Informist, Wednesday, Jul 27, 2022
By Sandeep Sinha
MUMBAI – Futures contracts of all base metals gained on the Multi Commodity Exchange of India, despite mixed cues from London Metal Exchange, as the rupee depreciated against the greenback, making commodities priced in dollars expensive for domestic buyers.
* Traders were cautious and preferred to remain on the sidelines, avoiding taking major fresh positions ahead of Federal Reserve’s rate outcome later today.
* “Overall, commodities are on a steadier footing on back of weaker US dollar and stable equity markets. However further trend hinges on Fed decision. The US dollar has seen mixed trend in last two sessions which reflects uncertainty about Fed decision,” Kotak Securities said in a note.
* “Market players are expecting Fed to take a slightly less hawkish tone. However, if Fed disappoints, we may see some recovery in US dollar which may weigh on commodities at large,” the brokerage added.
* COPPER and ALUMINIUM rose on hope of fresh infrastructure projects’ push in top consumer China.
* The International Monetary Fund cut its global growth forecasts to 3.2% from 3.6% on Tuesday, warning that downside risks from high inflation and Ukraine war may drive world economy on the brink of recession, which may weigh on metal prices.
* ZINC contracts rose as traders increased long positions on the domestic bourse and due to a fall in LME stocks by 425 tn.
* At 1700 IST, on the MCX, the July futures contract of:
–Aluminium was at 208.5 rupees, up 0.3%
–Copper was at 633.10 rupees a kg, up 0.6%
–Lead was at 177.50 rupees a kg, up 0.6%
–Zinc was at 279.50 rupees a kg, up 0.1%
* Outlook for the evening session on MCX:
–Aluminium contract seen at 206.0-215.0 rupees a kg
–Copper seen at 631.0-641.0 rupees a kg
–Lead seen at 174.50-179.50 rupees a kg
–Zinc seen at 274.20–280.50 rupees a kg
End
US$1 = 79.89 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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