India Base Metals
All rise on risk-on mood, fall in LME stocks
This story was originally published at 19:53 IST on 22 October 2024
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By Sandeep Sinha
MUMBAI – Futures contracts of all base metals rose Tuesday on the Multi Commodity Exchange of India and the London Metal Exchange because of improved risk appetite. The positive sentiment was also lifted by a decline in stocks at LME-registered warehouses.
"Base metals buoyed by hopes that China's recent stimulus measures would bolster demand," Kotak Securities said in a note. Despite facing headwinds from a stronger dollar and supply constraints, the prospect of a rebound in China's economy, the world's largest metal consumer, pushed prices higher, the brokerage said.
Stocks of aluminium in LME warehouses declined by 2,500 tonnes to 755,350 tonnes and copper fell by 2,100 tonnes to 280,100 tonnes. Lead stocks declined by 225 tonnes to 193,150 tonnes and zinc stocks by 2,550 tonnes to 234,625 tonnes.
For further cues, investors will await US Richmond Manufacturing Index data and a speech by Federal Open Market Committee member Patrick Harker later Tuesday. They will also watch out for updates from the BRICS (Brazil, Russia, India, China and South Africa) Summit.
ALUMINIUM prices rose as traders rolled over their long positions on the domestic bourse.
COPPER prices rose on the expectation of higher demand from China. Market participants trimming their bearish positions on the domestic exchange, also aided prices.
LEAD prices rose marginally, taking cues from the LME, due to a fall in exchange stocks.
ZINC contracts outperformed other non-ferrous metals on the upside due to short-covering of positions by traders on MCX.
At 1838 IST, on the MCX, the October futures contract of:
–Aluminium was at INR 239.45 a kg, up 0.9%
–Copper was at INR 820.25 a kg, up 0.7%
–Lead was at INR 182.15 a kg, up 0.1%
–Zinc was at INR 287.45 a kg, up 1.3%
Outlook for the evening session on the MCX:
–Aluminium contract seen at INR 237.50-240.90
–Copper seen at INR 815.00-824.50
–Lead seen at INR 181.50-183.00
–Zinc seen at INR 284.90-289.10
End
US$1 = INR 84.07
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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