Nickel futures extend gains on strong demand, global cues

Buoyed by a firming trend at the London Metal Exchange (LME) and strong spot demand, nickel futures prices rose by 0.40 per cent to Rs 1,140.30 per kg today.

At the Multi Commodity Exchange counter, nickel for delivery in February traded Rs 4.50, or 0.40 per cent higher, to Rs 1,140.30 per kg, with a trade turnover of two lots.

The metal for delivery in December also rose by Rs 3.40, or 0.30 per cent, to Rs 1,122.50 per kg, with a business turnover of just one lot.

Meanwhile, nickel advanced 0.6 per cent to $24,700 per tonne at the LME.

Market analysts said better trend at the LME after base metals strengthened on optimism over the economic recovery in the US boosted the demand outlook for the metals.

Besides, pick up in demand at domestic spot markets from alloy makers also supported the upside in the metal prices here, they added.