Worms Digest 28 June 2013

Good Morning !!!

Sensex: 18876 (+1.75%), Nifty: 5682 (+1.68%)

Dow: 15024 (+0.77%), S&P: 1613 (+0.62%)

Nikkei: 13649 (+3.29%)

CCEA approves the hike in gas price to US$8 from US$4.2

• In a pro-reforms move cabinet committee on economic affairs (CCEA) approved the hike in domestic natural gas prices to $8 effective April 1, 2014. Most of the people had doubted this move, given the strong opposition of fertiliser and power ministeries. Also given the election year ahead, such a move was considered to be detrimental of vote bank sentiments. 
• The hike in gas prices will be most benefitial to ONGC and Oil India. Reliance will also be major beneficiary if it manages to improve its gas production levels.
• The price of gas will be reset quarterly. 
• The brunt of higher gas price will fall on consumers who will have to pay higher prices for electricity, CNG and fertilisers which could ultimately lead to higher food prices. 

Govt raised MSPs of various crops in moderate fashion

• Minimum support prices for paddy was raised by 4.6% to Rs.13.10 per kg for normal paddy and 5% to Rs.13.85 per kg for grade A paddy
• Cotton MSPs saw marginal increase of 2.5-3% to Rs.37/kg for medium staple and Rs.40/kg for long staple. 
• MSP of yellow soyabean has been increased by Rs3.20 to Rs25.60/kg and for soyabean (black) by Rs3/kg to Rs30/kg
• Tur dal prices have been held constant.
• Government appears to have done fine job of balancing urge for higher MSPs in wake of cheering farmers closer to elections and on the other hand tackling inflation which has been the biggest menace over the last 2 years.

"Losers average losers"

...Paul Tudor Jones