India copper trades lower following overseas markets

MUMBAI, April 27 (Reuters) - India copper futures traded lower on Monday following international markets, where a broad sell-down in commodities and stocks on fears a deadly flu outbreak could reach pandemic proportions pressured the metal, analysts said.

The most traded April contract MCCJ9 was 2.05 percent lower at 220.05 rupees per kg at 4:24 p.m..

A pandemic would deal a major blow to a world economy already suffering its worst crisis in decades, and experts say it could cost trillions of dollars.

European shares shed more than 1 percent, while Asian stocks slipped about 2 percent on news of the flu outbreak. [MKTS/GLOB]

However, a fall in copper inventory in LME and a weak rupee kept the downside limited, they added.

Copper stocks fell by 4,275 tonnes to 425,275 tonnes on Monday.

A weak rupee makes the dollar-quoted gold expensive. The Indian rupee traded lower in afternoon session after having risen for seven straight weeks, as a see-sawing share market failed to provide clarity on fund flows, while a stronger dollar overseas also hurt. See [ID:nBOM466012]

"The downward trend would continue in copper on the back of doubts of overall demand," said T. Gnanansekar, director with Commtrendz Research in Mumbai.

"Crucial support is pegged at 213.50 rupees," said Thiagarajan.

"If copper falls below 215 rupees, then prices may further tumble to 207/200," said Pranav Mer, an analyst with India Infoline in Mumbai.

April zinc MZIJ9 was 2.09 percent lower at 68.00 rupees per kg, while April lead MLDJ9 was 2.26 percent lower at 69.30 rupees per kg at 4:24 p.m..

(Reporting by Siddesh Mayenkar; Editing by Sunil Nair)