Gold posts biggest single-day gain to cross Rs 28k mark

Gold climbed to an all-time high of Rs 28,150 per 10 grams in the national capital today, posting its biggest-ever single day gain of Rs 1,310 amid frantic buying triggered by robust demand in global markets.

The trading sentiment at home was bolstered by gold's ascent to a record level in overseas markets as mounting concerns over sovereign debt and slower growth spurred investors to seek the perceived safety of bullion as an investment haven.

Gold rose to an all-time high of USD 1,867.95 an ounce in London, with investors preferring to hedge their funds amid melting global equity markets in the wake of worse-than-expected US economic data, coupled with growing concerns over Europe's debt crisis.

In addition, retail buying for the upcoming marriage season further boosted the market sentiment. Silver also jumped on rising demand from industries such as electroplating and other consuming units.

All-India Sarafa (Bullion) Bazar Association President Sheel Chand Jain said the Rs 1,310 per 10 grams jump in gold prices in a single day was the biggest in the metal's history, adding that a further rise is expected as investor buying picks up.

He said a steep fall in global equity markets and weakness of the Indian rupee against the US dollar left investors with no other avenue to park their funds than gold as a safe hedge.

The trend at home was more influenced by the international price of gold, though scattered local buying for the coming marriage season was an additional factor boosting demand for the shiny metal, he said.

On the domestic front, gold of 99.9% and 99.5% purity spurted by Rs 1,310 each to Rs 28,150 and Rs 28,000 per ten grams, respectively. Sovereigns followed suit and surged by Rs 1,100 to Rs 22,400 per piece of eight grams.

In a similar fashion, silver ready surged by Rs 1,500 to Rs 62,800 per kg and weekly-based delivery by Rs 1,920 to Rs 62,690 per kg. Silver coins flared up by Rs 1,000 to a fresh high of Rs 69,500 for buying and Rs 70,500 for selling of 100 pieces.

Sensex closes 698 pts down: Brutal end to week

BSE benchmark Sensex closed down 328 points at 16,142 and the 50-share NSE Nifty fell 98.5 points to close at 4,845.65. During the week, Sensex shed 698 points, with IT taking the major cut. Others impacted are capital goods, banking and metal companies' shares.

The trouble started with news that major European banks are facing short term fund crisis, which resulted in 5% cut in Nasdaq and mayhem in India and Asia. At one point, the Sensex had breached the 16000 mark to go down as far as 15,987.77. The 50-share Nifty too witnessed an intraday low of 4,796.10.

European markets were trading near two-year lows. France's CAC, Germany's DAX and Britain's FTSE were down 2.5-4% at the time of closing of Indian equities.

India gold seen above Rs 27500/10 gms

India's gold futures are likely to extend the previous session's gains on Friday morning to hit a fresh peak and may rise above Rs 27,500, following a rally in the world market, analysts said.

International spot gold surged to record highs on Friday for a second consecutive session as investors reached for the safety of bullion amid a worsening economic outlook for the United States and concern about the health of Europe's banks.

The most-traded gold for October delivery on the Multi Commodity Exchange (MCX) closed 2.96% higher at Rs 27,174 per 10 grams in the previous session. It hit a record peak of Rs 27,214 on Thursday.

The rupee plays an important role in determining the landed cost of the yellow metal and copper, which are quoted in dollars. The rupee slid to its lowest in over six months on Thursday. India's currency, bond and interbank cash markets will be closed on Friday for a local holiday.

Copper:

India's copper futures are likely to open steady with a positive bias on Friday morning on marginal gains in the London market, analysts said.

London copper inched up on Friday, after dropping more than 2% in the previous session, while a slew of lacklustre US data and lingering worries about euro zone debts continued to weigh on sentiment.

The most-active copper for August delivery on MCX last closed 0.63% lower at Rs 401.8 per kg.

wait for moment when Anna will come out of Tihar

Hundreds of supporters today gathered outside Tihar prison eagerly waiting for the moment when anti-corruption campaigner Anna Hazare will come out of the jail after spending almost three days there.

People are arriving in large numbers since early morning to participate in Hazare's proposed yatra to Ramlila Ground, which will be the site of his ongoing indefinte fast for a strong Lokpal.

Supporters expressed happiness over the 73-year-old Gandhian's decision to come out from the prison complex following rounds of negotiations with the police and authorities to decide on agitation venue to undertake hunger strike.

"I have come here late last night to participate in this mass movement. It is our victory and we will remove corruption from the country with Annaji's help," said Ashok Marwah, a Dwarka resident who was among thousands others anxiously waiting for the Hazare's release.

Nifty maimed on Europe woes

Indian equity market opened with a deep cut, mirroring global phenomenon wherein investors dumped shares on worries over European economic growth. There were reports of European banks facing short-term funding stress; they had to borrow US dollar from ECB at very high cost. The 50-share NSE Nifty lost 78 points to 4,866 and the 30-share BSESensex dwindled 266 points to 16,203.

Technology stocks have fallen the most. Infosys plunged 5.5%. HCL Tech, TCS and Wipro were down 2.5-4.5%.

Tata Motors, Tata Steel and L&T fell 2.5%. ICICI Bank, HDFC Bank and Axis Bank slipped 2%.

Jaiprakash Associates, Sterlite, Reliance Capital and Reliance Infrastructure too were down over 2%.

Heavyweight Reliance Industries was down 1%.

However, ONGC and BPCL were on buyers' radar due to fall in crude oil prices.

The CNX Midcap fell 122 points to 7,084. About 10 shares fell for every one share gained.

DCB, PFC and IFCI slipped 3-6%.

Textile stocks like Arvind and Alok Industries lost 4%.

From the infrastructure space, IVRCL Infra, GVK Power and Lanco Infra declined 2.5%.

Tech Mahindra and Mahindra Satyam were down 4%.