Mumbai: India’s copper futures fell nearly 2% on Monday, triggered by selling on concerns that problems in the US housing and credit markets were spreading to the broader economy and on rising stockpiles, analysts said.
The November contract on the Multi Commodity Exchange of India Ltd traded at Rs305.40 a kg on Monday—down 1.77%. Copper hit a low of Rs305.10 on Monday—a level it last touched on 19 September. “Today, base metals are weak only and only because of the US economy, but prices could recover by evening,” Sugandha Sachdeva, analyst at Religare Commodities Ltd, said. “Copper broke a major support of Rs308 on Monday, so it is looking weak.”
An 11-week-old strike at Grupo México’s Cananea mine and the dollar’s weakness did not blunt the bearish sentiment brought on by weaker equities and rising inventories. On Friday, the Dow Jones Industrial Average fell 2.6%—its biggest drop in two months, coinciding with the 20th anniversary of the 1987 stock market crash, after warnings that the US may be headed for a recession. “Risk aversion sentiment is still in the market,” Sahil Kapoor, a Kotak Commodities Services Ltd analyst, said.