A total of 24.61 lakh units of gold ETFs were traded at the NSE for a total record value of Rs636.04 crore by 8pm yesterday, nearly seven times of the daily average of Rs92 crore at the NSE last month
Mumbai: The auspicious occasion of Dhanteras Monday pushed up the trading in gold exchange traded funds (ETFs), which allow purchase and sale of the yellow metal in electronic format, with the leading bourse NSE alone clocking a record daily volume of Rs636.04 crore, reports PTI.
Yesterday’s trade value in gold ETFs was nearly seven times of the daily average of Rs92 crore at the NSE last month.
The gold ETFs track the gold prices and each unit of these ETFs is generally equivalent to one gram of gold. The 11 gold ETFs listed at the bourses on Monday appreciated in the range of 1.1% to 2.5%.
While the figures were not immediately available for the BSE, the other bourse where gold ETFs are traded, a total of 24.61 lakh units of gold ETFs were traded at the NSE for a total record value of Rs636.04 crore by 8pm.
In September, NSE recorded a daily trade value of Rs92 crore, while the average number of daily trades was 23,874.
The two bourses had extended the trading in gold ETFs till 8pm on Monday, as against a normal closing at 3.30pm, on the occasion of Dhanteras, when it is considered auspicious to buy valuables like gold.
The BSE and the NSE had also waived off the transactions charges for all trades in gold ETFs on this day to cash upon the investor demand for yellow metal on the auspicious day.
Quantum Mutual Fund’s fund manager Chirag Mehta said that the response has been pretty good for gold ETFs.
He said that gold ETFs have gained ground as an investment option and a lot of people prefer ETFs over the physical gold.
Making fuel from ethanol based on corn consumes more energy than it produces
Remember ethanol-based fuel which was supposed to transform the lives of US consumers? The Bush administration pushed to achieve energy independence by subsidising production of alcohol from US-grown corn. Barack Obama took it even further, supported by venture capitalists. It would have made sense as a business, but scientists told policymakers that if all the upstream and downstream costs of making ethanol were included, the process consumes far more energy than it produces! Ethanol also demands large amounts of fresh water and water is a precious resource, warn some. Apparently, someday water will become more valuable than the oil that ethanol is supposed to replace.
How big has the US ethanol industry grown in a short period, based on the support of politicians and policymakers? Consumption of corn for ethanol has soared from 1.6 billion bushels in 2006 to about 4.3 billion bushels this year—an increase of almost 200% and the share of the total US corn crop utilised for the purpose has skyrocketed from 14% to 33%. Corn grown for ethanol now takes up 10% of the arable land in the US.
What has the impact of ethanol from corn been on food prices? Corn is trading at $6 translating into higher prices for food manufacturers and the cattle industry—and, in turn, for the poor. If there is a global food crisis, corn prices, thanks to diversion of corn for ethanol, would have played a role.
Can logic and reason come into play? Not when the politicians are involved. Iowa has an early primary in the US presidential elections, giving it a huge influence in selecting candidates; it has two crucial Senate seats as well. Obama needs Iowa even more than Bush. Iowa democrats are ahead 4-3 in the House, and have a tie in the Senate (1-1), so the ethanol programme prospers.
Indeed, the ethanol industry in the US may have become so big that it now can unleash an army of lobbyists to retain the subsidies and tax-breaks that various agricultural committees are recommending.
“Indications are that investment demand is softening as a result of a combination of factors, including monetary tightening, hindrances to project execution and deteriorating business confidence,” the RBI said in its Macroeconomic and Monetary Developments Report released yesterday
Mumbai: The Reserve Bank of India (RBI) on Monday said a slew of factors, including its own policy of monetary tightening and “perceived governance issues” are impacting investments, and warned it can have an adverse effect on growth in FY12-13, reports PTI.
“Indications are that investment demand is softening as a result of a combination of factors, including monetary tightening, hindrances to project execution and deteriorating business confidence,” the central bank said in its Macroeconomic and Monetary Developments Report released on the eve of mid-year policy announcement.
The business confidence has been dented by an array of factors, including “the perceived governance issues”. A slowdown in both the domestic as well as global economies and the impact of volatile equity markets on wealth are having an ill-effect on investments, it maintained.
Further, it warned of a greater impact of the slowdown, saying, “...the pipeline of investment is likely to shrink, putting 2012-13 growth at risk.”
“Information from the corporate sector, the banking system’s capex funding, housing transactions as well as falling construction activities suggest that investment has been adversely impacted,” the report said.
Data collected from 33 major lenders indicate a sharp decline in investment intentions during the April-June quarter, RBI said.
During the first three months of FY11-12, only 135 projects were sanctioned funding assistance, amounting to Rs80,300 crore, as against 195 projects and Rs1,42,800 crore in the corresponding quarter previous fiscal, it said.
Defending its tough anti-inflationary stance, which has seen 12 straight hikes in the last 19 months, the report said though the softening was anticipated, a combination of “non-monetary factors” has aggravated the investment climate.
The factors, including hindrances to execution and uncertainty about the global economy, appear to have significantly impacted investment climate, the report said.
“Persistent high inflation, weakening demand, lower availability of credit and prevailing global uncertainties appear to be affecting the business sentiments of companies,” it added.