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For private circulation

Vol 1 Issue 5 May 2012

A Monthly Financial News Letter from RBG Commodities

MAKE HER AND CHILDS FUTURE SHINES LIKE GOLD.. INVEST IN GOLD ETFS.. ETFS SAFE RETURNS, NO WORRIES OF THEFT AND SAVES ON LOCKER CHARGES.
For more details Contact RBG Trading Point 0484-2224044 or mail us at 2224044 marketing@rbgcommodities.com

General Financial News

FMC moots commodity centric training commodity-centric institute for degree, diploma courses.
Dilip Kumar Jha / Mumbai Mar 23, 2012, 00:58 IST The Commodity Markets regulator, FMC has proposed to set up a National Institute of skill development. Proposal has been moved recently to its parent ministry, food and consumer affairs. The idea is to set up degree and diploma courses on Commodity markets. The proposed one would provide job oriented educational and technical job-oriented skills.

Standard and Poor (S&P), one of the leading rating agencies in the world cut down India's long-term credit rating outlook to negative from stable. The downgrade to term BBB-, only one notch above "junk" status, indicates that the country is less efficient in paying , off its debts. This would scare foreign investors and domestic investors from investing into government bonds and secu s securities. After India's outlook rating was lowered, the FIIs pulled outlook out Rs 777 crore. According to the data available with the market regulator SEBI, Foreign . Institutional Investors (FIIs) in the month of April, made a gross purchase of Equities worth Rs 39,008 crore and sold shares valued Rs 39,785 crore translating into a net outflow of Rs 777 crores, The main reason for this downgrading was Indias growing fiscal deficit. Economists are
The commodities derivatives market regulator has asked all exchanges in the sector to provide details of mark marktomarket (M2M) beneficiary market accounts for the past six months in highly liquid farm commodities. These include potato, guar, chana, rapeseed, mustard seed, cardamom, lude mentha oil, pepper and soybean. FMC chairman Ramesh Abhishek told Business Standard, We have asked exchanges to provide these details in other highly volatile agri commodities. We would take stern action in case of any evidence of stern price manipulation in these sectors. The regulator had halted futures trading in guar due to continuous price rise in the futures market. Guar gum and seed prices had jumped almost 70 per cent since January, despite severe measures in the form of high margins, reducing position ere limits and suspension of traders by the regulator. After banning all further futures trading in guar from last week, the commodity derivatives market regulator, the Forward Markets Commission (FMC), has initiated investigations in other farm commodities, too, to check for price manipulation by traders.

FMC widens crackdown after guar ban

The commodity derivatives market regulator asks for deal details of other farm commodities in the wake of price swings
Reporter / Mumbai Mar 29, 2012, 00:26 IST

looking at over 4% of gross domestic product (GDP) current account deficit for FY12 FY12-13, which in dollar terms would be something to the upward of USD 80 billion close to about USD USD 85 billion. The main question is how India is going to finance this deficit. S&P express concerns over Indias time delay in implementing their policy decisions. In addition, Foreign institutional investors (FIIs) battling uncertainty about tax liabilities are facing troubles on yet another front with the announcement of the Union Budget. Due to the sliding of Indian currency, the value of international investors' holdings in the Indian market has eroded by $9 billion in the past month when the rupee slid 4% against the US dollar. The Investors favorite Infosys Technologies was the biggest drag on investor wealth, with the stock losing more than 14% of its value in Indian rupee, which translates into a loss of $215 million. The downgrading of the Indias credit rating will make many Investors cautious. We think that exit of FIIs from Indian market is temporary. Further opening up India in sectors such as aviation, Insurance and opening up multi brand retailing will help improve foreign capital improve inflows and also improve investors' sentiment. FIIs are the major participants of the Indian s participants Indices and with their fresh investments in Indian market we can expect market at the market, ct higher levels.
Sandeep Chandran, RBG research

Inaguration of RBG Trading Point We are proud to open our new office Trading Point at Haji Eisa Building, Palace road, Cochin, exclusively for the Equity Traders in and around Cochin. As an inagural offer brokerage will not be charged till 100 days.
Sri, Radha Ballabh Gupta, Chairman lighting the lamp.

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RBG Financial Educational Programs

Seminar on Currency Trading at our Calicut Branch. For more details and registering, call us at the numbers given below 0484-2588841 / 48 2588841 Do you want us to run a seminar in your area ? Mail us your details with approximate date and we will get back to you in just one hour ails, ne

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EQUITY MIRROR
In the month of April the Equity markets witnessed selling due to the weak results from many of the leading Indian Companies and also due to the downgrading of the Indias credit ratings by Standard and Poor. S&P lowered its outlook on Indias ratings from stable to negative, owing to concern on fiscal consolidation, reforms and external conditions. As a result of this FII turned net sellers and sold shares worth 777 crore. In the case of the results Infosys came with a big blow to the Investors sentiment. The guidance of the Infosys was much below NASCOM Industry growth estimates. But Indias Largest Software exporter TCS came out with brighter results and their guidance was much above the NASCOM estimate. With the announcement shares of TCS jumped more than 12%. The results of many Banking sector companies were outstanding. Results of ICICI Bank, Axis Bank etc., beat market expectations. Reliance Industries results was also much below

COMMODITY MIRROR
More than Metal commodities last month Agricultural commodities are under the limelight of the traders. The FMC decision to conduct inquiry into prices changes led commodities like Pepper, Menthaoil, RMSeed, Chana, Cardamom etc., under huge volatility. Pepper: In the month of April Pepper May contract made a high of around 39500 and made a low of 36300. But by the end of month Pepper witnessed recovery on good buying interest and reports of firmer markets in other origins. Availability in India and other origins is reportedly limited and that, in turn, is keeping prices firmer. We remain positive in the pepper in the months to come due to the thin arrivals in market and firmer origins. Rubber: Natural rubber (NR) production in India increased by 4.3 per cent in

fiscal 2011-12, said Ms Sheela Thomas, Chairman, Rubber Board. She was delivering the presidential address at the 168th meeting of the Rubber Board. The growth in the NR sector, she said, will continue without much fluctuation, even though many countries were facing economic uncertainties. She also pointed out that the threat of a sharp slowdown had eased, with economic recovery in the US and better policies in the Euro area. We remain negative for the rubber prices in the month of May due to the weak global fundamentals. Bullions: Gold prices were in bullish path in the month of April mainly due to the weakness in the dollar Index. The economic news flows from US also acted as a positive factor for the gold prices. We remain positive for the gold in the month of May and expecting gold prices to the levels of 29500 levels in the June expiring contract. Crude Oil: Crude oil prices eased from the higher levels as Iran resumes

expectation due the decline in the refining margins of the companies. Technically, Nifty has good support around 5050 levels and resistance around 5350 levels. For the month to come the performance of the global indices will be a guiding factor for the Indian Indices. The news from Euro zone, Economic news from US is crucial for the global indices. The Central Government is hinting about giving permission to oil marketing companies to hike petroleum prices, such decision may lead to some buying in such companies, but the concerns about the Inflation will also grow. The lack of clarity in GAAR (General Anti Avoidance Rule) is also a factor for the selling from the part of Foreign Institutions. Recently Government removed cap on sugar exports and brought it under open general license (OGL). This Governments move seems to be positive for the sugar sector, which may led sugar domestic prices of sugar to higher levels. Another worrying factor for the economy is the weakening of the rupee. At present levels of the markets it will be better to avoid short term positions, but for the long term players it seems to be great opportunity to accumulate shares of fundamentally strong companies.
RBG Research

discussions with International atomic agency. Some positive economic flows from the US prevent crude oil prices from fall. But the rising of US crude Inventory levels may make crude oil prices under pressure in the month of May. Base Metals: Base Metals witnessed a recovery by the mid of April to the strong numbers on US factory and Manufacturing data. We are expecting a range bound market for the base metals in the month of May.
RBG Research

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Disclaimer: This electronic news letter is only an information service. Informations are collected from different sources which are believed to be reliable, but are not guaranteed by RBG Commodities about the accuracy. RBG Commodities does not assume any responsibility or liability resulting from the use of the information given.

Editorial Board: Shijo Jose, Sandeep Chandran, Vishal Dand RBG Commodities Limited, VI/93, Jew Town, Cochin 682002. Tel: 0484-2588841/44/48/09