Metal stocks drop as strong dollar push metal prices lower

MUMBAI: Metal stocks trimmed early gains Friday as a strong dollar pushed metal prices lower. After a strong opening, BSE Metal Index, at 2:41 pm, fell 1.34 per cent to 6812. The top losers from this sector were Hindalco (-4.84%), Tata Steel (-4.37%), JSW steel (-3.57%) and SAIL (-2.7%).

In the international market, the S&P GSCI Index slipped 1.33 points and Rogers International skid 8.05 points. Aluminum futures dropped 2.18 per cent and copper futures fell 1.72 per cent.

The Euro fell against the dollar after ECB President Trichet once again confirmed that additional non-standard measures will be decided at next policy meeting on May 7. Trichet emphasized that central banks and authorities must do all they can to restore confidence in the markets and said that calls for a "measured response to changing conditions."

Regarding recent diverse messages from ECB officials on interest rates and unconventional measures, Trichet said that the Governing Council was "very, very united". EUR/USD dipped to as low as 1.3066, taking 1.3089 support, suggesting that recent choppy fall from 1.3737 is resuming.

Currently the Euro was trading at 1.3080 against the dollar.