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India Base Metals: Most down on firm rupee, China data weighs

Informist, Monday, Aug 1, 2022

 

By Sandeep Sinha

 

MUMBAI – Amid mixed cues from the London Metal Exchange, futures of most base metals on the Multi Commodity Exchange of India fell today due to a sharp rebound in the rupee against the dollar, which makes commodities priced in dollars cheaper for domestic buyers. Sentiment was further dampened by weak economic data from China.

 

* China’s manufacturing purchasing managers’ index slipped to 49 in July from 50.2 in June due to stalling of residential construction activity. A reading below 50 indicates contraction in economic activity and a number above 50 signals expansion. The country is the top user of non-ferrous metals.

 

ALUMINIUM prices slumped due to weak downstream demand amid a rebound in China’s production and rising inventory. Traders increasing their short positions on the MCX also weighed on prices.

 

* For further cues, investors will look at US ISM manufacturing purchasing managers’ index data later today.

 

* The downside in base metals was cushioned by weakness in the dollar against peer currencies, which makes dollar-denominated commodities cheaper for foreign holders. 

 

ZINC slipped due to profit booking after a sharp rally last week. However, the fall was limited by a decline in LME stocks by 775 tn.

 

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

 –Aluminium was at 211.50 rupees, down 1.6% 

 –Copper was at 656.70 rupees a kg, down 0.1% 

 –Lead was at 178.70 rupees a kg, up 0.4%

 –Zinc was at 294.0 rupees a kg, down 0.6%

 

* Outlook for the evening session on MCX:

 –Aluminium contract seen at 210.20-218.0 rupees a kg

 –Copper seen at 649.0-666.0 rupees a kg

 –Lead seen at 175.70-180.20 rupees a kg

 –Zinc seen at 291.40–298.60 rupees a kg

 

End

 

US$1 = 79.02 rupees

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

 

Edited by Avishek Dutta

 

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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Source: Cogencis

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