Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (September 12, 2012)

Contributed by Angel Broking

The base metals pack traded on a positive note in the yesterday's trading session on the back of rise in risk appetite in the global markets along with weakness in the DX. However, mixed LME inventories ca pped sharp upside in the prices.

In the Indian markets appreciation in the Rupee added downside pressure on the prices.

Copper

Copper, the leader of the base metals complex gained by 0.2 percent in the yesterday's trading session on the back of upbeat global market sentiments along with weakness in the DX.

Additionally, decline in LME Copper inventories by 50 tonnes which stood at 214,600 tonnes also supported upside in the prices. The red metal touched a high of $8,127.75/tonne in yesterday's trade and closed at $8,088.30/tonne on Tuesday.

On the domestic front, prices gained by 0.1 percent as a result of appreciation in the Indian Rupee and closed at Rs.452.90/kg on after touching a low Rs.449.6/kg in the yesterday's trading session.

Outlook

In today's session, we expect base metal prices to trade on bullish note on the back of upbeat global market sentiments coupled with weakness in the DX. Additionally expectation of stimulus measures from the US Federal Reserve and the Chinese government to foster growth of the nations is expected to support an upside in the base metals pack. Appreciation in the Rupee will cap sharp gains in the base metal prices in the Indian markets.