Copper futures surge 0.37% on global cues

Copper gained 0.37% to Rs 407.75 per kg in futures trade today as speculators enlarged their positions, tracking a firming trend in base metals overseas.

In addition, a pick-up in demand in the domestic spot market supported the upside in copper futures prices.

At the Multi Commodity Exchange, copper for delivery in February gained Rs 1.50, or 0.37%, to Rs 407.75 per kg, with a trading volume of 2,366 lots.

In a similar fashion, the metal for delivery in April gained Rs 1.40, or 0.34%, to Rs 411.60 per kg, with an open interest for 121 lots.

Globally, copper for three-month delivery jumped by 0.7% to $7,760 a tonne on the London Metal Exchange (LME).

Analysts attributed the rise in copper futures to a firming trend on the LME on speculation that lower-than-expected inflation in China would prompt a revival in demand.

Consumer prices in China rose 4.2% year-on-year in November, the slowest pace in 14 months, data from the National Bureau of Statistics showed today.