Nickel gains on global cues, spot demand

Manufacturing output in China allays investor fears

Rebound in base metals at the London Metal Exchange (LME) and a pick-up in demand from alloy-makers in the domestic spot market saw nickel prices rise 0.22% in futures trade today.

At the Multi Commodity Exchange, nickel for delivery in July traded higher by Rs 2.10, or 0.22%, to Rs 880.10 per kg, with a business turnover of 725 lots.

The August contract edged higher by Rs 2, or 0.22%, to Rs 891.60 per kg in 109 lots.

Analysts said the rebound in copper and other base metals at the LME owing to a better-than-expected July manufacturing output in China temporarily offset investor worries. Investors were worried that Spain's debt problems would undermine global demand for metals.

Nickel gained 0.44% to $15,668 a tonne at the LME.