Positive outlook expected

The market will be vulnerable to global movements, but it is better placed than many others. The interest rate differential between India and the West is still favourable and the view that the US will not increase rates in 2014 augurs well for India.

On 1st April, Reserve Bank of India (RBI) will announce its first bi-monthly monetary policy. On 28th January 2014, the RBI had raised repo rates by 25 basis points to 8%, in its previous monetary policy review. Now the economic indicators are good and inflation has come down, the majority of the experts see RBI holding the rates. From April 2014, RBI will hold six reviews in each financial year to take a call on the monetary policy.

The price of petrol was cut by 75 paise per litre, while the monthly hike in diesel rates was put off. The reduction will be effective from 1st April midnight. The price of petrol was last increased by 60 paise on 1st March 2014.

On Monday, the benchmark RSS4 grade rubber closed at `.149 a kg at Kottayam. RSS3 grade closed at `.140.10 a kg at Bangkok and Malaysian SMR20 closed at `.115.24 a kg. On Tokyo Commodity Exchange, April 2014 futures series closed at ¥249.2 a kg, May at ¥248.7, June at ¥238, July at ¥234.8, August at ¥233.8 and the contract for delivery in September 2014 closed at ¥233.2 a kg and on Tuesday market will be in a positive mood. While on National Multi Commodity Exchange, April 2014 futures closed at `.146.77 a kg, May at `.150.75, June at `.154.06 and July at `.154.62 a kg.

What our readers say: http://rubber4u.com/Public/Views.pdf

Read lot more in Rubber4U – 1st April 2014 issue