MUMBAI (Commodity Online): Metal stocks gained momentum on the bourses after base metals reflected sharp rise in the international market following weak dollar due to Federal Open Market Committee (FOMC) meet on March 16, 2010, which cautioned the current economic scenario by proposing exceptionally low interest rates for an extended period.

Base metals in Asia will benefit from post-FOMC currency movements, USD weakness likely to continue in Asia, which would assist commodities to gain momentum in Asia today. Federal Reserve has said that it will leave interest rates at low level for extended period accompanied by E.U.

On the Indian commexes, copper prices edged upwards with April contract gained to Rs.340.3 per kg up from Rs.337.85 from the Tuesday’s closing. According to experts, copper would get continued support from a weak dollar. Three-month London copper was up 0.79 percent at $7,485 a tonne at 9:10 a.m.



On the stock exchanges, metal stocks gained the most with some of the key stocks including Jindal Saw Ltd (BOM:500378) Jai Corp Ltd (BOM:512237) and Steel Authority of India Ltd (SAIL) (BOM:500113) leading the index.

Jindal Saw gained close to 3% to Rs.221 in the morning trades, while Jai Corp rose over 2% to Rs.268.10. SAIL traded at Rs.241.75.

The sectoral index, BSE Metals was up 1.46% to 17,795 points. Meanwhile, the key benchmark index, Sensex traded at 17,541 points up 0.9% in the morning trades on Wednesday.

Copper major, Sterlite Industries (India) Ltd (BOM:500900) gained close to 1% to Rs.838.15, while Hindalco Industries Ltd (BOM:500440) traded at Rs.172.70 up close to 2% on the BSE.

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