The slash in repo rates by the RBI could guide the commodity markets sentiment today. Cheaper bank credit could help farmers, traders and the ultimate consumer to produce, trade and consume more of goods and services.
Euro zone pressure
However, international markets were under pressure yesterday fuelled by the Euro zone debt crisis and slowing economic growth in China and the US.
However, the Euro managed a slight recovery on some good tidings from the German ZEW survey. But the rising inflation in Euro zone and jump in yields in Spanish short-term debt continued to weigh on the market sentiment.
Gold
Spot gold, though moved in a narrow range in the international market, was seen paring some early losses, a report from Geojit Comtrade said. In the domestic market, the trade was choppy and moved in a narrow range.
Base metals
Base metals showed a mixed trend both in the domestic and international markets. Except for nickel, other metals on the London Metal Exchange remained mostly steady to negative.
Meanwhile, the strong earthquake had yesterday hit one of the top copper producing country Chile. However, miners Codelco and Anglo America said their operations were not affected.
Crude oil
Crude oil opened steady in the Indian commodity futures trade today. The April contract was quoting at Rs 5,373 per barrel on the MCX, unchanged from the level at which it closed yesterday.
Crude had shown very firm trends yesterday, especially after the International Monetary Fund revised upwards its global growth forecasts for 2012 and 2013. The IMF report also specifically mentioned that crude might continue to track the upward curve this year as well.
Crude had recorded a high of Rs 5,403 and a low of Rs 5,302 per barrel in yesterday’s trade.
Rupee opens weak
The rupee was down 17 paise in the opening trade. It was trading at 51.46 against the dollar.
After the cut in repo rates announced by the RBI yesterday, the domestic unit had closed on a strong note at Rs 51.38 against the dollar. It could witness intra-day volatility today, some analysts warned.