.8% to Rs 2,234.1 crore

Country's third largest software services firm Wipro on Monday posted 1.8 percent rise in its consolidated net profit to Rs 2,234.1 crore for the quarter ended December 31, 2015.

The company-had posted a net profit of Rs 2,192.8 crore in the year-ago period. The City-based firm saw revenues rising 7.1 percent to Rs 12,951.6 crore in the said quarter from Rs 12,085.1 in the same period last year, according to a filing on the BSE.

Its IT services revenues stood at Rs 12,310 crore (USD 1.86 billion), an increase of 9 percent year-on-year, it said. The company had already warned of a muted performance in this quarter on account of furloughs and Chennai-floods. It had said it expected to meet the lower half of its guidance range of USD 1,841-1,878 million.

For the fourth quarter, Wipro expects its revenues from the IT services business to be in the range of USD 1,875 million to USD 1,912 million. "We delivered revenues in line with our guidance.

We saw a pick-up in large deal closures led by global infrastructure services," Wipro Member of the Board and CEO T K Kurien said. He added that customers want to simplify operations and optimise their IT spend and that the company is well- positioned to take advantage of this trend.

Wipro Chief Financial Officer Jatin Dalal said the impact on revenues from the Chennai floods were minimised significantly by execution of Business Continuity Plans (BCP). "The additional expenses incurred in deploying BCP impacted operating margins for the quarter," he added. The IT services segment had a headcount of 1,70,664 as of December 31, 2015.

It added 39 new customers during the quarter. "We are focussed on driving market share growth in our core businesses through integrated domain and technology services, while investing for the future in building differentiated Digital capabilities," Wipro CEO-Designate Abidali Z. Neemuchwala said.

Wipro's IT products segment delivered Revenue of Rs 6.5 billion (USD 98 million) for the quarter ended December 31, 2015.

Gold prices retreat by Rs 40 to Rs 26,210 per ten gram

Gold prices retreated by Rs 40 to Rs 26,210 per ten gram at the bullion market on Friday owing to lower global trend amid easing spot demand from jewellers.

Silver followed suit and declined by Rs 230 to Rs 33,795 per kg on reduced offtake by industrial units and coin makers. Bullion traders said besides a weak trend overseas, fall in demand from jewellers in domestic spot market at prevailing levels mainly led to the decline in gold and silver prices.

Globally, gold fell 0.2 per cent to USD 1,076.37 an ounce in Singapore, while it ended 1.37 per cent down at USD 1,078.50 an ounce in New York in yesterday's trade. In the national capital, gold of 99.9 and 99.5 per cent purity fell by Rs 40 each to Rs 26,210 and Rs 26,060 per ten grams respectively.

It had climbed by Rs 190 yesterday. Sovereign, however, remained steady at Rs 22,300 per piece of eight grams in limited deals. Tracking gold, silver ready dipped below Rs 34,000-mark by falling Rs 230 to Rs 33,795 per kg and weekly-based delivery by Rs 300 to Rs 33,800 per kg.

On the other hand, silver coins, continued to be traded at previous level of Rs 48,000 for buying and Rs 49,000 for selling of 100 pieces.

Gold slips from 2-month high, falls Rs 200 to Rs 26,250 per 10 gm

 Gold prices retreated from two-month high by falling Rs 200 to Rs 26,250 per ten gram at the bullion market on Tuesday largely in tandem with a weak trend overseas amid easing spot demand from jewellers.

Silver also recorded a fall of Rs 355 to Rs 33,500 per kg due to reduced offtake by industrial units and coin makers. Bullion traders said besides a weak trend overseas where it declined after posting the best week of gains since August, fall in demand from jewellers and retailers at prevailing levels mainly pulled down both gold and silver prices.

Globally, gold fell by 0.94 percent to USD 1,094.20 an ounce and silver by 0.54 percent to USD 13.85 an ounce in New York in yesterday's trade.

Meanwhile, gold had climbed 3.4 percent this year so far on increased geopolitical tensions in the Middle East and North Korea, renewed concerns about China's outlook and a rout in global equities. In the national capital, gold of 99.9 and 99.5 per cent purity plunged by Rs 200 each to Rs 26,250 and Rs 26,100 per ten grams respectively.

It had gained Rs 120 yesterday. Sovereign followed suit and declined by Rs 100 to Rs 22,300 per piece of eight grams. Tracking gold, silver ready also dropped by Rs 355 to Rs 33,500 per kg and weekly-based delivery by Rs 275 to Rs 33,525 per kg. Silver coins too plummeted by Rs 1,000 to Rs 48,000 for buying and Rs 49,000 for selling of 100 pieces.

UBS sees Nifty at 8,200 by year-end

Global financial services major UBS on Tuesday said it is "overweight" on India but sees limited room for a re-rating and forecast an end-2016 Nifty target of 8,200.

"We see limited room for a re-rating and forecast an end-2016 Nifty target of 8,200 based on a 15x one-year forward PE multiple," it said in a research note adding that " our GEM/APAC strategists remain overweight on India.

According to the Swiss firm there were big earning downgrades in 2015 and more are likely this year.

"Consensus FY16/FY17/FY18 forecasts of 10 percent/20 percent/18 percent earnings growth still appear optimistic," it said adding that cuts in 2016 may remain significant at around 8 percent.

On prices, it said the country's disinflationary process is likely to continue largely aided by political commitment, RBI policy, below-trend growth, and balance sheet repair.

It expects CPI inflation in the fiscal year 2016-17 at around 4.6 percent.

During 2015, the Consumer Price Inflation remained well under control hovering in the range of 3.66-5.4 percent, while industry chambers and some other experts are hopeful that it would keep below 6 percent mark in the New Year – a target set by the Reserve Bank.

It further said the recovery process for the Indian economy would be gradual and growth numbers would be below potential.

"While lower RBI policy rates should boost fixed investment, balance sheet repair and a difficult external environment should keep the recovery gradual and GDP growth below-potential," it added.

It expects fiscal year 2016-17 growth at around 7.6 percent and financial year 2017-18 at 7.8 percent.

Meanwhile, the government recently lowered its economic growth forecast for 2015-16 to 7-7.5 percent from 8.1-8.5 percent.

RBI likely intervened to curb rupee fall.

 Indian state-owned banks were likely selling dollars on behalf of the Reserve Bank of India (RBI) to cap losses for the local currency, three FX traders told Reuters.

The Indian rupee had fallen to an over two-week low of 66.6625 to the dollar earlier in the session, tracking weak local shares and dollar demand from oil importers.

At 0945 GMT, the Indian rupee was little changed at 66.60/61 compared with 66.61/66.62 previous close.

Gold prices recover by Rs 195 to Rs 25,615 per 10 gram.

 Gold prices recovered by Rs 195 to Rs 25,615 at the bullion market on Monday, tracking a firm overseas trend as rising tension between Saudi Arabia and Iran raised demand for the precious metals amid fresh buying by domestic jewellers.

Silver rose by Rs 325 to Rs 33,625 per kg on increased offtake by industrial users and coin makers.

Traders said a firm trend in global market as escalating tension between Saudi Arabia and Iran prompted a return tohaven assets, mainly boosted the precious metals.

Globally, gold rose by 0.9 percent to USD 1,070.27 an ounce and silver rose 0.8 percent to USD 13.93 an ounce in Singapore today. Gold, traditionally seen as a store of value during political turmoil.

In addition, pickup in buying by jewellers also supported the upside, they said.

In the national capital, gold of 99.9 and 99.5 percent purity surged by Rs 195 each to Rs 25,615 and Rs 25,465 per ten grams, respectively.

The precious metal had lost Rs 90 on Saturday. Sovereign, however, continued to be traded at last level of Rs 22,200 per piece of eight gram.

Tracking gold, silver ready prices shot up by Rs 325 to Rs 33,625 per kg and weekly-based delivery by Rs 235 to Rs 33,570 per kg. On the other hand, silver coins were unchanged at Rs 47,000 for buying and Rs 48,000 for selling of 100 pieces.

Sensex tanks over 530 points to crash below 26,000-level.

The benchmark BSE Sensex crashed below 26,000-level while the wider 50-scrip Nifty of the National Stock Exchange (NSE) plunged 171.90 points to end at 7,791.30 on Monday.

Sensex tumbled 537.55 points to close at 25,623.35, tracking global sell-off amid concerns over slowdown in China and escalating tension in the Middle East.

In addition, India's manufacturing sector output shrinking to a 28-month low in December and fresh weakness in the rupee, accelerated selling activity.

Besides, investors were seen cautious regarding the upcoming third-quarter earnings season which starts from January 14.

Among other Asian markets, Shanghai Composite Index led the meltdown by ending 6.9 percent lower. Meanwhile, authorities in China suspended trading on the country's stock markets in the early afternoon after shares sank 7 percent.

Japan's Nikkei tumbled 3.06 percent and Hong Kong's Hang Seng was down by 2.68 percent. European markets were also down in their opening trade.