Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (October 05, 2012)

Contributed by Angel Broking

The base metals pack traded on a positive note in yesterday's trading session taking cues from positive market sentiments triggered by affirmative statement from the ECB president Mario Draghi that the bank is ready to buy bonds but if conditions are met. Weakness in the DX also supported an upside in the base metals pack.

Decline in LME inventories in yesterday's session also supported an upside in the base metals pack.

In the domestic markets, prices declined on account of appreciation in the Indian Rupee.

Copper

Copper, the leader of the base metals complex gained 0.3 percent taking cues from positive statement from the ECB along with favourable data from the US economy. Weakness in the DX also supported an upside in the red metal.

The red metal touched a high of $8,355/tonne and closed at $8,315/tonne in yesterday's session. Decline in the LME copper inventories also acted as a supportive factor for the metal prices.

MCX Copper prices declined 1.3 percent owing to appreciation in the Indian rupee and closed at Rs.433.2/kg on Thursday after touching a low of Rs.432.6/kg in yesterday's session.

Outlook

In today's session, we expect base metals to trade with a positive bias on the back of positive global market sentiments along with weakness in the DX. Appreciation in the Rupee will however cap sharp gains in the prices of base metals on MCX.