More Stories

Informist, Wednesday, Oct. 16, 2024

By Ashutosh Pati

MUMBAI – Futures contracts of all base metals on the Multi Commodity Exchange of India and the London Metal Exchange rose Wednesday because of short-covering of positions after a sharp fall in prices in the past sessions, analysts said. However, the upside is restricted as analysts believe that investors are losing confidence in China's stimulus.

While stimulus measures might boost short-term optimism, investors recognise the long-term growth constraints that won't be solved by additional spending, Dow Jones cited Daria Efanova, research head at Sucden Financial, as saying in a note. More fiscal and monetary policy support is set to be announced, but this likely won't be enough to bring consumer confidence in Chinese markets back, Efanova said.

Prices of metals fell in the last few sessions as the Chinese finance ministry's press briefing on Saturday did not provide any clarity on the size of the stimulus measures and concerns about demand in China persisted. Markets now look forward to a press briefing by China's housing minister, possibly to provide detailed measures to support the country's property sector, on Thursday.  

For further cues, investors also await data on China's GDP growth, industrial production and retail sales on Friday and the European Central Bank's press conference due Thursday. 

ALUMINIUM prices rose, taking cues from the LME because of short covering of positions. The sentiment was boosted as stocks in LME-registered warehouses fell by 2,500 tonnes to 765,350 tonnes.

COPPER prices rose because of short covering of positions by traders, analysts said.

At 1612 IST, on the MCX, the October futures contracts of:

-Aluminium was at INR 238.05 per kg, up 1.1%

-Copper was at INR 823.15 per kg, up 0.7% 

-LEAD was at INR 183.10 per kg, up 0.3% 

-ZINC was at INR 284.85 per kg, up 1.2%

Trading levels for the day on the MCX:

-Aluminium contract seen at INR 231.50-INR 243.90 

-Copper contract seen at INR 803.00-INR 837.00 

-Lead contract seen at INR 179.80-INR 185.80

-Zinc contract seen at INR 275.10-INR 289.90

End

US$1 = INR 84.00

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Vidhi Verma

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.