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Friday, September 30, 2022

India Base Metals: Most down on profit booking, recovery in dollar

Informist, Friday, Aug 12, 2022

 

By Sandeep Sinha

 

MUMBAI – Futures contracts of most base metals fell on the Multi Commodity Exchange and London Metal Exchange due to profit booking after sharp gains this week, and a recovery in the US dollar today.

 

* “Commodities have gained sharply this week but are struggling to build on these gains amid lack of any fresh triggers,” brokerage Kotak Securities said in a report. “We may see some correction if US dollar manages to recover further.” 

 

* The outlook for eurozone manufacturers remains worrying with shrinking backlogs of work and falling new work orders weighing on industrial metals.

 

* The dollar index, which measures strength in the greenback against a basket of major currencies, was up 0.4% at 105.36 on Friday. A firm greenback makes dollar-denominated commodities such as non-ferrous metals expensive for holders of other currencies, reducing its demand.

* COPPER prices, viewed as an indicator of the health of an economy, eased as speculators in the market believe a global downturn means prices of the metal used in power and construction has to fall further, despite its recent rebound, said IIFL Securities.

* ALUMINIUM prices fell as traders increased their short positions on the MCX. However, the sharp downside was cushioned by a decline in LME inventory by 1,900 tn.

 

* ZINC contracts slipped due to profit booking and traders liquidating long positions on the domestic bourse.

 

* At 1636 IST, on the MCX, the August futures contract of:

 –Aluminium was at 215.95 rupees, down 1% 

 –Copper was at 675.00 rupees a kg, down 0.9% 

 –LEAD was at 184.50 rupees a kg, flat

 –Zinc was at 321.15 rupees a kg, down 1.9%

 

* Outlook for the evening session on MCX:

 –Aluminium contract seen at 213.10-220.40 rupees a kg

 –Copper seen at 665.50-686.80 rupees a kg

 –Lead seen at 182.0-185.50 rupees a kg

 –Zinc seen at 318.60–334.70 rupees a kg

 

 

End

US$1 = 79.65 rupees

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

 

Edited by Tanima Banerjee

 

 

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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