Base metals prices recover d-o-d

Base metals prices on the London Metal Exchange (LME) and the Shanghai Futures Exchange (SHFE) showed an upward trend on the last trading day. However, nickel remained almost stable even as zinc decreased by 0.28% d-o-d.

Investors are now waiting for the Reserve Bank of India's (RBI) monetary policy committee decision on Friday, 30 September, with growing expectation of a 50-basis points hike due to the pressure on the rupee from hefty interest rate hikes in the US.

India's central bank is expected to increase its policy rate by half a point for the third time in a row as the currency's plunge to a record low this month complicates the battle against inflation.

The RBI's six-member monetary policy committee will raise its repo rate to 5.9%.

Base metals market performance - 28 September

• SHFE copper rose 1.25%, aluminium gained 1.01%, lead advanced 0.Q71%, and zinc added 0.19%.
  
  
• Meanwhile, LME's three-month copper futures increased by 0.94%, nickel was down 0.24%, aluminum up 0.47%, zinc decreased by 0.28% and lead was up 5%.
  
  
• MCX aluminum was up 1%, nickel decreased by 3.7%, lead edged up by 1.36%, copper rose 2.37% and zinc increased by 1.10%.
  
  

Stock levels down

Most base metals stocks at LME-registered warehouses decreased by up to 1.24% d-o-d in the last session. However, copper stocks increased by 2%.

Oil prices rise

Brent oil futures rose 2% to $88.68 per barrel and crude oil WTI futures were up 4% at $81.68 per barrel at the time of reporting.

Currency exchange

The Indian rupee was trading at 81.80, appreciating 0.10 paise against the greenback at the time of reporting.

In initial trade, the rupee touched 81.88 against the dollar.

The dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered around 113.58, up marginally by 0.83% against the last session.