Thursday, August 27, 2015

Zinc futures plunged by more than 3 % in Market

Zinc futures plunged by more than 3 per cent in the domestic market on Wednesday as investors and speculators cut risky bets in the industrial metal as markets in China extended the steepest five-day slump since 1996, sinking 1.3 per cent as further stimulus measures from the People’s Bank of China failed to arrest a USD 5 trillion equity rout.
Fears that the China equity turmoil may spread to other parts of the world’s second biggest economy clouded the demand outlook for the industrial metal, given that China is the world’s biggest metals consumer. The People’s Bank of China on Tuesday cut interest rates by 25 basis points, the fifth reduction since last November, while the bank reserve ratio was slashed by 50 basis points.Weak physical demand for Zinc in the domestic spot market also dampened sentiment.
At the MCX, Zinc futures for August 2015 contract closed at Rs per 111.10 per 1 kg, down by 3.31 per cent after opening at Rs 114.40, against the previous closing price of Rs 114.90. It touched the intra-day low of Rs 110.60.

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