ICEX diamond rebounds 1% on rupee slump as stimulus hope fade

Diamond futures on ICEX had a smart rebound today as weak equities coupled with fading hopes of govt stimulus weakened outlook for the rupee in the short term.

The May diamond 1ct contract was at 3,819 rupees per cent, up 1 per cent from previous session. The contract added over 1,750 lots in open Interest indicating fresh buying.

While diamond contract is up 1 per cent despite just 0.5 per cent call in rupee, which means traders are betting on more decline in the Indian unit.


Gains in rupee after Facebook's decision to invest 5.7 billion dollars in RIL JIO Platform and hopes of stimulus were erased today on report that PM-FM meet will be postponed to next week.

"The May diamond is likely to retest 3,844 rupees next week white 3,812 rupees is the support," said Akshay Agarwal of Acumen Capital.