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India Base Metals: All rise on improved risk sentiment, weak dollar

Informist, Monday, May 8, 2023

 

By Sandeep Sinha

 

MUMBAI – Futures contracts of all base metals on the Multi Commodity Exchange of India rose today because of improved risk sentiment and weakness in the dollar.

 

The dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.2% at 101.06. A weaker greenback makes dollar-denominated commodities such as non-ferrous metals cheaper for holders of other currencies.

 

Trading volume is on the lighter side as the London Metal Exchange was shut on account of a bank holiday for the coronation of King Charles III.

 

"Base metals price rose on the back of expectation of improved demand from the world's top metals' consumer China. Chinese buyers are active post Labour Day holidays and most base metals are available at cheaper rates after the recent correction in price," said Saumil Gandhi, senior analyst – commodities at HDFC Securities.  

 

However, the upside in non-ferrous was capped due to weak economic data from Europe’s largest economy Germany. The country’s industrial production fell 3.4% on month in March because of a sharp decline in the automotive industry and a slump in exports.

 

ALUMINIUM prices rose as traders increased their long positions on the domestic bourse.

 

COPPER prices gained because of value buying at lower levels and weakness in the dollar.

 

LEAD contracts traded marginally higher due to short-covering of positions by traders on the MCX.

 

ZINC contracts rose on hopes of Chinese government support to the troubled property sector, which may boost metal’s demand.

 

* At 1730 IST, on the MCX, the May futures contract of:

 –Aluminium was at 208.95 rupees a kg, up 0.4%

 –Copper was at 753.10 rupees a kg, up 1.3%

 –Lead was at 184.0 rupees a kg, up 0.1%

 –Zinc was at 239.35 rupees a kg, up 0.5%

 

* Outlook for the evening session on the MCX:

 –Aluminium contract seen at 207.70-209.60 rupees

 –Copper seen at 741.30-759.70 rupees

 –Lead seen at 183.20-184.50 rupees

 –Zinc seen at 237.80–241.0 rupees

 

End

US$1 = 81.79 rupees

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

 

Edited by Maheswaran Parameswaran

 

 

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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