Sensex gains 115; gold, silver hit multi-year low
Gold prices took a dramatic U-turn on Monday, reversing early gains to drop to a two-year trough.
Mumbai: The market ended on a strong note on Monday after inflation data hit a fresh 40-month low at 5.96 per cent. Core inflation data was also below 4 per cent. Banking stocks closed with smart gains on hopes of a rate cut by the central bank on May 3.
The Sensex closed at 18357 up 115 points and the Nifty ended at 5568 up 39 points. Gold prices took a dramatic U-turn on Monday, reversing early gains to drop to a two-year trough after bullion futures fell on fears about central bank sales and holdings on global exchange-traded funds sank to their lowest in more than a year.
Technical Analyst, Sudarshan Sukhani is of the view that speculative positions are getting unwound in gold and silver. Shares of oil marketing and exploration companies were up in trade today after US crude oil futures have dropped below $89 a barrel mark. Brent futures hit a nine-month low near $101 on Friday as a broad investor sell-off in commodities triggered falls of as much as $3 a barrel.