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India Base Metals: Most metals up on short-covering, US CPI eyed

Informist, Wednesday, Jul 13, 2022

 

By Sandeep Sinha

 

MUMBAI – Futures contracts of most base metal futures rose on the Multi Commodity Exchange of India and London Metal Exchange due to short-covering ahead of the US consumer price index data later today. The non-ferrous metals fell sharply on Tuesday due to concerns about demand in top consumer China after renewed COVID-19 curbs and fears of a global economic slowdown. 

 

* The decline in LME stocks and the rupee’s weakness against the dollar, which makes dollar-denominated commodities expensive for domestic buyers, boosted sentiment. 

 

* Most non-ferrous metals are in deeply oversold territory, which may bring bargain hunters back into the physical market to take advantage of lower prices after a sharp decline in the past few sessions.

 

* Investors are keeping a close watch on updates from the People’s Bank of China regarding stimulus measures to revive the slowing economy.

 

* The dollar index was near its two-decade high against major currencies, which limited the upside in base metals.

 

ALUMINIUM price rebounded on MCX as the metal was trading at an extremely oversold level and short-covering of positions by traders.

 

LEAD contract pared earlier losses and traded near the highs of the day as the short-term moving averages turned positive. 

 

* At 1650 IST, on the MCX, the July futures contract of:

 –Aluminium was at 206.35 rupees, up 0.3% 

 —COPPER was at 627.25 rupees a kg, up 0.1% 

 –Lead was at 175.15 rupees a kg, up 0.4%

 —ZINC was at 272.65 rupees a kg, down 0.4%

 

* Outlook for the evening session on MCX:

 –Aluminium contract seen at 201.20-212.30 rupees a kg

 –Copper seen at 618.0-635.0 rupees a kg

 –Lead seen at 171.70-178.10 rupees a kg

 –Zinc seen at 269.40–278.90 rupees a kg

 

End

 

US$1 = 79.63 rupees

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

 

Edited by Shirsha Thakur

 

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.

 

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

Source: Cogencis

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