 "Commodities decline on Asian equity markets rout")
Aluminium-led base metals' plunge on Multi Commodity Exchange (MCX) following global trend as the rout in Asian equity markets on China slowdown fears spilled over to commodities. Gold and silver recorded gains.
For delivery in April, aluminium price fell by 1.69% to trade at Rs 101.50 a kg in early afternoon. Copper, however, remained comparatively resilient but followed the move other metals. Copper price for delivery in April slumped by 0.46% to Rs 302.20 a kg.
"The fall in base metals is limited in India due to depreciation in the rupee against the dollar. With the Chinese government expected to announce an economic booster before the Chinese New Year holiday after over 25-year low economic growth forecast for this year, a major fall in metals looks remote. But, until real demand picks up, fall would continue," said Ajay Kedia, Managing Director, Kedia Commodity.
The rupee depreciated against the dollar to trade near 68 in the early afternoon. Meanwhile, India's benchmark Sensex slumped by 610 points to 23,868 points on the Bombay Stock Exchange. All Asian benchmark indices slumped on Wednesday.
The broad based fall in equity market, however, helped gold and silver firm up in global as well domestic market. While gold was up by Rs 500 to Rs 26,540 and silver by similar amount to Rs 34,700 a kg in Mumbai.
In London, gold was up by $8 to trade at $1,097 an oz and silver by $0.08 oz to $14.11 an oz. Crude oil price, meanwhile, hit the fresh low of below $28 a barrel.
