• International crude prices fell on Tuesday as lingering concerns about a recession-driven demand downturn offset prospects of tighter global supplies. • Domestic futures also ended weaker on Tuesday’s trade tracking weak global markets. • The Dollar also ended with gains on Tuesday and weighed on prices. • Furthermore, U.S. crude stockpiles have grown weekly for about two months, and were forecast in a Reuters poll to have risen 1.2 million barrels last week. • NYMEX heating oil and gasoline futures rose on Tuesday after a poll forecasted that stocks of both gasoline and heating oil may have witnessed a draw last week. • U.S. NYMEX Gas prices tumbled over 9% on Tuesday weighed down by forecasts for milder weather and lower heating demand next week than previously expected.  


• International gold ended weaker as the dollar strengthened and bond yields rose, but silver prices gained on Tuesday. • Domestic futures were mixed as well with gold ending weaker and silver gained modestly on Tuesday’s trade. • Markets remained in a small range as investors awaited FOMC meeting minutes.  


• COMEX Copper rebound from Friday’s session to end higher over 3% as China moving away from its zero-Covid policy, could help stabilize commodity prices. • COMEX aluminium prices gained on Tuesday’s trade on worries about output cuts in top producer China, though rising inventories capped gains. • China’s Yunnan province has asked aluminium producers to reduce power consumption by 40-42% from September levels in the face of an ongoing supply crunch.


• The Indian Rupee ended marginally weaker but traded in a narrow range on Tuesday, tracking similar movements in the dollar index, even as Asian currencies weakened ahead of the release of the FOMC meeting minutes. • The Rupee settled at 82.7900 per dollar, compared with its previous close of 82.7225, and traded in a narrow 10-paisa range. • Meanwhile, according to Refinitiv, trading volumes on the interbank matching system were around $4.3 billion, amongst the lowest this year, as the local unit has remained range bound. • In the overseas markets, the U.S. Dollar Index rose on Tuesday’s session after a survey showed that business activity in the U.S. in February unexpectedly rebounded to an eight-month high, increasing to 50.2 from a final reading of 46.8 in January. • The Euro struggled against the dollar on Tuesday’s session after data showed euro zone manufacturing activity deteriorated this month, although a rebound in the more inflation-sensitive services sector kept losses in check. • The Sterling rebounded from Monday’s lows and moved higher against the dollar on Tuesday after an unexpected bounce in latest PMI numbers, suggesting a smaller risk of recession.


• Indian government bond yields ended marginally higher on Tuesday as a fresh sale of debt from states added to the overall supply, while traders await the minutes of the central bank’s latest monetary policy. • The 10-year benchmark 7.26% 2032 bond yield ended at 7.391%, after closing lower at 7.370% on Monday. • Indian states raised 192.37 billion rupees or $2.32 billion through the sale of bonds earlier in the day, but the quantum was lower than planned as some states did not borrow amid rising yields. • U.S. bond yields surged higher on Tuesday as strong economic data led investors to price for higher interest rate.

Report by Reliance Securities

Disclaimer: The recommendations, if any, made herein are expression of views and/or opinions and should not be deemed or construed to be neither advice for the purpose of purchase or sale of any security, derivatives or any other security through RSL nor any solicitation or offering of any investment /trading opportunity on behalf of the issuer(s) of the respective security(ies) referred to herein. These information / opinions / views are not meant to serve as a professional investment guide for the readers.  No action is solicited based upon the information provided herein. Recipients should rely on information/data arising out of their own investigations. Readers are advised to seek independent professional advice and arrive at an informed trading/investment decision before executing any trades or making any investments. While due care has been taken to ensure that the disclosures and opinions given are fair and reasonable, none of the directors, employees, affiliates or representatives of RSL shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way whatsoever from the information / opinions / views contained herein.