Iran's oil minister Rostam Qassemi had warned earlier this month that Tehran could cut off oil exports to 'hostile' European nations. The 27-nation EU accounts for about 18% of Iran's oil exports
Singapore: Oil prices jumped to a nine-month high near $105 a barrel today in Asia after Iran said it halted crude exports to Britain and France in an escalation of a dispute over the Middle Eastern country's nuclear programme, reports PTI.
Benchmark crude was up $1.75 to $104.99 per barrel at mid-day Singapore time in electronic trading on the New York Mercantile Exchange.
Earlier in the day, it rose to $105.21, the highest since May. The contract rose 93 cents to settle at $103.24 per barrel in New York on Friday.
Brent crude was up $1.52 at $121.10 per barrel in London.
Iran's oil ministry no Sunday said it stopped crude shipments to British and French companies in an apparent pre-emptive blow against the European Union after the bloc imposed sanctions on Iran's crucial fuel exports. They included a freeze of the country's central bank assets and an oil embargo set to begin in July.
Iran's oil minister Rostam Qassemi had warned earlier this month that Tehran could cut off oil exports to 'hostile' European nations. The 27-nation EU accounts for about 18% of Iran's oil exports.
The EU sanctions along with other punitive measures imposed by the US are part of Western efforts to derail Iran's disputed nuclear programme, which the West fears is aimed at developing atomic weapons. Iran denies the charges, and says its programme is for peaceful purposes.
Oil prices were also boosted by China's decision to boost money supply in a bid to spur lending and economic growth.
China's central bank said on Saturday it will lower the ratio of funds that banks must hold as reserves, a move that frees tens of billions of dollars.
A bearish candle in the next couple of days would also signal that the Nifty is ripe for at least a small correction as we have seen a stupendous rise for the 7th week in a row. it would be prudent to book profits because “It’s better to be safe than sorry” in the short-term
S&P Nifty close: 5564.30
Here are some key levels to watch out for this week
1. The EPA target as per the Wolfe Wave pattern has been hit, hence one has to closely watch the trendline in pink as it will offer resistance.
2. It is also nearing the 61.8% retracement of the entire decline from 6,338-4,531 points which is pegged at 5,648 points.
3. Despite the sharp rise the weekly averages continue to be negatively phased implying that a small decline is around the corner.
As shown above the target as per the Wolfe Wave pattern has already been achieved and the trendline in pink offers resistance in rallies. One should therefore raise their stop loss on longs to below the low of the last trading session (5,545 as of Friday). A bearish candle in the next couple of days would also signal that the Nifty is ripe for at least a small correction as we have seen a stupendous rise for the 7th week in a row. The "gap area" between 5,428 and 5,460 has also to be watched closely as a closure of that would also indicate a weakening in the very short-term. The odds are in favour of a correction though one has to wait for a price confirmation for the same. However, it would be prudent to book profits because "It's better to be safe than sorry" in the short-term.
(Vidur Pendharkar works as a consultant technical analyst & chief strategist at www.trend4casting.com)
The RBI guidelines envisaged more stringent norms on capital adequacy, finance minister Pranab Mukherjee said, adding, "on our part, the government has committed to maintain the minimum 8% Tier I (equity capital) in all public sector banks which is over and above the regulatory requirement of 6%"
Gurgaon: Finance minister Pranab Mukherjee on Sunday said the government is committed to provide adequate capital to public sector banks to meet global risk norms, reports PTI.
"I have already stated that we will try to provide adequate capital ... Requirements of all banks cannot be done in one year. It will take time," Mr Mukherjee said on the sidelines of a function in Gurgaon (the second largest city in north Indian state Haryana).
"The guidelines have been approved. As per the Basel III norms, we will provide capital adequacy to all the public sector banks," he said after inaugurating corporate office of Oriental Bank of Commerce (OBC).
The draft guidelines on the Basel III capital regulations were released on 30th December for implementation from 1 January 2013 and will be completed in phases by 1 January 2019, Mr Mukherjee said.
To strengthen risk management mechanism, the Reserve Bank of India (RBI) has issued draft guidelines, envisaging that the equity capital of a bank should not be less than 5.5% of risk-weighted loans.
These guidelines envisaged more stringent norms on capital adequacy, Mr Mukherjee said, adding, "on our part, the government has committed to maintain the minimum 8% Tier I (equity capital) in all public sector banks which is over and above the regulatory requirement of 6%."
He said the government had provided capital to state-owned banks last fiscal, and it is taking necessary steps to keep banks adequately capitalise in 2012-13 as well.
In 2010-11, the government provided capital support to the tune of Rs20,157 crore to public sector banks. They included Bank of Baroda, Union Bank of India, Oriental Bank of Commerce, UCO Bank and Dena Bank.
This fiscal, the government will infuse over Rs7,900 crore in SBI. It is slated to capitalise more banks by March.
On the government's financial inclusion programme, the finance minister said that banking services to un-banked villages with a population of 1,000 or more will be provided within a couple of years.
"In my Budget speech of 2010-11, I made a commitment on behalf of all banks to cover 73,000 un-banked villages by March 2012 ... In another couple of years, we propose to cover all habitations having population 1,000 and more such villages," Mr Mukherjee said.
On leakage in subsidies, he said, "I lose my sleep not when I look at the volume or quantum of subsidy, but because it is not reaching to the poor and needy and targeted group."
He added that banks can play a very major role through inclusive programmes like Swabhimaan, and by extending facilities to the large number of rural population.
If these subsidies are provided through the banking network, institutional financial networks, the leakage will be reduced substantially, he said.
The finance minister inaugurated two ultra small branches in Badarpur and Marora in Haryana as per the recent guidelines of ministry of finance where banks have been advised to open such branches with minimum staff and infrastructure costs.
Business correspondents, appointed by OBC, will undertake all cash transactions and other routine work through the week.
However, a bank official will visit the branch at least once in a week along with a laptop with proper connectivity.
This will help the bank to widen its reach for financial inclusion in remote areas.