Wednesday, November 11, 2015

Festive season Dhamaka

The government of India on 10th November eased Foreign Direct Investment (FDI) norms in 15 major sectors to boost growth and increase investment. It also raised Foreign Investment Promotion Board (FIPB) approval limit to `.5000 crore from `.3000 crore. 100% FDI allowed in plantation of rubber, coffee, cardamom, palm oil tree and olive oil tree. These decisions come into force with immediate effect.

After a gap of about two years, sales of light commercial vehicles recorded an uptick in October on the back of improved economic activity. Overall, sales of commercial vehicles grew by 12.73% in October and by 8.02% during April-October 2015. Strong demand during the festive season pushed up sales of passenger vehicles by 21.46%.

Society of Indian Automobile Manufacturers, director general - Vishnu Mathur said, sales of commercial vehicles are reflecting a revival in the economy. We see demand for the light commercial vehicles coming back. We expect commercial vehicle segment to scale peak level by first half of next year. Festival season has brought in cheer to the auto industry as sales have risen across categories during October.

India’s natural rubber production for the month of October 2015 decreased by 10.91% to 49,000 tonnes compared to 55,000 tonnes during October 2014. While consumption of natural rubber during the month has increased by 4.88% to 86,000 tonnes compared to 82,000 tonnes in October 2014.

Today the benchmark RSS4 grade rubber closed at `.111 a kg at Kottayam, while RSS3 grade closed at `.82 a kg at Bangkok and Malaysian SMR20 closed at `.78.89 a kg. On National Multi Commodity Exchange November 2015 futures closed at `.110.50 a kg, December at `.108.27, January 2016 at `.108.84 and February closed at `.109.03 a kg. On Tokyo Commodity Exchange, November 2015 futures series closed at ¥132.8 a kg, December 2015 at ¥151.4, January 2016 at ¥154.3, February at ¥157, March at ¥158.3 and the contract for delivery in April 2016 closed at ¥159.2 a kg. On Thursday, most probably Tocom futures contract for delivery in April 2016 may trade in the range of ¥162 & ¥155 a kg.

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