India Base Metals
All up as risk appetite improves, dollar falls
This story was originally published at 20:29 IST on 20 August 2024
Register to read our real-time news.Informist, Tuesday, Aug 20, 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 a rally in the equity market. 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.
At 1829 IST, the dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.1% at 101.73.
"Base metals continued positive move on Tuesday, reflecting global market confidence over growing expectations that the Federal Reserve may shortly signal an interest rate drop," Kotak Securities said in a note.
Market participants await a speech by Federal Open Market Committee member Raphael Bostic later in the day for further cues. They will also watch out for the minutes of the US Federal Open Market Committee's July meeting on Wednesday.
ALUMINIUM prices rose taking cues from LME, due to a fall of 3,925 tn in exchange stocks.
COPPER prices gained on hopes of improved demand in top consumer China and a weaker dollar. However, the upside in red metal was capped by a sharp rise in LME-registered warehouses' stock by 11,975 tn.
LEAD prices were higher due to short-covering of positions by traders on the domestic exchange.
ZINC contracts rose because of supply shortage in China. The sentiment was further boosted by the recovery in steel prices, as the metal is used for galvanisation.
At 1825 IST, on the MCX, the August futures contract of:
–Aluminium was at 226.95 rupees a kg, up 1.3%
–Copper was at 807.35 rupees a kg, up 0.1%
–Lead was at 189.65 rupees a kg, up 1%
–Zinc was at 266.90 rupees a kg, up 1.1%
Outlook for the evening session on the MCX:
–Aluminium contract seen at 223.50-231.50 rupees
–Copper seen at 799.30-813.70 rupees
–Lead seen at 186.90-189.00 rupees
–Zinc seen at 263.20-269.80 rupees
End
US$1 = 83.79 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Aditya Sakorkar
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:
