Gold futures down on global cues; shed 0.87 pc

 
Gold prices fell 0.87 per cent to Rs 29,465 per 10 gm in futures trade on Wednesday, as participants reduced their positions largely in tandem with a weak overseas trend.

At the Multi Commodity Exchange, gold for delivery in October contract eased by Rs 258, or 0.87 per cent, to Rs 29,465 per 10 gm in business turnover of 278 lots.

Likewise, the metal for delivery in far-month December shed Rs 170, or 0.78 per cent, to Rs 29,340 per 10 gm in 22 lots.

Analysts said a weak trend in the overseas markets on speculation the US Federal Reserve will cut its monthly asset purchases at the end of a two-day meeting on Wednesday, mainly weighed on gold prices at futures trade.

Globally, gold lost 1.4 per cent to USD 1,292.95 an ounce, the lowest level since August 8.

Sensex extends gains, up on sustained buying by funds

 
Extending gains for the third straight session, the benchmark S&P BSE Sensex rose 68 points in early trade on Wednesday on sustained buying by funds in select bluechips, amid a firm trend in the Asian region.

At 10.38 am, Sensex was up 1.29 points at 19805.32. Similarly, Nifty was up 0.10 points at 5850.30 during the same time.

Brokers said sustained buying by funds amid a firm trend in other Asian bourses, as investors await the outcome of the US Federal Reserve meeting, mainly boosted the trading sentiment.

The 30-share index, which had gained 71.28 points in the previous two sessions, rose further by 67.56 points, or 0.34 per cent, to 19,871.59 points on the back of gains in IT, metal, auto and FMCG sector stocks.

Similarly, the National Stock Exchange index Nifty moved up by 18.85 points, or 0.32 per cent, to 5,869.05 points.

IT stocks such as TCS, Wipro and HCL remained in demand as the rupee weakened further against the dollar.

Among other Asian markets, Hong Kong's Hang Seng index rose by 0.14 per cent, while Japan's Nikkei gained 0.70 per cent.

The US Dow Jones Industrial Average ended 0.23 per cent higher in Tuesday's trade.

Rupee down 9 paise to to 63.46 against dollar in early trade

 
Renewed dollar demand from importers and appreciation of the US currency led the Indian rupee fall by 9 paise to 63.46 against the dollar in early trade on Wednesday at the Interbank Foreign Exchange market.

Besides dollar's gains against other currencies, as investors await the outcome of a US Federal Reserve meeting, increased demand from importers for the American currency mainly put pressure on the rupee.

However, a higher opening in the domestic stock market, capped the losses, forex dealers said.

The local currency fell by 54 paise to close at 63.37 against the US currency in the previous session even as stock markets posted gains.

Meanwhile, the BSE benchmark Sensex rose by 67.56 points, or 0.34 per cent, to 19,871.59 in early trade on Wednesday.

YSRCP leader offers to buy N Chandrababu Naidu's bungalow for Rs 2 cr

ONGOLE: Mocking Telugu Desam chief N Chandrababu Naidu's claims that his bungalow at Jubilee Hills in Hyderabad is worth only Rs 23 lakh, YSRCP senior leader Balineni Srinivasa Reddy on Tuesday said he was ready to purchase the property for Rs 2 crore.

Balineni dared Naidu to get ready to sell his bungalow as he would be getting nearly 800% profit on the original value. Speaking to reporters, Balineni pooh-poohed the Naidu's claims on his assets saying that the TDP leader was never fair despite people rejecting him twice.

He demanded that Naidu come out with an explanation as to why he was shying away from a probe into his wealth if he really owned only such meagre properties as he listed at the media briefing.

He said every contesting candidate would give an affidavit to the election commission with the list of assets and other valuables owned by them at the time of election itself and there was nothing new in Naidu's claims.

He said Naidu was taking time to only divert the attention of people from serious issues like the division of the state.He asked Naidu to explain as to why he cancelled his tour in Samaikyandhra the region and chose to visit Delhi to focus on Jagan's assets.

The YSRCP leader took strong objection to the words used by Naidu with regard to his allegations against Jagan. "While every leader in public life should behave decently, people would expect more decency from a person who ruled the state for over nine years. It is unfortunate that Naidu has stooped to such a level after realizing that people were not with him," he added.

RBI acts tough on offshore FX trading on the internet

he RBI cracked down on offshore foreign exchange trading by Indians through online trading websites, asking banks to report any such remittances to the regulator.

In a circular issued late on Tuesday, the Reserve Bank of India (RBI) asked banks to advice customers not to undertake forex trading on foreign websites that offer currency contracts by accepting margins through credit card and online money transfer mechanisms.

The RBI also asked banks to close the credit card or online bank account of a customer that is found to be in violation of the rule.

The rupee has been hard hit in this summer's rout of emerging currencies, losing around 20 percent of its value against the dollar at one point, and significantly increasing the burden of Indian companies' dollar debt.

The central bank has been trying to curb the offshore rupee market by asking banks to cut down on overnight positions as well as asking foreign institutional investors to produce documentation from clients in order to hedge their currency risk in the onshore forward markets.

The central bank has already reduced the limit for remittances made by residents to $75,000 from $200,000 per financial year.