Commodity stocks slump; Tata Steel, Cairn worst hit
The BSE Metal Index slumped 2.56 per cent followed by the BSE Oil&Gas Index which dipped 2.17 per cent.
By ET Bureau |
MUMBAI: Commodity stocks were badly beaten Monday as traders offloaded positions in an attempt to move away from risky assets, taking a toll on commodity prices, after the US Securities and Exchange Commission charged Goldman Sachs with fraud on Friday.
The BSE Metal Index slumped 2.56 per cent followed by the BSE Oil&Gas Index which dipped 2.17 per cent. Oil prices sank to a 3-week low of below $82 a barrel on Monday, extending the previous session's fall of 2.7 percent, as risk appetite soured across the board after the Goldman Sachs episode.
Meanwhile, copper futures fell by Rs 3.10 or 0.90 per cent today, as traders reduced their positions driven by weak trend in global markets. At the Multi Commodity Exchange, copper for April contract fell Rs 3.10, or 0.90 per cent to Rs 343 per kg in an open interest of 22,068 lots, while it ended 0.20 per cent higher at Rs 346.10 per kg in the previous session.
“Copper fell the most seven weeks after regulators accused Goldman Sachs Group Inc. of fraud. Resistance at Rs 346.50/347.50 is likely to take it lower towards Rs 338 levels followed by Rs 333 levels. Ideally, the next upward impulse should begin after this decline. Fall below Rs324 will turn the structure weaker,” said India Infoline giving its recommendation on MCX Copper for April.
Commenting on Nymex crude, the brokerage said that the initial resistance at $85.00/85.40 could prevent it from rising further and lead it lower towards $83.00/82.65. If the decline extends below $82.50 then the structure could turn weaker. “Rise past $85.90 is needed to revive the earlier bullishness for levels like $88.50 or higher.”
Biggest losers in the BSE Metal space comprised JSW Steel (-4.29%), Tata Steel (-4.09%), Jai Corporation (-4.04%), Ispat Industries (-3.92%) and Welspun Gujarat (-3.48%).
Among oil&gas counters, the worst hit were Cairn India (-3.6%), Aban Offshore (-3.07%), ONGC (-2.72%), Reliance Industries (-2.54%) and Reliance Natural Resources (-2.2%).
The BSE Metal Index slumped 2.56 per cent followed by the BSE Oil&Gas Index which dipped 2.17 per cent. Oil prices sank to a 3-week low of below $82 a barrel on Monday, extending the previous session's fall of 2.7 percent, as risk appetite soured across the board after the Goldman Sachs episode.
Meanwhile, copper futures fell by Rs 3.10 or 0.90 per cent today, as traders reduced their positions driven by weak trend in global markets. At the Multi Commodity Exchange, copper for April contract fell Rs 3.10, or 0.90 per cent to Rs 343 per kg in an open interest of 22,068 lots, while it ended 0.20 per cent higher at Rs 346.10 per kg in the previous session.
“Copper fell the most seven weeks after regulators accused Goldman Sachs Group Inc. of fraud. Resistance at Rs 346.50/347.50 is likely to take it lower towards Rs 338 levels followed by Rs 333 levels. Ideally, the next upward impulse should begin after this decline. Fall below Rs324 will turn the structure weaker,” said India Infoline giving its recommendation on MCX Copper for April.
Commenting on Nymex crude, the brokerage said that the initial resistance at $85.00/85.40 could prevent it from rising further and lead it lower towards $83.00/82.65. If the decline extends below $82.50 then the structure could turn weaker. “Rise past $85.90 is needed to revive the earlier bullishness for levels like $88.50 or higher.”
Biggest losers in the BSE Metal space comprised JSW Steel (-4.29%), Tata Steel (-4.09%), Jai Corporation (-4.04%), Ispat Industries (-3.92%) and Welspun Gujarat (-3.48%).
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Among oil&gas counters, the worst hit were Cairn India (-3.6%), Aban Offshore (-3.07%), ONGC (-2.72%), Reliance Industries (-2.54%) and Reliance Natural Resources (-2.2%).
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