Category Archives: Commodity News

Coal Resources in India: Are they enough to power our growth?

Economic growth of a nation critically depends on availability of energy, and coal is the main source of energy in India. Some key facts about our coal resources are given below-

  • India has the world’s third largest coal reserves in world
  • The assessed resources of coal stand at 298 billion tonnes which are expected to last for about 102 years at current rate of use
  • About 65% of our electricity is generated by coal
  • The majority of coal produced is consumed by the power sector–over 75%
  • India’s largest coal producer Coal India produced over 557 million tonnes in 2012-13, but still it imported about 80 million tonnes as it could not produce enough
  • To increase production a number of new projects are planned to be taken up in PSU coal companies and a number of coal blocks are being allocated to various private and government companies
  • With a view to infuse competition in the coal sector it has been proposed to take up the exercise of restructuring of Coal India Limited

For more research updates please visit:- http://www.rrfinance.in

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Filed under Commodity News, Currency Update, Debt News, Equity Market, Finance, World News

Indian debt market has witnessed a better inflow!

Indian debt market has witnessed a better inflow with foreign institutional investors pumping in a record Rs 1, 12,469 crore ($18.6 billion) in the debt market till date in 2014.

With RBI governor Raghuram Rajan’s main focus now on containing inflation, bond dealers do not see any immediate cut in key policy rates which could have directly brought down the benchmark yield on the 10-year government securities from the current level of about 8.50%.

Bond market players expect that given strong demand for gilts form FIIs, the government may now increase the $25-billion limit and bring down the limit for corporate bonds. If that happens as more FIIs rush to buy gilts, prices will rise and yields will soften

Market Outlook

The Indian rupee appreciated over 6% in the beginning of 2014 due to huge foreign investment in the country’s debt and equity market. This rally was led on the hopes of a strong and stable government to revive the Indian economy. However the trend for the INR has reversed in last 2 months. The risk factors for the Indian rupee include high inflation, Middle East crisis, low percentage of forex reserves/external debt, and Fed tapering.

The foreign investors have high expectations from the ruling government. If these expectations are not met, then the Indian rupee is likely to depreciate further. Talk of volatility in the currency market and issues surrounding capital flows are back. The Indian rupee depreciated over 3% against the US dollar between 2 July and 6 August.

Last year, Indian markets witnessed high volatility after the Fed indicated for the first time that it will reduce the quantum of asset purchase, popularly referred to as tapering. Foreign investors sold Indian assets (equity and debt) worth over $12.5 billion in three months to August. Experts are of the view that markets may be subjected to volatility as the US central bank ends its asset purchase programme, but it will not be at the same scale as witnessed last year.

Indian rupee has witnessed some volatility and inflows from foreign investors in the equity markets have slowed, while the debt market has seen net selling in the current month. It is always difficult to prejudge the extent and timing of the way policy decisions will affect global financial markets and to what extent Indian markets will be affected.

However, irrespective of the way things pan out in the global financial markets, investors in India will draw comfort from the fact that compared to last year, fundamentals have improved and the outlook on Indian markets is positive.

Read detail report here:- http://www.rrfinance.com/reserch/pdf/other-pdf/Debt_Fortnightly.pdf

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Filed under Commodity News, Currency Update, Debt News, Finance, World News

DSP BLACKROCK 3 Years Close Ended Equity Fund

The primary investment objective of the Scheme is to generate capital appreciation by investing predominantly in portfolio of equity and equity-related securities.

The fund will invest in Micro, Small and Midcap companies with an aim to capitalize on the Indian growth story.

NEw Fund Offer

Key reasons to invest in this fund:

  • Experienced investment team
  • Robust risk and quantitative analytics
  • Long track record of Fund Manager

For more information please visit: http://www.rrfinance.in

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Filed under Commodity News, Debt News, Equity Market, Mutual Funds

Oil: Why Prices are Falling!

Crude oil has dropped to its 4-year low, and the trend is still downward. We are mentioning here the main factors driving down the oil prices –

Jump in US Oil Production: US oil production has jumped by over 70% since 2008 which has caused a huge supply glut in markets forcing prices downward.

Lower Demand: Europe, Japan, and much of the developing world is facing slowing of economies leading to lower oil demand.

No Production Cut by Saudi Arabia: Saudi Arabia is maintaining the same oil production level in spite of a fall in demand and prices; this has added further pressure on oil prices.

RECOMMENDATION:

Falling oil prices are strongly favorable to India. We recommend investments in equity mutual funds at every correction.

Resource by:- https://www.linkedin.com/today/post/article/20141017110620-247646391-oil-why-prices-are-falling

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Filed under Commodity News, Currency Update, Debt News, Equity Market, Mutual Funds, World News

HDFC Capital Protection Oriented Fund Series-III

RR Investor offers you to Protect Your Investment by investing in HDFC Capital Protection Oriented Fund Series-III

Salient Features

  • A close-ended capital protection oriented income scheme with tenure of 1100 days.
  • The Scheme will have a portfolio mix of highest rated debt and money market instruments along with exposure to equities and equity-related instruments.
  • The portfolio of the Scheme will be structured in a manner to protect your original investment with a potential for capital appreciation overthe tenure of this scheme.  So, consider investing.hdfcInvestment Objective/Strategy

The Scheme seeks to generate returns by investing in a portfolio of debt and money market instruments which mature on or before the date of maturity of the Scheme. The Scheme also seeks to invest a portion of the portfolio in equity and equity related instruments to achieve capital appreciation.

There is no assurance that the investment objective of the Scheme will be realised. Nearly 84%-89% of the portfolio shall be invested in highest rated Debt and Money Market instruments which are targeted to reach 100% of the original investment over the tenure of the Scheme.

The balance investment in equity portion of the portfolio will seek to provide the upside over the original investment.

For more information please call 01123636363 or dial tollfree 1800110444 or visit:- http://www.rrfinance.com/Maillers/hdfc_mutual_fund_series_3.html

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Filed under Commodity News, Currency Update, Equity Market, Finance, Mutual Funds, World News

SREI Infrastructure Finance ltd Secured NCD int. upto 11.75%

Avail interest up to 11.75% with public issue of SREI secured NCDs, Public Issue of SREI infrastructure finance ltd Secured redeemable NCD.

1) Base issue size of Rs. 250 Crore, with an option to retain over subscription of Rs. 1250 Crore, aggregating to a total of Rs. 1500 Crore.

2) Minimum application is RS. 10,000/- (10 NCDs) & in multiple of Rs. 1000/- thereafter across all Series.

3) Allotment will be on first come first serve basis.

4) Rating of the issue is CARE AA- (Double A Minus)’ by CARE & ‘BWR AA (BWR Double A)’by “BRICKWORK”

5) NCDs will be offered for the tenure of 2, 3 & 5 Years.

SREI 1For more information please visit:- http://www.rrfinance.com/Fixed_Income/BondDebentures.aspx

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Filed under Commodity News, Currency Update, Equity Market, Finance

MARKETS: Still Wait & Watch!

Markets are at a crucial stage where all major indicators are at their support levels. Future direction from here depends on how economic and political developments take place on global and domestic fronts.

Brief technical review of major asset classes-

  • Gold is approaching 27000, and if it sustains above this level, it may rise further to 27700.
  • USD-INR has given a breakout on charts above 61.5 and may touch 63.50.
  • Nifty is above its immediate support of 7940, a breach of which may take it to near 7785 (with intermediate support at 7850), a crucial support level. After making a lower low last week, Nifty is now in a minor downtrend.

RECOMMENDATION:

We recommend a wait and watch strategy before taking any investment decision.

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Filed under Commodity News, Currency Update, Equity Market, Finance, World News