Morning Business News Round Up_Feb 02, 2018

Morning Business News :

  • FPIs may have found a way to dodge LTCG bullet
  • I-T dept has tech to trace black money: CBDT chief
  • Budget reaffirms digital commitment within govt
  • Govt raises import duty on cotton seed oil, olive oil
  • Telecom sector to create 4 lakh new jobs in 5 yrs: Sinha
  • Government defers compulsory E-way bill application
  • Imported luxury cars to be costlier by up to Rs 10 lakh
  • Budget 2018: The great balancing act by Jaitley on social and fiscal fronts
  • Union Budget 2018-19 Announcements In Nutshell
  • Issue guidelines to ascertain predatory pricing: TDSAT to telecom regulator
  • At Rs 6.2 trn, April-Dec fiscal deficit touches 113.6% of FY18 estimate
  • Titan Q3 net rises 21% to Rs 2.8 bn; total income up 7%
  • Bitcoin’s big wipeout erased $44 bn of market value in Jan

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  • Govt misses fiscal deficit target; higher at 3.5% in FY 18
  • Govt hikes customs duty on mobile phones to 20%
  • Budget eyes Rs 80,000 cr from PSU disinvestment in FY19
  • Logistics sector to benefit from National Logistics Portal
  • Maruti sales up 4% at 1,39,189 units in January
  • Royal Enfield January sales up 31% at 77,878 units
  • IMF welcomes fiscal deficit targets set by Arun Jaitley
  • Smart cities mission gets a hike in budget
  • Rupee crumbles 44 paise on LTCG tax, fiscal deficit woes
  • Alibaba raises forecast, agrees to buy 33% of Ant Financial
  • TV18 to increase Viacom18 stake to 51%
  • Oil steady as Opec compliance offsets robust US output
  • Tata Motors worried over drop in commercial vehicle share
  • FPIs infuse more than $1 billion in Indian debt in 2 weeks
  • ONGC pays government Rs 36,915 crore for HPCL
  • Amazon posts largest profit in its history on sales, tax boost
  • Govt lowers market borrowing to Rs 4.07 lakh cr for FY19
  • Gold Monetisation Scheme to be revamped: Jaitley
  • 3 PSU insurers to be merged and listed
  • Highest ever infra allocation to boost investment cycle

Gold is on Verge of Breaking Out

Gold is on Verge of Breaking Out

Gold rally continue for the third month to touch high of 1344.81 before settling at 1331.84. The weakness in dollar against major currency drives safe haven demand in gold. Also, crash in crypto currencies related fund moved to gold. Gold has jumped 2.2% this year, touching the highest price in four months, as the dollar fell, Chinese consumers stocked up for the Lunar New Year and signs of global inflation picked up.

Global holdings in gold exchange-traded funds soared to the highest level since 2013 as investors got behind a rally in the metal. Holdings in gold exchange traded funds jump 13.7 tons, most since September, the total assets climb to 2241.2 tons.

Hedge fund managers boost net bullish bets on gold as they have added 5927 net long positions to 203967 contracts as per the weekly CFTC data on futures and options shows.

The uncertainty over US government shutdown may further give boost to precious metal rally.

At domestic front, gold imports for the December month rose 53 per cent to 846 tonnes last year on strong domestic demand and lower global prices, according to MMTC-PAMP India.  In December 2017 alone, gold imports rose to 70 tonnes from 49 tonnes in the year-ago period.

Technically, gold is on verge of breakout above $1370/oz. The sustainable break out above said level will open higher side up to $1630/oz. while downside support has been seen around $1220/oz. At domestic front strength in rupee may restrict some of the gains but the view remains same. Domestic gold price likely to touch all-time high to Rs. 35000 within 2 year once it starts trading above Rs.30450 per 10 grams.   The near term support remains around Rs. 28500 per 10 grams.