MCX aluminium down on tepid demand, although Indian market closed higher on Dec 26
Indian market put up a good show during end-of-the-day trading hours on Tuesday, December 26, after a lacklustre performance throughout the day. Despite the uptrend in the market, aluminium prices on Multi Commodity Exchange fell by 0.5 per cent to INR 138.90 per kg.
Speculators were seen limiting their exposure to trading the light metal contract on the bourse as demand was tepid in the spot market. Global cues were weak too to provide adequate support to MCX aluminium.
Source: www.moneycontrol.com
Aluminium contract for December delivery was down by 0.5 per cent to INR138.9 per kg in a business turnover of 589 lots.
Analysts opined that offloading of position by participants owning to weak demand from the end user industries and in the physical market alongside weak trend in the overseas market contributed to the aluminium price drop in futures trade.
In another forecast, India has pared down its annual fuel demand growth estimate from 5.8 per cent in FY 2016-2017 to 4.5 per cent in FY 2017-2018, government data showed. This followed slower economic activity data release in the last quarter.
Introduction of Goods and Services Tax (GST) had initially dented India’s economic growth. The Reserve Bank of India estimates the economic growth at 6.7 per cent for this fiscal year.
Grow with
AL Circle
