Will these two engines, which have propelled the market so far, sputter now?
Last week, I had...
• Iron ore prices touched a four-month high in June following higher demand from China even though a final decision on long-term contract prices remained unresolved between Australian suppliers and Chinese buyers.
• The National Commodity & Derivatives Exchange (NCDEX) may divest a part of its equity in the NCDEX Spot Exchange (NSPOT), its wholly- owned subsidiary. NSPOT facilitates trade in sugar, pepper, chana, gold and silver and proposes to launch guar seed, bajra, safflower, sunflower seed and oil in the near future. The divestment is intended to raise funds to finance the mandi modernisation project (MMP) of NSPOT.
• The Forward Markets Commission has allowed commodity exchanges to permit traders to take fresh positions till the date of expiry in futures contracts of some internationally-linked commodities. The move is likely to help better price discovery as these contracts are closely linked to global benchmarks and inability to take fresh positions ahead of expiry often leads to brokers missing out on the hedging opportunity.
Infrastructure stocks were in demand. Noida Toll Bridge jumped 17% and IDFC was up 11%