Nickel futures up on spot demand, overseas trend

Supported by strong spot demand and firming trend at the London Metal Exchange (LME), nickel futures traded 1.48 per cent higher at Rs 1,210 per kg today.

At the Multi Commodity Exchange counter, nickel for delivery in February traded Rs 17.70, or 1.48 per cent higher, to Rs 1,210 per kg, with a business turnover of two lots. 

Similarly, the metal for delivery in far-month March also moved edged higher by Rs 16.30, or 1.36 per cent, to Rs 1,216.70 per kg, with a business turnover of just one lot. 

At the LME, nickel climbed 0.5 per cent to $26,640 per tonne, the highest since April last year. 

Market analysts said the rise in nickel futures was mostly attributed to pick-up in demand at the domestic market from steel makers and firming trend in base metals overseas. after US new-home sales topped estimates.

The US Federal Reserve maintained stimulus efforts, bolstering the demand outlook for base metals.