It will better to exercise caution while trading in gold on the domestic and futures market. The yellow metal turned volatile on Friday, initially dropping to as low as $1,180 before climbing back to $1,200 an ounce in early Asian trade.
But there should be little doubt that the bears have their grips firm on the precious metal and it could take a while before they loosen. If US GDP numbers have held promise to stop gold from falling on Thursday, the jobs data have given a stick to nay-sayers to beat gold.
US Federal Reserve Chairman has said that any pruning of the $85-billion monthly programme to boost economy will depend on various economic parameters that will emerge in the next few months. However, the emerging data could lead to whetting down of the stimulus package.
The recovery of gold by over $12 means Asia finds value in buying at current levels. The question is how long physical buying can continue, particularly in the face of investors and hedge funds fleeing the yellow metal.
Read more: Business Line
Is the rupee still overvalued?
The rupee might have recovered some ground after touching an alltime low on Wednesday, and is now expected to stabilise around 59 per dollar levels. But, with the present global uncertainty likely to continue and the high current account deficit (CAD) not coming down soon, pressure on it will stay for a while.
The relative value of the rupee has fallen in May, when the currency came under pressure following high trade deficit figures and uncertainty over the pace of the US Federal Reserve’s easy money programme.
According to Reserve Bank of India data, in May, the REER value of rupee was at 92.01, down from 93.03 in April.
REER indicates the weighted average of a country’s currency relative to an index or basket of other major currencies, adjusted for inflation. If the value is less than 100, then it is considered undervalued. Different brokerage and research houses have their respective indices to measure currency valuation.
In May, the currency has depreciated by five per cent against the dollar and in June, the fall was 5.1 per cent. Since April, the rupee has fallen close to 9.5 per cent against the greenback.
Read more: Business Standard
Government notifies rules for blacklisting tax havens
The central government on Friday notified amendments to the Income Tax Rules, allowing it to blacklist countries that don’t cooperate in sharing information about suspected tax evaders. Indian residents will find it tough to do business with these countries, as they stand to lose the tax benefits provided otherwise.
According to the new rules, an assessee will need to submit an ‘authorisation’ to claim deduction in respect of a payment made to any financial institution located in a jurisdiction notified as non-cooperating. Therefore, people who have stashed their money in these countries might find it difficult to conceal it anymore.
Form 10FC has been prescribed for submitting the authorisation for waiving all protections provided under any law and allowing the tax department to obtain the information and records of the foreignaccounts. These include documents identifying the account holder, the beneficial owner, authorised persons, account opening documents, correspondence between the bank and the customer/beneficial owner or third parties in relation to the account, account statements, and statements of assets.
Read more: Business Standard
Bringing NCR closer to the Capital
Phase-III of Delhi Metro will bring better connectivity, linking satellite towns to the Capital.
The Inderlok-Mundka line, which will be extended all the way to Bahadurgarh in Haryana, will have seven stations. The 11.1-km line will run through largely uninhabited areas in both the states and help connect various cities in the NCR.
“Extensions will also pave the way for development of these areas,” a DMRC official said. The official said properties would be developed for both residential and commercial purposes. The project will enable sub-cities to come up.
Another area that will benefit from Metro Phase-III is Najafgarh in Outer Delhi. The 5.5-km elevated extension line from Dwarka to Najafgarh will have four stations. Dwarka will be an interchange station.
The third one, the Mukundpur-Gokulpuri line, will be extended to Shiv Vihar in Uttar Pradesh. Two stations will be added on this route. The elevated line will cover 1.4 km in Uttar Pradesh.
The three extensions to the NCR are expected to be complete by 2016.
Source: Indian Express
UP Government gives green signal to Metro rail project
The Uttar Pradesh government today gave nod to kick start the work on the first phase of metro rail project here on the lines of Delhi Metro Rail Corporation (DMRC).
The decision was taken at the cabinet meeting chaired by Chief Minister Akhilesh Yadav.
“At the meeting it has been decided to start work on the first phase of metro rail project on North-South corridor in state capital,” official sources said here.
Among other decisions taken in the meeting, animated movie ‘Krishna and Kansa’ has been exempted from the entertainment tax in the state, they said.
The cabinet also decided to made certain items like Dholak, Cango, Tabla and other musical instruments in VAT free category besides gram-flour.
For providing better health services, a new 102 ambulance service has been given a go ahead. The service would be operated by private parties through which 1,000 ambulances would be run in the state.
Read more: The Economic Times
Technology firms look to seize opportunity in expanding education sector
Indian technology companies are flocking to the education sector, seeing in it a rare promising market created because of liberal government spending.
Providers of computing hardware, education-related software and content are eager to tap into business as the state and central governments prepare to step up spending to take education beyond cities and towns to villages.
“India is spending 2.5 lakh crore on learning at a macro level. It’s a market that continues to have a double-digit growth year after year. At present, only about 5% of that is technology-enabled,” HCL InfosystemsBSE 1.22 % CEO Harsh Chitale said.
According to technology market researcher IDC, about 5% of the $40 billion ( 2.4 lakh crore) IT market in India, including hardware, software and IT services, was in the education sector. The market is expected to grow at nearly 12% through 2017.
Read more: The Economic Times