Buoyed by a firming global trend, nickel prices surged by Rs 16.90 or 1.70 per cent to Rs 1,010.20 per kg in futures trade today, as traders created fresh positions.
Pick up in demand in the physical markets from domestic alloy makers also influenced the nickel prices at futures market.
At the Multi Commodity Exchange counter, nickel for July-month contract surged by Rs 16.90, or 1.70 per cent to Rs 1,010.20 per kg, with an open interest of 172 lots.
The metal for delivery in current-month May contract also rose Rs 8.50, or 0.86 per cent to Rs 1,002 per kg, with a business volume of 10,354 lots.
Analysts attributed the sharp rise in nickel futures prices to a firming trend at London Metal Exchange and strong demand in the physical markets.
Meanwhile, nickel added 0.4 per cent to $21,275 a metric tonne on the London Metal Exchange.