The Hindu Business Line : Base metals rally on global cues

NEW DELHI: Lead rose by over two per cent on the domestic futures market on Thursday as speculators cover short positions driven by firming global markets.

Lead, for the most-active August contract was trading 2.73 per cent higher at Rs 75.35 per kg with a business volume of 3,035 lots at 1500 hrs on Multi Commodity Exchange. September contract gained 2.21 per cent at Rs 76.15 per kg. It recorded business volume of 163 lots.

Traders said bargain buying by speculators at prevailing lower levels and short-covering by speculators helped most of base metals to trade back in positive zone.

“Short-covering by speculators was major force behind rebound in base metal prices,'' said an MCX trader, adding “Despite today's recovery, outlook for industrial base metals still looking bearish on worries about the global economy.''

Nickel for August and September contracts moved up by 0.92 and 0.98 per cent at Rs 831.10 and Rs 843.50 per kg respectively.

Copper for August and November contracts was trading up 0.99 per cent and 0.93 per cent at Rs 320.35 and Rs 320.50 per kg respectively.

Aluminium in line with other base metals also showed some strength with August contract gaining 0.38 per cent and September contract by 0.96 per cent respectively.

However, zinc was trading in negative zone on selling pressure. August contract fell by 0.49 per cent at Rs 71.40. September contract lost 0.34 per cent at Rs 72.75 per kg respectively.

Meanwhile, Hindustan zinc, India's largest metal producer, cut the price of zinc by 3 per cent to Rs 81,100 per tonne while lowered lead prices by 10.4 per cent to Rs 90,400 per tonne respectively. - PTI

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