Informist, Tuesday, Jan 10, 2023
By Chinmay Mungse
MUMBAI – Futures of most base metals on the Multi Commodity Exchange of India and the London Metal Exchange were in the red today as the US dollar rose against a basket of major currencies.
* The dollar index rebounded after falling to a seven-month low on Monday. A stronger greenback makes dollar-denominated commodities more expensive for holders of other currencies, dulling the demand for base metals.
* Hawkish comments from US Federal Reserve officials also dented the demand for base metals.
* Raphael Bostic, president of the Atlanta Fed, and San Francisco counterpart Mary Daly separately said the central bank will likely need to raise interest rates above 5% before pausing and holding for some time.
* A sell-off in COPPER contracts on the domestic and international bourses also weighed on prices. Copper prices on the MCX rose to a seven-month high of 754.45 rupees per tn on Monday and rose more than 3% on the LME.
* "Copper may see limited downside as First Quantum Minerals Ltd plans to appeal an order by Panama's government to halt production at a massive copper mine as an agreement remains elusive," Kotak Securities said in a report.
* Investors and market participants will be eyeing US Federal Reserve Chairman Jerome Powell's speech later today. Analysts are expecting Powell to provide cues on future rate hikes, which could determine the metal demand outlook.
* At 1645 IST, on the MCX, the January futures contract of:
–ALUMINIUM was at 210.45 rupees a kg, down 0.2%
–Copper was at 748.0 rupees a kg, down 0.5%
–LEAD was at 188.8 rupees a kg, flat from the previous close
–ZINC was at 279.85 rupees a kg, down 0.3%
* Outlook for the evening session on the MCX:
–Aluminium contract seen at 209.0-215.50 rupees a kg
–Copper seen at 744.0-752.0 rupees a kg
–Lead seen at 186.0-191.50 rupees a kg
–Zinc seen at 278.0–284.80 rupees a kg
End
US$1 = 81.79 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Manisha Baxla
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 feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2023. All rights reserved.
Informist, Tuesday, Mar 28, 2023 By Shiladitya Pandit MUMBAI – The festival season usually sees real estate developers offering various incentives to home buyers, including direct discounts, flexible payment options, and freebies like gold coins, white goods, furniture and automobiles. This year, however, such sops are few as costs are rising and demand is already high. Lower levels of inventory have […]
Informist, Tuesday, Mar 28, 2023 MUMBAI – Export-Import Bank of India will look to raise around $3 bln from offshore market and 200-250-bln-rupee debt from domestic market in 2023-24 (Apr-Mar), Managing Director Harsha Bangari told reporters on sideline of International Conference on G20 Trade Finance Cooperation. The government-backed development finance institution regularly taps overseas and domestic bond markets for […]
Informist, Tuesday, Mar 28, 2023 By Subhana Shaikh MUMBAI – India's fledgling corporate bond market is likely to become an unintended casualty of the surprise announcement by the finance ministry to withdraw long-term capital gains tax benefit on debt mutual funds, industry players said. The move is likely to hit incremental inflows into debt funds, which are major […]
Follow Informist
