Month: May 2024

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

As anticipation mounts for the upcoming Depalpur 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 Depalpur Constituency Assembly Election 2023 that every voter should be aware of.

Depalpur Constituency Madhya Pradesh Assembly Election 2023: Voting Date

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

Depalpur 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 Depalpur 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 Depalpur Assembly Constituency Election 2023, keeping you abreast of all the developments and insights that matter to you.

Depalpur Constituency MP Election Result: What happened in 2018

Vishal Jagdish Patel from Depalpur of Madhya Pradesh, won the seat with 94981 votes. He defeated Bharatiya Janata Party’ Manoj Nirbhaysingh Patel who had polled 85937 votes. The winning margin was 9044 votes.

2018 Depalpur Assembly Constituency Election Result

Winning Candidate NameParty NameTotal VotesVishal Jagdish PatelIndian National Congress94981

Candidate List Party Name Votes Gained (Vote %) Vishal Jagdish Patel Indian National Congress 94981 (50.46%) Manoj Nirbhaysingh Patel Bharatiya Janata Party 85937 (45.66%) None Of The Above None Of The Above 1957 (1.04%) Brajesh Kannoji (ahirwar) Bahujan Samaj Party 1340 (0.71%) Bahadur Singh Mandloi Aam Aadmi Party 1192 (0.63%) Sheikh Azij Independent 715 (0.38%) Sohan Panchal Independent 616 (0.33%) Ramcharan Patel Shiv Sena 400 (0.21%) Rajesh Gupta Independent 289 (0.15%) Sohan Solanki (malvi) Prajatantrik Samadhan Party 280 (0.15%) Rakesh Patel Independent 180 (0.1%) Gajraj Singh Choudhary Independent 179 (0.1%) Nilesh Neema Independent 153 (0.08%)

Depalpur Constituency MP Election Result: What happened in 2013

In the Madhya Pradesh Assembly election of 2013, Manoj Nirbhaysingh Patel won from the Depalpur seat garnering 93264 votes and defeated Indian National Congress candidate Satyanarayan Patel who bagged 63067 votes. The candidate who came third was Bahujan Samaj Party’ Jeetu Pardeshi.

Manoj Nirbhaysingh Patel got 93264 votes while Satyanarayan Patel got 63067 votes.

2013 Depalpur Assembly Constituency Election Result

Winning Candidate NameParty NameTotal VotesManoj Nirbhaysingh PatelBharatiya Janata Party93264

Candidate List Party Name Votes Gained (Vote %) Manoj Nirbhaysingh Patel Bharatiya Janata Party 93264 (56.74%) Satyanarayan Patel Indian National Congress 63067 (38.37%) Jeetu Pardeshi Bahujan Samaj Party 2017 (1.23%) None Of The Above None Of The Above 1897 (1.15%) Vishnu Barod (kalota) S D Bahujan Sangharshh Dal 1373 (0.84%) Santosh Chouhan Independent 831 (0.51%) Mohammad Arshad Independent 604 (0.37%) Prakash Agrawal Independent 471 (0.29%) Manoj Patel Independent 420 (0.26%) Gokul Bodana Independent 221 (0.13%) Mahesh Parihar Independent 217 (0.13%)

Depalpur Constituency MP Election Result: What happened in 2008

Satyanarayan Patel of the INC was the winning candidate from the Depalpur constituency in the MP Assembly elections 2008, securing 62890 votes while 53399 votes were polled in favour of Manoj Nirbhay Singh Patel of the BJP. The margin of victory was 9491 votes.

2008 Depalpur Assembly Constituency Election Result

Winning Candidate NameParty NameTotal VotesSatyanarayan PatelINC62890

Candidate List Party Name Votes Gained (Vote %) Satyanarayan Patel INC 62890 (50.51%) Manoj Nirbhay Singh Patel BJP 53399 (42.89%) Moolchand Rathor IND 1725 (1.39%) Nanuram Hekedia BSP 1360 (1.09%) Chhatar Singh Solanki LJP 1329 (1.07%) Pravin Anadilal Porwal IND 1106 (0.89%) Rajendra Patel BJSH 1066 (0.86%) Jagdish Solanki(dinesh) IND 692 (0.56%) Amit Ashok IND 530 (0.43%) Bharat Sing Patel SP 419 (0.34%)

Sebi mulls farmework for market making to deepen bond markets

With over 98 per cent of corporate bonds being private placements, leading to a shallow secondary market, Sebi is planning to come out with a framework for market-making to help markets become more vibrant and funds cheaper, a Sebi member said.

Concerted efforts by regulators and government have seen corporate bond outstanding touching Rs 40.20 lakh crore in FY22 from Rs 10.51 lakh crore in FY12, while the secondary market is about 30 per cent of this. Annual issuances during this period have increased from Rs 3.80 lakh crore to close to Rs 6 lakh crore.

Compared to this, the current outstanding stock of government securities is Rs 84.71 lakh crore across 100 instruments as of June 2022 while trading volume in G-Secs was Rs 126.6 lakh crore in FY22 which is about seven-times of the trading in corporate bonds.

Between FY12 and FY22, the secondary market volume spiked from Rs 4.5 lakh crore to Rs 14.37 lakh crore, showing clearly that secondary trading has not risen in consonance with the size of the market, according to the Reserve Bank data.

The central bank data also show that as much as 80 per cent of issuances in FY22 were AAA-rated, and 15 per cent were AA-rates, leaving just 5 per cent for high-yielding junk papers, which is one of the reasons for low trading volume or lack of liquidity in the secondary market.

Market making not only assists in creating a more vibrant corporate bond market but also helps in generating better yields and in reducing cost of borrowing for borrowers over the long-run.

In this regard, Sebi is exploring a market-making framework that’ll be applicable to every listed issuer who has issued non-convertible debt and has outstanding privately issued NCDs of Rs 500 crore ore more. “We should be coming out with the framework very soon,” Ashwani Bhatia, the whole-time member at Securities and Exchange Board said here on Tuesday.

Bhatia, the banker-turned-regulator, who was addressing the annual capital markets summit organized by the industry lobby Ficci, did not offer more details.

Also Read| Sebi’s SCORES platform disposes of 3,236 complaints in August

It can be noted that though both the primary issuance volume and also the outstanding rose manifold, public issues constituted only around 2 per cent of the total. For instance in FY22, money raised through public issuances was just Rs 11,589 crore, which is just about 2 per cent and the rest Rs 5.88 lakh crore were private placements, according to RBI data.

Similarly, as much as 98.5 per cent of the issuances are either AAA ir AA rated companies, who chose to get the issue privately placed due to the cumbersome listing process and the attendant cost escalation.

Recently, Reserve Bank deputy governor T Rabi Sankar had said concerted efforts by regulators saw corporate bond outstanding scaling Rs 40.20 lakh crore in March 2022 from Rs 10.51 lakh crore March 2012.

Annual issuances during this period increased from Rs 3.80 lakh crore to close to Rs 6 lakh crore, after peaking in FY21 when it crossed Rs 8 lakh crore. However, as of June 2022, the outstanding volume slipped to Rs 39.58 lakh crore across 29,745 instruments.

Sankar also said the number of corporate bond issuances also rose to 5,400 in FY22, showing the success of the developmental efforts of the government and regulators.

Nifty slips into consolidation, finds support at 14,500; Charts suggest Bank Nifty will underperform

By Milan Vaishnav, CMT, MSTA

After staying heavily spooked by rising bond yields and strengthening US dollar as its consequence, the Indian equity markets remained weak throughout the week barring the last day where it saw some technical rebound from the short-term oversold levels. Though the Index still away from violating the key levels on the higher time-frame charts, it has ended up violating few important levels on the daily chart. After suffering a negative close on four out of the past five days of the week, the headline index showed a 400-point rebound from the lows of the previous session and ended with a net loss of 286.95 points (-1.91%) on a weekly note.

Another relation that stays disturbed is the usually inverse relation that the Volatility Index, INDIAVIX, shares with NIFTY. Along with the markets, the INDIAVIX has also come off by another 7.92% to 19.99. In the week before this one, the INDIAVIX had come off by 15.07%. This inverse relation may get corrected; we may see the Index extending the technical pullback to a limited extent and can also expect volatility to increase over the coming days.

Nifty

Support placed at 14,500 for Nifty

The coming week will see the levels of 14,865 and 15,000 acting as resistance points. The supports come in lower at 14,500 and 14,380 levels.

The pattern analysis indicates that NIFTY has been trapped in a broad-ranged consolidation. Although it tested and violated a few key levels on the Daily charts, it is still 730-odd points away from the faster 20-Week MA which presently stands at 14,010 and tracks the rising trend line seen on the chart. The Bollinger bands, which had got wider than usual are seen beginning to contract; this indicates that the NIFTY may well stay in a broad range for a while and many not show any runaway up move.

What these pockets for opportunities

The defensive play has got quite evident in the markets. Select Auto stocks are seeing some relative strength but apart from that, the Energy, FMCG, Consumption and very select pharma stocks have started to show improvement in the relative performance. This trend is likely to work out in the coming week as well. The NIFTY may well see the technical rebound getting extended, but it is likely to say limited in its extent. We recommend avoiding shorts, staying highly stock-specific and keeping exposures at modest levels throughout the coming week.

Bank Nifty

BankNIFTY relatively underperformed the NIFTY in the previous week. While the front-line Index declined 286.95 points (-1.91%) on a weekly note, the BankNIFTY came off by 1335.05 points (-3.76%) on a weekly note.

The coming week is expected to see the BankNIFTY continuing to relatively underperform both NIFTY and the broader NIFTY500 Index. The Bank NIFTY has slipped inside the weakening quadrant on the weekly RRG; it is seen paring its relative momentum against the broader markets.

Bank Nifty

The movement during the coming week is likely to stay capped with 34,650 and 35,105 acting as potential resistance points; supports come in at 33,650 and 33,220 levels.

The weekly RSI is 63.87; it stays neutral and does not show any divergence against the price. The RSI has also shown a bearish failure swing; it went above 70, slipped below it. It rose again but could not take out its previous high and slipped again below the point where it had bounced. This has resulted in a mildly bearish failure swing on the RSI. The weekly MACD is bullish; however, the sharply narrowing slope of the histogram points at a likely negative crossover over the coming weeks.

BankNIFTY has taken out a triple top resistance near 32,000 levels; after testing the high point at 37,708; it has marked a potential near-term top for itself at this point. It is unlikely that a runaway rise is seen in this index.

(Milan Vaishnav, CMT, MSTA is a Consultant Technical Analyst and founder of Gemstone Equity Research & Advisory Services, Vadodara. The views expressed are the author’s own. Please consult your financial advisor before investing.)

Rupee likely to depreciate on strong dollar, risk aversion in markets; USDINR pair may trade in this range

The Indian Rupee is likely to depreciate on strong dollar and risk aversion in markets as investors remain cautious ahead of US Fed meet on 20-21 September. USDINR spot price is expected to trade in a range of Rs 79-80.50 in the next couple of sessions, according to forex analysts. In the previous session, Rupee marked its worst week in five as risk sentiment was hit by the Chinese yuan weakening past 7 per dollar to breach a key psychological level for the first time in two years. The local unit settled 0.1% lower at 79.74 per dollar, recouping some of the day’s losses when it had hit an over one-week low. For the week, the rupee declined 0.2%, its biggest loss since the week ended 12 August.

Also Read: Share Market LIVE: Nifty, Sensex stare at positive start; India’s CAD to remain within 3% of GDP, says RBI

“Concerns over aggressive rate hike expectations by Federal Reserve may also put downside pressure on Rupee. However, easing crude oil prices may support Rupee at lower levels. Markets may also take cues from FII fund flows data. Trades may also take cues from US consumer sentiment which is expected better than previous reading. USDINR spot price is expected to trade in a range of Rs 79 to Rs 80.50 in next couple of sessions.”

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

“USDINR spot closed 4 paise higher 79.74 in a day of quiet trading. Rise in dollar index, firm US bond yields and weakness in equities contributed to the demand for the US Dollars but exporter selling and suspected central bank intervention capped advance. Over the next week, USDINR may slip into a narrow range of ahead of US FOMC. We expect a range of 79.40 and 80.00 on spot.”

Yes Securities Research

“US Dollar index rallied while Treasury yields surged after data showed U.S. consumer prices rising faster than expected in August, prompting bets for more aggressive Federal Reserve rate hikes. Decline during the week found support near 79.20, recovery thereafter was swift which ensures immediate support near 79.40. USDINR September future is likely to oscillate between 79.40 – 80.30 zone.”

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

“Rupee in the last few sessions consolidated in a narrow range and volatility remained low even after inflation number from the US and the UK came above estimates. On Friday, the dollar fell marginally against its major crosses even after University of Michigan’s preliminary September reading on the overall index on consumer sentiment came in at 59.5, up from 58.6 in the prior month. Broadly, the dollar could continue to get support ahead of the FOMC policy statement. Most market participants expect a high chance of a 75-basis-point rate hike at this week’s meeting and some even expect a 100-bps increase.”

Also Read: Will bulls stage a comeback or bears drag Nifty to 17150? 5 things to know before share market opening bell

“The Rupee was slightly weighed down after the offshore yuan past the critical threshold of 7 per dollar for the first time in more than two years overnight. On the other hand, pound remained under pressure after retail sales fell much more than expected in August, in another sign that the economy is sliding into a recession as the cost of living crunch squeezes households’ disposable spending. Today, volatility could remain low as no major economic data is expected to be released from the US. We expect the USDINR(Spot) to trade sideways and quote in the range of 79.40 and 80.05.”

(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.)

Petrol and Diesel Price Today, 10 Sep 2022: Fuel prices unchanged; Check rates in Delhi, Mumbai, other cities

Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Lucknow: The price of petrol and diesel has been kept steady on 10 September 2022 (Saturday), keeping costs steady for more than three months now. Petrol and diesel in Delhi is priced at Rs 96.72 and Rs 89.62 a litre, respectively. In Mumbai, petrol is retailing at Rs 106.31 per litre and diesel at Rs 94.27 per litre. The last country-wide change in price came on 21 May 2022, when Finance Minister Nirmala Sitharaman announced a cut in excise duty on petrol by Rs 8 per litre, and Rs 6 per litre on diesel. Since then, Maharashtra is the only state to have cut rates. The Maharashtra government had announced a cut in value-added tax (VAT) on petrol by Rs 5 a litre and by Rs 3 a litre for diesel in July.

The prices of petrol and diesel vary in each state depending upon several factors such as the local taxes, Value Added Tax (VAT), freight charges, etc. Since the central government excise duty cut, only two states have reduced VAT rates on auto fuels. Meghalaya was the last to revise the fuel rates when it increased VAT August 24, because of which petrol now costs Rs. 96.83 per litre in Shillong and diesel is now priced at Rs. 84.72 per litre.

Petrol, diesel prices in Chennai, Kolkata, Bengaluru, Lucknow, Noida, Gurugram

Mumbai: Petrol price: Rs 106.31 per litre, Diesel price: 94.27 per litre

Delhi: Petrol price: Rs 96.72 per litre, Diesel price: Rs 89.62 per litre

Chennai: Petrol price: Rs 102.63 per litre, Diesel price: Rs 94.24 per litre

Kolkata: Petrol price: Rs 106.03 per litre, Diesel price: Rs 92.76 per litre

Bengaluru: Petrol: Rs 101.94 per litre, Diesel: Rs 87.89 per litre

Lucknow: Petrol: Rs 96.57 per litre, Diesel: Rs 89.76 per litre

Noida: Petrol: Rs 96.79 per litre, Diesel: Rs 89.96 per litre

Gurugram: Petrol: Rs 97.18 per litre, Diesel: Rs 90.05 per litre

Chandigarh: Petrol: Rs 96.20 per litre, Diesel: Rs 84.26 per litre

Also Read: FM Sitharaman’s fight against inflation: Centre, state govts collectively responsible to tame rising prices

Public sector OMCs including Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices daily in line with international benchmark prices and foreign exchange rates. Any changes in petrol and diesel prices are implemented from 6 am every day. Retail petrol and diesel prices differ from state to state because of local taxes like VAT or freight charges.

Petrol, Diesel Price Today, 13 Sep 2022: Fuel cost steady; Check rates in Delhi, Noida, Mumbai, other cities

Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Lucknow: The price of petrol and diesel has been kept steady on 13 September 2022 (Tuesday), keeping costs steady for more than three months now. Petrol and diesel in Delhi is priced at Rs 96.72 and Rs 89.62 a litre, respectively. In Mumbai, petrol is retailing at Rs 106.31 per litre and diesel at Rs 94.27 per litre. The last country-wide change in price came on 21 May 2022, when Finance Minister Nirmala Sitharaman announced a cut in excise duty on petrol by Rs 8 per litre, and Rs 6 per litre on diesel. Since then, Maharashtra is the only state to have cut rates. The Maharashtra government had announced a cut in value-added tax (VAT) on petrol by Rs 5 a litre and by Rs 3 a litre for diesel in July.

The prices of petrol and diesel vary in each state depending upon several factors such as the local taxes, Value Added Tax (VAT), freight charges, etc. Since the central government excise duty cut, only two states have reduced VAT rates on auto fuels. Meghalaya was the last to revise the fuel rates when it increased VAT August 24, because of which petrol now costs Rs. 96.83 per litre in Shillong and diesel is now priced at Rs. 84.72 per litre.

Mumbai: Petrol price: Rs 106.31 per litre, Diesel price: 94.27 per litre

Delhi: Petrol price: Rs 96.72 per litre, Diesel price: Rs 89.62 per litre

Chennai: Petrol price: Rs 102.63 per litre, Diesel price: Rs 94.24 per litre

Kolkata: Petrol price: Rs 106.03 per litre, Diesel price: Rs 92.76 per litre

Bengaluru: Petrol: Rs 101.94 per litre, Diesel: Rs 87.89 per litre

Lucknow: Petrol: Rs 96.57 per litre, Diesel: Rs 89.76 per litre

Noida: Petrol: Rs 96.79 per litre, Diesel: Rs 89.96 per litre

Gurugram: Petrol: Rs 97.18 per litre, Diesel: Rs 90.05 per litre

Chandigarh: Petrol: Rs 96.20 per litre, Diesel: Rs 84.26 per litre

Public sector OMCs including Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices daily in line with international benchmark prices and foreign exchange rates. Any changes in petrol and diesel prices are implemented from 6 am every day. Retail petrol and diesel prices differ from state to state because of local taxes like VAT or freight charges.

Capex-led growth to kickstart investment; agri, infra, consumption sectors attractive | LIC MF INTERVIEW

The Union Budget 2021 helped fuel Dalal Street to 9% rally in the previous week, and the benchmark indices continued to trade near fresh all-time highs. Diving into the fine-print of Nirmala Sitharaman’s third budget, Yogesh Patil, Fund Manager – Equity, LIC Mutual Fund tells Kshitij Bhargava of Financial Express Online, where he sees opportunities now. Patil explains how investors should look at valuations and discusses positive triggers for PSU banks after the Budget. Here are the edited excerpts.

What sectors look the most attractive to you post the budget?

Will infrastructure be a big theme to be played in the next few months now? 

Infrastructure got significant focus in the budget with the coverage being broad-based, across road, rail, shipping, power to name a few. When infrastructure sees an uptick it has a multiplier effect in the economy spurring economic growth. We welcome this move of capex-led growth which would kickstart the investment cycle and could then spread to multiple sectors – Cement, Auto, BFSI, Metals, and Capital Goods. While we refrain from commenting on stock-specific ideas, businesses which are scalable, having a clear competitive advantage and capital efficiency would be where our focus will stay.

Banks look strong after the Union Budget; is it the time to now closely watch PSU banks?

Proposal to set up an Asset Reconstruction Company (ARC) & Asset Management Company (AMC) to consolidate and take over the existing stressed debt of public sector banks will help clean up their books, which have high levels of provisioning on their stressed assets, which were created over the last couple of years. Overall, this will help PSU Banks focus on funding new growth at the margin.

What negative triggers do you spot for equity markets post the Union Budget?

Abnormally high levels of net market borrowing programme (Rs12trn) could lead to pressure on bond yields. Furthermore, divestment targets are still aggressive. We need to watch out if this is achievable this year, unlike the past few years.

Valuations have been a worry for some investors; how should they look at high valuations right now?

Firstly, we would like to advise investors to take attention away from index levels. An investor should have clarity about the investment objective in terms of time horizon, specific financial goals to be met. It should be complemented with their understanding of where they stand on risk-taking ability and appetite. This will give clarity about how an individual can plan optimal asset allocation.

Only after undertaking the above exercise one should look at investing savings into individual stocks. Asset allocation is the most critical factor in determining the investment outcome. For individual stocks, we would avoid being simplistic. One should not change the investment philosophy based on index levels. Sticking to your asset allocations and disciplined investment process is key to avoid taking undue risks beyond risk appetite.

Spice prices skyrocket amid lower output, high demand

By Sandip Das, Nayan Dave & Geeta Nair

There has been a double-digit increase in mandi prices of spices, including cumin (jeera), coriander (dhania), black pepper and dry chilli, in the last one year, due to decline in production amid robust domestic demand.

Traders say while turmeric prices have stabilised since its peak earlier this year, mandi prices of all other spice varieties are expected to rise further, because of supply constraints caused by lower production and robust global demand driving exports.

The mandi price of cumin (jeera) is currently ruling around Rs 4,700 per 20 kg bag at Unjha mandi (Gujarat), the largest market of the spice in the world, against a price range of around Rs 2,400-2,600 per 20 kg bag that prevailed a year ago.

“We are expecting the prices to further surge and touch Rs 5,000 per 20-kg bag by November, as there is a robust demand for quality cumin in the export market, while the domestic demand is encouraging,” Arvind Patel, vice-president of Unjha Agriculture Market Produce Committee (APMC), told FE.

Also Read: Tamilnad Mercantile Bank shares end flat after tepid debut

In the current 2021-22 season, cumin production is estimated around 5 million bags (55 kg per bag) as against over 8 million bags in 2020-21.

As the cumin crop is highly sensitive to weather and disease, a section of farmers in the key producing states of Rajasthan and Gujarat has switched to other crops such as cotton, mustard seed, groundnut, soyabean and coriander seed, thus reducing the production, Patel said.

Dipak Sanghvi, managing director, Nilon’s, a major manufacturer of pickle and spices, said the last year saw spice prices go up significantly, with an around 14% increase in prices of packaged spices. The price of raw chilies has doubled from Rs 120 to Rs 240 per kg during December 2021-September 2022, while coriander prices went up from Rs 75-80 to Rs 120 per kg in the same period.

According to Sanghvi, black cardamom prices rose from Rs 350 to Rs 650-700 per kg, while green cardamom prices increased from Rs 400 to Rs 650-700 kg since the beginning of 2022. “Food ingredients coming from China, such as bonding agents and emulsifiers, too had gone up substantially due to Covid disruption and shutdowns,” he said.

In the case of turmeric, mandi prices have been prevailing around Rs 70-75 a kg currently, compared to around Rs 105-Rs 107 a kg that prevailed in January.“Turmeric mandi prices spiked earlier this year because of reports of possible crop losses. However, the prices have eased since April after a robust harvest,” Ankit Agarwal, director, Amar Agarwal Foods India, Erode, a Tamil Nadu-based turmeric trader, said. Agarwal said that the prices are expected to hold at the current level and a spike in prices is highly unlikely.

Karnataka, Maharashtra, Assam, Odisha, Uttar Pradesh, West Bengal, Tamil Nadu and Kerala are major producers of spices in the country.

US sanctions on Indian firm may abort Delhi’s plans to resume purchase of Iranian crude

Washington’s decision to impose sanctions on Mumbai-based petrochemical trading company Tibalaji Petrochem Pvt Ltd for dealing with Iran may pull the plug on a reported plan by Delhi to resume purchase of Iranian crude, after a four year gap.

Ever since the US announced the sanctions on Iran in 2018-19 for walking out of a nuclear pact, India hasn’t been purchasing sweet crude from the Western Asian country, which used to account for over 10% its crude imports. However, the prospect of a rethink by India looked bright after prime minister Narendra Modi met Iranian president Ebrahim Raisi in Samarkand, Uzbekistan on September 16, on the sidelines of the 22nd meeting of the council of heads of states of the Shanghai Cooperation Organisation. Iranian officials have since sounded optimistic about India’s willingness to restart import of crude from Iran.

What boosted the Iranian side’s confidence about revival of India-Iran oil trade is open assertions by senior Indian government functionaries about the country’s resolve to buy discounted Russian crude, notwithstanding the western sanctions on Moscow.

India’s imports from Russia jumped 414% between April and July from a year before to $13.4 billion. Of these, purchases of oil and oil products accounted for as much as $11.2 billion, up almost 773% from a year earlier.

Washington has in recent months been targetting Chinese companies which it believed were aiding export of Iran’s petrochemicals, as the chances of reviving the nuclear pact with Tehran have become slimmer.

Also Read: Plan for extra excise duty on unblended petrol, diesel deferred

According to a Reuters report, the US Treasury Department slapped sanctions on a network of companies involved in what it said was the sale of hundreds of millions of dollars worth of Iranian petrochemical and petroleum products to South and East Asia. The action targeted Iranian brokers and front companies in the United Arab Emirates, Hong Kong and India, the Treasury said. “India-based petrochemical company Tibalaji Petrochem Private Limited has purchased millions of dollars’ worth of Triliance-brokered petrochemical products, including methanol and base oil, for onward shipment to China,” it added.

Washington also iterated that it would continue to accelerate enforcement of sanctions on Iran’s petroleum and petrochemical sales so long as Tehran continues to accelerate its nuclear programme. “So long as Iran refuses a mutual return to full implementation of the Joint Comprehensive Plan of Action, the United States will continue to enforce its sanctions on the sale of Iranian petroleum and petrochemical products,” the Treasury’s Under Secretary for Terrorism and Financial Intelligence Brian Nelson said in a statement.

Already, following Russia’s attack on Ukraine, the US and its European allies decided to block certain Russian banks from the SWIFT financial-messaging infrastructure for cross-border payment. VTB, Russia’s second-largest bank by assets, VEB, another big player, and five smaller ones have been cut off from the SWIFT. This has adversely affected India’s trade transactions with Russia. While transactions can still happen through the Russian banks that are not under sanctions yet, foreign banks are not keen to deal with them in a big way.

Moscow had offered New Delhi rupee-rouble trade using Russia’s messaging system SPFS.

On its part, the Reserve Bank of India (RBI) had in July notified a new mechanism to settle international trade in rupees to reduce the depreciation of the domestic currency against the dollar. Already, Uco Bank and Yes Bank have firmed up arrangements with Russian banks under this mechanism, and more banks are supposed to follow suit.

Rupee may fall below 80 against US Dollar if 79.60 breached; INR in sync with other EM peers

By NS Ramaswamy

The much awaited U.S annual rate of consumer price growth in August finally came in on Tuesday at 8.3% (July 8.50%; four decade peak June 9.10%), as a shocker with big increases in consumer spending. The expectations and optimism were at 8.1% paving way for deceleration and continued slowdown. Despite a moderation in soaring energy costs and inflation-driven slowdown in demand for fuel it failed to play the key role in easing inflation. Core CPI (which excludes volatile food and energy prices) rose to 6.3% (July 5.9%) against expectations of 6%. 

The FED’s inflation target rate of 2% is now likely to take much longer time. The September 20th – 21st FOMC which had expectations of a 75 basis point increase is now tipped for 100 basis point increase. Dollar instantly gained strength and surged to its near 20-year peak (7th Sept at 110.785). Markets are now anticipating interest rates by year end to be above 4% (4.00% to 4.25% from 3.75% to 4.00%). The continued job market tightness and the support it brings in demand would pave the way to FED’s decision to keep rates higher for longer.

European markets were initially indicating optimism with a three week high EURUSD at 1.0199 based on the lower expectations of US CPI which improved global sentiments. But the disappointment led to EURUSD retreat to 0.9961 levels (3% fall). Meanwhile last week the Euro gained against the dollar on the European Central Bank (ECB) raising the key deposit rate to 0.75% from zero. Will ECB guidance for further aggressive monetary tightening alone help the euro climb up higher to the dollar?

ECB policymakers (with hawkish commentary) are in a dilemma that for at least two years to come, the key interest rates have to be hiked to 2% or more above target rate. Their attempt would be to curb record high inflation (August inflation at 9.1%), despite a likely recession in the euro zone. However, the impact of higher rates is expected to be cushioned due to the strong labour market. Next policy meeting of the ECB is slated on 27th Oct.

Also read: Why ArcelorMittal, other metal giants are shutting factories amid Europe energy crisis; here’s what lies ahead

Global aggressive rate hikes could dampen demand and cause economic slowdown. Indian rupee is insulated for this event only if we have a premeditated policy response and a strong macro-fundamental to stabilize rupee. However we are vulnerable to the global rate hikes on account of capital outflow depressing rupee further. RBI’s response with domestic rate hikes would have to be in line with the global shocks.

Threat to imported inflation (even if the global prices remain unchanged, a weaker rupee will increase the prices of imported inputs), capital outflow and weakening of rupee are the consequences of these interest rate hikes. India’s export oriented sectors are the front-line recipients of this impact, widening our current account deficit (CAD).

USD INR appeared to have consolidated at 79.30 and indicated lower limit support at 78.70 levels. Taking cue from the latest inflation fears in the U.S and dollar index rebounding, in the short term USDINR seeks a strong resistance at 79.60 with support at 79.30. Breaking this resistance, Rupee could cross the 80 mark and depreciate further before higher resistances at 80.30 to 81.00 is seen in the medium term. So far, the depreciating trend in the Indian rupee is a tad out of sync with other emerging economies’ currencies.

(NS Ramaswamy, Head of Commodities, Ventura Securities. Views expressed are the author’s own.)