India Base Metals
All up as risk appetite improves, dollar weaker
This story was originally published at 19:59 IST on 16 August 2024
Register to read our real-time news.Informist, Friday, Aug 16, 2024
By Sandeep Sinha
MUMBAI – Futures contracts of all the base metals rose today on the Multi Commodity Exchange of India and the London Metal Exchange because of improved risk sentiment and broad-based rally across assets classes as fears of a recession in the US eased. The positive momentum was further aided by weakness in the dollar, which makes dollar-denominated commodities, such as base metals, cheaper for holders of other currencies.
The dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.3% at 102.69.
For further cues, market participants will look forward to the University of Michigan consumer sentiment for the US due later in the day. They will also watch out for China's loan prime rate and the minutes of the US Federal Open Market Committee's July meeting next week.
ALUMINIUM prices rose on an expectation of improvement in demand from Chinese downstream companies. The fall in stocks by 3,500 tn at LME-registered warehouses also lifted the price.
COPPER prices gained due to short-covering of positions by traders on the domestic exchange. "The shift towards green technologies continues to provide structural support," Commerzbank said in a note.
LEAD prices rose taking cues from the LME, due to a fall of 1,800 tn in exchange stocks.
ZINC contracts traded higher as market participants raised their long positions on the MCX.
At 1840 IST, on the MCX, the August futures contract of:
–Aluminium was at 217.50 rupees a kg, up 0.5%
–Copper was at 794.95 rupees a kg, up 1.3%
–Lead was at 187.25 rupees a kg, up 0.2%
–Zinc was at 260.60 rupees a kg, up 1.3%
Outlook for the evening session on the MCX:
–Aluminium contract seen at 214.50-223.50 rupees
–Copper seen at 788.00-805.00 rupees
–Lead seen at 184.50-190.00 rupees
–Zinc seen at 256.50-267.50 rupees
End
US$1 = 83.94 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
