Month: July 2023

G-Sec listing overseas: No plan for tax relief yet

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Even as it’s keen on listing certain government securities on overseas bond indices, India is hesitant to extend capital gains tax waivers to foreign investors or freeze the rate at a certain level for fears that it could undermine its sovereign policy-making space in future.

Sources said any such relief may also trigger similar demands from current investors in the domestic bond market who are subject to the capital gains tax. The government has been in talks with JP Morgan and Bloomberg-Barclays for the overseas listing.

Also read: Top i-banks under Sebi lens over possible disclosure lapses

Currently, for listed domestic bonds, the holding period required for taxation as long-term capital gains is one year. For holding for more than one year, the tax rate is 10% plus surcharge and cess. Indexation, in such cases, is not available on bonds, barring sovereign gold bonds.

Moreover, the government’s anxiety over greater capital outflows during tough times following the listing of the securities overseas and its preference for local settlement of securities (just like China) are among the issues that are still being deliberated on. Consequently, as FE reported on September 4, the listing plan is likely to be pushed to early 2023.

JP Morgan reportedly began fresh talks with investors recently about adding India to its emerging market index. This raised expectations of an imminent listing of the country’s securities.

The government is also discussing clearing and settlement issues with Euroclear. Bonds listed on global indices are mostly settled via international platforms, including Euroclear, outside a country’s borders. Sources had earlier said that Euroclear had been pushing India to exempt the transactions from taxes, citing the fact that many other countries, too, follow similar policy.

India’s overseas bond listing plan is aimed at not just financing a portion of the country’s elevated fiscal deficit in the aftermath of the Covid-19 outbreak but deepening its bond market. The move would potentially draw higher foreign flows, as many overseas funds track global indices.

Also read: Gautam Adani slips to third place in world’s rich list, Mukesh Ambani out of top-10 after Monday’s D-St rout

In March, the government announced its plan to borrow Rs 8.45 trillion from the market through dated securities in the first half of FY23. It has pegged FY23 gross market borrowing at Rs 14.31 trillion (after adjusting for the conversion of short-term maturities into long-dated bonds). The government is unlikely to factor in any potential inflows from the listing of government securities on overseas bond indices when it announces its borrowing calendar for the second half of this fiscal on October 1.

Morgan Stanley last year estimated that $40 billion would flow into Indian government bonds after the inclusion into two of the three global indices —Bloomberg Global Aggregate Index and JPM GBI-EM Global Diversified Index. On an average, $18.5 billion in annual inflows will take place over the next decade. This would push foreign ownership of Indian government papers, currently less than 2%, to 9% by 2031.

The Centre is unlikely to factor in any potential inflows from the listing of certain categories of government securities on overseas bond indices when it finalises its borrowing calendar for the second half of this fiscal later this month.

Gold Price Today, 29 Sep 2022: MCX gold may hover in Rs 49730-50470 range; all eyes on RBI MPC, US GDP

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Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver rate in India were trading sideways on Thursday, as US dollar inched higher on recession fears. On the Multi Commodity Exchange, gold October futures were trading Rs 30 up at Rs 49,780 per 10 gram. Silver December futures were ruling at Rs 56,169 per kg, down Rs 359 or 0.6 per cent on MCX. Globally, yellow metal prices retreated as the U.S. dollar firmed on concerns that rising interest rates would spark a global recession, making greenback-priced bullion more expensive for overseas buyers, according to Reuters Spot gold was down 0.2% at $1,656.59 per ounce. In the previous session, bullion rose as much as 2%. U.S. gold futures dipped 0.2% to $1,667.10.

Also read: Nifty support at 16600, use call ladder for 6 Oct F&O expiry; Bank Nifty may trade flat-to-cautious today

Gold attempted a relief rally as the dollar fell, although prospects of sharp rate hikes kept the non-yielding precious metal near a 2-1/2-year trough. Chicago Fed President Charles Evans, St. Louis Fed President James Bullard and Minneapolis Fed Bank President Neel Kashkari echoed the U.S. central bank’s pledge to focus on tackling soaring inflation. Dollar against its major crosses fell below 113 level — down 1.3% on the day for its sharpest tumble since June’22. The BOE took emergency action, unleashing a £65bn bond-buying programme aimed at stemming a spiraling crisis in government debt markets, supporting its currency. Along with the Dollar, the yield on the U.S. 10-Year Treasury note tumbled to a near one-week low of ~3.7 from a 14-year high of ~4.01. We are also witnessing updates regarding geo-political tensions supporting the metals on the lower end. Today focus will be on the important U.S. GDP, Core PCE and weekly jobless claims data. Broader trend on COMEX could be in the range of $1620-1680 and on domestic front prices could hover in the range of Rs 49730-50,470.

Abhishek Chauhan, VP — Commodity & Currency, Mandot Securities

Comex gold prices fell 0.3% to $1,655.86 in the early morning session on Thursday but saw a strong buying in the earlier session on Wednesday Both instruments Gold and Silver surged nearly 2% on Wednesday, logging their best day in two months. In Comex Gold has support at $1640-1630, while resistance is at $1680-1690. Silver has support at $18.30-18.40, while resistance is at $19.00-19.10 while  gold at MCX  has support at Rs 49400-49500 and resistance is at Rs 49900-50100. Silver has support at Rs 56200-56000, while resistance is at Rs 56800–57000.

Also read: As Sensex, Nifty plunge over 4% so far in 2022 on global uncertainty, is it time to buy yet or wait and watch?

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities

COMEX gold trades 0.50% lower near $1661/oz after a 2% gain yesterday. The US Dollar Index witnessed a sharp correction yesterday along with the US 10-year treasury yields that closed sharply lower near 3.733% after testing near 4% in the early session. The crash in US Dollar and bond yields gave some respite to the gold bulls as the bullion recovered from the lows to close near $1670/oz. Although gold prices have recovered from the lows it will be interesting to see whether the dollar continues to slide or it’s just a blip. The rally in gold will continue only if the US Dollar sustains lower. Markets will remain cautious ahead of release of US second quarter GDP and speeches by Fed officials

Jigar Trivedi, Senior Analyst – Currency & Commodity, Reliance Securities

MCX Gold December future saw a sharp pull back to Rs. 50,000 per gram as Comex Gold rebounded from a crucial technical support of around $1,620 an ounce after the greenback retreated. The BoE’s calculative intervention in the market has hurt the dollar but still we need further confirmation before shorting the USDINR pair. Ahead of RBI policy outcome, scheduled tomorrow, the rupee may stay flat. For Comex gold, $1,650 an ounce is a stiff resistance. The US will release GDP for Q2 later today. Hence the dollar may stay volatile. MCX Gold Dec may find support near Rs 49,850 an ounce.

(The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)

SC to hear Sebi’s review plea against RIL in open court on Oct 12

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The Supreme Court will hear in the open court the Sebi’s petition seeking review of its August 5 judgment that had directed the market regulator to share certain documents with Reliance Industries (RIL), which the company claims will exonerate it and its promoters from criminal prosecution initiated in a case related to the alleged irregularities in acquisition of its own shares between 1994 and 2000.

Sebi has denied RIL’s request to share the “privileged” documents on the grounds that under the Sebi (Settlement Proceedings) Regulations, the accused company has no right to seek information from it, a stand that was rejected by the apex court in August.

Also Read: Sensex, Nifty snap 7-day losing streak after RBI hikes repo rate; Nifty eyes 17700 with support at 16850

Meanwhile, a Bench comprising justices Sanjiv Khanna and JK Maheshwari on Friday recused from hearing RIL’s petition seeking to initiate contempt proceedings against Sebi for failing to give certain documents to the company, as directed on August 5 by the Bench then led by Chief Justice NV Ramana.

So far, Sebi has not shared the three documents — the two legal opinions by former SC judge BN Srikrishna and former ICAI president YH Malegam’s report which examined the irregularities — that the SC had asked it to share “forthwith”, thus prompting RIL to file a contempt petition against the market watchdog and its authorised representative Vijayan A.

RIL’s contempt petition stated that there was no justification for Sebi to continue to resist the production of these documents, and that its continued withholding of the same constituted “wilful disobedience, contumacious disregard and defiance” of SC’s orders.

Sebi had obviously “misadvised itself” in assuming that its compliance with the judgment is a matter of discretion, it said, adding that the market watchdog’s conduct is liable to be dealt with heavily and be given the maximum penalty prescribed under law, it said.

According to the company, it had sent a notice to Sebi stating that if the documents were not received by it by August 18, it would assume that the market regulator has no intention of complying with the orders passed by SC and the company would take further consequential action as advised.

Chartered accountant S Gurumurthy had filed a complaint with Sebi in 2002 alleging fraud and irregularities by RIL, its associate companies and their directors/promoters, including Mukesh Ambani and his wife, Nita; Anil Ambani and his wife, Tina; and 98 others, in the issue of two preferential placement of non-convertible debentures in 1994. Sebi had alleged that RIL along with Reliance Petroleum had “circuitously funded the acquisition of its own shares” in violation of Sections 77 and 77A of the Companies Act, 1956 and the market regulator’s then takeover code, among various other regulations.

My father got Rs 1 crore after Govt acquired our land. Will I have to pay tax if he buys a flat in my name?

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Rupesh Goel’s father received approximately Rs 1 crore after the acquisition of his inherited farmland by the Government. In an email sent to FE Money recently, Rupesh shared that his father wants to buy a flat in his name with the money received from the Government. All the transactions for the purchase of the property will happen from his father’s bank account. Rupesh asked whether he would have to face any taxation on the purchase of the flat. Also, is there any way in which he can avoid such a tax?

Shruti K.P, Partner, IndusLaw has answered Rupesh’s queries:

In the instant case, since the farmland is compulsorily acquired, note that as per Section 2(14) specified agricultural land (rural agricultural land) is outside the purview of the definition of capital asset and hence, if the farmland qualifies as a rural agricultural land, no capital gains tax may arise on receipt of such compensation by your father.

Also Read: Will I have to pay tax on the residual amount after selling an old flat and buying a new one?

Further, even if the farmland does not qualify as a rural agricultural and falls under the purview of urban agricultural land, the compensation may still be exempt in the hands of your father under Section 10(37), subject to the fulfilment of certain conditions.

Further, even if your father purchases a flat in your name, there will be no tax implications in your hands as capital gains do not arise on receipt of a gift, and the gift is also exempt from capital gains tax for your father. In addition, under Section 56(2)(x), no tax implications should arise for you since the flat is a gift from your father.

Have any home loan, property, income tax or other personal finance-related queries? Write to [email protected]. We will get relevant queries answered by personal finance experts.

Disclaimer: Views and suggestions mentioned above are those of the respective experts/commentators. They do not reflect the views of financialexpress.com.

SRF Rating: BUY; Growth prospects in chemicals

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We interacted with Ashish Bharat Ram, along with the various heads of segments. SRF is optimistic about solid growth opportunities in the chemicals business driven by a fast changing geopolitical environment. This will usher in aggressive capex plans in chemicals (~Rs 120 bn over the next five years). SRF is also uniquely positioned to divert its solid cash flows from the commodity business to chemicals, which enjoys higher margins and return ratios. We are aligned with management’s view of a favourable industry scenario and are gung-ho about its capex plans, which can treble its chemical segment Ebitda over the next five years. Retain ‘BUY’ with a SoTP-based TP of Rs 3,128.

Management meeting and annual report: Key takeaways

* Agrochemicals to grow at 20%-plus p.a. over the next 2-3 years; accelerated focus in pharma to support growth in the medium-term. Electronics and battery chemicals to unleash future growth potential in the long-term.

* Foray into PTFE (polytetrafluoroethylene) will unleash growth in fluoropolymers where SRF will leverage its fluorination capability. Its undisputed leadership in refrigerant gases and strong demand environment in HFCs will keep the revenue and margins strong.

Also read: Blue Energy Motors launches LNG-fuelled green trucks

* SRF has generated solid cash flows in the last five years – partially diverted from a commodity nature (packaging film and technical textile) to chemicals business, which enjoys higher margins, RoCE and commands premium valuations.

* Witnessed solid FY22 Ebitda growth (48% y-o-y) as favourable pricing environment in refrigerant gases and technical textiles boosted margins. This has led to 600bp RoCE improvement to 24.7% and strong free cash flow generation.

Outlook and valuation: Multiple growth levers; retain ‘BUY’

We believe, SRF’s chemical business has catapulted strong growth opportunity and can sustain a high capex environment over the next five years while enjoying higher margins and return ratios. We believe, long-term growth opportunity will remain intact amid muted PAT growth expectations in FY24E (2% y-o-y) – margin pressure in packaging film, technical textile and refrigerant gases over next 4-6 quarters on the back of peak margins enjoyed by these businesses over the last 4-6 quarters. Our SoTP-based target price of Rs 3,128 values SRF’s chemicals business at 32x EV/Ebitda and technical textile and packaging film at 12x each, based on Q3FY24E estimates. We retain ‘BUY/SO’. Contraction in margins in packaging film and refrigerant gases pose near-term concerns. Failure in pick up in its fluoropolymers, pharma specialty chemicals may risk our estimates.

Rupee likely to remain steady amid positive cues; USDINR pair may trade sideways in this range

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The Indian rupee is expected to trade strady today amid rise in risk tolerance in equity markets. The rupee has depreciated around 9.30 per cent since 3 January. Analysts expect RBI intervention to increase if USDINR moves above 82 levels. In the previous session, rupee fell against the US dollar as heavy selling pressure in the domestic equities and a spike in crude oil prices weighed on the local unit. Besides, a stronger American currency against key rivals and persistent foreign fund outflows put more pressure on the domestic currency, according to forex dealers. At the interbank foreign exchange market, rupee opened weak at 81.65, fell further to finally end at 81.89, down 49 paise over its previous close.

Also Read: Bulls to stage a comeback or bears to drag Nifty below 16750? 5 things to know before market opening bell

“Indian rupee depreciated by 0.51% on Monday on weak domestic markets and surge in crude oil prices. Disappointing macroeconomic data also weighed on Rupee. India’s Manufacturing PMI slipped to 55.1 in September, trailing estimates of 55.80 and previous month’s reading of 56.2. However, a soft US Dollar cushioned the downside. We expect Rupee to trade with a negative bias on risk aversion in global markets amid concerns over financial health of Credit Suisse. Concerns over global economic slowdown may also put downside pressure on Rupee. However, any measures by RBI may prevent sharp fall in Rupee. Rupee may also take cues from India’s trade deficit and US ISM manufacturing PMI data. USDINR spot price is expected to trade in a range of Rs 80.50 to Rs 83 in next couple of sessions.”

Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives, Kotak Securities

“USDINR spot closed 53 paise higher 81.87, whisker away from the closing all time high of 81.94. Strong demand for dollars from large corporates and FPIs kept the pressure on the currency. Over this week, major trigger remains US ISM surveys and jobs data. We could see RBI intervention increase, if USDINR move above 82 levels. An overall range of 81.50 and 82.30 remains in focus.”

Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services

“Rupee came under pressure marginally in the first half of the session and volatility remained high after mediareports of the U-turn to its highest level since Sept. 22, the day before British Finance Minister roiled markets with a new “growth plan” to cut taxes and regulation, funded by vast government borrowing. British finance minister said he would publish details “shortly” on how he planned to bring down public debt as a share of economic output over the medium term.”

“On the other hand, crude rose after that the OPEC+ group of oil producers is discussing potential output cuts of more than 1 million barrels per day also weighed on the currency, given Europe’s precarious energy situation. Dollar weakened after data released from the US showed manufacturing activity increased at its slowest pace in nearly 2-1/2 years in September as new orders contracted. Today, focus will be on the factory order number that will be released from the US; better-than-expected data could extend gains for the dollar. We expect the USDINR(Spot) to trade sideways and quote in the range of 81.20 and 81.80.”

Also Read: Share Market LIVE: Nifty, Sensex may open in green on positive global cues; Electronics Mart IPO opens today

Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors

“Indian rupee to open at 81.57 as Dow rises 700 points and SGX nifty is higher by 225 points. The dollar index was at 111.80 as Asian currencies rises slightly against the dollar. Oil prices rose to $ 89.22 on account of risk on sentiments as OPEC meeting tomorrow to cut production keeps oil well bid. RBI was yesterday present at 81.90 and above protecting the rupee from further depreciation. Rupee to remain in a range of 81.30 to 82.00. Importers are to buy the dips and exporters are to sell only above 81.85 levels.”

(The recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)

Gandhwani Madhya Pradesh Assembly Constituency Election 2023: Date of Result, Voting, Counting; Candidates

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As anticipation mounts for the upcoming Gandhwani Constituency Election in Madhya Pradesh, voters are eagerly awaiting the big battle that kicks off with the announcement of key dates by the Election Commission of India. Here, we provide you with essential details about the Gandhwani Constituency Assembly Election 2023 that every voter should be aware of.

Gandhwani Constituency Madhya Pradesh Assembly Election 2023: Voting Date

The voting date for the Gandhwani Assembly Constituency Election 2023 has been officially announced by the Election Commission. As per the ECI, Gandhwani Assembly Constituency will go to polls on November 17. Stay tuned for updates as we bring you the latest information.

Gandhwani Madhya Pradesh Election 2023: Candidates

Watch this space as prominent political parties, including the Indian National Congress (INC)Bharatiya Janata Party (BJP)and None Of The Above(NOTA) along with others, are poised to reveal their candidates for the Gandhwani Assembly Constituency Election 2023 post the official declaration of voting dates by the Election Commission of India.

Stay informed as we bring you the latest updates on the Gandhwani Assembly Constituency Election 2023, keeping you abreast of all the developments and insights that matter to you.

Gandhwani Constituency MP Election Result: What happened in 2018

Umang Singhar from Gandhwani of Madhya Pradesh, won the seat with 96899 votes. He defeated Bharatiya Janata Party’ Sardarsingh Mehda who had polled 58068 votes. The winning margin was 38831 votes.

2018 Gandhwani Assembly Constituency Election Result

Winning Candidate NameParty NameTotal VotesUmang SingharIndian National Congress96899

Candidate List Party Name Votes Gained (Vote %) Umang Singhar Indian National Congress 96899 (57.53%) Sardarsingh Mehda Bharatiya Janata Party 58068 (34.48%) None Of The Above None Of The Above 5126 (3.04%) Aadiwasi Arvind Muzalda Gondvana Gantantra Party 3218 (1.91%) Bhuwan Singh Gahlot Bahujan Samaj Party 2056 (1.22%) Govind Rawat Aam Aadmi Party 1646 (0.98%) Kavita Chauhan Independent 1418 (0.84%)

Gandhwani Constituency MP Election Result: What happened in 2013

In the Madhya Pradesh Assembly election of 2013, Umang Singhar won from the Gandhwani seat garnering 66760 votes and defeated Bharatiya Janata Party candidate Sardarsingh Meda who bagged 54434 votes. The candidate who came third was None Of The Above’ None Of The Above.

Umang Singhar got 66760 votes while Sardarsingh Meda got 54434 votes.

2013 Gandhwani Assembly Constituency Election Result

Winning Candidate NameParty NameTotal VotesUmang SingharIndian National Congress66760

Candidate List Party Name Votes Gained (Vote %) Umang Singhar Indian National Congress 66760 (49.96%) Sardarsingh Meda Bharatiya Janata Party 54434 (40.73%) None Of The Above None Of The Above 4817 (3.6%) Amar Singh Solanki Independent 2496 (1.87%) Kavita Krishnapal Singh Chouhan Bahujan Samaj Party 2103 (1.57%) Sukhlal Sisodiya Independent 1551 (1.16%) Parwat Singh Mandloi Bandhania Nationalist Congress Party 1473 (1.1%)

Gandhwani Constituency MP Election Result: What happened in 2008

Umang Singhar of the INC was the winning candidate from the Gandhwani constituency in the MP Assembly elections 2008, securing 48183 votes while 27124 votes were polled in favour of Chhatarsingh Darbar of the BJP. The margin of victory was 21059 votes.

2008 Gandhwani Assembly Constituency Election Result

Winning Candidate NameParty NameTotal VotesUmang SingharINC48183

Candidate List Party Name Votes Gained (Vote %) Umang Singhar INC 48183 (54.84%) Chhatarsingh Darbar BJP 27124 (30.87%) Sunita Awaldaman IND 3883 (4.42%) Ganpatsingh Kiradiya BSP 2709 (3.08%) Prabhusingh Patel IND 2111 (2.4%) Sardarsingh Devipura BJSH 2034 (2.32%) Rukadiya Kanash IND 983 (1.12%) Bapusingh IND 827 (0.94%)

Reliance, PNB, Hero MotoCorp, Adani Power, Lupin, Bajaj Electricals, Rail Vikas Nigam stocks in focus

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Indian benchmark indices BSE Sensex and NSE Nifty 50 are likely to extend losses on Friday. Ahead of the session, SGX Nifty was in red hinting at a negative start for Indian equities. “Deteriorated global economic environment has led to a sharp surge in bond yields and dollar index which has instilled fears of recession. Given this backdrop, market is expecting RBI in its policy meeting outcome to raise interest rate by 50bps. Investors, on Friday, would also react to GDP and Initial jobless claim data,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Stocks in focus on 30 September, Friday

Reliance: Mukesh Ambani led Reliance Industries’ Reliance Retail launched a premium fashion and lifestyle store brand on Thursday, with the first store inaugurated in Bengaluru. It plans to open close to 40 such stores across 12 cities over the coming nine months, Akhilesh Prasad, CEO, fashion and lifestyle, Reliance Retail, said in an interview. The company will open about 25 AZORTE stores this financial year alone, and they will be positioned in metros, mini metros, class A cities and state capitals, Prasad said.

Hero MotoCorp: Hero MotoCorp on Thursday said it will invest $60 million in US-based Zero Motorcycles to jointly develop electric motorcycles. The two-wheeler maker said it is finalising a collaboration agreement with the California-based manufacturer of premium electric motorcycles and powertrains. Zero Motorcycles is the global leader in electric motorcycles and powertrains.

PNB: State-owned lender Punjab National Bank (PNB) announced plans to sell its entire 10.1% stake in Asset Reconstruction (ARCIL), amounting to 3.25 crore shares. The deal is expected to be completed by December 2022, the bank said in an exchange filing, without disclosing the identity of the purchaser or the consideration of the sale. The sale process of PNB stake in ARCIL is subject to the approval of the RBI, and when completed the bank will cease to be a sponsor of ARCIL.

Adani Power: Fair trade regulator Competition Commission of India (CCI) on Thursday approved the acquisition of 100 per cent equity of Diliigent Power and DB Power by Adani Power Ltd. The proposed combination relates to the acquisition of 100 per cent of the share capital and economic rights of Diliigent Power and DB Power by Adani Power Ltd.

Bajaj Electricals: At a meeting held on 29 September 2022, the Board of Bajaj Electricals approved the Scheme of Merger by Absorption of Nirlep Appliances (Transferor Company) with Bajaj Electricals (Transferee Company) and their respective shareholders under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 (Scheme).

Lupin: The pharma company has received approval from the United States Food and Drug Administration (FDA) for its abbreviated new drug application (ANDA), Mirabegron extended-release tablets, to market in the US. Mirabegron is a generic equivalent of Myrbetriq extended-release tablets of Astellas Pharma Global Development, Inc. The product will be manufactured at Lupin’s facility in Nagpur, India. The drug had estimated annual sales of $2403 million in the US as per IQVIA MAT data by June 2022.

Also Read: Tractor sales fall 4.6% in August due to erratic rainfall, but exports hold up; festive season respite eyed

Rail Vikas Nigam: The company has received contract for the construction of 4 lane highway from Samarlakota to Achampeta Junction, from the National Highways Authority of India (NHAI). The contract is a part of Kakinada port to NH – 16 connectivity in Andhra Pradesh under Bharatmala Pariyojana on EPC mode at the cost of Rs 408 crore.

Production, storage improve: Onion prices subdued ahead of sensitive season

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Thanks to a rise in onion production and an improvement in its storage facilities at the farmers’ level, prices of the staple vegetable, a political hot potato, are unlikely to see any big fluctuations this year. And if things shape up as planned by the policymakers, the seasonal spike in onion prices in various pockets of the country during October-November may become a thing of the past, according to official sources.

Currently the benchmark onion price at Lasalgaon, Maharashtra is Rs 1,220/quintal down 20% from a year ago, and way lower than the last three years’ seasonal average of Rs 2,354/quintal.

Misal said that three years back mandi prices rose to Rs 3,000 a quintal in October which is currently ruling around Rs 1,100-1,200 quintal across key producing states. He said that prices are expected to stabilise at the current level as the kharif harvest will enter the market by the end of October.

Rabi onion harvested during April – June accounts for around 65% of the country’s onion production and meets the consumer’s demand till the kharif crop is harvested in October-November. Kharif harvested onions are not stored because of higher moisture content thus entering the market directly.

Also Read: India second-best performing major market this year

“Onion prices do not witness a sharp spike in October or November as it used to a couple of years back as production has increased along with storage infrastructure,” Uday Devlankar, former adviser to the Maharashtra agriculture prices commission and a farmer said.

The modal retail price of onion is currently around Rs 20/kg which was prevailing at Rs 30/kg a year back. In December 2019, retail onion prices touched Rs 100 a kg in many cities, resulting in the government’s ban on onion exports.

India exported 1.4 million tonne (MT) of onion valued at Rs 1,301 crore in 2021-22. Bangladesh and Malaysia had 46% and 12% share in total onion exports respectively in the last fiscal.

An official said since January 2021, there has not been any ban on onion exports as used to be a few years back.

In August 2022; onion price inflation was down 18.48% on the year.

Negative onion inflation in August 2022 was due to a bumper output of 31.7 MT in the 2021-22 crop year (July-June), against 26.6 MT in 2020-21.

The government had procured 0.25 MT of onion for the buffer stock in 2022-23 against 0.2 MT purchased in the previous year.

The onion stock was procured through farmers’ cooperative NAFED from farmers through the Farmer Producer Organisations in rabi onion growing states of Maharashtra, Gujarat and Madhya Pradesh.

“The price stabilisation through buffer stocks serves the twin objectives of providing remunerative prices to onion farmers and augmenting the availability of onions at affordable prices to the consumers,” a department of consumer affairs note stated.

An official said open-market releases of onion from buffer stocks are being released in those states/cities, especially in the northeastern states where prices show an increase over the previous month.

To address the post-harvest losses of onions including losses incurred from inefficient storage and processing, the department of consumer affairs has announced a grand challenge for the development of ‘technologies for primary processing, storage and valorisation of onions.’

Gold Price Today, 30 Sep 2022: MCX gold tops Rs 50250 on global cues; check support, resistance

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Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver rate in India were trading in the positive territory on Friday on the back of pullback in US dollar. On Multi Commodity Exchange, gold December futures were ruling Rs 71 up at Rs 50,258 per 10 gram, as against the previous close. Silver December futures were trading Rs 280 or 0.5 per cent up at Rs 56,440 per kg on MCX. Globally, yellow metal prices edged higher supported by a pullback in the US dollar, but the Federal Reserve’s commitment to stay on an aggressive rate-hike path kept the metal on track for its sixth straight monthly decline, according to Reuters. Spot gold was up 0.2% at $1,663.79 per ounce. While prices are headed for their biggest weekly gain in seven, it is down 2.8% for the month so far. U.S. gold futures rose 0.3% to $1,673.10.

Also read: GST collection in Sep likely to touch Rs 1.5 lakh crore on improvement in biz activities; what do experts say?

MCX gold October, already up by 1.22% in the week gone by, is trading in a tight range ahead of an important data release. The RBI is likely to announce a 50 bps hike in the policy and rupee may strengthen in case of hawkish statements. The dollar index gave up earlier gains falling toward 112 after tumbling more than 1% in the previous session, as the pound pushed above $1.11 and the Yuan gained for the first time in nine days after the CCP warned of further currency intervention. The DXY initially tracked gains in treasury yields as fresh data showed weekly claims fell to a 5-month low, and PCE prices were revised higher in Q2. Hawkish remarks from Federal Reserve officials and the rejection of a possible currency agreement among major economies also supported the dollar. For intraday We recommend to wait for the policy outcome later short gold in case October future slips below Rs. 49,900 per 10 gram.

Also read: Rupee likely to remain volatile ahead of RBI monetary policy meet outcome, USDINR may trade in this range

Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities

Gold prices have recovered from lows of 48980 and now are back above 50000 level. Safe haven buying is evident after fall in equities and risk aversion rising. Currency and bond markets have been very volatile so safe traders are accumulating gold. With RBI’s policy today, there will be volatility in Indian rupee which will get reflected in MCX prices. Any dips should be bought as we may see some more upside on the back of US dollar retreat.

Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services

Gold prices edged higher, supported by a pullback in the U.S. dollar, but the Federal Reserve’s commitment to stay on an aggressive rate-hike path kept the metal on track for its sixth straight monthly decline. Fed policymakers are expected to press ahead with raising U.S. borrowing costs to fight soaring inflation, impacting both the global financial market as well as the taking in U.S. jobs market. The dollar index held near a one-week low touching the levels of ~111.70, as active intervention from BOE supported the move in Pound. Euro zone economic sentiment fell sharply and by more than expected in September, as confidence dropped among companies and consumers, who are also downbeat about price trends in the coming months. U.S. growth reported another quarter of contraction, although were in-line with expectations at -0.6%. There are also updates regarding geo-political tensions which are improving the sentiment for safe haven assets.

A positive move in base metals yesterday after China’s intervention supported the move in silver as well. On the data front, focus today will be on the U.S. Core PCE and Michigan inflation expectations numbers. Also, market participants will keep an eye on RBI policy meetings. Broader trend on COMEX could be in the range of $1640-1680 and on domestic front prices could hover in the range of Rs 50,000-50,675.

(The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)