MCX copper stuck in a narrow range
The copper futures contract traded on the Multi Commodity Exchange (MCX) has been trading in a sideways range between ₹353 and ₹365 per kg in the past week.
It is currently trading near the upper end of this range at ₹362. A breakout on either side of this range will decide the next leg of move for the contract.
Traders can stay out of the market for the time being.
The 21-day moving average resistance is poised at ₹365 which could make some difficulty for the contract to breach the ₹365 level.
However, if such a break happens, then the downside pressure will diminish and take the contract higher to ₹371 thereafter.
The overall trend is down for the contract. A decisive daily close below ₹355 will increase the danger of the contract breaking the range downwards, below ₹353.
Such a break can strengthen the downtrend and drag it lower to ₹345 and ₹340 levels once again.
Traders can go short at ₹352 only if the contract declines below ₹353. Stop-loss can be kept ₹357 for the target of ₹345.
Iran to figure among India’s top 10 export destinations
India’s exports to Iran are expected to soar this fiscal following the easing of sanctions against Tehran, and the historic nuclear deal is set to catapult Iran to the top 10 spots from its current 24th position, according to a leading trade body.
Increased global trade will help push Iran to one of the front ranking export destinations from its present slot, noted engineering exporters’ apex organisation EEPC India.
“With shipments worth $130 million in the April-May period of the current fiscal, Iran is at present at the last but one position among India’s top 25 export destinations. If this deal is implemented without hardliners blocking it, the key Middle East country can occupy one of the top 10 positions in the table of destinations,” Chairman of EEPC India Anupam Shah noted in a statement.
He pointed out that the Iran nuclear deal would also help improve India’s trade with the Middle East, which accounts for just about seven per cent of the country’s total export shipments.
He added that once the nation begins rebuilding itself, it would be bound to import larger quantity of critical engineering products like industrial machinery, automobiles, auto components, electrical and iron and steel. All of this, Shah said, would be a huge opportunity for Indian exporters.
India threatens to seek anti-dumping probe against solar power equipment imports from US
India has firmly asked the US to withdraw its complaint against India’s compulsory domestic sourcing rules for solar power generation at the WTO, else it may initiate anti-dumping investigation against the product from America.
It may be recalled that the US had dragged India to the WTO for mandating that a small fraction (about 8,000 MW of a total of 1,00,000 MW of its solar projects) be created with domestic modules. It says that the clause goes against the WTO rule of ‘national treatment’.
If the US refuses to withdraw its complaint, India could initiate anti-dumping investigations against America-based exporters of solar power generation equipment once again, sources added.
India’s exports to China decline by 24 pc to $6.89 bn
India-China bilateral trade rose by 1.1 per cent to over $34.19 billion in the first half of this fiscal. India’s exports to China dropped by over 24 per cent to $6.89 billion, while Chinese shipments to India went up by 10.8 per cent to $27.29 billion during the period, data released by General Administration of Customs (GAC) showed.
Meanwhile, China’s foreign trade volume continued to drop in the first half, but the lacklustre performance was cashed in on by its exports to India and other Asian countries.
Last year, the trade deficit touched $47 billion, of the $70.59 billion trade. It crossed $20 billion half way this year as Chinese exports went up to $27.29 billion.
Govt gives fertilizer subsidies a cold shoulder
Shares of fertilizer companies have given up their gains and are back to their year-ago levels. The government has shown no urgency in implementing long-pending reforms, such as rationalization of urea prices, timely subsidy payments, or changes to the payment mechanism and encouraging domestic productions.
Some of these measures are indeed politically sensitive as they can raise costs of farm inputs. Not implementing them, however, prolongs the industry’s woes. Revenues of the industry have risen only slightly in recent years. With no new capacity addition, aggregate revenue growth of 11 listed companies slowed from an average of 22% in six years till 2011-12, to 2-4% in the last three fiscal years, a note from Icra Ltd shows.
Even then, volume has remained relatively steady. After dropping by 4% in 2013-14 because of excess channel inventories, volume increased by 6% in last fiscal year. Unless the weather situation worsens, sales will likely grow in low single digits in the current fiscal year, too.
This post was written by Atlantic Admin