Stock Watch

Questions are being raised on the Government's decision to ban the export of iron ore. The High Court division bench says that it is not right to ban the export of iron ore just because illegal mining was taking place as this would result in thousands of people losing their jobs and the state losing its revenue.

With the buyers now gaining awareness about the advantages linked with having gold in the form of bars and coins etc, there is a rising probability that the demand for gold in India may rise by 25-30%.

Gold holds a very important position among Indians, and jewellery accounts for 70-80% of country's gold demand. And the second half of 2010 is certainly going to see a drift from jewellery to exchange-traded funds by about
20-25% from the current 10%.

One of the largest producers of aluminium, National Aluminium Company (Nalco) posted its first-quarter results, which showed an increase of 125%in its net profit, as compared to the last year’s performance in the same period. The profit rose to Rs 284 crore from Rs 127 crore a year earlier.

The surge in the net earnings has been contributed by greater sales, higher production volumes and upgradation in the regulations regarding the input consumption, as told by a Company’s spokesperson.

Gold climbed on conjecture that the precious metal’s drop to the lowest level in almost six weeks is prompting some investors to increase holdings.

Immediate-delivery bullion increased 0.2 percent to $1,204.73 an ounce at 1:25 p. m. in Singapore, increasing for a second day. The metal fell to $1,185 yesterday, the lowest price since May 24. August-delivery futures climbed 0.5 percent.

Fujuzawa Nobu, a Singapore-based trader at Standard Bank Group Ltd. People said that “The gold market is seeing fresh buying coming in, still willing to buy.”

The price of Gold is rising day by day and it could smash new record as the investors pile in to gold on fears of a worsening economic outlook. The price has touched the all time high price in this week.

Mr. Charles Cooper of Oriel Securities has informed that the debt on the government balance and worries that the whole world would be heading in to a double dip recession are making the gold price higher than that of expectation.

Hindalco industries think of borrowing Rs 14000 crores which will help them make there production three times more. They plan to build two new plants that will increase its production capacity The Mumbai based metal company is on of the world’s top five aluminum producer after it bought Novelis of Canada.

Hindalco needs 9200crores to build new projects under Mahan Aluminum and Aditya Aluminum.. Mr. Debu Bhattacharya managing director of Hindalco said that they will start the plants in 2012.

Prices of gold (standard 99.5%) has become as high as 1250$ per ounce. This figure is a record in the international market. Investors are not willing to invest, to avoid risk. In India both jewelers and stockiest had to buy the metal at rs 19000 per ten grams.

The price of gold hit high notes touching Rs 19,050 for ten grams as the euro zone saw investors rushing to grab the precious yellow stone. One of the reasons for the spurt in the gold prices is due to the appreciation value of a dollar against a rupee.

A rise in price of silver was also soon from Rs 200 to 29,800 per kg.

As the rise in price of gold rose, the value of currency declined at a high rate making it the worst fall in a day in 18 months.

According to fund managers and financial partners, GOLD among all asset classes, has remained tested hedge against inflation. The new inflow into gold in 2009 – 10 touched Rs 804 crore as against Rs 600 crore pumped into equity funds, as per data from Association of Mutual Funds. While on the flipside, equities outperformed gold last year, the fund managers however believe that it should not deter investors from playing Gold ETF’S.

NALCO or National Aluminium Company Ltd posted a five-fold increase in its profits for the fourth quarter ended March 31, 2010. It reported profits of Rs 391.48 crore during the quarter compared to Rs 83.02 crore during the fourth quarter of 2009 in the month of March.