Back

India Base Metals: Most fall on profit booking, US CPI data eyed

Informist, Monday, Aug 8, 2022

 

By Sandeep Sinha

 

MUMBAI –  Futures contract of most base metals fell on the Multi Commodity Exchange of India on similar cues from the London Metal Exchange. Profit booking amid increased tensions between the US and China over Taiwan hit contracts on LME

 

* “Cash selling continues across most of the metals – – suggestive of floating material which is unwanted by the downstream consumer although in contrast the LME on warrant stocks combined with Shanghai weekly deliverable levels showing the majority of metals have been seeing official inventory declines,” Al Munro at broker Marex said in a note.

 

* “Commodities may remain volatile as market players assess Federal Reserve’s stance, China’s economic health and geopolitical situation,” Kotak Securities said in a note. Increased expectations of Fed’s rate hike may however keep pressure on prices, the brokerage added.

 

* Market players will await US consumer price index data to be released on Wednesday for further cues.

 

* LME stocks of ALUMINIUM fell 1,700 tn to 287,425 tn, and those of COPPER down 750 tn to 127,850 tn; ZINC stocks fell 375 tn to 73,550 tn, and those of NICKEL fell 372 tn to 57,252 tn cushioned the sharp downside. LEAD stocks, however, remained unchanged at 38,875 tn.

 

* Aluminium prices gained as traders increased their long positions on the MCX and a decline in LME inventory.

 

* Zinc contract fell due to profit booking after a sharp rally in the past few sessions. Traders unwound their long position on the domestic bourse also weighed on prices.  

 

* At 1728 IST, on the MCX, the August futures contract of:

 –Aluminium was at 212.35 rupees, up 0.4% 

 –Copper was at 655.60 rupees a kg, down 0.1% 

 –Lead was at 182.40 rupees a kg, up 1%

— Nickel was at 1,880 rupees a kg, down 2.8%

 –Zinc was at 305.85 rupees a kg, down 1.3%

 

* Outlook for the evening session on MCX:

 –Aluminium contract seen at 209.80-214.20 rupees a kg

 –Copper seen at 650.10-662.80 rupees a kg

 –Lead seen at 179.60-183.60 rupees a kg

 –Nickel seen at 1,850.0–1,925.0 rupees a kg

 –Zinc seen at 300.40–313.0 rupees a kg

 

End

US$1 = 79.66 rupees

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

 

Edited by Arshad Hussain

 

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 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2022. All rights reserved.

 

Other News

Informist Poll:Fading base effect may drag Jul-Sep GDP growth to 6.3%

Informist, Monday, Nov 28, 2022 By Aditya Saroha and Priyansh Verma NEW DELHI – Growth in the Indian economy likely slowed to 6.3% in Jul-Sep from 13.5% a quarter ago, largely due to fading away of the statistical effect of a low base, according to an Informist poll of 23 economists. At 6.3%, the GDP growth rate will be in […]

Windfall gain tax mop-up about 150 bln rupee so far, says govt source

Informist, Monday, Nov 28, 2022 By Priyasmita Dutta and Sagar Sen NEW DELHI – The government has mopped up about 150 bln rupees so far from the additional tax imposed on windfall gains of domestic crude oil producers and petroleum product exporters following the sharp rise in oil prices globally. "The collection from the windfall gains tax will be nearly 140-150 bln […]

Equity Futures: Bullish bets in upstream oil cos as crude prices fall

Informist, Monday, Nov 28, 2022 By Vaibhavi MUMBAI – Traders aggressively bought futures and options of upstream oil companies today, anticipating more gains in these counters, as a drop in Brent crude oil prices eased pressure on their profitability. Brent crude futures slumped to an over 10-month low of around $81 per barrel as surging COVID-19 cases in China and the consequent […]