Diamond futures on ICEX rebound on rupee slump

Kolkata: Diamond futures on ICEX rebounded in the noon trade tracking sharp fall in rupee after a firm opening.

Barclay's report saying India's GDP growth could fall to zero in 2020 weakened the outlook for the Indian unit, which is expected to fall to 77.50-78.50 over the next four-six weeks.

ICEX May diamond-1ct contract was at 3,83 rupees per cent, up 0.3%. Open Interest was up 1,365 lots indicating good buying at lower level.


"Looking at the weakness in rupee, we expect May diamond contract to test the resistance of 3,850 rupees and 3,859 rupees in the next couple of sessions," said Kunal Shah, research head of commodities at Nirmal Bang adding the support remains at 3,824 and 3,815 rupees.

ICEX Diamond is the world's first and liquid contract in diamond. The contract has emerged as a reflection of USD-INR movement with over 97% correlation between the two asset classes.