Market (Page 2)

have rebounded from the low levels seen yesterday, with the metal commanding a huge premium following scarcity in the physical Premium for spot delivery rose to around 3 to 4 per cent today.

The reason for this is that at lower prices, demand was quite high while supplies were limited. Even silver micro futures (1 kg) on the MCX, which can be used by retail investors to take deliveries, is quoting at a premium, indicating that market doesn’t have enough floating stock of the white metal.

There was a spurt in demand when silver was trading below Rs 34,000 per kg. However, dealers who had bought the metal when prices were high a week or two ago, preferred to hold their stocks till they could get a premium and curtail losses Imports too have reduced with major supplying

Regulator on Friday came out with various measures, including revision of market wide position limit, to ensure orderly trading and settlement, amidst continuing volatility in the securities market.

The measures would be effective from March 23 and would be in place for one month, it said in a release.

Taking note of the continued abnormally high volatility in the market, said it discussed with stock exchanges, clearing corporations and depositories appropriate measures that may be taken in the existing circumstances.

Among other steps, Market Wide Position Limit (MWPL) would be revised. For stocks in F&O segment meeting certain criteria, MWPL might be revised to 50 per cent of the existing levels.

The margin for stocks meeting specific criteria would be increased, apart from having revised position limits in equity index derivatives (futures and options).

(Covid-19)-hit has already sunk into recession, warned economists at Securities in a recent report, though they expect this phase to be short-lived and see a bounce back in the third quarter (July–September) of 2020 (Q3-2020). In the interim, however, the research firm expects massive job losses and urges the not to restrict the quantum of stimulus measures.

“We believe that the has fallen into recession, joining the rest of the world, and it is a deep plunge. We now expect the to collapse 12 per cent q-o-q seasonally adjusted annual rate (SAAR) in Q2 following only 0.5 per cent growth in 1Q. Although the decline is severe, we believe it will be fairly short lived,” wrote Michelle Meyer, US economist for Securities in a recent co-authored report.

ALSO READ: India’s economic policy response to Covid-19

When banking stocks, irrespective of their strength or size are falling like nine-pins, one cannot expect to remain an exception. With a fall of 9.9 per cent, which is also its steepest since July 2008, gains accumulated by the stock over two years have been wiped off.

What’s more, despite being reckoned as the most recommended ‘buy’ among banking names, it hasn’t been able to prevent the fast melting down from its all-time high, given the 33 per cent fall during this period.

The question is whether investors should consider HDFC Bank’s latest closing price of Rs 878.50 a share, which translates to 3.2x FY21 estimated book value, as a good enough level to turn positive on the stock.

Undisputedly, with the lowest ratio of gross non-performing assets (NPA) in December quarter (Q3), odds stack

Gold tumbled 3% on Tuesday, while other precious metals also extended heavy losses from the previous session, as fears over the global economic toll from the fast-spreading prompted investors to dump most assets and hoard cash. Platinum and silver shed more than 6%, while palladium lost over 4%. Industrial metals were worst hit in Monday’s meltdown on concerns of a global recession.

“Cash and bonds are king right now. It’s just the place where investors are seeing value in terms of what they hold,” OANDA analyst Craig Erlam said, adding precious metals seemed to be the go-to assets for investors liquidating positions.

“Investors hate uncertainty, but at the moment, we’re navigating completely blind. So that’s why we’re seeing so much panic and unrest in the

“Spot gold was down 2.6% to $1,475.26 per ounce at 1204 GMT, having slumped as much as

Gold, and crude oil prices hit the lower circuits on India’s MCX index on Monday, pulled down by the crisis that caused a global equity sell off in bullion, metals and energy.

traded at its lowest in international since May 2009 and crude oil, metals did their worse since 2016.

Agricultural declined sharply as sellers rushed to liquidate their stocks. was in the green initially but fell in late trading. “Funds and investment houses had bought a huge quantity of in the last few months as safe haven asset class. Now, they are coming in to liquidate to convert the metal in to cash which led to a sharp decline in silver prices globally. The same trend percolated to India as well,” said Gnanasekar Thiagarajan, Director, Commtrendz.

Silver slumped to trade below