Gold touches historic peak of Rs 18,000

NEW DELHI: Surpassing all previous records, gold touched another historic peak of Rs 18,000 per 10 gram in the bullion market here on persistent buying by stockists for the ongoing marriage season amid firming global cues.

Standard gold and ornaments rose by Rs 220 each to Rs 18,000 and Rs 17,850 per 10 gram, respectively. Sovereign also rose by Rs 100 to set a new peak of Rs 13,800 per piece of eight gram.

Marketmen said firming trend in the overseas market supported the rise in yellow metal here. Gold in Asia traded 0.8% higher at 1,179.20 dollar an ounce, while in futures trading in New York, the metal surged to record 1,181.60 dollar an ounce.

Gold in the international markets touched record levels as the dollar extended declines amid fears that more central banks might purchase gold from IMF.

The metal has rallied 11% after India bought 200 metric tons of gold from the International Monetary Fund in October. Mauritius, Sri Lanka and Russia have followed suit since then.

"Gold is moving on fast pace ever since the central banks started purchasing the metal," said Rakesh Anand of R K Jeweller.

Meanwhile, silver ready rose by Rs 250 to Rs 29,000 and weekly-based delivery by Rs 160 to Rs 28,580 per kg, while silver coins continued to be asked around previous level of Rs 34,400 for buying and Rs 34,500 for selling of 100 pieces.

TOI

USD 3-bn WB loan for road projects soon: Nath

STAFF WRITER 16:27 HRS IST

New Delhi, Nov 25 (PTI) India may soon get a USD 3-billion (about Rs 14,000 crore) loan from the World Bank for building roads in the country, Road and Highways Minister Kamal Nath said today.

"The World Bank President Robert B Zoellick is arriving here on December 2 and we are hopeful of getting clearance for USD 3 billion loan as sought by us for highway projects," Nath told PTI on the sidelines of a press conference today.

The Transport Ministry is working out the cost of various highway projects and may seek more funds from the World Bank during the meet, the minister said.

However, the mode of paying back the loan has not been finalised yet.

Sensex ends higher in choppy trade, RIL led support

TAFF WRITER 16:43 HRS IST

Mumbai, Nov 25 (PTI) In choppy trade, the Bombay Stock Exchange benchmark Sensex gained 68 points as investors reshuffled their portfolios on the eve of expiry in current month contracts in the derivatives segment.

The 30-share index closed higher by 67.87 points at 17,198.95 points.

The wide-based National Stock Exchange index Nifty rose by 17.60 points to close at 5,108.15 points.

Brokers said every decline in the market was capped due to buying in fundametnally strong stocks in refinery, fast moving consumer goods, auto and banking sectors.

Asian markets closing with gains and firm opening in European stock markets also influenced trading sentiment to some extent, they added.

The trading sentiment turned volatile as investors reshuffled their holdings before the expiry in November month contract in futures and option segments tomorrow.

The heaviest on the Sensex, Reliance Industries, and tobacco major ITC saved the market from falling. RIL closed up 0.

Amended notice to Reliance Industries

New Delhi, Nov 23: India’s markets watchdog has served an amended notice to Reliance Industries asking why it shouldn’t be barred from accessing the stock markets under the rules on fraudulent and unfair trade practices and the gains it made of Rs 513 crore not be disgorged.

The show cause notice has been issued in the matter relating to alleged insider trading in the shares of now defunct Reliance Petroleum, which had since merged with Reliance Industries, led by billionaire industrialist Mukesh Ambani.

The notice issued by the investigation department of the Securities and Exchange Board of India (SEBI) further asks why directions should not be issued to bar the company from buying, selling and dealing in any security, directly or indirectly. The original show cause notice was issued April 29 and pertained to alleged manipulative gains of Rs 513 crore made by Reliance Industries and 12 entities acting on its behalf. “Reliance Industries Ltd has always abided by all the rules and regulations of SEBI and, hence, has neither violated any provision of insider trading nor acted in any manner so as to attract provisions under Section 11(i), 11 (B) and 11(4) of the SEBI Act, 1992,” said a company spokesperson.

In a written reply to the Rajya Sabha in March last year, then minister of state for finance, Pawan Kumar Bansal, had said the markets watchdog had initiated an examination into the matter of alleged insider trading in shares of Reliance Petroleum. The matter pertains to the sale of shares of Reliance Petroleum by the parent company in November 2007 to raise Rs 40.23 billion. Reliance Industries subsequently said in a disclosure that the sale of shares was conducted by transactions through the stock exchanges and had helped to further broadbase the shareholding pattern. In the show cause notice to the company, the markets watchdog had observed that between November 1-5, 2007, some 12 entities acting on behalf of Reliance Industries had created short position of around 7.65 crore shares at Rs 290 per share. This, the watchdog said, had risen to 9.92 crore shares on November 6, and the 12 entities accounted for as much as 93.63 per cent of the total permissible open interest in Reliance Petroleum for the expiry of the contracts on November 29. It observed that the short sale of the contract was so large that the derivative contracts of the scrip reached the market-wide position limit on November 6 itself, inviting the mandatory restriction of no further open interest. Then, the watchdog said, the 12 entities started selling the Reliance Petroleum shares heavily in the cash market, amounting to 4.01 per cent of the company’s equity, and depressed the price to around Rs 210. The whole manipulative operation was arranged by Reliance Industries and it was aided by the 12 related entities. Reliance Industries earned Rs 513 crore by indulging in these manipulative activities. The latest show cause has also asked why these gains should not be disgorged. (IANS)