THERE IS NO FLOOR:

The bank explained that though commodities was one of the favorite investment picks because of their returns this year, it was unlikely that this asset class would give the same kind of returns in the second quarter of 2016. Barclays added that the recent price hike in commodities was not justified as fundamentals had not improved. It said there was also an increase in production capacity and inventories of certain commodities such as oil and copper.

"This could make commodities vulnerable to a wave of investor liquidation that we estimate could, in a worst case scenario, knock as much as 20-25% from current price levels," the note said, adding that while oil prices could touch the low $30 levels, copper prices could hit the low $4,000 region.

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