MCX Natural Gas slides 5.39% on demand softness

WHAT HAPPENED MCX Natural Gas declined to 238.8 INR/mmBtu at 03:52 pm IST, extending a -5.39% loss from the previous close. The sharp retreat mirrors broader energy weakness, with MCX Crude down -1.42% to 9661 INR/bbl. USD/INR strengthened 0.24% to 95.15 INR, adding headwinds to rupee-denominated commodity valuations and signaling renewed domestic demand caution.

WHAT IT MEANS The 5.39% plunge deepens the downtrend established across recent sessions, with Natural Gas now testing fresh lows below 240 INR/mmBtu. For MCX futures traders, this signals weakening seasonal demand and rupee depreciation working against price recovery. Cross-asset softness in crude alongside strength in USD/INR suggests macro headwinds are outweighing any support.

WHAT TO WATCH The 235 INR/mmBtu level is critical support. A close below this zone would confirm a break below the recent 238.8 base and open the path toward 230 INR/mmBtu, where momentum may finally stabilize.