Money Bhaskar reports the commodity news, citing the ups and downs of the most popular commodities in the Indian stock market.
In the most recent update, it’s safe to say that metal and energy stock prices have fallen, although some shares are up.
Falling Commodity Prices
As importing gold contributes almost two percent of India’s gross domestic product, the fall in gold commodities can be a huge hit to India’s GDP and their international credit rating. Although demand for gold has skyrocketed, according to India InfoLine, the Economic Times reports that the stock prices for gold has fallen to a low that hasn’t been hit in over six years. Gold that is mined domestically in India does not meet the significant demands for the metal, calling for importing gold to be the only measure available to meet this demand. The Indian government, in an effort to increase the commodity price for gold as well as to help buffer the banks, has launched several programs in an effort to lure gold from personal households by offering a generous interest rate of 2.5 percent.
As of Monday, November 23rd 2015, commodities that have fallen since it’s previous Friday include:
- Gold, with a percentage drop of 0.34,
- Crude Oil, with a 0.11 percent drop,
- Aluminum, sitting at a drop of 0.47 percent,
- Copper, with a decrease of 1.22 percent,
- Nickel, leading the way with a decrease of 4.14 percent,
- Lead, decreasing by 0.43 percent,
- Zinc, falling by 0.1 percent,
- Cotton, having fallen by 0.19 percent.
Rising Commodity Prices
Although the global market may seem bleak, especially now, there are several commodities whose share prices have risen. Oils, energy commodities and most metals have seen sharp declines over the past few days or months, but a few others have simply outshined the rest and began to rise. A few commodities to remember:
- Crude Oil, showing an increase of 1.53 percent,
- Mentha Oil, increasing by 0.74 percent,
- Natural Gas, showing a slight increase of 0.72 percent.
Commodity Prices That Are Stable
Despite global shortages or drops in exchange rates, some commodities have remained the same or very close to what they were. As shown in fiscal history, a long line of constant minor drops and rises, instead of sharp inclines and declines, makes a commodity more stable. Food grain commodities have shown no increase or decrease, remaining stable for the market. Some of the agri-commodities that have not changed include:
- Thoor Dal, at 15,600 rupees,
- Urad Dal, sitting at 15,100 rupees,
- Moong Dal, at 10,300 rupees,
- Gran Dal, resting at 6,500 rupees,
- Sugar, at 3,000 rupees,
- Wheat, sitting at 3,000 rupees,
- Maida, remaining at 2,500 rupees,
- Sooji, staying at 3,200 rupees.
Rises and falls in commodity prices can have both beneficial and negative impacts on the Indian economy, speaking long-term, states Radhika Rao, an economist at DBS Bank.
It is imperative to keep yourself updated with latest happenings from commodity market hence, follow Money Bhaskars Commodity News section which provides you latest news, tips & trends.
Views presented in the article are those of the author and not of ED.