Informist, Friday, Dec 16, 2022
By Sandeep Sinha
MUMBAI – Most base metal futures on the Multi Commodity Exchange of India and the London Metal Exchange fell today due to a broad-based sell-off across asset classes amid risk-off sentiment.
* The sentiment was further dampened by hawkish comments from global central banks and rising COVID-19 cases in top consumer China, which weakened the demand for base metals.
* Non-ferrous is currently trading lower as investors fear that Federal Reserve’s aggressive rate hikes may trigger a recession in 2023, Kotak Securities said in a note.
* Investors look forward to US manufacturing and services purchasing managers’ index data later today and speeches from Fed officials for further cues.
* Eurozone composite purchasing managers’ index rose to 48.8 in December from 47.8 in November, the highest in four months indicating some economic recovery in the bloc which supported non-ferrous metals on the lower side.
* ALUMINIUM prices gained on the domestic bourse tracking a fall in stocks at LME-registered warehouses by 5,350 tn to 477,650 tn. Traders increased their long positions on the domestic bourse by 216 lots to 4,640, which also supported the prices.
* COPPER contracts slipped as traders increased their short positions on the MCX. The sentiment was further hurt by fear of recession and a rise in LME inventory by 375 tn.
* At 1900 IST, on the MCX, the December futures contract of:
–Aluminium was at 210.65 rupees a kg, up 0.3%
–Copper was at 700.55 rupees a kg, down 0.2%
–LEAD was at 185.0 rupees a kg, down 0.1%
–ZINC was at 275.50 rupees a kg, down 1.8%
* Outlook for the evening session on the MCX:
–Aluminium contract seen at 206.50-214.0 rupees a kg
–Copper seen at 692.0-702.0 rupees a kg
–Lead seen at 182.0-189.0 rupees a kg
–Zinc seen at 271.0–278.0 rupees a kg
End
US$1 = 82.87 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Maheswaran Parameswaran
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