PTI reported that amid an overseas weak trend in base metals on deepening debt crisis in the Europe, zinc prices fell by 0.83% to INR 101.25 per kilogram in futures trade.

Subdued demand in the domestic spot market also put pressure on zinc prices. At the Multi Commodity Exchange, September zinc declined by 85 paise or 0.83% to INR 101.25 per kilogram with a business turnover of 408 lots. The October contract delivery shed 70 paise or 0.68% to INR 102.35 per kilogram in 178 lots.

Market analysts attributed the fall in zinc futures prices to a weakening trend in the entire base metals pack on the London Metal Exchange on mounting concern over Europe's sovereign debt crisis, reducing prospects of growing demand for industrial metals. Meanwhile, zinc fell by 0.6% to USD 2,172 per tonne on the London Metal Exchange.

(Sourced from Press Trust of India)