4 C
New York
Sunday, February 25, 2024

India Base Metals: Rise on bargain buying, technical rebound

Informist, Thursday, Aug 17, 2023

 

By Sandeep Sinha

 

MUMBAI – Futures contracts of all base metals rose on the Multi Commodity Exchange of India and London Metal Exchange due to bargain buying in the physical market, as market players assessed the hawkish tone of Federal Reserve’s July meeting minutes.

 

The US Federal Open Market Committee’s July meeting minutes showed that that officials continue to have a bias to hike interest rate further with inflation staying above their comfort level. 

 

Non-ferrous metals are in deep oversold levels and are seeing some technical rebound from the lower levels. 

 

Further, US industrial production rose 1% on month in July driven by growth in utilities, manufacturing and mining, which supported base metals prices.

 

“Base metals recovered after the recent slump, China’s top leaders pledged to expand domestic consumption and support the private sector without detailing any new stimulus measures, the latest in a series of rhetorical attempts to boost confidence in the economy as markets sink and growth disappoints,” Kotak Securities said in a note.

 

The continued weak economic data from top consumer China and a lack of fresh stimulus announcement limited the upside in the non-ferrous metals.

 

ALUMINIUM prices rose due to a fall in stocks by 1,500 tn at LME-accredited warehouses. Traders covering their short positions on the domestic exchange also aided prices.

 

COPPER prices were in the positive territory on value buying and a weakness in the dollar. However, the upside was limited due to rise in stocks at LME-registered warehouses by 525 tn to 91,400 tn.

 

LEAD contracts gained tracking positive cues from other base metals. Traders increasing their long positions on the domestic exchange also supported the prices.

 

ZINC contracts rose on technical rebound after a sharp sell-off in the last few days. However, rising stocks at LME-approved warehouses restricted further upside in the price.

 

* At 1619 IST, on the MCX, the August futures contract of:

–Aluminium was at 198.30 rupees a kg, up 0.7%

–Copper was at 722.95 rupees a kg, up 0.3%

–Lead was at 184.05 rupees a kg, up 0.3%

–Zinc was at 211.50 rupees a kg, up 0.7%

 

* Outlook for the evening session on the MCX:

–Aluminium contract seen at 195.50-200.10 rupees

–Copper seen at 719.20-724.90 rupees

–Lead seen at 183.40-184.25 rupees

–Zinc seen at 208.20–212.0 rupees

 

End

 

US$1 = 83.15 rupees

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

 

Edited by Aditya Sakorkar

 

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.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to [email protected]

 

© Informist Media Pvt. Ltd. 2023. All rights reserved.

Source: Cogencis

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

11,268FansLike
12,893FollowersFollow
730FollowersFollow
- Advertisement -

Latest Articles

Popular Articles