The rollback of excise duty on gold jewellery and deferring of tax avoidance bill by another year could guide the domestic commodity market sentiment today.
The outcome of the French and Greek election results intensified worries over the European debt crisis.
The euro slumped to a three-month low. The election results also raised fears over the fate of austerity measures being adopted to tackle the region’s sovereign debt crisis.
Gold
Spot gold had remained mostly steady yesterday, buoyed by its safe haven appeal although a firm trend in dollar weighed on prices.
At the Multi Commodity Exchange, gold was seen retreating from its recent high as rupee started to regain some of its lost ground against the US dollar.
Sentiment in gold could be guided by the excise duty rollback on gold jewellery announced by the Finance Minister, Mr Pranab Mukherjee, in Parliament yesterday.
Base metals
In Shanghai, base metal complex declined with copper dropping more than one per cent. Tracking international market, base metals at MCX declined too, a report from Geojit Comtrade said.
Meanwhile, the London Metal Exchange remained closed for Early May bank holiday yesterday. Pressure seems to be building in the base metals market after some recovery witnessed during last fortnight.
Crude oil
Crude oil was seen recovering following an initial fall. Nymex crude oil was seen bouncing back after falling to a four-month low on weak jobs data and recent developments in the Euro Zone.
Rupee
The rupee appreciated by nearly one per cent against the US dollar. As the Finance Minister deferred the tax avoidance bill by another year, there was increased interest and inflow of dollars into the capital markets and the rupee rebounded. Similar trends can be expected today as well.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.