Informist, Thursday, Feb 22, 2024
By Sandeep Sinha
MUMBAI – Most base metals futures traded in the red on the Multi Commodity Exchange of India today, despite positive cues from the London Metal Exchange, because of a sharp appreciation in the rupee, which makes commodities priced in dollars cheaper for domestic buyers. The rupee settled 0.2% lower against the dollar on strong foreign fund inflows into the domestic debt market.
The sentiment in non-ferrous metals was also weighed down by weak economic data from the Eurozone, as the bloc is one of the biggest users of base metals. The Eurozone composite purchasing managers’ index rose to 48.9 in February from 47.9 in January, but stayed in the contraction territory, according to a report by S&P Global and the Hamburg Commercial Bank. A reading above 50 indicates expansion in economic activity and a number below it signals contraction.
Investors will also take cues from US flash manufacturing and services purchasing managers’ index, and existing home sales data, due later today.
ALUMINIUM prices fell because traders increased their short positions on the domestic exchange.
COPPER contracts traded lower as traders trimmed their long positions on the MCX. However, the downside in red metal remained limited because of a fall in stocks by 1,300 tn in LME-approved warehouses.
At 1905 IST, on the MCX, the February futures contract of:
–Aluminium was at 196.45 rupees a kg, down 1.5%
–Copper was at 725.05 rupees a kg, down 0.2%
–LEAD was at 177.85 rupees a kg, down 0.5%
–ZINC was at 213.75 rupees a kg, up 0.2%
Outlook for the evening session on the MCX:
–Aluminium contract seen at 195.0-200.0 rupees
–Copper seen at 720.0-729.50 rupees
–Lead seen at 175.0-181.0 rupees
–Zinc seen at 210.0-217.0 rupees
End
US$1 = 82.84 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
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