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12�THE ECONOMIC TIMES | KOLKATA | FRIDAY | 1 JULY 2016Commodities Plus
KIRANAKOCHI PEPPER (per Quintal)July 2016(72000/72000)71000/71000Aug 2016(71000/71000)70000/70000Sept 2016(69000/69000)68000/68000Oct 2016(68000/68000)67000/67000Nov 2016(67000/67000)66000/66000Dec 2016(67000/67000)66000/66000
SPOTBULLIONMUMBAI Gold(10 gms.) Standard (30850) 30600 Silver(Per Kg) Silver .999 (42600) 42800
DELHI Gold(10 Grams) 1kg.Bar 999.5 (30100) 30200 Standard(999.9) (30250) 30350 Ornaments (28000) 28100 Gold Sovereign(8gm) (23300)23300 Biscuit (30225) 30325 Silver(Per Kg) Spot .999 (42700) 42950 Delivery-Weekly (42910) 43300 Buyer Coins (100 pieces:)(73000/74000) 74000/75000
KOLKATA Gold(10Gms.)Standard-24K (31500) 31405Guinea-22K (29885) 29795Ornament-22K (30335) 30240Silver(Per Kg) Bar (43100) 43500Portion (43200) 43600
CHENNAIGold(10Gms.) Standard (31220/31175)31030/31050Ornament (22-carat: 8Gms:)(23352/23320)23208/23224Silver(Per Kg) Bar Silver (43980/44440)44635/44725
BENGALURU Gold(Per Gms.) Standard (per 10 gms.:) (31438)31327Ornament (per gram:) (2925)2912 Silver(Per Kg) Bar Wholesale (per kg:)(43300)43600 Bar Retail (per 10 gms:)(435)438 Local Wholesale (per kg:)(42700)43000 Local Retail (per 10 gms:)(429)432
HYDERABAD Gold(Per 10gms) Standard Gold (31520) 31330 Ornament (30980/30890)30600/30700Silver(Per Kg.) Silver .999 (43500) 42600
OIL & OILSEEDSMUMBAI Groundnut(Quintal) Groundnut kernel (6500) 6525Groundnut Bold 60/70 (8300)8300Javas 60/70 (9500) 9500Javas 70/80 (9250) 9250Javas 80/90 (9000) 9000OthersKardi (3200) 3200Sesamseed Crushing 48/2/4(5800) 5800Sesame (whitish) 98/2/1 (6650)6650Sesame 95/5/1 (6500) 6500Sunflowerseed (3850) 3850Nigerseed (9250) 9250Castorseed (3320) 3350Groundnut oil(10 Kgs)groundnut Oil Raw (1300) 1305Other oils(10 Kgs) kardi Expeller (870) 870cottonseed (Refined) (682) 685sunflower Exp (655) 655sunflower Exp ref. (730) 730copra white (800) 790Rapeseed Ref. (890) 900Rapeseed expeller (860) 870 Linseed (1150) 1150Neem (970) 970karanji (625) 625Castoroil Comm (694) 700Castor First Special Grade (674)710Fsg Kandla (671) 678Deoiled cakes(Per mt.)Groundnut Ext.(45%) (28300)
28300Kardi Extraction (14000) 14000Undec Cottonseed Exp (27800)28000Rice bran Extr (8700) Sunflower Extr (21000) 21000Rapeseed Extraction (14500)Soyameal 48% (35370) 35470Castor Extraction (4500) 4500Imported ItemsRBD Palmolein (555) 551soyabean Ref (632) 631Copra(Per Quintal) Alleppey (5300) 5300Kozhikode (5200) 5200Rajapur (9000) 9000Edible (6900) 6900Coconut Oil (1210) 1210
DELHI Oilseeds(Per qtl)Mustard (4425/4600) 4450/4600Cakes ExpellerMustard (old bardana)(2325/2375) 2300/2350Mustard (new bardana)(2450/2475) 2450/2475Cottonseed (2750/2900)2800/3000Deoiled Extractions(/tonne)Rice Bran Continuous(11900/12000) 11900/12000 Rice Bran Batch (11900/12000)11900/12000Mustard (19800/20000)19800/20000Soyabean Yellow (37300/37400)36600/36700Sunflower (23000/23200)23200/23400Groundnut(40-45%)(31500/32500) 32000/33000Ricebran (per unit) (117/118)119/120Edible OilsSolvent Ref (Tin) (1950/1975)1950/2000Mustard (Tin) (1360/1520)1370/1530Mustard Expeller (8400) 8400Sesame Mill Delivery (7500)7500Soyabean Ref Mill Delivery(6700) 6680Soyaoil Digumed (6500) 6480Soyabean oil (Tin) (1060/1100)1060/1100Cottonseed Mill Delivery (6550)6600Rice bran oil (5850) 5900Coconut Oil (Tin) (1575/1600)1550/1580Non Edible OilsRice Fatty (5000/5050)5050/5100Acid Oil (3850/3860) 3950/4000Castor (6900/6700) 6700/6800Vanaspati(15 kg/Tin,Tax ext) Dhruv (1080) 1090Panghat (1215) 1210Rang (1020) 1020Shagun (1125) 1130Sainik (970) 980Rishi (815) 815
KOLKATA Others(Quintal) Castor Oil (7400) 7500 Coconut Oil Cochin (10800)10800 Cottonseed Oil (5970) Linseed Oil (1045) 1050 Mustard oil Ghanni (9000) 9100 Ricebran Oil Gr.1 (6170) 6150 Ricebran Oil Gr.2 (5700) 5700 Sesame Oil (680) 670 Vanaspathi (15kg in tin)(915)915 Soyabin Oil (6200) 6200Soyabin Oil (15kg in tin)(1065)1060
CHENNAI Groundnut Oil(Quintal) Oil (1320) 1320 Oil cake(70 kgs) (2700/2700)2700/2700 OthersCastor Oil (Per Quintal) (8400)8400Coconut Oil(15Kg)(1450/1856)1450/1856Gingelly Oil (10kgs) (1300) 1300 Kernals(80 Kgs) (6800/6800)6800/6800 Vanaspati (Per Tin 15Kgs+Tax)(1155/1160) 1155/1160Palm oil (10 kgs) (560/560)560/560
BENGALURU Oils(Per 10Kgs) Coconut (1850/2100) 1850/2100 Ghee (3900/4500) 3900/4500 Gingely (890/900) 890/900 Groundnut (890/950) 890/950 Groundnut Seed (Per Quintal:)(9700/11000) 9700/11000
HYDERABAD Groundnut(Per 15 Kgs) Oil (1550/1750) 1550/1750 Refined Oil (1750/1850)1750/1850 Others(Per 15Kgs) Sunflower Oil (1250/1350)1250/1350Tilseed Oil (2300/2400)2300/2400
Kardi Oil (1950/2200) 1950/2200Cot.Seed Ref.Oil (1250/1350)1200/1300Rice Bran Oil Ref. (1400/1500)1300/1400 Vanaspati (1550/1650)1500/1600Castor Oil(Per 10Kgs) (675) 675Castor Seeds(Quintal)(3300)3300Cator Cake(Per 70Kgs)(900) 900
KOCHI Coconut(Quintal) Coconut Oil (7700) 7700Coconut Oil(Mill) (8300) 8300Copra(Quintal) Copra Edible(ungraded) (5350)5350Copra (As it is) (5265) 5265Oil Cake Rotary (1950) 2000Expeller (2000) 1950
KOZHIKODE Coconut(Quintal) Coconut Oil (8600) 8600Copra(Quintal) Balls (5500) 5500Dilpasand (5350) 5350Office Variety (5250) 5250Rajapur (6450) 6450Oil cake expeller (1950) 1950
ALLEPPEY Coconut Oil(Quintal) Clean (8300) 8300 Oilcake (1950) 1950 Copra(Quintal) Edible (5300) 5300Thekkan (Rassy)(5250) 5250Mill(odey) (5200) 5200
FOOD GRAINSBENGALURU Rice(Per Quintal) Fine (4200/5400) 4200/5400Medium (3900/4400) 3900/4400 Bansi(Per Quintal) Wheat (2400/3200) 2400/3100 Bengal(Per Quintal) Gram Dhal (7800/9200)7800/9200 Black Gram Dhal (14500/18000)14500/18000 Green(Per Quintal) Gram Dhal (7800/9500)7800/9500 Others(Per Quintal) Horse Gram (2600/3000)2500/3300 Jowar (2250/2500) 2250/2500 Turdhal (12500/15000)12000/14500
HYDERABAD Rice(Per Quintal) Fine Old (3500/4700) 3500/4700 Medium New (2800/3600)2800/3600 Wheat(Per Quintal) Bansi New (2700/3200)2700/3200 Sharbathi Old (3200/3900)3200/3900 Others(Per Quintal Exl.Tax) Channa (6000/6500) 6000/6500 Channa Dal (6300/6600)6300/6500 Jowar White (2000/2600)2000/2600 Jowar Yellow (1700/2400)1700/2400 Maize (1400/1600) 1400/1500 Masoor Dal (7800/8500)7800/8500 Moong (9000/9700) 9000/9700 Moong Dal 9500/10700)9500/10200 Toovar (14500/14800)13500/14200 Toovar Dal (14000/14800)14000/14800 Urad (16500/17500)16500/17500 Urad Dal 16500/18700)16500/18500 Bajra (2000/2800) 2000/2800
GUR & SUGARMUMBAI Sugar(Per Quintal) Small Grade (3572/3672)3582/3672Medium Grade (3652/3825)3660/3825
DELHI Sugar Mill Delivery(Per Qtl) Private Mill:Afjalgarh (3470) 3455Malakpur (3390) 3410Modi(3390) 3390Kinauni (3520) 3515Bundki (3480) 3460Titabi (3030) 3020Anoopshahar (3120) 3150Mawana(s) (3520) 3500Daurala (3510) 3485Simbhaoli (3530) 3515Devband (3125) Shamli (3480) 3460Khatouli-s (Duty-Paid) (3540)3500Sugar Ready (3750/3830)3725/3790Gur & Khandsari(Per Qtl) Gur New (3850/4000) 3900/4000Chaku (3650/3700) 3700/3800Dhaiya (3800/3900) 3800/3900Shakkar (4000/4100) 4100/4200Khandsari (4500/4600)4600/4700
CHENNAI Sugar(Per Quintal)
Sugar S-30 (3850) 3850
BENGALURU Sugar(Per Quintal) Sugar (3300/3700) 3300/3700 Jaggery (cube) (3900/4000)3900/4000 Jaggery (ball) (4200/4400)4200/4400
HYDERABAD Gur(Per Quintal) Ankapalle Gr.1 (3400/3600)3400/3600 Nizamabad Gr.2 (3650/3750)3650/3750 Sugar(Per Quintal) Sugar S-30 (3700/3880)3700/3850
METALSMUMBAI Copper(Per Kg.,inclusive ofoctroi) Heavy Scrap (369) 370Utensils Scrap (338) 337Wire Bars (402) 404Copper cable scrap (374) 375Copper Armature (360) 360Copper sheet cuttings (354) 354Brass(Per Kg.) Honey (270) 272Utensils Scrap (267) 267Sheet Cuttings (272) 273Aluminium(Per Kg.) Utensils Scrap (118) 118 Ingot (140) 140 Others(Per Kg.) Tin (1320) 1320Nickle (715) 725Zinc (172) 174Lead (132) 132C.C.Rod (396) 398
DELHI(Per Kg.Local tax ext)AntimonyChina (450) 448CadiumRod (135) 133Maxico (140) 137Plate (145) 143LeadIngot Imported (157) 160Desi Soft (124.50) 128.50Desi Hard (1/1.5%) (125) 129Desi Hard (4%) (127) 131Gun Metal ScrapLocal (299) 298Mix (302) 301Jalandhar (307) 305BrassHuny (266) 268Chadripital desi (263.50) 265Radiator Desi (207) 206Imported (221) 218Bharat-accessories (261) 263TinIngot (1330) 1342ZincIngot Slab (173.50)176.50/177.50Imported (159) 159Dross (146) 147Nickle Plate Russian (4x4) (720) 722(9x9) (725) 727(4x24)(730) 732Inco Canada (4x4) (830) 835(4x24) (835) 840CopperWire Scrap (352) 355Pat (347) 350Super D. Rod (382) 385Mixed Scrap (332) 335AluminiumCG Ingot (139) 140Sheet Cutting (131) 132Wire Scrap (135) 136Utensil Scrap (124) 125Accessories Scrap (121.50) 117Rod (local) (140) 144Rod company (142) 146
KIRANAMUMBAI Pepper(per kg) Black Pepper Ready (735/800)740/810Ginger(per kg) Bleached (160) 160 Unbleached (180) 180
BENGALURU Others(Per Quintal) Chillies (12000/15500)12000/15400 Copra (9000/12000) 8000/11000 Coriander (8800/13500)8800/13600 Tamrind (7600/11200)7600/11200Turmeric (8000/12000)8500/12500
HYDERABAD Others(Per Quintal) Chillies Gr.1 (8000/12300)8000/12300 Chillies Gr.2 (6000/7000)6000/8000 Chillies Gr.3 (5000/6000)5000/6000Corriander Gr.1 (8000/10000)8000/10000 Tamrind Gr.1 (6000/8000)6000/8000Turmeric Round (7900/8100)7900/8100 Turmeric Finger (8100/8300)8100/8300 Garlic New (6500/10500)6500/10500
MANGALURU
Supari(Per Quintal) Old Supari (23500/30000)23500/30000Old Model (28500) 28500New Supari (16500/23500)16500/23500New Model (21500) 21500 Koka (11000/17500)11000/17500koka Model (13500) 13500Coconut(Per Thousand)1st Qlty(12000/15000)12000/15000Model(13000) 130002nd Qlty(7000/9000) 7000/9000Model(8500) 8500
KOCHI Pepper(Per Quintal) Ungarbled (69100/69100)69000/69000Garbled (72100/72100)72000/72000
KOZHIKODE Pepper(Per/Quintal) Nadan (67200) 67200Wynadan (69000) 69000Ginger(Per Quintal) Ginger (11500/11500)11500/11500Turmeric (8000/8000)8000/8000Arecanut New (19000/19500)19000/19500Arecanut Old (20500/21000)20500/21000Coir Koyilandi-1(8500) 8500Coir Koyilandi-2(8000) 8000Coir Beypore-1(6500) 6500Coir Beypore-2(6000) 6000Cardamom(Per Kg)Green (750/1250) 750/1250
RUBBERDELHI RSS(Per Kg)RSS(5x) (128) 131RSS(4x) (133) 136RSS(3x) (140) 143RSS(2x) (157) 160RSS(1x) (172) 175RSS(Ungraded)(127) 130Latex 60% (DRC)(130) 133Synthetic 2 (Per Kg)KSR (133) 133JSR (168) 168Korea-1502 No.(117) 117Silicone Emulsion (70) 70Steric Acid (70) 70
KOCHI RSS(Per Quintal)RSS FOUR (14300) 14300RSS FIVE (13900) 13900
KOTTAYAMRSS(Per Quintal)RSS FOUR (14300) 14300RSS FIVE (13900) 13900
KOZHIKODE RSS(Per Quintal) (12000) 12000
BANGKOK RSS(Per Quintal)RSS ONE (12010) 12196RSS TWO (11894) 12080RSS THREE(11788) 11975RSS FOUR (11731) 11917RSS FIVE (11644) 11831
KUALALUMPUR SMR-20 (8727) 8902
JUTE & JUTEGOODSHessian Cloth(Exclusive of cess, ST Etc)101.5 cms x 213 cms (100 Metres) (2055) 2055 101.5 cms x 229 gms (100 Metres) (2210) 2210101.5 CMs X 305 gms (100 Metres) (2975) 2975 101.5 CMs X 270 gms (Per Tonne) (98000) 98000 Sacking Bags (Per 100)B-Twills907 gms.112 cms x 67.5gms(6800) 6800 1020gms.112 cmsx 67.5 cms(7650) 7650 Raw Jute Ready per Quintal) TD-3 (Spot)[Ex-OtherStates](6300) 6265TD-3 (Spot)[Ex-West Bengal](6150) 6115TD-4 (Spot)[Ex-otherStates](6100) 6065 TD-4 (Spot)[Ex-West Bengal](5890) 5915TD-5 (Spot)[Ex-otherStates](5820) 5915 TD-5 (Spot)[Ex-West Bengal](5740) 5765 TD-6 (Spot)[Ex-otherStates](5620) 5715TD-6 (Spot)[Ex-West Bengal](5540) 5565W-3 (Spot)[Ex-otherStates](6170) 6135W-3 (Spot)[Ex-West Bengal](6090) 6055W-4 (Spot)[Ex-other states](5970) 5935W-4 (Spot)[Ex-West Bengal](5890) 5855W-5 (Spot)[Ex-other states](5820) 5785W-5 (Spot)[Ex-West Bengal](5740) 5705W-6 (Spot)[Ex-other states](5620) 5585W-6 (Spot)[Ex-West Bengal](5540) 5505
FUTURES
COMMODITIESJUNE 30, 2016: Yesterday’s or the previous latest quota-tions for the commodities in various markets in India aregiven below. The rates are in rupees
June 29 Coffee Futures
NY Arabica cents/lb Lon Robusta $/tonne Source: NKG India Coffee* Rates as of 4 p.m. IST 30/06/2016
Market High Low Close Today *Ny July‘16 142.95 140.40 142.85 146.80Ny Sep‘16 144.80 140.85 144.45 148.45Ny Dec‘16 147.60 143.60 147.20 152.05Lon July‘16 1701 1675 1696 1732Lon Sep‘16 1730 1702 1722 1744Lon Nov‘16 1741 1717 1736 1754
NEW DELHI India
may import the
most sugar in seven
years as drought in
the world’s top consumer curbs
output for a second year and
spurs a rally in domestic prices.
Imports may total 2.1million
metric tonnes in the year starting
on October 1, the most since
2009-10.
India’s SugarImports at 7-year High
MANILA After an
unexpected rally in
the first months of
2016, iron ore
should fall back below $50 in the
second half of the year as more of
the bulk commodity hits an over-
supplied market. But prices
should still be up on the year,
analysts say, thanks to an early-
year rally in Chinese steel futures.
Iron Ore mayFall Below $50by 2016-end
MELBOURNE
London copper
hovered near its
highest in eight
weeks on Thursday as the dollar
eased following recent gains in
the wake of Britain’s vote to
leave the EU. A softer dollar
gives buyers of commodities
paying with other currencies
stronger purchasing power.
London CopperHovers Near8-week High
SINGAPORE CBOT
wheat may break a
support at $4.31-
1/2 per bushel and
fall more towards the next sup-
port at $3.91-3/4 over the next
three months, as indicated by its
wave pattern and a Fibonacci
projection analysis. These sup-
ports are identified respectively
as 76.4% and 86.4%.
Wheat may Fallto $3.91-3/4 in Three Months
LONDON Sterling
climbed for a third
day on Thursday,
but traded in tight
ranges as investors waited for new
developments on Britain’s deci-
sion to leave the EU which sent the
currency to a 31-year low. Pound
plunged 8% last Friday, the steep-
est daily decline in post-1973
floating-exchange-rate era.
Sterling Risesfor Third DayAfter Brexit
Banks Swear by GoldAsia’s the Place to be: Mobius
China’s bid for greater influence in the global financial markets will ben-efit from the UK’s decision to leave the European Union, according to Mark Mobius, who sees Asia as the “place to be” in the developing world. While Britain’s vote to exit the EU was a “shock for a lot of people in the know” and sparked a sell-off in global mar-
kets, Asia will be seen as relatively more desir-
able because it’s largely isolated from Europe’s tur-moil, Mobius, the executive chair-man of Templeton E m e r g i n g
Markets Group, said in an interview
i n L o n d o n o n We d n e s d ay. —
Bloomberg
Britons’ vote to leave the European Union has benefit-
ted gold as a haven from risk and could fuel long-er-term gains if eco-nomic uncer tainty sparks a broader shift
in global monetary policy. Gold is ex-posed to interest rates, particularly
in the US, as higher rates lift the opportu-
nity cost of holding non-yield-ing assets and boost the dollar, in which gold is priced.
The prospect of Brexit, and consequent risks to the global economy, have traders think-ing the formerly unthinkable –– that rather than lifting rates, the Fed could opt to cut.
Ultra-low rates were a key factor driving the metal to record highs near $2,000 an ounce in the years after the 2008 financial cri-sis, and analysts say any expecta-
tions that the US will keep rates on hold or even cut them in coming months would be a further catalyst for a gold price rise.
“There is definitely in our minds going to be a more 2008-style monetary policy patter n,” Marie Owens Thomsen, chief economist at Indosuez Wealth Management in Geneva, said.
Prior to the Brexit vote, in-terest rate futures implied that traders saw a 17% proba-bility of a Fed rate hike in July, a roughly 1 in 4 chance of a hike in September and a 50% chance of an increase in December. By Tuesday the CME FedWatch program sug-gested traders saw a 15.8% chance of the Fed opting to lift rates in December –– and a 14.1% chance that the US cen-tral bank would opt to cut.
“US real interest rates re-acting to dovish Fed policy is largely what has driven the gold price to where it is now from below $1,200,” ICBC Standard Bank analyst Tom Kendall said.—Reuters
Gold may emerge as one of the Brexit vote’s biggest commodity winners should revised forecasts
from a growing number of banks prove correct as the poll’s outcome sets the stage for greater global economic uncer-
tainty and retards the likelihood of rate rises from the Federal
Reserve.Bullion may rally to as
much as $1,400 an ounce over the next 12 months, Australia & New Zealand Banking Group said in a
report on Thursday, raising its outlook for the metal even as prices dipped amid signs of re-vived investor
appetite for r i s k .
Singapore-b a s e d Oversea-C h i n e s e
B a n k i n g
flagged the potential for bullion at $1,400, following increased outlook from banks including Goldman Sachs. Gold has ad-vanced after the UK’s vote last week as investors sought a haven from financial turmoil and contemplated the implica-tions. The investment case for bullion has been strengthened by the UK result as the fallout may spur more stimulus, hurting currencies and favouring bullion, accord-ing to Marc Faber, publisher of the Gloom, Boom & Doom Report.
Not everyone is optimistic on gold. Investor Jim Rogers said this week that he’d rather seek haven in the dollar than gold, given that bullion had already ral-lied in 2016 before the vote. Credit Suisse Group has said it’s neutral on gold over the next three to six months. Bullion for immediate delivery traded at $1,316.29 an ounce. —Bloomberg
Gold Bulls Hope Fed Will Act
Ranjeetha Pakiam BULLISH FORECAST
Bullion may rally to as much as $1,400 an ounce over the next 12 months
FED’S STAND ON RATES
The CME FedWatch program suggested traders saw a 15.8% chance of Fed opting to lift rates in Dec
Jan Harvey
Pune: Poor rains in June saw theprice of maize, an important in-gredient for poultry food, rise andthe poultry industry hopes the pri-ces will calm down with the Cen-tral government suggesting itmight allow import of 5 lakh ton-nes of maize under the tariff ratequota (TRQ).
Maize spot prices jumped morethan 20%, from `̀13/kg to morethan `̀16/kg, in a month in June.The poultry and starch industryhas approached PEC again to al-low duty free corn import underTRQ. Public sector firm PEC hadfloated a tender to import 5 lakhtonnes of maize last year, of whichit imported 2.50 lakh tonnes. Tradesources told ET that the govern-ment has asked PEC to seek freshquota of 5 lakh tonnes for 2016-17.
The international prices of gene-tically modified (GM) corn aredown as the US crop is expected tobe good. However, India allows im-port of only non-GMO maize,which is not adequately availablein the international market and ismore expensive its GM counter-part. The Central government hadallowed the industry to import50,000 tonnes of maize in June.
However, the tender had receivedone bid of $254-255/tonne CNF Gu-jarat ports, which is way above theruling domestic prices of about`̀18/kg.
“The availability of non-GMOcorn is a concern as the Ukrainecrop is almost at its fag end andnew crop will be available for ship-ments around November. So theexpected price for the CIF quotesare likely to range between $250 to260/tonne,” said Rajiv Yadav, VP(grains and oilseeds), Noble Agri.
Maize ImportsLikely to TamePrices, HelpPoultry Sector
FILE PHOTO
Saikat Das & Indulal PM
Mumbai: Muthoot Fincorp is inadvanced talks with foreign pri-vate equity funds to raise .̀ 400-500crore for its microfinance busi-ness as it looks to expand its di-versified lending portfolio withmore consumer-centric productsand insulate itself from the im-pact of volatile gold prices.
“Yes, we are looking to raisefunds and are in serious talks
with some large foreign PE funds.I cannot divulge any names at thismoment. This is part of our stra-tegy to de-risk assets by diversify-ing into non-gold credit busines-ses,” Muthoot Fincorp chairman
and the funds will be used for bu-siness expansion. The transac-tion will help the company morethan double its asset book from.̀ 2,100 crore to .̀ 5,000 crore in twoto three years. “We are diversify-ing as a full-fledged financial ser-vices firm, and will be completingthe portfolio diversification in itsfull measure and then plan anIPO,” he said. The financial servi-ces verticals (gold loan, low valuehousing loans, two-wheeler lo-ans, microfinance, MSME) of theMuthoot Pappachan Group, puttogether, aims to grow its loan dis-bursement by 35-40% this financi-al year. Last year, it had disbursed.̀ 18,000 crore.
Thomas John Muthoot told ET.Muthoot Fincorp is the flagship
of the Muthoot Pappachan Gro-up. The fund raising in the microfinance business is expected toconclude in a couple of months
Muthoot Fincorp in Talks withForeign PEs to Raise .̀ 500 croreFunds to help expand
its lending portfolio
Ram. [email protected]
Mumbai: The Indian CommodityExchange’s (ICEX) diamond futu-res contract that is awaiting thenod of the Securities & ExchangeBoard of India (Sebi) has been de-signed in such a way as to allow or-dinary investors to lay wagers onand even take delivery of dia-monds on the Reliance Capital-an-chored bourse.
Sebi is examining the nuts andbolts of the ambitious contractthat has not yet been launched on aderivatives exchange.
“You have gold, stocks, bonds andthe like as investments avenues butdiamonds were missing from theinvestors’ list for lack of a feasibleexit option,” said a person aware ofthe contract design. “ICEX’s cont-ract, if approved, will give him thatability by not only allowing him to
benefit from price appreciationbut also facilitating delivery at theexpiry of a contract.”
Former employees of MCX, thecountry’s largest commodity ex-change, have played a significantrole in contract design, ET has le-arnt. Three contracts will be avai-
lable to investors/traders –– 1carat(one carat comprises 100 cents), 50pointer (cents) and 30 pointer ofHVS2, one of the largest traded sto-nes. (H in HVS2 stands for colourwhile SV2 stands for the clarity ofthe stone). That makes a total of ni-ne concurrent contracts. However,
of .̀ 175. If it falls by the same amo-unt, the buyer faces a mark-to-mar-ket loss of .̀ 100.
However, those desirous of takingdelivery of either one of the threecontracts can accumulate EUs. So,if he accumulates 30 EUs, he canopt to take a 30 pointer, 50 EUs a 50pointer and 100 EUs a one carat sto-ne. ICEX will also allow him to re-tender the stone on the exchangewhich has been removed from theexchange vault, provided he gets itrecertified by an accredited certifi-er. Even the impact of commoditytransaction tax (CTT) of 0.01% willbe miniscule in tens of paise un-like on a kilo contract of gold, saidthe person cited earlier. For examp-le, at .̀ 30,000 sale price, CTT impactis .̀ 300 but for the sale of one caratat .̀ 3,500, CTT is a minuscule 35 pai-se. An ICEX official said the cont-ract was being studied by Sebi, butdeclined to divulge details.
the lot size of each contract will beone cent or one-hundredth of a ca-rat. This will also be called oneelectronic unit (EUs). The priceswill be based on ex-Surat.
Assuming that a 1 carat diamondcosts .̀ 3.5 lakh, the lot size will bevalued at .̀ 3,500. Since futures tra-ding involves putting up a marginof around 5%, an investor can takeexposure by putting up just .̀ 175, onthe basis of the assumed cost. If theprice of 1 EU jumps to say .̀ 3,600, abuyer gains .̀ 100 on an investment
Diamond Futures to Turn Attractive for Investors
ANIMISHA
TRADING TURNS EASY
Diamonds were missingfrom the investors’ listfor lack of a feasible exit option
ICEX’s proposed design helps investors trade this costly product as size of contract is kept small; Sebi approval awaited
INDIA’S COAL OUTPUT TARGET BY FY20
1.5 BILLION TONNES
Quarts & Ounces
950
900
850
800
750
700July 1, 2015 June 30, 2016
Cashew Kernel-180 No. - DELHI(In ` per 1 kg)
Did You Know?
What keeps a com-modity from being traded varies from case to case. Toma-
toes, for example, cannot be traded because the plant has a vast range of species that doesn’t lend itself to futures pricing. Tradable commodities are typically interchangeable with other goods of their type. Another reason that some commodities aren’t tradable as investments is that a country doesn’t have a surplus of goods to export. China, for instance, cannot meet its own demands for to-matoes and cannot, therefore, export these consumable goods. Logistical obstacles can also prevent services from being traded via exchanges. Marketing and legal services, for example, are not consid-ered tradable because they would be highly difficult to supply from foreign countries.
Some Known Commodities Still Can’t be Traded
BullionDAYS INDEX PREV DAYS LAST WEEK
CHANGE
4883.6 4885.7 4710.7
-2.1
CementDAYS INDEX PREV DAYS LAST WEEK
CHANGE
2104.2 2104.2 2104.2
0.00
ChemicalsDAYS INDEX PREV DAYS LAST WEEK
CHANGE
2140.5 2140.5 2182.6
0.00
Edible OilDAYS INDEX PREV DAYS LAST WEEK
CHANGE
1554.3 1549.0 1586.8
5.3
IndexCOMMODITIES (2003=1000)
Source: Agencies
London Zinc Poised for Biggest Quarterly RiseZinc was on track to be the best performer of base metals for the second quarter on Thursday, set for its biggest quarterly rise in nearly six years as dearth of new mine supply starts to tighten global supplies of the metal.
Rise in London Zinc Price
0.4% 30%On Thursday In a year
Nickel’s gains this
quarter
Aluminium’s gain this quarter
11% 7%
Price of zinc per tonne on Thursday
$2,096
500,000 tonnesSupply of zinc to be cut by a global miner this year
REASONSCut in world supply
Zinc has tightened
China’s economyrebounded in second quarter
Going Beyond Gold`400-500 croreAmount company plans to raise
`5,000 crAsset book status com-pany hopes to achieve after the investment
`2,100 croreAsset book status as of now
Fund raising to be conclud-ed in a couple of months
Funds will be used for business expansion
ILLUSTRATION: ANIMISHA; GRAPHIC: VASU
