17.6 C
New York
Thursday, September 29, 2022

India Base Metals: Rise on improved risk sentiment, lower dollar

Informist, Monday, May 30, 2022

 

By Sandeep Sinha

 

MUMBAI – Base metals futures rose today on the Multi Commodity Exchange of India and the London Metal Exchange due to improving risk appetite and weakness in dollar.

 

* “Metals prices are presumably finding support from the increased risk appetite among market participants, which is also reflected in significantly rising stock markets,” Commerzbank said in a report.

 

* The dollar index touched a five-week low of 101.38 today amid expectation that the US Federal Reserve may pause rate hikes in the second half of the year and reduce safe-haven buying. A weak greenback makes dollar-denominated commodities cheaper for holders of other currencies.

 

* The trading volume is likely to be thin as the US market is closed today for Memorial Day.

* A continued decline in inventory at LME-accredited warehouses and Chinese authorities permitting industrial activity to resume in Shanghai from Wednesday also aided market sentiment. 

 

ALUMINIUM rose as market players created fresh long positions on the MCX and due to a fall in LME stocks by 5,375 tn.

 

COPPER contract was up on hopes that the easing of restrictions in China would revive demand and also due to a weaker dollar. Traders increasing long positions on the domestic bourse and a decline in LME inventory by 1,525 tn also supported the prices. 

 

* At 1725 IST, on the MCX, the June futures contract of:

 –Aluminium was at 243.60 rupees, up 0.9%

 –Copper was at 781.55 rupees a kg, up 0.6% 

 —LEAD was at 185.0 rupees a kg, up 1%

 —ZINC was at 335.95 rupees a kg, up 2.3%

 

* Outlook for the evening session on MCX:

 –Aluminium contract seen at 240.0-245.0 rupees per kg

 –Copper seen at 773.0-787.0 rupees per kg

 –Lead seen at 180.0-189.0 rupees per kg

 –Zinc seen at 330.75–340.0 rupees per kg

 

End

 

US$1 = 77.54 rupees

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

 

Edited by Aditya Sakorkar

 

Cogencis news is now Informist. 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 (11) 4220-1000

Send comments to [email protected]

 

© Informist Media Pvt. Ltd. 2022. All rights reserved.

Source: Cogencis

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

11,299FansLike
12,893FollowersFollow
747FollowersFollow
- Advertisement -

Latest Articles

Popular Articles