As the week began, concerns over Spain slipping into recession dampened the market sentiments.
After an initial rise, global commodities turned lower. Euro was hit due to increasing murkiness over the Euro Zone sovereign debt issue and Spanish data.
Spot gold was caught in a tight range and was hovering near a two-week high before taking a dip. At the Multi Commodity Exchange too, prices held mostly steady supported by a depreciating rupee.
Base metals
Base metals at the London Metal Exchange were seen retreating after an initial rise with the nickel declining more than one per cent.
However, trades remained thin as Shanghai markets remained closed. LME copper declined after hitting a one-month high on supply tightness.
At the MCX, base metal complex showed a mixed trend. Tracking global trends, nickel was seen declining too, shedding more than one per cent.
Crude
Crude oil retreated from high levels as concerns over the European debt crisis gripped the markets.
Investors will be closely watching for the US non-farm payrolls data later this week for further directional cues.
Rupee
The Indian rupee continues to spiral downwards. The continuing strength in gold and reports about fall in growth in eight key infrastructure industries in March are likely to further weigh on the market.
Moreover the sharp slip in crude and natural gas production in March is likely to add to the worries as surging import bill could weaken the rupee further.