01 Nov Wednesday Sensex rises above 33,500, Nifty crosses 10,400

stock market high Stock markets are open higher led by India’s ‘Ease of doing Business’ ranking in the World Bank’s report. At 10.15 am the Nifty 50 rose 99.15 points to a fresh record high of 10,434, while the BSE Sensex also hit a lifetime high of 33,589.82 by 376.69 points on Wednesday. The Indian rupee opened at 6-week high v/s dollar.

Shares of Tech Mahindra and Hero MotoCorp will be in watch out today ahead of their Q2 earnings. The other corporates which are also scheduled to state their Q-2 profits includes Apollo Tyres Ltd, Greaves Cotton Ltd, Godrej Consumer Products, Hexaware, JSW Energy, Shriram Transport Finance, Max India Ltd, Tourism Finance Cropn and TVS Motors Ltd.

Inter Globe Aviation Limited’s stock rose 2.2% to Rs. 1271.35 after the company has reported a 294% increase in net profit to Rs. 551.55 crore

Stocks of Syndicate Bank rose 10% to Rs. 90.65 after the bank unveiled a net profit of Rs.105.24 crore from Rs 82.42 crore a year ago.

India’s ranked in the World Bank ease of doing business survey-2018 making a record 30 to 100 notches, as a range of regulatory policy reforms.

Commodity Tips MCX Gold, silver end flat on lack of demand today

Gold Silver prices Gold and silver were being traded flat in morning trade on Monday due to lackluster demand of precious metals from jewellers, industries and retailers.

MCX Gold futures were trading 0.12%, or Rs. 36, down at Rs 29,282 /10 gram whereas MCX Silver futures were down 0.08%, or Rs. 33, at Rs 39,116 / 1 kilo.
Investors remained watchful before the naming of the subsequent US Fed Reserve chair and ahead of a 2-day FOMC meeting, both scheduled this week.

Meanwhile, the rupee, the domestic currency, rose higher by increasing 16 paise to 64.89 V/s U.S dollar after the European Central Bank announced that it would soon shrink off its monetary stimulus.

The weakness of dollar against the Euro and other key currencies overseas following the European Central Bank move set off the rise in the local unit.

Best Stock Tips: Factors that may direct the Market in Coming Week

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The Stock market through the coming week will be dictated with several factors that include the trend in global markets, quarterly earnings of companies, investment by FPIs and DIIs, movement of rupee V/s USD and the price of crude oil combined with possible approaching events that may take place.

The Stock markets will remain close on Friday, 25 August 2017, for Ganesh Chaturthi. Some prominent companies are in line with posting their results. The companies which will announce their April-June 2017 quarterly earnings, includes CARE Ratings Limited, Castrol India Limited, Proctor & Gamble Hygiene Health Care and Gillette India Limited. CARE Ratings announces their results on Tuesday, 22 August 2017, whereas Castrol India and Procter & Gamble Health Care announces their earnings on Wednesday, 23 August 2017. Gillette India is expected to post their earnings on Thursday, 24 August 2017.

The monsoon rains will also be factored, because the June-Sept south-west monsoon is significant parameter for the country’s agriculture as an extensive part of the country’s farmland is dependent on the rains for irrigation.

Investors looking on Commodity Future Markets

Indian markets opens new avenues for retail investors and traders to participate in commodity trading. For those who want to diversify their portfolios away from shares, real estate and bonds, commodities is considered the best option.

As per an estimate, 10 percent of retail investors occupied in equity trading have now moved to commodity trading. On account of increase in rate of inflation, there is growing insight among people with regard to the prices of commodities, which has resulted in growing interest of traders and investors towards commodity market.

Following are some parameters for investing or trading in commodity on large level:
Since commodity futures trading are done on margins, the investor deposits a portion of the value of the futures contract with the broker to cover the margin requirements of the exchange. This gives the investor greater leverage whereby the ability to generate higher returns sounds more.

Investments in commodity futures offer high liquidity and it is easy for investors to buy and sell futures and can liquidate their position, if so desire. Further, there is an additional advantage of being able to utilize the profits from a trade to a different place, without having to close the position.

Also commodities markets investments are an exceptional means of portfolio diversification. For instance, the price of gold has historically shown a low correlation with most other asset prices, and thus offers an excellent means for portfolio diversification.

Commodities offers vast potential to become a separate asset class for market-friendly investors, speculators and arbitrageurs. Retail investors, who claim to appreciate the equity markets may find commodities a profound market. Retail investors should recognize the advantages and risks of trading in commodities futures before taking a leap.

The other benefit for commodities traders in India is Risk management. Futures market widely helps in price discovery process and risk management. Exchanges have prudent risk management practices and structured settlement procedures, which restores confidence to an investor. Commodities futures exchanges have an electronic trading platform which helps creating a transparent price detection mechanism driven by market fundamentals and the risk factor without any intervention by sellers or buyers.

The above parameters pronounce fact that commodities have emerged as an alternative investment class and commodity markets across the world are keeping momentum by the latest technological innovations and up-gradations which has made information flow from one market to another very fast.