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Bullion Firm, Groundnut Oil Hardens, Sugar Easy

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BSCAL
Last Updated : Oct 19 1998 | 12:00 AM IST

A firm-to-upward trend was noticed on the bullion market last week. Both precious metals ruled firm. The undercurrent was, however, dull.

Silver.999 which commenced on a firm note at Rs 7,445 a kg on Monday, declined to Rs 7,385 a kg on Wednesday on weak overseas advices which induced selling pressure in the local market. It recovered to Rs 7,450 a kg on Saturday, on firm global advices. Industrial as well as festive demand was moderate.

Silver .916 ruled better and gained Rs 10 a kg in sympathy during the week. The marker undercurrent indicated a weak trend.

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Standard gold commenced on a dull note at Rs 4,350 per 10 grammes on Monday and eased to Rs 4,330 on Thursday, losing Rs 20 in four days. It improved to close at Rs 4360 on Saturday, registering a gain of Rs 30.

The major reason for the fluctuations in the yellow metal prices was the volatile movements in overseas markets coupled with modest demand. Similarly, 22-carat gold too advanced by Rs 10 and was fixed at Rs 4,035 per 10 grammes during the week.

Gold biscuit prices looked up by Rs 200 per piece on better consumer demand backed by limited supplies and firm overseas advices.

Oil & oilseeds: A firm-to-upward trend was witnessed on the local oils and oilseeds market during the week on account of encouraging advices from the producing centres. With the commencement of the festive season, there was renewed demand for most edible oils including groundnut oil during the week under review. Groundnut oil commenced on a firm note at Rs 625 per 10 kg on Monday and ruled steady at the same level by Wednesday. It closed at Rs 635 on Saturday on better industrial and consumer demand coupled with thin arrivals.

Seasonal offtake remained better during the week. Arrivals from Gujarat and Saurashtra, the main producing centres, remained thin on account of the heavy rains which compelled the yards to down shutters. All despatches to other centres were suspended which aided the bullish market sentiment.

Prices of linseed oil and copra oil white recorded a gain of Rs 5 each at the reduced level during the week on shortage of ready stock and better industrial offtake. Sesame and karanji oil prices improved by Rs 10 a quintal each on better buying interest coupled with limited supplies.

Castor oil commercial and BSS qualities improved by Rs 13 each to Rs 438 and Rs 450 per 10 kg respectively on firm upcountry advices coupled with improved industrial offtake.

Non-ferrous metals: A firm trend was witnessed on the local non-ferrous metals market last week. Scrap metals were more active than virgins. The market undertone remained dull.

In scraps, copper heavy and copper utensils improved by Rs 2.50 and Rs 1.25 to Rs 100.50 and Rs 91.50 a kg respectively on limited supplies and better demand. Brass utensils and brass sheetcuttings firmed up by 75 paise each to Rs 84 and Rs 85.75 a kg respectively on restricted arrivals from upcountry centres coupled with improved industrial demand.

Aluminium utensils ruled overall steady and were nominally quoted at Rs 63.50 a kg on narrow movements during the week.

In the virgin section, copper wirebar gained by Rs 1.50 at Rs 115 a kg during the week on good industrial offtake and limited supplies.

Zinc slabs eased by Rs 2 at Rs 75.50 a kg on weak industrial demand and easy supplies. Nickel cathodes gained Rs 2 at Rs 253 a kg on restricted supplies of imported goods against better offtake.

All other metals ruled overall steady. Aluminium ingots was quoted at Rs 86 a kg, lead ingots Rs 45.50 and tin slabs Rs 384 a kg respectively on narrow movements.

Sugar: An easy-to-subdued trend was witnessed in sugar prices last week. Festive demand remained moderate against normal supplies of imported goods.

Sugar small commenced on an easy note at Rs 1,465/1,490 a quintal on Monday and eased to close at Rs 1,455/1,480 a quintal on Saturday. Demand remained dull despite the on-going festive season. Medium-grade sugar opened on a better note at Rs 1,485/1,560 and softened to close at Rs 1,480/1,550 at the week-end. Market sentiment remained weak.

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First Published: Oct 19 1998 | 12:00 AM IST

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