Wed Sep 2, 2009 4:10pm IST
MUMBAI, Sept 2 (Reuters) - India copper futures fell further for a third day in a row on Wednesday, weighed by weak equity markets, which renewed doubts of an early economic recovery and demand for the industrial metal, analysts said.
The most-traded copper November contract MCCX9 was 1.62 percent lower at 300.50 rupees per kg at 4:01 p.m., after hitting a low of 298.3 rupees earlier.
The contract had shed 3.9 percent in the previous two sessions.
World stocks fell close to 1 percent after an overnight sell off on Wall Street, with both Asia and Europe rattled by concerns over the sustainability of this year's equity rally. [MKTS/GLOB]
"Copper may witness continous weakness on equity markets, we could see level 296 (rupees) during session," said Kapil Gandhi of STCI Commodities.
"A top has been posted and copper might see further downside on rising inventory and choppy stock markets. Copper might deline to 292/287/270 rupees in days to come," said Praveen Singh, an analyst with Sharekhan Commodities.
Copper stocks in the warehouses monitored by the London Metal Exchange rose by 3,000 tonnes to 302,950 tonnes on Wednesday.
Investors would be awaiting U.S. non-farm payrolls, one of the most closely watched indicators, due later this week, for signs the improving macro-economic picture.
Copper, used in power and construction, has seen prices double this year, as a combination of Chinese stockpiling, speculative buying and improving macro data boosted prices.
In other base metals, zinc for September delivery MZIU9 was 1.01 percent lower at 88.50 rupees per kg, while lead for September delivery MLDU9 was 0.64 percent lower at 101.05 rupees per kg
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