View on Budget from Commodity Market Perspective: Angel Broking

Mr. Anuj Gupta (DVP - Commodities & Currencies Research, Angel Broking):

"Govt. hike custom duty on fuel by 1 rupee, this will directly impact on petrol and diesel prices in India, due to this the cost of transportation may increase and directly impacted on commodity prices. However proposal of 10,000 new FPO's is positive for the commodity market as they may use the commodity future trading platform for physical delivery purpose. There is a chance of increase in commodity futures market volume in Agri. segment.

Hike in import duty on precious metal from 10% to 12.5% may attract more investment demand in precious metals, however due to this step there is a chance of increase in smuggling of Gold. But the demand of Gold in the form of physical and in the form of Sovereign Gold bond may rise.

The demand of base metals which are used in Battery and E-vehicle may increase and Govt. is more focusing on Electric vehicle. So we will see a huge jump in demand of base metals from Battery and E-vehicle industry. The prices of Base metals may increase."

Source : Equity Bulls

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