CRISIL Research launches Gold Index

CRISIL Gold Index is an attempt to address the inconsistency in performance comparison and will serve as a common benchmark for evaluating performance of gold ETFs

CRISIL Research has launched the 'CRISIL Gold Index', which will track the performance of gold prices in the domestic ETF market.

"CRISIL Gold Index is an attempt to address the inconsistency in performance comparison and will serve as a common benchmark for evaluating performance of gold ETFs," CRISIL (director of capital markets) Tarun Bhatia said in a statement.

The Gold Index has a base date of 2 January 2007, and was based on the landed price of 10 grams of gold in Mumbai, he added.

The newly launched product, which will be a public index, is the first index introduced by the research company in commodities space. Currently, 11 asset management companies offer 11 gold ETFS and three gold Fund of Funds (FoFs) in India. Also, gold ETFs have given an annualised return of 22.91% in the last 36 months compared to 9.3% by S&P CNX Nifty.

The research firm said it would also look at launching other indices in the commodities space depending upon demand from investors.

User

GDP data disappointing; need to work hard: FM

"There is no room for complacency. We shall have to work very hard-government, industry-and I am confident that our workers and farmers would make their contribution in ensuring growth with inclusion," finance minister Pranab Mukherjee pointed

New Delhi: The government on Tuesday expressed disappointment over the slowdown in the country's gross domestic product (GDP) growth rate and said hard work is needed by all sections, including industry and farmers, to ensure inclusive growth, keeping in mind uncertainty over the global economy and monsoon, reports PTI.

"... It is no doubt disappointing," finance minister Pranab Mukherjee told reporters while commenting on GDP data for the April-June quarter, which showed that growth of the country's economy slowed down to 7.7% in the first quarter of FY11-12 from 8.8% in the corresponding year-ago period.

He said there was no room for complacency and everyone, including the government, industry and farming community, will have work hard.

"There is no room for complacency. We shall have to work very hard-government, industry-and I am confident that our workers and farmers would make their contribution in ensuring growth with inclusion," he said, adding that one of the important ingredients is creation of more jobs.

Expressing hope that the growth rate would pick up again, Mr Mukherjee said, "We shall have to keep in mind that there are still some areas of uncertainty-uncertainty in global scenario, uncertainty, of course monsoon is not yet over, last leg is yet to be over."

While the GDP growth figure is disappointing, Mr Mukherjee said there was a 'silver lining' to the country's economic performance, as 27.7 million jobs were created between 2005 and 2010.

Furthermore, there was 7.9% year-on-year increase in overall investments during the first quarter this fiscal, compared to a 0.4% rise in the corresponding year-ago period, which is encouraging, he said.

Mr Mukherjee said he was expecting a higher growth rate in the first quarter, but given various factors-including the overall international scenario and the muted recovery in Europe and the US-the situation in India is "not that much disappointing".

He hoped that the GDP growth rate would recover by the end of the fiscal, but refused to project any figure.

"When the final figures for year will be available, there may be a recovery... Of course (I am) not going to just now make any projections what would be the final figures for the year," he said.

Referring to the growth in employment opportunities, Mr Mukherjee said those 'propagating' the view that this was jobless growth are wrong.

"... is not absolutely correct. They are wrong," he said.

However, at the same time, the finance minister said there should be more growth in employment generation.

User

Decline in early onion crop sets off speculation over possible price rise

There has been 10%-15% lower production in the early kharif crop due to erratic rainfall. However, experts believe there is no need to panic as this is only a fifth of the annual production and there is plenty of stock 

Early kharif crop production from the country's largest onion producing region of Nashik has declined by 10%-15% from that last year, due to erratic and scanty rainfall. But experts believe that this should not impact wholesale prices much, although speculation of possible supply shortage could see retail prices rise.

The early kharif crop contributes about a fifth of the annual onion production. Onion prices in the Mumbai wholesale market currently are in the range of Rs10-15/kg and in the retail market between Rs17 and Rs20 a kg.

Dr RP Gupta, director, National Horticultural Research and Development Foundation (NHRDF), told Moneylife, "This year the early kharif onion production from the Nashik region dropped by 10%-15% due to of erratic and scanty rainfall. But there is not need to panic, for there won't be any supply shortage as there is a stock of around 29lakh metric tonnes. Out of this only 30%-35% has reached the market."

NHRDF monitors onion prices and market arrivals on a daily basis.

Commenting on the prices, Mr Gupta explained, "The wholesale prices are stable, its only retailers who are charging high prices on anticipation of supply shortage."

But traders feel prices at the wholesale market may also shoot up by the end of next month. Ashok Walunj, director at the onion and potato market at APMC, Vashi, says, "Prices in the wholesale market might go up to Rs20-Rs22 from the current Rs10-Rs15, after the Ganesh festival, if there is shortage. Currently, there is no new crop available in the market."

"At present, the wholesale prices are stable. It's the retailers who charge extra for their margins. If heavy rains continue, it could impact the crop and prices (wholesale) might increase. But it will only surge from October," says a trader from the Vashi market.

Panvel-based trader S Altamash, of Gemini Trading, disagrees, saying that prices will not increase. "Farmers from Nashik are unwilling to bring their produce in the market in anticipation of good returns. But with the arrival of rains they had to sell their produce on the fear of crop damage. So there is adequate storage and supply of onions," he says.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)