Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (October 09, 2012)

Contributed by Angel Broking

The base met als pack traded on a negative note in the yesterday's trade on the back of rise in risk aversion in the global markets which added downsi de pressure on the prices.

Additionally, strength in the DX also acted as a negative factor for the prices. However, decline in LME inventories cushioned sharp fall in the prices.

In the Indian markets, depreciation in the Rupee prevented further fall in the prices.

Copper

Copper, the l eader of the base metals complex declined by 0.9 percent yesterday on the back of weak global market sentiments coupled with strength in the DX.

However, decline in LME Copper inventories by 0.1 percent which stood at 222,500 tonnes restricted sharp fall in the prices. The red metal touched an intra-day low of $8,128/tonne and closed at $8,180/tonne in yesterday's trading session.

On the MCX, Copper November contract declined 0.2 percent and closed at Rs.433.50/kg after touching an intra-day low of Rs.431.1/kg on Monday. Depreciation in the Indian Rupee restricted further fall in the prices.

Outlook

In today's session, we expect base metals to trade on a bearish note on the back of mixed global market sentiments along with strength in the DX. However, expectation of stimulus measures to be announced in China may cushion sharp fall in the base metals. Depreciation in the Rupee will however cushion sharp fall in the prices of base metals on MCX.