OIL PRICES SURGE AFTER IRAN SHOOTS DOWN US DRONE

At the MCX, Crude oil futures for Jul 2019 contract was trading at Rs. 3896.00 per barrel, up by 3.23 %, after opening at Rs. 3805.00 per barrel, against a previous close of Rs. 3774.00 per barrel. It touched an intra-day low of Rs. 3805.00 per barrel and high of Rs. 3906.00 per barrel.

Oil rose by more than 3% on Thursday after Iran shot down a U.S. military drone, raising fears of a military confrontation between Tehran and Washington.

Precious metals were trading up amid a globally rally and strong buying from domestic jewelers. The latest trigger for global rally in gold prices is US federal Reserve’s hint that there could be possible interest rate cuts later this year.

MCXCOMDEX opened with positive note at 3605.40 and traded up by 1.50% at 3652.43. Commodities like Cardamom, Crude oil, Gold, Silver, Cotton, Nickel, Copper, Aluminium, , Zinc, Lead were stood as top gainers, gained by 4.00%, 3.23%, 2.08%, 2.01%, 1.23%, 1.01%, 0.99%, 0.77%, 0.66%, 0.58% respectively. On the other hand, Natural Gas, CPO, Mentha oil futures were stood as top losers, lose by 1.80%, 1.04%, 0.56% respectively.

Domestic currency rupee rose against the US dollar, despite a 3 per cent jump in crude oil prices, as the American currency fell following rate cut signals from the US fed. The 10-year bond yields slipped to near 20-month lows.

Across-the-board buying lifted benchmark equity indices over 1 per cent on Thursday amid euphoria that the US Federal Reserve could cut interest rate beginning as early as July. NSE Nifty 50 ended 1.20% or 140.30 points higher at 11831.75 while Sensex rose 1.25 % or 488.89 points to 39601.63.