ECONOMIC INTELLIGENCE BULLETIN - DGSND · 26,190 per ten gram at the bullion market on 13th August...

ECONOMIC INTELLIGENCE BULLETIN 1st August 2015- 15th August 2015

2015

GOVERNMENT OF INDIA

DIRECTORATE GENERAL OF SUPPLIES &DISPOSALS

JEEVAN TARA BUILDING, 5 SANSAD MARG,

NEW DELHI - 110001

SUMMARY OF ECONOMIC INTELLIGENCE BULLETIN.

Economic Intelligence Bulletin includes abstracts of important economic/commercial/

technical development and reviews as reported in the issues of financial dailies. The

Bulletin pertains to the fortnight ending 15th

August, 2015.

1. PRICE TREND

1.58 OIL STEADIES AS BULLISH IEA BALANCES CHINESE YUAN SLIDE

Oil prices rose on 12th

August 2015 after an upbeat report from the IEA

outweighed the bearish impact of a further weakening of China's Yuan currency and

disappointing Chinese industrial output data.

Benchmark Brent crude oil was up 30 cents a barrel at $49.48 by 1200 GMT,

well above a six-month intraday low of $48.24 hit on 11th

August 2015, but less than

half its value a year ago.

U.S. light crude oil was up 20 cents at $43.28. On 11th

August 2015 the U.S.

crude futures contract closed at its lowest settlement since March 2009.

(BUSINESS STANDARD 13th August, 2015)

1.59 GOLD CLIMBS FOR SIXTH DAY ON GLOBAL CUES, RISING DEMAND

Tracking a firming trend overseas and pickup in demand from jewellers, gold

continued its upward trend for the sixth straight day and gained another Rs 190 to Rs

26,190 per ten gram at the bullion market on 13th

August 2015.

Silver also strengthened by Rs 400 to Rs 36,100 per kg on the back of

increased off take by industrial units, reports PTI.

In the national capital, gold of 99.9 and 99.5 per cent purity surged by another

Rs 190 each to Rs 26,190 and Rs 26,040 per ten gram respectively. It had gained Rs

1,020 in the previous five trading sessions.

(THE FINANCIAL EXPRESS 14th

August, 2015)

2 FISCAL POLICY

2.114 NON-FOOD CREDIT GROWTH SLOWS TO 7.7% IN JUNE

Non-food credit growth of commercial banks slowed to 7.7 per cent in June

2015 as against 13 per cent expansion in the same period last fiscal. The non-food

credit growth in June was also slower than 9 per cent in the previous month of May,

RBI data showed.

Credit to agriculture and allied activities increased by 10.6 per cent in the

period as against an increase of 18.8 per cent in the year-ago month. In the month,

credit to industry rose by 4.1 per cent against that of 10.2 per cent in June 2014.

Advances to the services sector increased by 6 per cent in the reporting period as

compared with the increase of 13.6 per cent in the same month last year. Loans to

non-banking financial companies (NBFCs) increased marginally by 1.6 per cent as

compared with the increase of 16.7 per cent year-ago. In May, banks credit to NBFCs

had increased by 5.6 per cent.

(THE ECONOMIC TIMES 3rd

August, 2015)

2.115 TOP 10 FPIS' STAKE IN INDIAN EQUITIES AT RS 1.8 LAKH CRORE

Europacific Growth Fund holds $131 billion in assets under management; 6.4

per cent of that is invested in Indian equities.

Prime Database recently carried out an exercise to identify the 10 largest FPIs

in India — through an examination of 1,447 listed Indian companies’ disclosure of the

names of their foreign investors to stock exchange — and it turned out these FPIs

together held Rs 1.79 lakh crore in Indian equities.

The biggest FPI in terms of disclosed shareholding (above one per cent) is the

Europacific Growth Fund. Among others on the list of the 10 biggest are sovereign

and pension funds from Singapore and Norway, some familiar names like Franklin

Templeton Investment Funds, and Morgan Stanley Asia (Singapore), besides Dodge

& Cox International Stock Fund, First State Asia-Pacific Leaders Fund, Aberdeen

Global Indian Equity, the Oppenheimer Developing Markets Fund and Copthall

Mauritius Investment. These FPIs together hold shares equivalent to half the equity

assets of the entire Indian mutual fund sector.

(BUSINESS STANDARD 3rd August, 2015)

2.116 10-TIME JUMP IN FDI IN PETROLEUM AND GAS SECTOR

Foreign Direct Investment (FDI) in petroleum and natural gas sector witnessed

an almost 10-time jump in 2014-15 as compared to the preceding fiscal, touching Rs

6,473.22 crore, government told the Lok Sabha on 3rd

August 2015. Union Minister

Dharmendra Pradhan, while replying to questions, said the government is encouraging

foreign investment to supplement domestic investment and technological capabilities.

Over the last three financial years, the sector attracted FDI worth more than Rs 8,375

crore, he said.

(THE ECONOMIC TIMES 4th August, 2015)

2.117 RBI HOLDS RATE BUT SAYS OPEN TO CUTS

In line with market expectations, the Reserve Bank of India (RBI) on 11th

August 2015, kept the key interest rate unchanged at 7.25 per cent at its third bi-

monthly review of monetary policy. The central bank cited uncertainties related to the

monsoon and a spike in core inflation. It, however, added it would monitor

developments pertaining to room for more rate cuts.

"Most worrisome is the sustained hardening of inflation, excluding food and

fuel. More, the full effects of the service tax increase, which took effect from June,

will feed through the rest of the year," RBI, which reduced the repo rate by a

combined 75 basis points since January, said in a statement, adding prices of protein

items had increased sharply in recent months.

RBI Governor Raghuram Rajan said the central bank was "comfortable" with

the pace of disinflation, adding it would monitor the rainfall in August "very

carefully". "We held the policy rate at 7.25 per cent as we await data on whether the

recent increases in inflation, including non-food, are temporary and whether the

monsoon will continue to be near-normal," Rajan said in a post-policy interaction.


2.117 GOVERNMENT TO IRON OUT GLOBAL DIAMOND MINERS TAX

HURDLES

The central government is working on resolving the tax hurdles for global

rough diamond (roughs in sector parlance) mining companies which sell in India at

the proposed Special Notified Zone (SNZ) in this regard. While the tax on import and

export of roughs is nil in India, a cumbersome reporting process to the customs

department has proved a major hurdle for global companies setting up auction offices

here.

Taxation has been a major deterrent for global miners to set up auction offices

in India, in terms of re- export of unsold roughs. Despite India being the largest

cutting and polishing hub in the world, processing 11 of every 13 roughs mined,

global miners De Beers, Rio Tinto and Alrosa have been servicing their Indian clients

from offices in Dubai, Singapore and Israel.

Teotia hinted a separate code for synthetic diamonds was also under

consideration. According to industry sources, existing laws permit global miners to

bring roughs into India and pay one per cent of income tax on the value they sell. The

valuation of the goods, however, might differ between the price miners sell to their

Indian customers and what the customs assesses. Mining companies want a

transparent policy. The industry has suggested a presumptive tax. This means an

assessment by companies which would be acceptable to the customs, on the fair

value.


2.118 INDIRECT TAX COLLECTIONS SURGE 39% IN JULY

The Centre’s indirect tax collections grew 39.1 per cent in July, providing

some comfort to the government that is facing political hurdles in implementing the

goods and services tax (GST) system in the country.

Indirect tax revenues in July stood at ₹56,739 crore, a 39.1 per cent increase

over collection level of ₹40,802 crore in same month last year. While excise duty

collections grew 64.8 per cent to ₹22,273 crore (₹13,512 crore), customs revenues

recorded 23.2 per cent increase to ₹18,996 crore (₹15,419 crore). Service tax

collections surged 30.3 per cent in July 2015 to ₹15,470 crore (₹11,871 crore).

For the April-July period, the Centre’s indirect tax collections grew 37.6 per

cent to ₹2,10,455 crore (₹1,52,896 crore). This revenue collection level represents an

achievement of 36.6 per cent of the Budget estimate target of ₹6,46,267 crore for

2015-16. Excise collections in April-July grew by a whopping 75.4 per cent to

₹83,454 crore (₹47,579 crore).


2.119 GOVERNMENT DROPS PLAN TO USE GOLD DEPOSITS AS PART OF

CRR, SLR

The government has dropped plans to utilise gold mobilised under the

proposed monetisation scheme for meeting the mandatory liquidity requirements for

banks, as it wants to avoid another confrontation with the Reserve Bank of India

(RBI).

The government dropped the plan to use gold deposits as part of cash reserve

ratio (CRR), statutory liquidity ratio (SLR) in the scheme because of opposition from

RBI, sources said.

The scheme is expected to be launched by the first week of September and

Cabinet approval is expected in a couple of weeks, sources said.

―To incentivise banks, it is proposed they be permitted to deposit the

mobilised gold as part of their CRR/SLR requirements with RBI. This aspect is still

under examination,‖ the draft guidelines on the gold monetisation scheme, issued in

May, had said.

CRR is at four per cent while SLR is at 21.5 per cent. Therefore, 25.5 per cent

of the cash deposit mobilised by banks are locked in these two statutory ratios. If gold

mobilised through the scheme is allowed to meet CRR/SLR requirements, the value

of the metal would be considered as deposits for meeting the reserve ratios.


2.120 CREDIT GROWTH SUFFERS AS DEBT & CP STEAL THE SHOW

Benign yields in the corporate bonds and commercial paper market are

allowing companies to pick up money for both short- and long-term needs, leaving the

loan growth at banks muted. Bank credit shrank 3.16% between April and July, and

saw a single-digit growth of 9.65% y-o-y, show RBI data.

Companies have raised Rs 1.69 lakh crore through the corporate bond market

in the first four months of the current fiscal, which is more than three times what they

raised in the same period in FY14.

.

A report by IIFL Institutional Equities says that in FY15, just 60% of

incremental credit to private sector was met through bank against an average of 75%

in the last four years. ―In the first quarter of FY16, the share of bank loans in

incremental credit flow fell further to just 50%,‖ it said.

http://images.financialexpress.com/2015/08/Gr39.jpg

The commercial paper market has also seen a boom with the total amount raised in

the first four months of this fiscal being close to Rs 5 lakh crore, though a reasonable

part of the amount can be attributed to rollovers. Firms also mopped up $6.28 billion

from April to June through external commercial borrowings

(THE FINANCIAL EXPRESS 12th

August, 2015)

2.121 GOVERNMENT TO SELL ANOTHER 10 PER CENT STAKE IN COAL

INDIA

The government will sell another 10 per cent stake in Coal India, which could

fetch more than Rs 23,000 crore at the current market price and provide a much

needed boost to the disinvestment programme that has a record target of Rs 69,500

crore for current fiscal.

The disinvestment department on 12th

August 2015 called for request from

merchant bankers to manage the issue. The government currently owns a 78.65 per

cent stake in the coal miner. Coal India's shares closed 5.53 per cent lower at Rs

371.45 on the BSE on 12th

August 2015, when the benchmark Sensex fell 1.3 per

cent.

The government will appoint up to five merchant bankers to manage the issue.

The deadline to apply is September 2.


3. IMPORT AND EXPORT POLICY

3.39 CHINA, KOREA, JAPAN SHIP 75% OF INDIA'S STEEL Q1 IMPORTS

China, South Korea and Japan together shipped almost 75 per cent of 25.7

lakh tonne finished steel imported by India in the April-June quarter of the current

fiscal, Parliament was informed.

China lead the tally with 7.23 lakh tonnes (LT) followed by South Korea (6.03

LT), Japan (5.9 LT), Ukraine (95,340 tonne) and Germany (89,070 tonne), as per data

tabled by Steel and Mines Minister Narendra Singh Tomar in Lok Sabha. Indonesia

with 83,300 tonne, Russia (56,720 tonne) and Taiwan (44,840 tonne) were the other

major exporters of finished steel to India.

According to the data, China, South Korea and Japan together exported 19.11

LT of finished steel in the first quarter of 2015-16 out of the total imports of 25.7 LT,

accounting for 74.5 per cent of the total imports.

In June, the government raised basic customs duty (BCD) on some long and

flat steel products by 2.5 per cent. Import duty on flat steel products was increased to

10 per cent from 7.5 per cent, while for long steel products it was raised to 7.5 per

cent from 5 per cent.

(THE FINANCIAL EXPRESS 4th August, 2015)

3.40 GOLD JEWELLERY IMPORTS FROM ASEAN GET TOUGHER

India has clamped down on gold jewellery imports from Asean under the free

trade agreement (FTA) it has with the 10-nation bloc, suspecting the influx of the

yellow metal is from third countries taking advantage of a lower customs duties

regime through this route.

Revenue authorities suspect that these imports are in violation of rules of

origin specified under the FTA that insist on a 35 per cent value addition by an Asean

member before a third-country product is exported to India. Importers now have to

furnish a bank guarantee in lieu of the duty benefits they avail under the free trade

pact until the country-of-origin certificate of the Asean nation is verified. Gold

jewellery imports under the India-Asean FTA face 2 per cent import duty against 10

per cent through the normal trade channel, offering an attractive arbitrage opportunity.

India signed the FTA in goods with Asean in 2009.


3.41 INDIAN EXPORTS TO WITNESS 10% JUMP ON US GSP

With the US renewing generalized system of preferences (GSP) benefits on

retrospective basis from July 29, India's merchandise exports can see a 10 per cent

jump in the present fiscal of 2015-2016.

Of the total exports of $310.57 billion in 2014-2015, US accounted for $42.44

billion. Under the US GSP, 3,500 product lines will be eligible for the benefits. Some

of the main ones in these are engineering goods (mechanical machinery, electrical

machinery and equipment, tools, agricultural implements), organic and inorganic

chemicals, plastic and copper, among others.

Export of engineering goods, which constitutes 24 per cent of the country's

total exports and US being its biggest market, is expected to jump by 15-20 per cent.

The average duty on engineering imports in the US ranges from three to four per cent.

"Our exports meant for the US markets are now going to go up by 15-20 per cent on

annual basis due to this as we are now expecting a quantitative jump. This will also

help in gaining the competitiveness that Indian exporters lost," said Sanjay Budhia,

managing director of Kolkata-based Patton International Ltd, engaged in exporting

steel stampings, locknuts and other fittings to the US.


3.42 CHINA’S YUAN DEVALUATION MAY HIT INDIAN EXPORTS

China's unexpected decision to devalue the Yuan in a bid to boost sluggish

overseas sales has come at a particularly bad time for India, experts said.

It's also raised the possibility of a currency war as countries battle for a share

of the slow-growing global export market. India's exports have contracted for the past

eight months amid an erosion of competitiveness, impacting domestic recovery and

also potentially threatening the Narendra Modi government's Make in India

programme. This aims to turn India into an export-led manufacturing centre to create

jobs, lift incomes and hasten growth.

"It will not just hurt Indian exports to China but largely to third countries.

India already has a trade deficit of close to $50 billion with China," Sahai said.

Finance secretary Rajiv Mehrishi said the move seems to suggest that China is

moving toward a flexible exchange rate.

China's exports fell 8.3% in July suggesting further weakness in the economy

that's likely to grow at a 25-year low of below 7% this year. India is battling a loss of

competitiveness because of the relative appreciation of its currency against those of its

competitors.


3.43 GOVT RAISES IMPORT DUTY ON BASE METAL ITEMS BY 2.5%

The government on 12th

August 2015 increased the import duty on base metal

items made of iron, steel, copper, nickel and aluminum by 2.5 percentage points,

drawing praise from domestic producers but annoying end users such as engineering

exporters. The move, announced by finance minister Arun Jaitley in Parliament, is

aimed at checking cheap shipments from China, South Korea and Japan.

The basic customs duty on flat-rolled steel products was raised to 12.5 per cent

from 10 per cent, whereas the ones on iron and non-alloy steel ingots, bars, rods,

wires of stainless steel and semi-finished products of iron hiked to 10 per cent from

7.5 per cent.

The steel companies' shares saw a jump after the announcement. Those of Tata

Steel closed 2.2 per cent higher, Steel Authority of India 0.1 per cent on the BSE.

However, shares of JSW Steel rose 0.8 per cent during the day, but closed lower.


3.44 SLUMPING YUAN THREATENS MORE GLOOM FOR WORLD'S METALS

PRODUCERS

China's shipments of steel and aluminum, used in everything from fridges to

skyscrapers, surged to a record this year as the slowing economy created a domestic

surplus with nowhere else to go. The surprise move by the central bank, which

spurred the biggest two-day slump in the Yuan since 1994, makes the products even

cheaper, threatening more pain for world rivals struggling with lower prices.

China's steel shipments surged 27 per cent to 62.13 million metric tons in the

first seven months of the year, the highest ever for the period, customs data compiled

by Bloomberg show. Exports were about the same as output in Japan, the world's

second-biggest producer, according to World Steel Association data. Aluminum sales

rose 28 per cent to 2.87 million tons.

Prices for steel hot-rolled coil exported from China slumped 31 per cent in the

past year, according to data from McGraw Hill Financial Inc.'s Platts. Aluminum

prices declined 23 per cent on the London Metal Exchange.

At the current pace of growth of about 50 per cent seen in the past few

months, India's steel imports may surge to 15 million tons from 9.3 million tons a year

earlier, JSW's Rao said by phone.

"Almost 20 per cent of Indian steel demand is from imports, which is very

disturbing and destabilizing." Steel imports jumped 58 per cent to 3.5 million tons in

the four months ended July 31, government data show.

Tata Steel Ltd, the country's biggest producer, reported on 11th

August 2015, a

19 per cent drop in group earnings before interest, taxes, depreciation and

amortization in the three months ended June 30 amid the slide in steel prices. The

company's shares have plunged 54 per cent in the past year.


4. MISCELLANEOUS

4.157 MANUFACTURING PMI GROWS AT FASTEST PACE IN 6 MONTHS IN

JULY

Manufacturing activities rose to a six-month high as orders from both

domestic and overseas markets shot up, showed widely-tracked Nikkei purchasing

managers’ index (PMI) on 3rd

August 2015. Even then firms reduced jobs, though

moderately. However, experts were not gung-ho about the July PMI, saying the

momentum needs to be sustained.

PMI increased to 52.7 points in July, from 51.3 in the previous month. It was

the highest since January recorded 52.9 points. A reading above 50 shows expansion

and the one below means contraction. The data, which came a day before the Reserve

Bank of India’s monetary review, also showed that while input inflation rose

marginally, output inflation remained stagnant. Both the output and new orders led to

the rise in PMI.

―Although the latest data suggest that the manufacturing upturn gained

traction, worries regarding the labour market persist. Continued job shedding

highlights the concern felt by businesses towards the outlook, with firms failing to

increase workforce numbers to any great extent since early 2014,‖ said Pollyanna De

Lima, economist at Markit and author of the report.


4.158 COTTON CORPORATION SELLS HALF OF STOCKS BEFORE NEW

ARRIVALS

Government-owned Cotton Corporation of India (CCI) has sold nearly half the

fibre procured in crop year 2014-15 under the minimum support price (MSP)

operation. CCI has procured a total of 8.6 million bales (a bale is 170 kg) since

October 2014 and started offloading in both domestic markets and abroad via daily

and weekly tenders. That included export of 80,000-100,000 bales to Bangladesh.

The quantity of sale is significant as domestic textile mills complain CCI has

not been releasing enough, resulting in prices moving up. Even so, the price of cotton

at Rs 33,000 a candy (356 kg) is at a four-year low.

The Cotton Advisory Board estimates output at 40 mn bales in crop year

2014-15 (October–September) against 39.8 mn the previous season. The US

department of agriculture estimates output at 37.5 mn bales in the harvesting season

2015-16, starting this October.


4.159 SERVICES PMI RETURNS TO MODEST GROWTH IN JULY

After two months of consecutive contraction, services activities in the country

rose in July, albeit marginally, as demand increased, showed a widely tracked Nikkei

purchasing managers’ index (PMI). Quite ironically with the manufacturing sector,

services firms still hired additional hands.

PMI rose to 50.8 points in July as new business was forthcoming against 47.7

in June and 49.6 in May. The reading above 50 is growth, and the one below it,

represents contraction.

The upturn in incoming new work led Indian service providers to take on

additional workers in July. Although slight, the rate of job creation was the quickest in

two years.


4.160 GLOBAL COTTON OUTPUT TO DECLINE 9% IN 2015-16

Global cotton output is estimated to decline by nine per cent in crop year

2015-16 on a marginal diversion of the crop on low prices in major countries like

India.

The Washington-based International Cotton Advisory Committee (ICAC) has

forecast global output at 23.83 million tonnes (mt) in 2015-16 as against 26.2 mt the

previous year. In 2013-14, a bumper global cotton output was reported at 26.28 mt.

Against that, however, global consumption of the natural fibre was forecast at

24.9 mt in 2015-16 as compared with 24.35 mt the previous year. With an import and

export global balance at 7.7 mt, global carryover stocks are estimated at almost 21 mt

in 2015-16 against 22 mt the previous year. ICAC forecasts India’s output at 6.4 mt, a

dip of two per cent from the previous year.

The agency estimates India’s ending stock at 2.2 mt in 2014-15, the second

largest volume. Part of the rise is with the government, which procured under a

minimum price support programme. Cotton Corporation of India purchases in 2014-

15 are estimated at 1.5 mt and sales through the end of July at 650,000 tonnes.

However, exports from India have fallen 51 per cent to 980,000 tonnes, also

contributing to the build-up of stocks.


4.161 CPI INFLATION TO AVERAGE 5.6% THIS FISCAL: DBS

Retail inflation in India is likely to average around 5.6 per cent this year, down

from 6.1 per cent in financial year 2014-15, says a DBS report.

"Overall, inflation this year is likely to average a benign 5.6 per cent, down

from 6.1 per cent in financial year 2014-15, but the trajectory will matter to the RBI,"

DBS said in a research note.

As per official figures, retail inflation stood at an 8-month low of 5.4 per cent

year-on-year in June compared with 5.01 per cent in May. RBI tracks CPI, or retail

inflation, in deciding its monetary policy action.


4.162 RUBBER OUTPUT COULD PLUNGE TO LOWEST IN NEARLY TWO

DECADES

Natural rubber production is likely to sink as much as 15 percent to its lowest

in nearly two decades as farmers suspend tapping due to falling prices, rubber and

tyre industry officials said.

Combined with growing local demand, that could force the world's second-

biggest consumer of the commodity to increase shipments from key exporters such as

Thailand, Vietnam and Indonesia.

"Production will fall since some farmers have suspended tapping," said Rajiv

Budhraja, director-general of the Automotive Tyre Manufacturers Association

(ATMA). "This year we are expecting a 12- to 15-percent drop over last year's

production."

The world's fifth-biggest rubber producer churned out 655,000 tonnes in the

2014/15 crop year that ended on March 31. Output this year could drop to its lowest

since 1996/97 at 557,000 tonnes, estimated Budhraja.

Average Indian rubber prices quadrupled to 208 rupees ($3.26) per kg in the

eight years to 2011/12, leading to a spike in wages. But while prices have nearly

halved from that peak, wages have stayed high.

India's natural rubber consumption this year could rise 4 percent from last

year's 1.02 million tonnes, pushing tyre makers to increase overseas purchases,

Budhraja said. India's natural rubber imports had risen five-fold in seven years to

414,606 tonnes in 2014/15.


4.163 JULY CPI PLUMMETS TO 3.78%, JUNE IIP HITS FOUR-MONTH HIGH

AT 3.8%

Consumer inflation and industrial output data were cause for cheer amid

gloom over the parliamentary logjam halting the goods and services tax bill and

markets getting rocked by the Yuan devaluation.

Data released on 12th

August 2015 showed better-than-expected industrial

growth of 3.8 per cent in June on the back of rising consumer goods production,

suggesting improved consumer sentiment. Consumer inflation slowed more than

expected to 3.78 per cent in July, well below 5.4 per cent in June and the Reserve

Bank of India's January 2016 target of 6 per cent.


4.164 AT RS 40 CR, INDIA CEMENTS NET SEES SECOND QUARTERLY RISE

India Cements reported a net profit of Rs 40 crore in the June quarter against a

net loss of Rs 3 crore in the same period last fiscal, thanks to an impressive Rs 600 a

tonne net realization level and a better operating cost efficiency. In the March quarter,

it had recorded a net profit of Rs 36.6 crore.

However, the total operating income fell 13% to Rs 1,075.45 crore against Rs

1,23.82 crore in the June quarter last fiscal due to a reduced capacity utilization at the

plant to 58% compared with 67% in the same quarter last fiscal, said N Srinivasan,

India Cements vice-chairman and managing director.


4.165 INDIA GOLD DEMAND FALLS 25% IN APR-JUN: WGC

Gold demand in India crashed by a fourth in the quarter through June from a

year before to 154.5 tonne — far lower than a 12% drop globally — as rural demand

collapsed, according to the data released by the World Gold Council (WGC) on 13th

August 2015. In value terms, domestic gold demand plunged by 26% in the June

quarter from a year before to R37,590 crore.

In the first half of the calendar year, demand fell just 7% to 346.2 tonne,

compared with 372 tonne in the corresponding period last year, thanks to a 15% spurt

in demand in the first quarter of this year.

Jewellery demand fell 23% to 118 tonne and investment demand declined

30% to 36.5 tonne. In value terms, jewellery demand fell 24% to Rs 28,703 crore and

investment demand dipped 31% to Rs 8,887.2 crore.


4.167 RUPEE FALLS BELOW 65 AGAINST US DOLLAR

The rupee fell for the third straight day on 13th

August 2015, breaching the key

psychological 65 to the dollar mark as bearish bets on the currency continued to pile

up after the devaluation of the Chinese Yuan earlier this week.

The currency, which settled at a fresh two-year low of 65.10, has lost 1.38%

over the last three days while the Yuan has depreciated more than 2% over the last

three days with the People’s Bank of China devaluing the currency both on 11th

August and 12th

August 2015 through a change in the methodology of setting the

currency’s daily reference rate.




ECONOMIC INTELLIGENCE BULLETIN - DGSND · 26,190 per ten gram at the bullion market on 13th August...

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Transcript of ECONOMIC INTELLIGENCE BULLETIN - DGSND · 26,190 per ten gram at the bullion market on 13th August...