Guarseed hits lower circuit

The reports of normal monsoon this year took a toll on the guarseed futures market today.

The commodity hit the lower circuit, closing at Rs 1,888 a quintal on the National Commodity and Derivatives Exchange (NCDEX), registering a 5.7 per cent fall over the previous day's close of Rs 2,003.

According to commodity analysts, despite the overall bullish trend in guar, the markets took a beating today. "A strong bearish sentiment gripped the market following the news of normal monsoon this season, which will lead to a better crop," they said. Moreover, demand from the US, China and European countries has not yet picked up momentum. Indian Meteorological Department (IMD) last week said that the monsoon this year would be 95 per cent normal.