8/13/2019 MCX Commodity Market Updates By Theequicom
12-December
2/9
BULLION
E Group report said unfortunately gold
naged the rally recently off anemic volume
a decline in open interest and therefore
me might suggest that gains were short
ering. However, with the last COT report
itioning placing the gold market net spec
g 48,522 contracts as of last week, it is
atable just how many players were caught
rt. On the other hand, gold might have
ied off a fresh downside breakout in the
lar, especially since the Dollar has seen a
es of declines in the face of good numbers
perhaps even hints of a looming budget
l.
ian demand continues to be muted on
her prices and import curbs despite the
dding season- a seasonally strong period
gold. At India's Multi Commodity
hange (MCX), gold for February delviery
up 0.17% to Rs 29586 per 10 gms. Gold
ures have steadily risen from the beginning
his month at 28829 to 29500 levels but still
rt of the 30,000 mark.
ENERGY
India government may not implement a
hike in diesel prices although state elect
are over. According to India Ratings (Ind
one time hike in prices can reduce under
recoveries. The quantum of gross under
recoveries (GUR) are guided by USD/IN
global oil prices.
Rupee remains vulnerable due to uncert
macro-economic environment. Iran nucl
deal did help in cooling down the marke
bullishness could emerging on increased
energy demand for heating in winter mo
Diesel gross under recoveries touched R
litre in mid-September on weak Rupee a
decreasing to Rs 3.5 lt in May.
Rating impact:
Despite increasing GUR, Ind-Ras rating
OMCs are likely to remain unchanged a
are based on the strategic importance of
sector to the sovereign. There is a strong
likelihood of government support if req
unless there is any perceived weakening
linkages, possibly due to a significant in
in the proportion of GUR they are forced
bear.
BASE METAL
India lead futures edged up on Thursday on
short covering amid depreciation of Indian
Rupee (INR) against US Dollar (USD). The
commodity is expected to trade with a
positive bias during intra-day trade.
INR was seen touching 61.85 against USD, a
apreciation of 0.61% as of 9.30 IST on
Thursday.
MCX nickel for October delivery was seen
trading on a positive note and is expected to
continue with the trend for the day.
