The base metal complex traded mostly lower for the entire day as the global market factors were not so supportive along with rally in dollar index over the basket majors.

In evening the rise in key interest rates by India further cause a trigger in the market, as the policy meet was unexpected The dollar index, a performance track of basket majors, made a high of 80.889, to end the day at 80.724, +0.62%

The World Bureau of Metal Statistics came out with the production and consumption figures for the January month 2010 vis-à-vis the last month, and same month last year.

Most of the metals reported surplus to follow and thus suggest that demand is yet on lows and need industrial pick up soon Indian government raising the key interest rate was a sudden surprise to the market that apprehended lower intakes from the Asian economy.

The Wall Street was no exception to the rise in benchmark lending and borrowing rates and fell modest. It also brings along concerns that China and Japan might take similar steps to tighten the monetary policy

OUTLOOK

Refined copper imports by China gained 12% to 220,530 tonnes in February from the previous month. Inventory monitored by the Shanghai futures exchange expanded 8.8% to 169,101 tonnes last week, extending a climb to the highest since at least 2003 Day ahead, the market do not expect any major data releases from the US, and Germany.

However the Euro-zone is due to release its Consumer Confidence figures for the March month, expecting to remain same as the prior months levels of -17 Equities trade in mixed ranges in Asian hours after the US equity markets closed lower.

Similar weakness continuing for the day might mirror weaker participation in the commodities market as well the dollar index opened at 80.850 and moves up by 0.06%.

Dampening of the basket majors, Euro, Pound and Yen specific lends strength to dollar.

Moreover the Greece issues finding no outcomes is mounting worries for the crisis to spread in other nations as well Consolidating the view we suggest base metals open on a flat regular note as the global factors do not move uni-directional.

Electronic session at LME running marginally higher might pull up prices, while dollar index gaining momentum would limit the rise. Absence of economic data release would mark lackluster trades.

Thus the dollar index and equity would be the prime price movers for the day

Courtesy: Karvy Commtrade Ltd.

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