CURRENCY & COMMODITIES VIEW

Reserve Bank has decided to create a central repository on large borrowers both individuals and entities with exposure of more than Rs 10 crore to help banks deal with credit risks.

The RBI, in a notification, said that it is necessary to build a repository of large credits and share with the banks for enabling them to be aware of building leverage and common exposures.

Accordingly, it has been decided to use the information supplied by the banks through the Return on Large Borrowers (FormA)...which captures system wide exposure of individuals and entities having exposure (both fund and non fund based) of more than Rs 10 crore, for creation of central repository of large credits across banks. Raghuram Rajan on his taking over charge as RBI Governor had said that the central bank proposes to collect credit data and examine large common exposures across banks. This will enable the creation of a central repository on large credits, which we will share with the banks. This will enable banks themselves to be aware of building leverage and common exposures

RBI collects the data from banks and non submission of or wrong reporting attracts penalties.

Banks are to take utmost care about the data accuracy and integrity, while submitting the data on large credit to the RBI, failing which penal action...would be undertaken. Gross non performing assets (NPA) of public sector banks rose to Rs 1.76 lakh crore at the end of June quarter from Rs 1.55 lakh crore at March 31, 2013. The ratio of gross NPA to gross advances for commercial banks rose from 2.36 per cent in March 2011 to 3.92 per cent in June 2013 .

COMMODITIES VIEW>>>

NIFTY FUTURE ON CHART

BULLS ARE RESTORING THE LEAD FOR NSE NIFTY FUTURE

A unexpected improvement of key geopolitical risk, good numbers from China and the belief of a light tapering have switched on risk appetite, weakness in dollar uv rupees.

I was planning on a larger bounce within the scenario of Zig Zag seen in chart, in other words I was deciding on}the up leg off the as mentioned in chart… just look toward the chart and gap.

• Price managed to close above crucial moving averages.
• On the chart shows a potential resistance line which set up 6030
• In the coming days, short sellers will create good position on short side
• 200-300 Points of short fall expected only, therefore don’t create overload position on short side.
• Market is still good for up move, just expected short term fall…

CURRENCY & COMMODITIES VIEW

 

The rupee rose 73 paise to 63.11 against the US dollar at the Interbank Foreign Exchange market.

The partially convertible rupee was at 63.11, its lowest since August 23, and 63.84/85 previous close.

The rupee rose to near three

-

week high as dealers cited corporate inflow related dollar selling.

The rupee had settled at 63.84 against the dollar yesterday and was up 140 paise over the previous day's close as fears of US military strike on Syria eased, leading to lower global oil prices.

Several dealers cite selling by a large private petrochemical company. Some dealers also cite selling related to possible front- running due to inflows towards Mylan Inc's $1.6 billion deal to acquire a unit of Strides Arcolab BSE 0.52 % Ltd.

 

COMMODITIES>>>>>