Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (September 27, 2012)

Contributed by Angel Broking

The base metals pack traded lower in yesterday's trading session on account of rise in risk aversion in the global markets along with strength in the DX.

Additionally, mixed LME inventories also added downside pressure on the prices. Also unfavourable economic data from the US led to fall in the prices.

In the Indian markets, depreciation in the Rupee cushioned sharp fall in the prices on the MCX.

Copper

Copper, the l eader of the base metals complex declined by 1.4 percent yesterday on the back of weak global market sentiments along with strength in the DX.

Additionally, rise in the LME Copper inventories by 0.1 percent which stood at 220,525 tonnes also exerted downside pressure on the prices. The red metal touched an intra-day low of $8,082/tonne and closed at $8,143.30/tonne in yesterday's trading session.

On the domestic front, prices fell by 0.7 percent and closed at Rs.442.0/kg after touching an intra-day low of Rs.439.8/kg on We dnesday. However, depreciation in the Rupee prevented sharp fall in the prices on the MCX.

Outlook

In today's session, we expect base metals to trade on a firm note on account of mixed global market sentiments along with weakness in the DX. Additionally, anticipating further stimulus measures from the Chinese government might support an upside in the base metals pack. In the Indian markets appreciation in the Rupee will cap sharp gains in the base metal prices on MCX.