MUMBAI: Most commodity futures on India's top two national exchanges were trading higher on Monday tracking global cues, expected lower output of edible oil and a weak rupee, pushing indices to new highs.
The MCXCOMDEX index on the Multi Commodity Exchange of India hit a record high of 2,789.28 points, while on the National Commodity and Derivatives Exchange the FUTEXAGRI index hit a high of 1,827.41 points in early trade. At 12:40 p.m the MCXCOMDEX was trading up 0.84 percent at 2787.94, while FUTEXAGRI was up 0.27 percent.
The two exchanges account for more than 90 percent of the total trade turnover on India's 24 commodity bourses. "There is fund flowing into commodities these days...everyone knows commodities, especially agriculture, are in a bull-run on tight supplies," an analyst with Motilal Oswal Commodities Broker Pvt Ltd, said.
Edible oils complex hit contract highs on surging Malaysian palm oil, soybean on Chicago Board of Trade and an estimated drop in rapeseed output. Trade estimated an expected fall of 15.4 percent in India's rapeseed output. Rising global crude also supported the sentiment.
Oil prices were above $102 per barrel mark and within striking distance of all time highs. Gold, the most traded commodity futures, hit new highs on Monday tracking overseas markets and higher crude. Copper futures were also near contract highs on overseas cues.
"A weak rupee against the US dollar supported the rally," said S Raghuraman, head of research at Agriwatch. Weak rupee increases value realisation for exporters Indian rupee fell to its weakest in about 5-½ months on Monday on concerns that the fall in Asian stock markets would see foreign funds sell local equity investments and repatriate funds.
The MCXCOMDEX index on the Multi Commodity Exchange of India hit a record high of 2,789.28 points, while on the National Commodity and Derivatives Exchange the FUTEXAGRI index hit a high of 1,827.41 points in early trade. At 12:40 p.m the MCXCOMDEX was trading up 0.84 percent at 2787.94, while FUTEXAGRI was up 0.27 percent.
The two exchanges account for more than 90 percent of the total trade turnover on India's 24 commodity bourses. "There is fund flowing into commodities these days...everyone knows commodities, especially agriculture, are in a bull-run on tight supplies," an analyst with Motilal Oswal Commodities Broker Pvt Ltd, said.
Edible oils complex hit contract highs on surging Malaysian palm oil, soybean on Chicago Board of Trade and an estimated drop in rapeseed output. Trade estimated an expected fall of 15.4 percent in India's rapeseed output. Rising global crude also supported the sentiment.
Oil prices were above $102 per barrel mark and within striking distance of all time highs. Gold, the most traded commodity futures, hit new highs on Monday tracking overseas markets and higher crude. Copper futures were also near contract highs on overseas cues.
"A weak rupee against the US dollar supported the rally," said S Raghuraman, head of research at Agriwatch. Weak rupee increases value realisation for exporters Indian rupee fell to its weakest in about 5-½ months on Monday on concerns that the fall in Asian stock markets would see foreign funds sell local equity investments and repatriate funds.
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