MUMBAI, Nov 4 (Reuters) - Indian copper futures reversed losses as a weak dollar supported the metal overseas, though a strong rupee capped gains back home, analysts said.
The red metal fell over 4 percent earlier in the day as demand concerns coupled with rising inventories and a strong rupee hit investor sentiment.
At 6.20 p.m., the benchmark November copper MCCX8 on the Multi Commodity Exchange of India (MCX) was up 1.82 percent at 206.9 rupees per kg.
"The dollar has weakened so the trend has changed. It is a short-term support as overall the outlook is bearish on demand concerns," said an analyst with a Delhi-based brokerage.
The dollar slipped against the euro and yen on Tuesday as investors awaited the results of the U.S. presidential election, while markets also anticipated interest rate cuts in the euro zone and the U.K this week. [USD/]
A weak dollar makes dollar-denominated commodities cheaper for holders of other currencies and increases demand.
In industry news, Inca Pacific (IPR.V: Quote, Profile, Research) delayed its Magistral project, the latest sign that miners, especially small ones, are struggling to bring projects into production as financing dries up and metals prices drop. [ID:nN03342924]
Traders are also expected to keep a track on the U.S. presidential polls due later in the day as the outcome of the election would impact base metals indirectly, via the currency and equity markets.
However, analysts added that any possible rally in metals will result in profit-taking as the outlook remains gloomy.
Zinc prices which traded weak through the day gave up losses and traded steady. At 6.20 p.m., the benchmark zinc for November delivery MZIX8 on the MCX was up 0.09 percent at 57.15 rupees per kg.
Lead and nickel futures, which traded volatile through the day, traded up in evening trade on Tuesday.
At 6.20 p.m., Benchmark November lead MLDX8 was up 2.27 percent at 74.35 rupees and November nickel MNKX8 was up 0.99 percent at 589.1 rupees.
(Reporting by Nandita Bose; Editing by Prem Udayabhanu)
